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  <FMTR>
    <TITLEPG>
      <CODE>CODE OF FEDERAL REGULATIONS</CODE>
      <PRTPAGE P="1"/>48<PARTS>Chapter 29 to End</PARTS>
      <REVISED>Revised as of October 1, 2000</REVISED>
      <SUBJECT>Federal Acquisition Regulations System</SUBJECT>
      <CONTAINS>Containing a Codification of documents of general applicability and future effect</CONTAINS>
      <DATE>As of October 1, 2000</DATE>
      <ANCIL>With Ancillaries</ANCIL>
      <PUB>
        <P>Published by</P>
        <P>Office of the Federal Register</P>
        <P>National Archives and Records</P>
        <P>Administration</P>
      </PUB>
      <SPECED>As a Special Edition of the Federal Register</SPECED>
    </TITLEPG>
    <BTITLE>
      <PRTPAGE P="?ii"/>
      <GPO>U.S. GOVERNMENT PRINTING OFFICE</GPO>
      <CITY>WASHINGTON : 2000</CITY>
      <FORSALE>
        <P>For sale by U.S. Government Printing Office</P>
        <P>Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328</P>
      </FORSALE>
    </BTITLE>
    <TOC>
      <PRTPAGE P="iii"/>
      <HD SOURCE="HED">Table of Contents</HD>
      <PGHD>Page</PGHD>
      <EXPL>
        <SUBJECT>Explanation</SUBJECT>
        <PG>vi</PG>
      </EXPL>
      <TITLENO>
        <HD SOURCE="HED">Title 48:</HD>
        <CHAPTI>
          <SUBJECT>Chapter 29—Department of Labor</SUBJECT>
          <PG>3</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 34—Department of Education Acquisition Regulation</SUBJECT>
          <PG>61</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 35—Panama Canal Commission</SUBJECT>
          <PG>89</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 44—Federal Emergency Management Agency</SUBJECT>
          <PG>173</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 51—Department of the Army Acquisition Regulations</SUBJECT>
          <PG>197</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 52—Department of the Navy Acquisition Regulations</SUBJECT>
          <PG>207</PG>
        </CHAPTI>
        <CHAPTI>
          <RESERVED>Chapter 53—Department of the Air Force Federal Acquisition Regulation Supplement [Reserved]</RESERVED>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 54—Defense Logistics Agency, Department of Defense</SUBJECT>
          <PG>215</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 57—African Development Foundation</SUBJECT>
          <PG>219</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 61—General Services Administration Board of Contract Appeals</SUBJECT>
          <PG>221</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 63—Department of Transportation Board of Contract Appeals</SUBJECT>
          <PG>261</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 99—Cost Accounting Standards Board, Office of Federal Procurement Policy, Office of Management and Budget</SUBJECT>
          <PG>275</PG>
        </CHAPTI>
      </TITLENO>
      <FAIDS>
        <HD SOURCE="HED">Finding Aids:</HD>
        <SUBJECT>Table of CFR Titles and Chapters</SUBJECT>
        <PG>493<PRTPAGE P="iv"/>
        </PG>
        <SUBJECT>Alphabetical List of Agencies Appearing in the CFR</SUBJECT>
        <PG>511</PG>
        <SUBJECT>List of CFR Sections Affected</SUBJECT>
        <PG>521</PG>
      </FAIDS>
    </TOC>
    <CITE>
      <PRTPAGE P="v"/>
      <P>Cite this Code:<E T="01">CFR</E>
      </P>

      <CITEP>To cite the regulations in this volume use title, part and section number. Thus, <E T="01"> 48 CFR 2901.100</E> refers to title 48, part 2901, section 100.</CITEP>
    </CITE>
    <EXPLA>
      <PRTPAGE P="vi"/>
      <HD SOURCE="HED">Explanation</HD>
      <P>The Code of Federal Regulations is a codification of the general and permanent rules published in the Federal Register by the Executive departments and agencies of the Federal Government. The Code is divided into 50 titles which represent broad areas subject to Federal regulation. Each title is divided into chapters which usually bear the name of the issuing agency. Each chapter is further subdivided into parts covering specific regulatory areas.</P>
      <P>Each volume of the Code is revised at least once each calendar year and issued on a quarterly basis approximately as follows:</P>
      <IPAR>
        <P SOURCE="P1">Title 1 through Title 16 </P>
        <STUB>as of January 1</STUB>
        <P SOURCE="P1">Title 17 through Title 27 </P>
        <STUB>as of April 1</STUB>
        <P SOURCE="P1">Title 28 through Title 41 </P>
        <STUB>as of July 1</STUB>
        <P SOURCE="P1">Title 42 through Title 50 </P>
        <STUB>as of October 1</STUB>
      </IPAR>
      <P>The appropriate revision date is printed on the cover of each volume.</P>
      <SIDEHED>
        <HD SOURCE="HED">LEGAL STATUS</HD>
        <P>The contents of the Federal Register are required to be judicially noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie evidence of the text of the original documents (44 U.S.C. 1510).</P>
      </SIDEHED>
      <SIDEHED>
        <HD SOURCE="HED">HOW TO USE THE CODE OF FEDERAL REGULATIONS</HD>
        <P>The Code of Federal Regulations is kept up to date by the individual issues of the Federal Register. These two publications must be used together to determine the latest version of any given rule.</P>
        <P>To determine whether a Code volume has been amended since its revision date (in this case, October 1, 2000, consult the “List of CFR Sections Affected (LSA),” which is issued monthly, and the “Cumulative List of Parts Affected,” which appears in the Reader Aids section of the daily Federal Register. These two lists will identify the Federal Register page number of the latest amendment of any given rule.</P>
      </SIDEHED>
      <SIDEHED>
        <HD SOURCE="HED">EFFECTIVE AND EXPIRATION DATES</HD>
        <P>Each volume of the Code contains amendments published in the Federal Register since the last revision of that volume of the Code. Source citations for the regulations are referred to by volume number and page number of the Federal Register and date of publication. Publication dates and effective dates are usually not the same and care must be exercised by the user in determining the actual effective date. In instances where the effective date is beyond the cut-off date for the Code a note has been inserted to reflect the future effective date. In those instances where a regulation published in the Federal Register states a date certain for expiration, an appropriate note will be inserted following the text.</P>
      </SIDEHED>
      <SIDEHED>
        <HD SOURCE="HED">OMB CONTROL NUMBERS</HD>

        <P>The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires Federal agencies to display an OMB control number with their information collection request. <PRTPAGE P="vii"/>Many agencies have begun publishing numerous OMB control numbers as amendments to existing regulations in the CFR. These OMB numbers are placed as close as possible to the applicable recordkeeping or reporting requirements.</P>
      </SIDEHED>
      <SIDEHED>
        <HD SOURCE="HED">OBSOLETE PROVISIONS</HD>
        <P>Provisions that become obsolete before the revision date stated on the cover of each volume are not carried. Code users may find the text of provisions in effect on a given date in the past by using the appropriate numerical list of sections affected. For the period before January 1, 1986, consult either the List of CFR Sections Affected, 1949-1963, 1964-1972, or 1973-1985, published in seven separate volumes. For the period beginning January 1, 1986, a “List of CFR Sections Affected” is published at the end of each CFR volume.</P>
      </SIDEHED>
      <SIDEHED>
        <HD SOURCE="HED">CFR INDEXES AND TABULAR GUIDES</HD>

        <P>A subject index to the Code of Federal Regulations is contained in a separate volume, revised annually as of January 1, entitled CFR <E T="04">Index and Finding Aids.</E> This volume contains the Parallel Table of Statutory Authorities and Agency Rules (Table I). A list of CFR titles, chapters, and parts and an alphabetical list of agencies publishing in the CFR are also included in this volume.</P>
        <P>An index to the text of “Title 3—The President” is carried within that volume.</P>
        <P>The Federal Register Index is issued monthly in cumulative form. This index is based on a consolidation of the “Contents” entries in the daily Federal Register.</P>
        <P>A List of CFR Sections Affected (LSA) is published monthly, keyed to the revision dates of the 50 CFR titles.</P>
      </SIDEHED>
      <SIDEHED>
        <HD SOURCE="HED">REPUBLICATION OF MATERIAL</HD>
        <P>There are no restrictions on the republication of material appearing in the Code of Federal Regulations.</P>
      </SIDEHED>
      <SIDEHED>
        <HD SOURCE="HED">INQUIRIES</HD>
        <P>For a legal interpretation or explanation of any regulation in this volume, contact the issuing agency. The issuing agency's name appears at the top of odd-numbered pages.</P>
        <P>For inquiries concerning CFR reference assistance, call 202-523-5227 or write to the Director, Office of the Federal Register, National Archives and Records Administration, Washington, DC 20408 or e-mail info@fedreg.nara.gov.</P>
      </SIDEHED>
      <SIDEHED>
        <HD SOURCE="HED">SALES</HD>
        <P>The Government Printing Office (GPO) processes all sales and distribution of the CFR. For payment by credit card, call 202-512-1800, M-F 8 a.m. to 4 p.m. e.s.t. or fax your order to 202-512-2233, 24 hours a day. For payment by check, write to the Superintendent of Documents, Attn: New Orders, P.O. Box 371954, Pittsburgh, PA 15250-7954. For GPO Customer Service call 202-512-1803.</P>
      </SIDEHED>
      <SIDEHED>
        <HD SOURCE="HED">ELECTRONIC SERVICES</HD>

        <P>The full text of the Code of Federal Regulations, the LSA (List of CFR Sections Affected), The United States Government Manual, the Federal Register, Public Laws, Public Papers, Weekly Compilation of Presidential Documents and the Privacy Act Compilation are available in electronic format at www.access.gpo.gov/nara (''GPO Access''). For more information, contact Electronic Information Dissemination Services, U.S. Government Printing Office. Phone 202-512-1530, or 888-293-6498 (toll-free). E-mail, gpoaccess@gpo.gov.<PRTPAGE P="viii"/>
        </P>
        <P>The Office of the Federal Register also offers a free service on the National Archives and Records Administration's (NARA) World Wide Web site for public law numbers, Federal Register finding aids, and related information.  Connect to NARA's web site at www.nara.gov/fedreg. The NARA site also contains links to GPO Access.</P>
      </SIDEHED>
      <SIG>
        <NAME>Raymond A. Mosley,</NAME>
        <POSITION>Director,</POSITION>
        <OFFICE>Office of the Federal Register.</OFFICE>
      </SIG>
      <DATE>October 1, 2000.</DATE>
    </EXPLA>
    <THISTITL>
      <PRTPAGE P="ix"/>
      <HD SOURCE="HED">THIS TITLE</HD>
      <P>Title 48—<E T="04">Federal Acquisition Regulations System</E> is composed of seven volumes. The chapters in these volumes are arranged as follows: Chapter 1 (parts 1 to 51), chapter 1 (parts 52 to 99), chapter 2 (parts 201 to 299), chapters 3 to 6, chapters 7 to 14, chapters 15 to 28 and chapter 29 to end. The contents of these volumes represent all current regulations codified under this title of the CFR as of October 1, 2000.</P>

      <P>The Federal acquisition regulations in chapter 1 are those government-wide acquisition regulations jointly issued by the General Services Administration, the Department of Defense, and the National Aeronautics and Space Administration. Chapters 2 through 99 are acquisition regulations issued by individual government agencies. Parts 1 to 69 in each of chapters 2 through 99 are reserved for agency regulations <E T="03">implementing</E> the Federal acquisition regulations in chapter 1 and are numerically keyed to them. Parts 70 to 99 in chapters 2 through 99 contain agency regulations <E T="03">supplementing</E> the Federal acquisition regulations.</P>
      <P>The OMB control numbers for the Federal Acquisition Regulations System appear in section 1.106 of chapter 1. For the convenience of the user section 1.106 is reprinted in the Finding Aids section of the second volume containing chapter 1 (parts 52 to 99).</P>
      <P>The first volume, containing chapter 1 (parts 1 to 51), includes an index to the Federal acquisition regulations.</P>
      <P>For this volume, Jonn V. Lilyea was Chief Editor. The Code of Federal Regulations publication program is under the direction of Frances D. McDonald, assisted by Alomha S. Morris.</P>
      <GPH DEEP="532" SPAN="1">
        <PRTPAGE P="x"/>
        <GID>CFRORDR.FRM</GID>
      </GPH>
    </THISTITL>
  </FMTR>
  <TITLE>
    <LRH>48 CFR Ch. 29 (10-1-00 Edition)</LRH>
    <RRH>Department of Labor</RRH>
    <CFRTITLE>
      <TITLEHD>
        <PRTPAGE P="1"/>
        <HD SOURCE="HED">Title 48—Federal Acquisition Regulations System</HD>
        <P>(This book contains chapter 29 to End)</P>
      </TITLEHD>
      <CFRTOC>
        <PTHD>Part</PTHD>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 29</E>—Department of Labor</SUBJECT>
          <PG>2901</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 34</E>—Department of Education Acquisition Regulation</SUBJECT>
          <PG>3401</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 35</E>—Panama Canal Commission</SUBJECT>
          <PG>3501</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 44</E>—Federal Emergency Management Agency</SUBJECT>
          <PG>4401</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 51</E>—Department of the Army Acquisition Regulations</SUBJECT>
          <PG>5108</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 52</E>—Department of the Navy Acquisition Regulations</SUBJECT>
          <PG>5215</PG>
        </CHAPTI>
        <CHAPTI>
          <RESERVED>
            <E T="04">chapter 53</E>—Department of the Air Force Federal Acquisition Regulation Supplement [Reserved]</RESERVED>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 54</E>—Defense Logistics Agency, Department of Defense</SUBJECT>
          <PG>5416</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 57</E>—African Development Foundation</SUBJECT>
          <PG>5706</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 61</E>—General Services Administration Board of Contract Appeals</SUBJECT>
          <PG>6101</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 63</E>—Department of Transportation Board of Contract Appeals</SUBJECT>
          <PG>6301<PRTPAGE P="2"/>
          </PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>
            <E T="04">chapter 99</E>—Cost Accounting Standards Board, Office of Federal Procurement Policy, Office of Management and Budget</SUBJECT>
          <PG>9900</PG>
        </CHAPTI>
      </CFRTOC>
    </CFRTITLE>
    <CHAPTER>
      <LRH>48 CFR Ch. 34 (10-1-00 Edition)</LRH>
      <RRH>Department of Education</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="3"/>
          <HD SOURCE="HED">CHAPTER 29—DEPARTMENT OF LABOR</HD>
          <P>(Parts 2900 to 2999)</P>
        </TOCHD>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        </SUBCHAP>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>2901</PT>
          <SUBJECT>Department of Labor Acquisition Regulation System</SUBJECT>
          <PG>5</PG>
          <PT>2902</PT>
          <SUBJECT>Definitions of words and terms</SUBJECT>
          <PG>16</PG>
          <PT>2903</PT>
          <SUBJECT>Improper business practices and personal conflicts of interest</SUBJECT>
          <PG>16</PG>
          <PT>2904</PT>
          <SUBJECT>Administrative matters</SUBJECT>
          <PG>18</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER B—ACQUISITION PLANNING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2905</PT>
          <SUBJECT>Publicizing contract actions</SUBJECT>
          <PG>19</PG>
          <PT>2906</PT>
          <SUBJECT>Competition requirements</SUBJECT>
          <PG>19</PG>
          <PT>2907</PT>
          <SUBJECT>Acquisition planning</SUBJECT>
          <PG>20</PG>
          <PT>2908</PT>
          <SUBJECT>Required sources of supplies and services</SUBJECT>
          <PG>21</PG>
          <PT>2909</PT>
          <SUBJECT>Contractor qualifications</SUBJECT>
          <PG>21</PG>
          <PT>2910</PT>
          <SUBJECT>Specifications, standards, and other purchase descriptions</SUBJECT>
          <PG>23</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2913</PT>
          <SUBJECT>Small purchase and other simplified purchase procedures</SUBJECT>
          <PG>25</PG>
          <PT>2914</PT>
          <SUBJECT>Sealed bidding</SUBJECT>
          <PG>26</PG>
          <PT>2915</PT>
          <SUBJECT>Contracting by negotiation</SUBJECT>
          <PG>27</PG>
          <PT>2916</PT>
          <SUBJECT>Types of contracts</SUBJECT>
          <PG>29</PG>
          <PT>2917</PT>
          <SUBJECT>Special contracting methods</SUBJECT>
          <PG>29</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2919</PT>
          <SUBJECT>Small business and small disadvantaged business concerns</SUBJECT>
          <PG>31</PG>
          <PT>2920</PT>
          <SUBJECT>Labor surplus area concerns</SUBJECT>
          <PG>35</PG>
          <PT>2922</PT>
          <SUBJECT>Application of labor laws to Government acquisitions</SUBJECT>
          <PG>36</PG>
          <PT>2923</PT>
          <SUBJECT>Environment, conservation, and occupational safety</SUBJECT>
          <PG>37</PG>
          <PT>2924</PT>
          <SUBJECT>Protection of privacy and freedom of information</SUBJECT>
          <PG>38<PRTPAGE P="4"/>
          </PG>
          <PT>2925</PT>
          <SUBJECT>Foreign acquisition</SUBJECT>
          <PG>38</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2928</PT>
          <SUBJECT>Bonds and insurance</SUBJECT>
          <PG>41</PG>
          <PT>2929</PT>
          <SUBJECT>Taxes</SUBJECT>
          <PG>41</PG>
          <PT>2930</PT>
          <SUBJECT>Cost accounting standards</SUBJECT>
          <PG>41</PG>
          <PT>2931</PT>
          <SUBJECT>Contract cost principles and procedures</SUBJECT>
          <PG>41</PG>
          <PT>2932</PT>
          <SUBJECT>Contract financing</SUBJECT>
          <PG>41</PG>
          <PT>2933</PT>
          <SUBJECT>Protests, disputes, and appeals</SUBJECT>
          <PG>43</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2935</PT>
          <SUBJECT>Research and development contracting</SUBJECT>
          <PG>46</PG>
          <PT>2936</PT>
          <SUBJECT>Construction and architect-engineer contracts</SUBJECT>
          <PG>46</PG>
          <PT>2937</PT>
          <SUBJECT>Service contracting</SUBJECT>
          <PG>48</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2942</PT>
          <SUBJECT>Contract administration</SUBJECT>
          <PG>50</PG>
          <PT>2943</PT>
          <SUBJECT>Contract modifications</SUBJECT>
          <PG>50</PG>
          <PT>2945</PT>
          <SUBJECT>Government property</SUBJECT>
          <PG>51</PG>
          <PT>2948</PT>
          <SUBJECT>Value engineering</SUBJECT>
          <PG>52</PG>
          <PT>2949</PT>
          <SUBJECT>Termination of contracts</SUBJECT>
          <PG>52</PG>
          <PT>2951</PT>
          <SUBJECT>Use of Government sources by contractors</SUBJECT>
          <PG>52</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER H—CLAUSE AND FORMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2952</PT>
          <SUBJECT>Solicitation provisions and contract clauses</SUBJECT>
          <PG>54</PG>
          <PT>2953</PT>
          <SUBJECT>Forms</SUBJECT>
          <PG>54</PG>
        </CHAPTI>
      </TOC>
    </CHAPTER>
    <CHAPTER>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="5"/>
        <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        <PART>
          <EAR>Pt. 2901</EAR>
          <HD SOURCE="HED">PART 2901—DEPARTMENT OF LABOR ACQUISITION REGULATION SYSTEM</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2901.1—Regulation System</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2901.100</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>2901.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <SECTNO>2901.102</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <SECTNO>2901.103</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>2901.103-70</SECTNO>
              <SUBJECT>Exclusions.</SUBJECT>
              <SECTNO>2901.104</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
              <SECTNO>2901.104-1</SECTNO>
              <SUBJECT>Publication and code arrangement.</SUBJECT>
              <SECTNO>2901.104-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>
              <SECTNO>2901.104-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2901.2—Administration</HD>
              <SECTNO>2901.201</SECTNO>
              <SUBJECT>Maintenance of the FAR.</SUBJECT>
              <SECTNO>2901.201-1</SECTNO>
              <SUBJECT>The Civilian Agency Acquisition Council.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2901.3—Agency Acquisition Regulations</HD>
              <SECTNO>2901.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>2901.302</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <SECTNO>2901.303</SECTNO>
              <SUBJECT>Codification and public participation.</SUBJECT>
              <SECTNO>2901.304</SECTNO>
              <SUBJECT>Agency control and compliance procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2901.4—Deviations From the FAR and DOLAR</HD>
              <SECTNO>2901.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>
              <SECTNO>2901.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
              <SECTNO>2901.405</SECTNO>
              <SUBJECT>Deviations pertaining to treaties and executive agreements.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2901.6—Contracting Authority and Responsibilities</HD>
              <SECTNO>2901.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2901.602</SECTNO>
              <SUBJECT>Contracting officers.</SUBJECT>
              <SECTNO>2901.602-1</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <SECTNO>2901.603</SECTNO>
              <SUBJECT>Selection, appointment, and termination of appointment.</SUBJECT>
              <SECTNO>2901.603-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2901.603-70</SECTNO>
              <SUBJECT>Modification of appointment.</SUBJECT>
              <SECTNO>2901.603-71</SECTNO>
              <SUBJECT>Ratification of unauthorized contract awards.</SUBJECT>
              <SECTNO>2901.603-72</SECTNO>
              <SUBJECT>Responsibility of other Government personnel.</SUBJECT>
              <SECTNO>2901.603-73</SECTNO>
              <SUBJECT>Contracting officer's representatives.</SUBJECT>
              <SECTNO>2901.603-74</SECTNO>
              <SUBJECT>Legal review and assistance.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8914, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.1—Regulation System</HD>
            <SECTION>
              <SECTNO>2901.100</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart sets forth introductory information pertaining to the Department of Labor Acquisition Regulation, referred to as the DOLAR. This subpart explains the relationship of the DOLAR to the Federal Acquisition Regulation (FAR) and explains the DOLAR's purpose, authority, applicability, exclusions, and issuance.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <P>(a) This subpart establishes chapter 29, the Department of Labor Acquisition Regulation, within title 48, the Federal Acquisition Regulations System, of the Code of Federal Regulations.</P>
              <P>(b) The purpose of the DOLAR is to implement the FAR, where further implementation is needed, and to supplement the FAR when coverage is needed for subject matter not covered in the FAR. The DOLAR is not by itself a complete document as it must be used in conjunction with the FAR.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.102</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <P>The DOLAR and amendments thereto are issued by the Procurement Executive pursuant to a delegation from the Secretary in accordance with the authority of DOL Temporary Regulation Number 44, dated February 18, 1983, in accordance with section 1 of the Act of March 4, 1913 (29 U.S.C. 551, 37 Stat. 736), as amended; 5 U.S.C. 301, and the Federal Property and Administrative Services Act of 1949, as amended, and other applicable law.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.103</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>The FAR and DOLAR apply to all DOL acquisitions of supplies and services which obligate appropriated funds unless otherwise specified in this regulation.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.103-70</SECTNO>
              <SUBJECT>Exclusions.</SUBJECT>

              <P>Certain DOL policies and procedures which might otherwise come within <PRTPAGE P="6"/>the scope of this regulation may be excluded from the DOLAR where there is appropriate justification, such as:</P>
              <P>(a) Subject matter that is procedural in nature and internal to the operation of the Department. These matters are contained in the Department of Labor Manual Series (DLMS).</P>
              <P>(b) Instructional or training material that more fully explains matters covered in the FAR and DOLAR.</P>
              <P>(c) Unless otherwise specifically stated, subject matter which deals with assistance programs where the award instruments are other than acquisition contracts. Administrative requirements governing all grants and agreements by which Department of Labor agencies award funds to State and Federal Governments, Indian and Native American entities, public and private institutions of higher education and hospitals, and other quasi-public and private nonprofit organizations are codified separately at part 29-70 of title 41 of the Code of Federal Regulations.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.104</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2901.104-1</SECTNO>
              <SUBJECT>Publication and code arrangement.</SUBJECT>

              <P>(a) The DOLAR and its subsequent changes are published when issued in daily issues of the <E T="04">Federal Register</E> and in cumulative form in the Code of Federal Regulations.</P>
              <P>(b) The DOLAR is issued as chapter 29 of title 48 of the Code of Federal Regulations.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.104-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>
              <P>(a) <E T="03">General.</E> The DOLAR is divided into the same parts, subparts, sections, subsections and paragraphs as is the FAR. However, when the FAR coverage is adequate by itself, there will be no corresponding DOLAR part, subpart, etc.</P>
              <P>(b) <E T="03">Numbering.</E> Where DOLAR implements the FAR, the implementing part, subpart, section or subsection of the DOLAR will be numbered and captioned, to the extent feasible, the same as the FAR part, subpart, section or subsection being implemented except that the implementation will be preceded with a 29 or a 290 such that there will always be four numbers to the left of the first decimal. For example, the DOLAR implementation of FAR 1.104-1 is shown as 2901.104-1 and DOLAR implementation of FAR subpart 24.1 is shown as subpart 2924.1. Material which supplements the FAR will be assigned the numbers 70 and up. For example, DOL regulations governing appointment and termination of appointment of contracting officers’ representatives is identified as 2901.603-70.</P>
              <P>(c) <E T="03">References and citations.</E> (1) This regulation may be referred to as the Department of Labor Acquisition Regulation or the DOLAR.</P>
              <P>(2) References to FAR materials within this regulation will include FAR and the identifying number, for example, FAR 1.104-2(c)(2). References to DOLAR materials within the regulation will simply cite the identifying number, for example, 2901.104-2(c)(2).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.104-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
              <P>Copies of the DOLAR published in the <E T="04">Federal Register</E> or Code of Federal Regulations may be purchased from the Superintendent of Documents, Government Printing Office, Washington, DC 20402. Requests should reference the DOLAR as chapter 29 of title 48. The Code of Federal Regulations is printed in paperback edition with updates as needed, and revised as of October 1 of each year. Requests for the CFR version of the DOLAR should reference chapter 29 of title 48.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.2—Administration</HD>
            <SECTION>
              <SECTNO>2901.201</SECTNO>
              <SUBJECT>Maintenance of the FAR.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2901.201-1</SECTNO>
              <SUBJECT>The Civilian Agency Acquisition Council.</SUBJECT>

              <P>(a) The Department of Labor shall be represented on the Civilian Agency Acquisition Council by a staff member of the Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, Office of the Assistant Secretary for Administration and Management, appointed for that purpose by the Director, Directorate of Procurement and Grant Management.<PRTPAGE P="7"/>
              </P>
              <P>(b) The Office of Procurement and Grant Policy will be responsible for coordination with all interested DOL elements regarding proposed FAR revisions and advocating revisions sought by DOL.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.3—Agency Acquisition Regulations</HD>
            <SECTION>
              <SECTNO>2901.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) The Department of Labor Acquisition Regulation (DOLAR) System consists of policies, procedures and regulations which implement or supplement the FAR at specific levels within the Department of Labor. The Federal Acquisition Regulation (FAR) and the DOLAR System govern the contracting process and control contracting relationships between contractors and the Departments’ agencies and offices.</P>
              <P>(b) The DOLAR is issued pursuant to the authority of the Secretary of Labor under 5 U.S.C. 301, 29 U.S.C. 551, 40 U.S.C. 486(c), and other authority specifically stated, and is subject to the overall authority of the Administrator of General Services. See FAR 1.301(c)(3).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.302</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <P>DOLAR System issuances are limited to:</P>
              <P>(a) Published, codified, Department-wide regulations which implement or supplement FAR policies and procedures and which affect organizations or individuals seeking to contract with the Department;</P>
              <P>(b) Published, codified, lower-level regulations of agencies and offices which contain additional policies and procedures that supplement the FAR to satisfy the specific and unique needs of the agency or office.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.303</SECTNO>
              <SUBJECT>Codification and public participation.</SUBJECT>
              <P>(a) Published issuances under the DOLAR are codified under chapter 29 in title 48, Code of Federal Regulations and parallel the FAR in format, arrangement and numbering system.</P>
              <P>(b) Regulations codified under chapter 29 are limited to those affecting private or public, profit or not for profit concerns, organizations or individuals desiring to enter into contracts with the Department. Public participation procedures used in the promulgation of codified regulations under the DOLAR System will follow procedures of FAR subpart 1.5.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.304</SECTNO>
              <SUBJECT>Agency control and compliance procedures.</SUBJECT>
              <P>(a) The DOLAR System is under the direct oversight and control of the Director, Directorate of Procurement and Grant Management. Procedures for review and approval of issuances under the DOLAR System comply with FAR subparts 1.3 and 1.4. These procedures are contained in 2901.6.</P>
              <P>(b) DOLAR System issuances shall comply with the restrictions in FAR 1.304(b) and the limitations in 2901.302. DOL Agencies and offices may implement or supplement the FAR or DOLAR with internal instructions not applicable DOL-wide. Additionally, they may request publication in the DOLAR of procurement instructions and other procurement material considered of interest to the general public. Such instructions shall not duplicate higher-level coverage and shall be numbered in accordance with FAR 1.104-2 except that the numbers prescribed there and in 2901.104-2 shall be suffixed by the alphabetic abbreviation or other symbol of the respective Agency issuing the instructions. Each DOL Agency and office shall establish, at the headquarters level, review and approval procedures for maintaining oversight and control of all DOLAR System issuances for their respective Agency or office. These procedures shall include methods to prevent unnecessary duplication of higher-level coverage; ensure consistency and uniformity among issuances; control the number of directives issued; update directives; and distribute copies.</P>

              <P>(c) DOL Agencies and offices shall submit all proposed instructions and materials that implement or supplement the DOLAR to the Director, Directorate of Procurement and Grant Management, for review in conjunction with the Solicitor prior to their publication. All issuances, whether or not published as a part of the DOLAR System, shall be submitted for review. In the case of internal procurement instructions, the purpose of the review is <PRTPAGE P="8"/>to ascertain that such instructions are consistent with the FAR and the DOLAR and that they do not contain information which should be issued as the DOLAR.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.4—Deviations From the FAR and DOLAR</HD>
            <SECTION>
              <SECTNO>2901.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is authorized to approve deviations from FAR provisions (see FAR 1.403) or DOLAR provisions which affect only one contracting action.</P>
              <P>(b) Requests for deviations under paragraph (a) of this section shall be submitted by the head of the contracting activity and include justification as to why the deviation is required.</P>
              <P>(c) A copy of the approved deviation shall be included in the contract file.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is authorized to approve class deviations of FAR or DOLAR provisions which affect more than one contracting action.</P>
              <P>(b) Requests for deviations under paragraph (a) of this section, shall be submitted by the head of the contracting activity and include justification as to why the deviation is required and the number of contracting actions which will be affected.</P>
              <P>(c) A copy of each approved class deviation shall be referenced in the contract file.</P>
              <P>(d) Recommended revisions to the FAR and a copy of each approved class FAR deviation shall be transmitted to the FAR Secretariat by the Director, Directorate of Procurement and Grant Management, as required in FAR 1.404.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.405</SECTNO>
              <SUBJECT>Deviations pertaining to treaties and executive agreements.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is responsible for transmitting to the FAR Secretariat the information required in FAR 1.405 (d) and (e).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.6—Contracting Authority and Responsibilities</HD>
            <SECTION>
              <SECTNO>2901.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>This subpart deals with contracting authority and responsibilities of the head of the agency as defined in 2901.1 and 2902.1, FAR subpart 1.6 and this subpart.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.602</SECTNO>
              <SUBJECT>Contracting officers.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2901.602-1</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <P>Information on the limits of contracting officers’ authority shall be maintained by the head of each contracting activity as required in FAR 1.601-1. The Directorate of Procurement and Grant Management shall also maintain this information.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603</SECTNO>
              <SUBJECT>Selection, appointment, and termination of appointment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) <E T="03">First tier delegation.</E> The Assistant Secretary for Administration and Management (ASAM), acting through the Procurement Executive, is the chief departmental official for all acquisition and grant matters as outlined in Secretary's Order 4-76, for:</P>

              <P>(1) Prescribing policies, procedures, and standards regarding the solicitation, award, and administration of all DOL acquisitions and grants for financial assistance (<E T="03">e.g.,</E> cooperative agreements, grants, and similar instruments) obligating Federal funds for the purpose of:</P>
              <P>(i) Obtaining property and services for the DOL and/or third parties.</P>
              <P>(ii) Promoting DOL programs and objectives through financial assistance.</P>
              <P>(2) Acquiring property and services for the United States Government under Title I of the Federal Property and Administrative Services Act of 1949 (63 Stat. 379).</P>

              <P>(3) Establishing reporting requirements necessary for effective departmental acquisitions and grant management and for complying with data needs promulgated by the Office of Management and Budget (OMB), the General Services Administration (GSA), the General Accounting Office (GAO), and other agencies. This includes the SF-1099 report, “Income <PRTPAGE P="9"/>Other Than Wages,” and “Federal Procurement Data System” (FPDS) and “Federal Assistance Award Data System” (FAADS) input.</P>
              <P>(b) In the Department of Labor, contracting officer and grant officer authority and responsibility have been delegated from the Secretary of Labor through the Assistant Secretary for Administration and Management (ASAM) to the following officials or officers acting in their behalf:</P>
              <P>(1) The Assistant Secretary for Employment and Training.</P>
              <P>(2) The Assistant Secretary for Occupational Safety and Health.</P>
              <P>(3) The Deputy Under Secretary for Employment Standards.</P>
              <P>(4) The Assistant Secretary for Mine Safety and Health.</P>
              <P>(5) The Deputy Under Secretary for International Affairs.</P>
              <P>(6) The Commissioner of Labor Statistics.</P>
              <P>(7) The Inspector General.</P>
              <P>(8) The Regional Administrators—OASAM.</P>
              <P>(9) The Director, National Capital Service Center, OASAM.</P>
              <P>(c) <E T="03">Delegations and limitations.</E> Subject to the limitations set forth in this paragraph and paragraph (g), the officials designated in paragraph (b) possess full authority to obligate the U.S. Government through the use of contracts, agreements, orders, grants, and/or other similar instruments. This authority includes obligating Federal funds for the purpose of obtaining property and services for the government and/or third parties, or for the purpose of promoting DOL programs or objectives through financial assistance. Each official designated in paragraph (b) (except the Inspector General), is delegated authority and responsibility for issuing purchase orders for purchases under GSA Federal Supply Schedules, FEDSTRIP, and from open-market sources not to exceed the small purchases limitation. Acquisition of typewriters, office copiers, adding machines, and calculators must be written against blanket purchase orders maintained for such equipment by the National Capital Service Center, OASAM. Acquisitions of copier equipment require prior approval of the Directorate of Administrative Services and Safety and Health Programs. Paragraph (g)(2) outlines limitations on the purchase, lease and renewal of lease(s) of ADP equipment, software and services. Approval authority for competitive acquisition of consulting and related services costing less than $50,000 cannot be redelegated by the head of the contracting activity. Other delegations in this section may be further redelegated by the designated officials within their areas of assigned responsibility, except that small purchase authority delegated to the Assistant Secretary for Employment and Training, the Assistant Secretary for Occupational Safety and Health, the Deputy Under Secretary for Employment Standards, and the Commissioner of Labor Statistics is limited to the National Office only and may not be redelegated to the Regional Offices. Before issuing redelegations, contracting officers should consider the following factors to determine the extent to which authority shall be redelegated:</P>
              <P>Volume of contracting programs; presence of, or capability of obtaining adequately trained personnel; consolidation of smaller contracting programs and offices on a geographical basis; and the overall strengthening of the acquisition process by the selection of qualified personnel. Criteria for selection, appointment and termination of Contracting/Grant Officers are contained in the Department of Labor Manual Series (DLMS-2) Chapter 800. Copies of the DLMS Chapter may be obtained upon written request from the Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, Office of the Assistant Secretary for Administration and Management, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210. An information copy of every further redelegation must be furnished to the OASAM, Directorate of Procurement and Grant Management.</P>
              <P>(d) <E T="03">Responsibilities.</E> The following redelegations are made subject to the requirements and exceptions outlined in paragraph (g) regarding prior approval requirements and the limitations on authority to issue purchase orders and contracts for the purchase, lease and renewal of lease(s) for ADP equipment, <PRTPAGE P="10"/>software and services; and acquisition of consulting and related services.</P>
              <P>(1) The Assistant Secretary for Employment and Training, or an officer acting in that capacity, is delegated authority and responsibility for:</P>
              <P>(i) Obtaining all program property and services required to fulfill the statutory and regulatory responsibilities imposed on the Assistant Secretary for Employment and Training.</P>
              <P>(ii) Approval of all grantee acquisitions of ADP equipment, software and services using grants-in-aid to State and local governments.</P>
              <P>(iii) Establishing and maintaining an imprest fund.</P>
              <P>(2) The Assistant Secretary for Occupational Safety and Health, or an officer acting in that capacity, is delegated authority and responsibility for:</P>
              <P>(i) Issuance of grant agreements with States as required under the statutory and regulatory requirements imposed on the Assistant Secretary for Occupational Safety and Health.</P>
              <P>(ii) Reimbursements to States, pursuant to section 7(c)(1) of the Occupational Safety and Health Act of 1970 (OSH Act of 1970) (29 U.S.C. 656(c)(1)) for State services, facilities, and personnel used to carry out the statutory and regulatory responsibilities imposed on the Assistant Secretary for Occupational Safety and Health.</P>
              <P>(iii) Issuance of grants, pursuant to section 21(b) of the OSH Act of 1970 (29 U.S.C. 670(b)) for short term training of personnel.</P>
              <P>(iv) Issuance of grants to nonprofit organizations for implementation of the expanded Employer-Employee Training Program under section 21(c) of the OSH Act of 1970 (29 U.S.C. 670(c)).</P>
              <P>(3) The Deputy Under Secretary for Employment Standards, or an officer acting in that capacity, is delegated authority and responsibility for:</P>
              <P>(i) Entering into agreements with States to enhance Federal/State cooperative efforts for the administration of comparable employment standards programs.</P>

              <P>(ii) Procuring medical services necessary for the adjudication of claims for injury and occupational disease filed by Federal employees in accordance with the Federal Employees Compensation Act (5 U.S.C. 8101, <E T="03">et seq.</E>) and the Federal Coal Mine Health and Safety Act of 1969, as amended (Pub. L. 91-173, 83 Stat. 742).</P>
              <P>(4) The Assistant Secretary for Mine Safety and Health, or an officer acting in that capacity, is delegated authority and responsibility for:</P>
              <P>(i) Acquisition of all program property and services required to fulfill the statutory and regulatory responsibilities imposed on the Assistant Secretary for Mine Safety and Health.</P>

              <P>(ii) Issuing grants as required by the Mine Safety and Health Act of 1977 (30 U.S.C. 801 <E T="03">et seq.</E>).</P>
              <P>(iii) The purchase, lease, or renewal of lease(s) of ADP equipment, software and services costing $100,000 or less without prior approval of the Directorate of Information Resources Management (DIRM), OASAM. Requirements shall not be fragmented in order to circumvent this $100,000 threshold. ADP equipment, software or services costing more than $100,000 require prior approval of DIRM. Prior approval of DIRM for ADP equipment, software, or services costing less than $100,000 is also required when costs involved exceed GSA blanket delegation thresholds granted under FIRMR 201-23.104.</P>
              <P>(5) The Deputy Under Secretary for International Affairs, or an officer acting in that capacity, is delegated authority and responsibility for:</P>
              <P>(i) Acquisition of supplies and services required in support of training and orientation of foreign nationals.</P>
              <P>(ii) Acquisition of supplies and services required in support of overseas exhibitions required under statutory and regulatory responsibilities imposed on the Deputy Under Secretary for International Affairs.</P>
              <P>(iii) International responsibilities not funded by an annual appropriation.</P>
              <P>(6) The Commissioner of Labor Statistics, or an officer acting in that capacity, is delegated authority and responsibility for:</P>
              <P>(i) Acquisition of supporting statistical economic research services, required under the statutory and regulatory responsibilities imposed on the Commissioner of Labor Statistics.</P>

              <P>(ii) Selling special statistics developed by the Bureau of Labor Statistics in accordance with the Act of April 13, 1934 (29 U.S.C. 9 <E T="03">et seq.</E>).<PRTPAGE P="11"/>
              </P>
              <P>(7) The Inspector General, or an officer acting in that capacity, is delegated authority and responsibility for contracting with State and local agencies for audit services in accordance with section 4 of the Federal Grant and Cooperative Agreement Act of 1977 (41 U.S.C. 503).</P>
              <P>(8) The Regional Administrators—OASAM, or officers acting in that capacity, are delegated authority and responsibility within their respective regions, for:</P>
              <P>(i) The acquisition of property and services required for the Regional Offices, including all imprest fund purchases, GSA Federal Supply Schedule purchases, and open-market purchases. The acquisition of records equipment when the cost does not exceed the small purchases limitation for a single system. Purchases for typewriters, office copiers, adding machines, and calculators must be written against blanket purchase orders maintained for such equipment by the National Capital Service Center, OASAM. The purchase of copier equipment requires prior approval of the Directorate of Administrative Services and Safety and Health Programs.</P>
              <P>(ii) Contracting for ADP operational services to support regional remote job entry capabilities. This authority does not include the purchase, lease, or renewal of lease(s) for ADP equipment or software. Prior approval of ADP operational services is required from DIT whenever a Delegation of Procurement Authority (DPA) or sharing clearance is required from the General Services Administration (GSA).</P>
              <P>(9) The Director, National Capital Service Center, OASAM, or an officer acting in that capacity, is delegated authority and responsibility for acquisition of all property and services on behalf of DOL activities except for those contracting and grant responsibilities designated above. This includes (except for the Mine Safety and Health Administration (MSHA)) acquisition authority for the purchase, lease, and renewal of lease(s) of all ADP equipment, software and all ADP services where Agencies have obtained prior approval from the Directorate of Information Resources Management (DIRM), OASAM, as appropriate.</P>
              <P>(e) <E T="03">Compliance responsibilities.</E> Each official designated in paragraph (b) is responsible for:</P>
              <P>(1) Complying with the policies, procedures and reporting requirements established by the ASAM.</P>
              <P>(2) Complying with the policies, procedures and other requirements prescribed by OMB, GSA, and other central agencies, and such implementing instructions as the Department may issue. This specifically includes competition for services and products within the small purchases limitation and restrictions on the use of consultant contracts, audiovisual productions, etc.</P>
              <P>(3) Within the limitations specified in this subpart, obtaining all property and services required to fulfill the statutory and regulatory responsibilities of the Agency or Office.</P>
              <P>(f) <E T="03">Policy responsibilities.</E> The following officials have acquisition policy responsibilities within the DOL:</P>
              <P>(1) The Director, Directorate of Procurement and Grant Management, OASAM, or an officer acting in that capacity, is responsible for:</P>
              <P>(i) Developing and publishing guidelines, policies, and regulations for DOL acquisition and grant operations.</P>
              <P>(ii) Reviewing and evaluating administrative procedures for DOL acquisition and grant operations.</P>
              <P>(iii) Providing technical advice and assistance to those DOL officials and officers with acquisition and grant responsibilities. This includes interpreting the Federal Acquisition Regulations and the Department of Labor Acquisition Regulations and obtaining legal advice and assistance from the Solicitor of Labor as required.</P>
              <P>(iv) Providing continuous coordination with appropriate DOL and Federal Agencies to ensure compliance with procurement and grant regulations.</P>
              <P>(v) Providing technical advice and support to the ASAM in complying with the reporting requirements outlined in paragraph (a)(3).</P>
              <P>(2) The Director, Directorate of Information Resources Management (DIRM), OASAM, or an officer acting in that capacity, is responsible for:</P>

              <P>(i) Reviewing and providing prior approval for the purchase, lease or renewal of lease(s) of ADP equipment, software and services costing $100,000 <PRTPAGE P="12"/>or more (the purchase price is to be used to determine inclusion in this paragraph regardless of whether the item is to be purchased or leased) and for all ADP services. Requirements shall not be fragmented in order to circumvent this $100,000 threshold. Reviews involving lower amounts will be made when costs involved exceed GSA blanket delegation thresholds granted under FIRMR 201-23.104.</P>
              <P>(ii) Providing oversight, including periodic system reviews, to promote efficient and effective management of information technology resources.</P>
              <P>(iii) Reviewing ADP procurement requests for compliance with procurement policies, standards, and regulations.</P>
              <P>(iv) Representing DOL and agencies in DOL in liaison with GSA and OMB on ADP matters.</P>
              <P>(v) Developing and publishing policies and guidelines for managing information technology resources.</P>
              <P>(3) The Director, Office of Small and Disadvantaged Business Utilization (OSDBU), is responsible for:</P>
              <P>(i) Assuring participation of the Department in the Federal Small and Disadvantaged Business Program as specified in section 8(a) (small disadvantaged business set-asides) and section 15 (procurement in labor surplus areas) of the Small Business Act, as amended (15 U.S.C. 637(a) and 644), and Executive Orders 11625 (Minority Business Enterprises) and 12138 (Women-Owned Business Enterprises).</P>
              <P>(ii) Assuring participation and input of each Program Agency in establishing DOL goals for increased opportunities for small and disadvantaged business concerns to participate in the Department's procurement and grant activities.</P>
              <P>(iii) Providing technical advice and assistance to Program Agencies in establishing Agency goals for utilizing small and disadvantaged businesses.</P>
              <P>(iv) Developing systematic procedures, guidelines and regulations for assuring the effective implementation of the provisions of the Small Business Act, as amended, and Executive Orders 11625 and 12138.</P>
              <P>(v) Maintaining liaison with the Small Business Administration (SBA) on matters regarding sections 8 and 15 of the Small Business Act, as amended (15 U.S.C. 637(a) and 644), and Executive Order 12138, and the Department of Commerce on matters relating to Executive Order 11625.</P>
              <P>(4) The Director, Office of Information and Public Affairs (OIPA), is responsible for:</P>
              <P>(i) Reviewing all purchase orders, requisitions and contracts for audiovisual productions including those which contain an audiovisual component along with other activities before the request is processed and approved by OASAM or another Agency to assure compliance with DOL and OMB requirements. All types of audiovisual productions are covered, including projects for training, education, internal communications, and/or public information purchases. Training and education products will not be reviewed for content but rather for the professional quality, effectiveness and cost of the communications material being produced. (See Guidelines for Management of Departmental Audiovisual Activities, issued pursuant to OMB Circular A-114 and Secretary's Order 5-79.)</P>

              <P>(ii) Reviewing all purchase orders, requisitions, and contracts for the rental or purchase of major audiovisual equipment to be used in production work before the request is processed and approved by OASAM or another DOL Agency to assure compliance with DOL and OMB requirements. Production equipment includes motion picture and videotape cameras, editing equipment and duplication equipment for videotape and film. Review is not necessary for such equipment as still cameras, projectors and tape players, cassette tape players, <E T="03">etc.</E>
              </P>
              <P>(5) The Procurement Review Board is responsible for:</P>
              <P>(i) Reviewing all requests to award contracts, grants, agreements, or modifications thereto (as described in this paragraph (f)(5)) and recommending approval or disapproval to the ASAM:</P>
              <P>(A) Requests for noncompetitive procurements, discretionary grants and agreements exceeding the small purchases limitation;</P>

              <P>(B) Noncompetitive consulting and related services requests, including purchase orders, and personnel appointments of consultants and experts;<PRTPAGE P="13"/>
              </P>
              <P>(C) Competitive procurements for consulting and related services costing $50,000 or more and modifications thereto as described in paragraph (g) of this section;</P>
              <P>(D) Major procurements and those with high waste vulnerability; and</P>
              <P>(E) Requests for noncompetitive research, evaluation and demonstration projects after prior review by the Assistant Secretary for Policy.</P>
              <P>(ii) Assuring compliance with the scope of the Board's authority, with OMB and DOL guidelines for use of consulting and related services and other special acquisitions.</P>
              <P>(iii) Approval by the ASAM of requests identified in this paragraph (f)(5) do not constitute award of a contract. The contracting officer has final approval authority.</P>
              <P>(g) <E T="03">Exceptions to delegations of authority.</E> The assignment of procurement responsibilities described in paragraph (b) are subject to the exclusions listed below:</P>
              <P>(1) <E T="03">Procurement of consulting and related services.</E> (i) The ASAM retains authority and responsibility for approval of requests for consulting and related services for individuals and organizations under the following circumstances:</P>
              <P>(A) When acquisitions by either contract or purchase order are to be awarded without competition, regardless of amount, or for those competitive actions costing $50,000 or more; and</P>
              <P>(B) When modifications involving changes in dollar amounts, deliverables under contracts or (under rare circumstances) extensions to existing consulting and related services contracts are required.</P>
              <P>(ii) The heads of the contracting activities retain approval authority for the acquisition of consulting and related services costing less than $50,000 which are obtained through competitive procedures.</P>
              <P>(2) <E T="03">Automated data processing (ADP).</E> The following requirements and limitations exist for the purchase or lease of ADP equipment, software and services:</P>
              <P>(i) Authority to issue purchase orders and contracts is limited only to those officials in paragraph (b) with procurement responsibility explicitly including this authority.</P>
              <P>(ii) Acquisition of ADP equipment, software and services costing $100,000 or more requires prior approval of DIRM, OASAM.</P>
              <P>(iii) Acquisition of ADP equipment, software and services costing less than $100,000 do not require prior approval of DIRM, OASAM, unless costs involved exceed GSA blanket delegation thresholds granted under FIRMR 201-23.104. However, agencies are responsible for complying with FIRMR documentation requirements.</P>
              <P>(3) <E T="03">Records equipment.</E> The purchase of records equipment; defined as file cabinets, shelf files, visible files, mechanized files, files guides, folders, jackets, wallets, and similar items used in the creation and maintenance of records and in mail handling requires special authority. Federal Property Management Regulation 101-11.306 as implemented by the Department of Labor Manual Series (DLMS-1) requires that: Form DL 1-194 be completed by the Agency Records Officer and forwarded to the Departmental Records Officer, DIRM, OASAM, for approval prior to acquisition. Regional Administrators—OASAM are delegated this approval authority for their respective regions. In keeping with GSA Bulletins FPMR B-120 and B-122 which discourage the use of legal-size files, no new legal size records equipment is to be purchased.</P>
              <P>(4) The OSDBU will periodically monitor DOL Agency acquisition and grant functions which relate to the preferential programs to determine their effectiveness and adherence to Federal and DOL requirements.</P>
              <P>(5) The Assistant Inspector General for Audit will periodically audit Agency acquisition and grant functions to determine compliance with governing regulations, policies and procedures.</P>
              <P>(h) <E T="03">Rescission of authority.</E> The ASAM acting through the Director, Directorate of Procurement and Grant Management, reserves the right to rescind the acquisition and grant authority delegated herein if it is determined that such action is in the best interest of the Government.</P>
              <CITA>[50 FR 8914, Mar. 5, 1985, as amended at 51 FR 40372, Nov. 6, 1986]</CITA>
            </SECTION>
            <SECTION>
              <PRTPAGE P="14"/>
              <SECTNO>2901.603-70</SECTNO>
              <SUBJECT>Modification of appointment.</SUBJECT>
              <P>To modify a contracting officer's authority, the present appointment shall be revoked and a new certificate issued.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603-71</SECTNO>
              <SUBJECT>Ratification of unauthorized contract awards.</SUBJECT>

              <P>(a) The Government is not generally bound by agreements or contractual commitments made to contractors or prospective contractors by persons to whom acquisition authority has not been delegated. Such unauthorized acts may be in violation of the Federal Property and Administrative Services Act of 1949, other Federal laws, the FAR, the DOLAR, and good acquisition practice; <E T="03">e.g.,</E> certain requirements of law and regulation necessary for the proper establishment of a contractual obligation may not be met, such as certification of the availability of funds, determinations and findings, competition of sources, determination of contractor responsibility, price/cost analysis, administrative approvals, negotiations of appropriate contract clauses, <E T="03">etc.</E>
              </P>

              <P>(b) Unauthorized commitments shall not be ratified unless it would have been otherwise proper to enter into a contract prior to the commitment. As used herein, the phrase “otherwise proper” means that a ratification of an unauthorized commitment can be made only if there occurred no violation of any substantive legal requirements; <E T="03">e.g.,</E> there can be no ratification unless a sole source can be justified; a determination made that the contractor is not debarred or otherwise ineligible for award; the Organizational Conflict of Interest reviews and determinations, if required, are completed; and where all other substantive legal requirements have been met. Whenever it is discovered that any person is performing work as a result of an unauthorized commitment, that person shall be advised that such work is being performed at their own risk pending establishment of valid contractual coverage. The Head of the Contracting Activity (HCA) shall then be notified of the circumstances. If the HCA agrees that the work appears to be without valid authorization, the Director, Directorate of Procurement and Grant Management, shall be notified by the HCA in accordance with the procedures outlined in paragraph (c) of this section.</P>
              <P>(c) Requests received by contracting officers for ratification of commitments made by personnel lacking contracting authority shall be processed as follows:</P>

              <P>(1) The individual who made the unauthorized contractual commitment shall furnish the contracting officer all records and documents concerning the commitment and a complete, written statement of facts, including, but not limited to, a statement as to why the acquisition office was not used, why the proposed contractor was selected and a list of other sources considered, description of work to be performed or products to be furnished, estimated or agreed contract price, citation of appropriation available, and a statement as to whether the contractor has commenced performance. Under exceptional circumstances, such as when the person who made the unauthorized commitment is no longer available to attest to the circumstances of the unauthorized commitment, the Director, Directorate of Procurement and Grant Management, may waive the requirement that the responsible employee initiate and document the request; <E T="03">Provided</E> the Head of the Contracting Activity determines in writing that the commitment was in fact made by an employee who shall be identified in the determination.</P>
              <P>(2) The request for ratification, an approved justification for noncompetitive acquisition, and the information required by paragraph (c)(1) of this section, must be forwarded to the HCA for concurrence, together with recommended corrective actions to preclude recurrence.</P>

              <P>(3) If the HCA concurs with the request for ratification, the request and concurrence shall be forwarded to the Director, Directorate of Procurement and Grant Management, for review by the Procurement Review Board (PRB). The PRB will review the request, the <PRTPAGE P="15"/>Justification for Non-Competitive Acquisition, any comments or information submitted by the contracting officer which should be considered in evaluation of the request, and the information submitted in accordance with paragraph (c)(2) of this section. Based upon this review and advice from the Office of the Solicitor, the PRB will proceed as follows:</P>
              <P>(i) If the request submitted does not appear to be justified, it will be returned to the concurring HCA without approval with an explanation of the decision not to ratify.</P>
              <P>(ii) If the request and the recommended corrective actions appear justified and adequate, the PRB may ratify the action, with the concurrence of the Assistant Secretary for Administration and Management, return the file to the contracting officer for action, and monitor the implementation of the corrective action plan. The contracting officer shall direct the disposition of all products and deliverables received by the Government as a result of an unauthorized commitment.</P>
              <P>(iii) A detailed record of the review shall be maintained for audit purposes.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603-72</SECTNO>
              <SUBJECT>Responsibility of other Government personnel.</SUBJECT>
              <P>(a) Responsibility for the decision of what to buy and when to buy rests with program and certain staff offices and the head of the agency or designee. Responsibility for determining how to buy, the conduct of the buying process, and execution of the contract rests with the contracting officer.</P>
              <P>(b) Personnel responsible for making decisions to buy should maintain a close and continuous relationship with their acquisition activity to ensure that acquisition personnel are made aware of contemplated acquisition actions. This will be mutually beneficial in terms of better planning for acquisition action and more timely, efficient and economical acquisition.</P>
              <P>(c) Personnel not delegated contracting authority may not commit the Government, formally or informally, to any type of contractual obligation. However, program personnel who must use the contracting process to accomplish their programs, must support the contracting officer in ensuring that:</P>
              <P>(1) Requirements are clearly defined and specified;</P>
              <P>(2) Competitive sources are solicited, evaluated, and selected;</P>
              <P>(3) Quality standards are prescribed, and met;</P>
              <P>(4) Performance or delivery is timely;</P>
              <P>(5) Files are documented to substantiate the judgments, decisions, and actions taken.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603-73</SECTNO>
              <SUBJECT>Contracting officer's representatives.</SUBJECT>
              <P>(a) A contracting officer may designate other Government personnel to act as authorized representatives for such functions as technical monitoring, inspection, approval of shop drawings, testing, approval of samples, and other functions of a technical nature not involving a change in the scope, price, terms or conditions of the contract or order. Such designation shall be in writing and shall contain specific instructions as to the extent to which the representative may take action for the contracting officer, but will not contain authority to sign contract documents. The responsibilities and limitations of the contracting officer's representatives may be set forth in the contract or in a separate letter, a copy of which shall be furnished to the contractor.</P>
              <P>(b) A person assigned to a contracting office and performing primary duties in a position within a contracting office, and under the supervision of a contracting officer, does not require written designation as a representative of the contracting officer nor designation in a contractual document to perform assigned duties. Such a person is considered to be an employee of the contracting officer, acting in the latter's behalf and, as such, has the authority and responsibility to perform, under the terms and conditions of employment, and to act as assigned by the contracting officer. The contracting officer, however, shall not authorize such an employee, acting as a representative for the contracting officer, to sign any contractual documents or letter in those instances where the signature of a contracting officer is required.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="16"/>
              <SECTNO>2901.603-74</SECTNO>
              <SUBJECT>Legal review and assistance.</SUBJECT>
              <P>Proposed acquisitions may be subject to legal review by the Office of the Solicitor of Labor. Internal DOL procedures are contained in the Department of Labor Manual Series (DLMS-2, Chapter 900, Section 910). Copies of the DLMS Chapter may be obtained upon written request from the Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, Office of the Assistant Secretary for Administration and Management, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210.</P>
              <CITA>[51 FR 40373, Nov. 6, 1986]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2902</EAR>
          <HD SOURCE="HED">PART 2902—DEFINITIONS OF WORDS AND TERMS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2902.1—Definitions</HD>
            <SECTION>
              <SECTNO>2902.101</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>As used throughout this regulation, the following words and terms are used as defined in this subpart unless (a) the context in which they are used clearly requires a different meaning, or (b) a different definition is prescribed for a particular part or portion of a part:</P>
              <P>
                <E T="03">Contracting activity</E> means an agency or office within the Department with delegated procurement authority to manage contracting functions associated with its mission. Within the Office of the Assistant Secretary for Administration and Management, the National Capital Service Center is the contracting activity.</P>
              <P>
                <E T="03">Head of procuring activity</E> means the Assistant Secretary for Administration and Management; the Assistant Secretary for Employment and Training; the Assistant Secretary for Mine Safety and Health, and the Director, National Capital Service Center.</P>
              <P>
                <E T="03">Head of the agency</E> (also called <E T="03">agency head</E>) means the Assistant Secretary for Administration and Management.</P>
              <P>
                <E T="03">Head of the contracting activity (HCA)</E> means the Assistant Secretary for Administration and Management; the Director, National Capital Service Center, and the head of each DOL Agency and Office listed in 2901.603-1(b) who has overall responsibility for managing the contracting activity.</P>
              <P>
                <E T="03">Procurement Executive</E> means the Director, Directorate of Procurement and Grant Management, and is synonymous with the term <E T="03">Senior Procurement Executive</E> defined at FAR subpart 2.1. Responsibilities of the Procurement Executive include appointing the DOL advocate for competition.</P>
              <P>
                <E T="03">Procuring activity</E> means the Office of the Assistant Secretary for Administration and Management; the Employment and Training Administration; the Mine Safety and Health Administration; and the National Capital Service Center.</P>
              <CITA>[50 FR 8921, Mar. 5, 1985, as amended at 51 FR 40373, Nov. 6, 1986; 53 FR 3839, Feb. 9, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2903</EAR>
          <HD SOURCE="HED">PART 2903—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2903.1—Safeguards</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2903.101</SECTNO>
              <SUBJECT>Standards of conduct.</SUBJECT>
              <SECTNO>2903.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2903.2—Contractor Gratuities to Government Personnel</HD>
              <SECTNO>2903.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the gratuities clause.</SUBJECT>
              <SECTNO>2903.204</SECTNO>
              <SUBJECT>Treatment of violations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2903.3—Reports of Identical Bids and Suspected Antitrust Violations</HD>
              <SECTNO>2903.302</SECTNO>
              <SUBJECT>Reporting identical bids.</SUBJECT>
              <SECTNO>2903.302-2</SECTNO>
              <SUBJECT>Reporting requirements.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2903.4—Contingent Fees</HD>
              <SECTNO>2903.409</SECTNO>
              <SUBJECT>Misrepresentation or violation of the Covenant Against Contingent Fees.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2903.5—Other Improper Business Practices</HD>
              <SECTNO>2903.502</SECTNO>
              <SUBJECT>Subcontractor kickbacks.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2903.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
              <SECTNO>2903.602</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <SECTNO>2903.603</SECTNO>
              <SUBJECT>Responsibilities of the contracting officer.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <PRTPAGE P="17"/>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8921, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2903.1—Safeguards</HD>
            <SECTION>
              <SECTNO>2903.101</SECTNO>
              <SUBJECT>Standards of conduct.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2903.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>
              <P>All DOL personnel engaged in acquisition related activities shall conduct such activities in a manner above reproach in every respect. See part 0 of title 29, CFR. Transactions relating to expenditure of public funds require the highest degree of public trust to protect the interests of the Government. See 2903.6 for requirements concerning contracting with current or former DOL employees.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2903.2—Contractor Gratuities to Government Personnel</HD>
            <SECTION>
              <SECTNO>2903.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the gratuities clause.</SUBJECT>
              <P>(a) <E T="03">Action official.</E> The Director, Directorate of Procurement and Grant Management, is the DOL official authorized to take action pursuant to FAR 3.204(c) against a contractor if it is determined that a violation of the clause at FAR 52.203-3, Gratuities, has occurred. This authority may not be redelegated.</P>
              <P>(b) <E T="03">Referral.</E> Whenever a suspected violation of the clause at FAR 52.203-3, Gratuities, becomes known to a DOL employee, the matter shall be reported to the cognizant contracting officer. The report shall be in writing and shall clearly state the circumstances surrounding the incident or incidences where it is alleged that the contractor offered or gave a gratuity to a DOL employee and intended by the gratuity to obtain a contract or favorable treatment under a contract. The date(s), location(s), and name(s) of all parties involved in the incident shall be included in the report. The report shall also include a recommended course of action in accordance with FAR 3.204(c) and shall be submitted through the head of the contracting activity to the Director, Directorate of Procurement and Grant Management for disposition.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2903.204</SECTNO>
              <SUBJECT>Treatment of violations.</SUBJECT>
              <P>(a) <E T="03">Notice of contractor.</E> After review of the report and consultation with the Office of the Solicitor and Office of the Inspector General, as appropriate, the Director, Directorate of Procurement and Grant Management shall determine further action to be taken. If requested, the contractor shall be provided with a formal notice which summarizes the events involving the suspected violations and affords the contractor the opportunity to take the action(s) listed under FAR 3.204(b). The notice shall contain a reasonable time limit for reply and shall be sent by certified mail, return receipt requested.</P>
              <P>(b) <E T="03">Action.</E> Based on the contractor's response to the notice; the results of any further discussions with the contractor, the counsel, or witnesses; the review of additional documentary evidence; and other pertinent information, the Director, Directorate of Procurement and Grant Management, shall make a final and binding decision on the action to be taken in accordance with FAR 3.204(c) and shall provide the contractor with a formal notice of such action.</P>
              <CITA>[50 FR 8921, Mar. 5, 1985, as amended at 51 FR 40373, Nov. 6, 1986]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2903.3—Reports of Identical Bids and Suspected Antitrust Violations</HD>
            <SECTION>
              <SECTNO>2903.302</SECTNO>
              <SUBJECT>Reporting identical bids.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2903.302-2</SECTNO>
              <SUBJECT>Reporting requirements.</SUBJECT>
              <P>Potential anti-competitive practices, such as described in FAR 3.301, and antitrust law violations as described in FAR 3.303, evidenced in bids or proposals shall be reported to the Office of the Solicitor through the Head of the Contracting Activity with a copy to the Director, Directorate of Procurement and Grant Management. The Office of the Solicitor will provide reports to the Attorney General as appropriate.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="18"/>
            <HD SOURCE="HED">Subpart 2903.4—Contingent Fees</HD>
            <SECTION>
              <SECTNO>2903.409</SECTNO>
              <SUBJECT>Misrepresentation or violation of the Convenant Against Contingent Fees.</SUBJECT>
              <P>(a) Suspected misrepresentation or violations of the Convenant Against Contingent Fees shall be documented and reported promptly to the contracting officer for review and action under FAR 3.409.</P>
              <P>(b) Suspected fraudulent or criminal violations shall be documented in a report and submitted by the contracting officer to the Office of the Solicitor prior to initiation of any actions outlined in FAR 3.409(b). A copy of the report shall be submitted to the Director, Directorate of Procurement and Grant Management.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2903.5—Other Improper Business Practices</HD>
            <SECTION>
              <SECTNO>2903.502</SECTNO>
              <SUBJECT>Subcontractor kickbacks.</SUBJECT>
              <P>(a) Reports on suspected violations of the Antikickback Act as required by FAR 3.502(b) shall be prepared by the</P>
              <FP>contracting officer and submitted by the head of the contracting activity to the Office of the Solicitor for further action. A copy of the report shall be submitted to the Director, Directorate of Procurement and Grant Management.</FP>
              <P>(b) The head of the contracting activity may initiate debarment or suspension action in accordance with FAR 9.406-2 or 9.407-2 and 2909.4 of this chapter.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2903.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
            <SECTION>
              <SECTNO>2903.602</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management is authorized to except a contract from the policy in FAR 3.601.</P>
              <P>(b) Negotiated contracts or grants or amendments to existing contracts or grants which constitute new acquisition (including those for the rental of real or personal property) may be entered into with former employees of DOL or with firms in which former employees are known to have a substantial interest, within a period of 1 year subsequent to the termination of the individual's employment by DOL, only with the prior written approval of the Assistant Secretary for Administration and Management.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2903.603</SECTNO>
              <SUBJECT>Responsibilities of the contracting officer.</SUBJECT>
              <P>Approval of a decision to grant an exception as provided in 2903.602 shall be documented by a written determination and findings prepared by the contracting officer for signature by the Assistant Secretary for Administration and Management. The determination and findings shall document compliance with FAR 3.603 and 2909.5; specify the compelling reason(s) for award; and be placed in the contract file.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2904</EAR>
          <HD SOURCE="HED">PART 2904—ADMINISTRATIVE MATTERS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8922, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2904.6—Contract Reporting</HD>
            <SECTION>
              <SECTNO>2904.601</SECTNO>
              <SUBJECT>Federal Procurement Data System.</SUBJECT>
              <P>(a) DOL's data collection point is the Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210.</P>
              <P>(b) The SF 279, Individual Contract Action Report (over $10,000), and SF 281, Summary of Contract Actions of $10,000 or less, are due monthly on the tenth day of the month.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="19"/>
        <HD SOURCE="HED">SUBCHAPTER B—ACQUISITION PLANNING</HD>
        <PART>
          <EAR>Pt. 2905</EAR>
          <HD SOURCE="HED">PART 2905—PUBLICIZING CONTRACT ACTIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2905.2—Synopsis of Proposed Contract Actions</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2905.202</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2905.4—Release of Information</HD>
              <SECTNO>2905.403</SECTNO>
              <SUBJECT>Requests from Members of Congress.</SUBJECT>
              <SECTNO>2905.404</SECTNO>
              <SUBJECT>Release of long-range acquisition estimates.</SUBJECT>
              <SECTNO>2905.404-1</SECTNO>
              <SUBJECT>Release procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2905.5—Paid Advertisements</HD>
              <SECTNO>2905.502</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8922, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2905.2—Synopsis of Proposed Contract Actions</HD>
            <SECTION>
              <SECTNO>2905.202</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>The Procurement Executive is authorized to make the determination prescribed in FAR 5.202(b). A written determination documenting the reasons why advance notice is not appropriate or reasonable shall be submitted by the HCA to the Director, Directorate of Procurement and Grant Management, for appropriate action including communication with the officials listed in FAR 5.202(b).</P>
              <CITA>[51 FR 40374, Nov. 6, 1986]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2905.4—Release of Information</HD>
            <SECTION>
              <SECTNO>2905.403</SECTNO>
              <SUBJECT>Requests from Members of Congress.</SUBJECT>
              <P>In addition to having access to the information available to the general public, Members of Congress shall, upon their request, be given full and detailed information regarding any particular DOL procurement. The information provided shall be fully responsive to the member's request unless such a response would disclose classified matter, information not to be released pursuant to law, business confidential information or information which would be prejudicial to the competitive process. The contracting officer shall promptly consult with the Office of the Solicitor and the Office of Legislative and Intergovernmental Affairs to determine whether circumstances exist which will allow the release of additional information. In such instances, the Congressional requestor shall be furnished an interim reply providing the information which is readily releasable. The interim reply shall describe the problem which precludes release of any requested materials and describe generally what steps, if any, are being taken to make such information available.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2905.404</SECTNO>
              <SUBJECT>Release of long-range acquisition estimates.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2905.404-1</SECTNO>
              <SUBJECT>Release procedures.</SUBJECT>
              <P>(a) Heads of contracting activities are authorized to release long-range acquistion estimates under the conditions in FAR 5.404-1.</P>
              <P>(b) Offices contemplating the release of long-range acquisition planning estimates shall coordinate with the Office of Information and Public Affairs in advance of the release of such planning estimates.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2905.5—Paid Advertisements</HD>
            <SECTION>
              <SECTNO>2905.502</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <P>When it is deemed necessary to use paid advertisements in newspapers and trade journals, written authority for such publication shall be obtained from the Head of the Contracting Activity or designee.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2906</EAR>
          <HD SOURCE="HED">PART 2906—COMPETITION REQUIREMENTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2906.2—Full and Open Competition After Exclusion of Sources</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2906.202</SECTNO>
              <SUBJECT>Establishing or maintaining alternative sources.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <PRTPAGE P="20"/>
              <HD SOURCE="HED">Subpart 2906.3—Other Than Full and Open Competition</HD>
              <SECTNO>2906.303</SECTNO>
              <SUBJECT>Justifications.</SUBJECT>
              <SECTNO>2906.303-1</SECTNO>
              <SUBJECT>Requirements.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2906.5—Competition Advocates</HD>
              <SECTNO>2906.501</SECTNO>
              <SUBJECT>Requirement.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>51 FR 40374, Nov. 6, 1986, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2906.2—Full and Open Competition After Exclusion of Sources</HD>
            <SECTION>
              <SECTNO>2906.202</SECTNO>
              <SUBJECT>Establishing or maintaining alternative sources.</SUBJECT>
              <P>The Procurement Executive is authorized to make the determination prescribed in FAR 6.202(b). A written determination shall be submitted by the HCA to the Director, Directorate of Procurement and Grant Management.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2906.3—Other Than Full and Open Competition</HD>
            <SECTION>
              <SECTNO>2906.303</SECTNO>
              <SUBJECT>Justifications.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2906.303-1</SECTNO>
              <SUBJECT>Requirements.</SUBJECT>
              <P>(a) As prescribed in the Department of Labor Manual Series (DLMS) 2, Chapter 830, any proposed noncompetitive aquisitions in excess of the small purchases limitation must be fully justified, submitted to the DOL Procurement Review Board and approved by the Assistant Secretary for Administration and Management and, in the case of research contracts, by the Assistant Secretary for Policy.</P>
              <P>(b) The contracting officer is responsible for assuring that proposed acquisitions below the dollar level specified in paragraph (a) of this section are in compliance with FAR and DOLAR requirements regarding competition.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2906.5—Competition Advocates</HD>
            <SECTION>
              <SECTNO>2906.501</SECTNO>
              <SUBJECT>Requirement.</SUBJECT>
              <P>(a) The Competition Advocate for the Department of Labor is the Director, Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, OASAM.</P>
              <P>(b) The head of the agency has delegated the authority to the Procurement Executive to appoint the Agency and Procuring Activity Competition Advocates. The Procurement Executive has delegated authority to the Head of the Procuring Activity to appoint Procuring Activity Competition Advocates.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2907</EAR>
          <HD SOURCE="HED">PART 2907—ACQUISITION PLANNING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2907.1—Acquisition Plans</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2907.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2907.3—Contractor Versus Government Performance</HD>
              <SECTNO>2907.307</SECTNO>
              <SUBJECT>Appeals.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2907.1—Acquisition Plans</HD>
            <SECTION>
              <SECTNO>2907.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>DOL Agencies and Offices shall develop acquisition plans for major system acquisitions and major projects in accordance with FAR subpart 7.1 when the potential benefit justifies their development. The Directorate of Procurement and Grant Management and the Procurement Review Board will review each DOL Agency/Office Annual Advance Procurement Plan to ensure compliance with this subpart.</P>
              <CITA>[50 FR 8922, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2907.3—Contractor Versus Government Performance</HD>
            <SECTION>
              <SECTNO>2907.307</SECTNO>
              <SUBJECT>Appeals.</SUBJECT>

              <P>An appeal of a decision to convert to contract or to continue in-house performance may be made by an affected party. Appeals shall be made in writing, be based only on specific alleged material deviation (or deviations), from OMB Circular A-76, and be supported by appropriate documentation. Appeals must be delivered within 15 working days of the announced decision, through the contracting officer <PRTPAGE P="21"/>and the Director, Directorate of Procurement and Grant Management, to the Under Secretary.</P>
              <CITA>[50 FR 8922, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2908</EAR>
          <HD SOURCE="HED">PART 2908—REQUIRED SOURCES OF SUPPLIES AND SERVICES</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2908.8—Acquisition of Printing and Related Supplies</HD>
            <SECTION>
              <SECTNO>2908.802</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) The Office of Printing, Directorate of Administrative Services and Safety and Health Programs, has been designated as the DOL liaison with the Joint Committee on Printing (JCP) and the Public Printer, Government Printing Office (GPO), on all matters related to printing.</P>
              <P>(b) Except as provided in paragraphs 35-2 through 35-4 of the “Government Printing and Binding Regulations” of the Congressional Joint Committee on Printing, inclusion of printing as defined in FAR 8.801 in contracts for supplies and services is prohibited unless specifically approved in writing by the Directorate of Administrative Services and Safety and Health Programs.</P>
              <CITA>[50 FR 8923, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2909</EAR>
          <HD SOURCE="HED">PART 2909—CONTRACTOR QUALIFICATIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2909.1—Responsible Prospective Contractors</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2909.105</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>2909.105-1</SECTNO>
              <SUBJECT>Obtaining information.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2909.4—Debarment, Suspension, and Ineligibility</HD>
              <SECTNO>2909.400</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>2909.404</SECTNO>
              <SUBJECT>Consolidated List of Debarred, Suspended, and Ineligible Contractors.</SUBJECT>
              <SECTNO>2909.405</SECTNO>
              <SUBJECT>Effect of listing.</SUBJECT>
              <SECTNO>2909.405-1</SECTNO>
              <SUBJECT>Continuation of current contracts.</SUBJECT>
              <SECTNO>2909.406</SECTNO>
              <SUBJECT>Debarment.</SUBJECT>
              <SECTNO>2909.406-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2909.406-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>2909.407</SECTNO>
              <SUBJECT>Suspension.</SUBJECT>
              <SECTNO>2909.407-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2909.407-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2909.5—Organizational Conflicts of Interest</HD>
              <SECTNO>2909.503</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <SECTNO>2909.507</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8923, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2909.1—Responsible Prospective Contractors</HD>
            <SECTION>
              <SECTNO>2909.105</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2909.105-1</SECTNO>
              <SUBJECT>Obtaining information.</SUBJECT>
              <P>(a) In addition to the sources of information listed in FAR 9.105-1(c) to support determinations of responsibility or nonresponsibility, the contracting officer shall use, if available, performance evaluation reports on section 8(a) contractors (section 8(a) of the Small Business Act as amended (15 U.S.C. 637(a)) and construction and architect-engineer contractors (see 2936.201 and 2936.604).</P>
              <P>(b) Contracting officers may obtain credit reports prior to the issuance of any loan, loan guarantee, contract or grant through the credit bureau service. The National Capital Service Center will award a contract for the credit bureau service for use by all DOL contracting activities until such services become available through an established GSA Federal Supply Schedule.</P>
              <CITA>[50 FR 8923, Mar. 5, 1985, as amended at 51 FR 40374, Nov. 6, 1986]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2909.4—Debarment, Suspension, and Ineligibility</HD>
            <SECTION>
              <SECTNO>2909.400</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart prescribes DOL policies and procedures governing the debarment and suspension of contractors, the listing of debarred and suspended contractors, contractors declared ineligible (see FAR 9.403) and distribution of the list.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.404</SECTNO>
              <SUBJECT>Consolidated List of Debarred, Suspended, and Ineligible Contractors.</SUBJECT>

              <P>(a) The Directorate of Procurement and Grant Management, is responsible for accomplishing the actions required in FAR 9.404(c).<PRTPAGE P="22"/>
              </P>
              <P>(b) The Directorate of Procurement and Grant Management, upon receipt of monthly issues of the consolidated list from GSA, shall distribute the issues to the heads of contracting activities.</P>
              <P>(c) Weekly supplements to monthly lists shall be furnished to the heads of contracting activities by the Directorate of Procurement and Grant Management.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.405</SECTNO>
              <SUBJECT>Effect of listing.</SUBJECT>
              <P>The Director, Directorate of Procurement and Grant Management, is authorized to make the determinations listed in FAR 9.405(a). Requests for such determinations shall be submitted by the head of the contracting activity to the Director, Directorate of Procurement and Grant Management.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.405-1</SECTNO>
              <SUBJECT>Continuation of current contracts.</SUBJECT>
              <P>The Director, Directorate of Procurement and Grant Management, is authorized to take the actions listed in FAR 9.405-1.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.406</SECTNO>
              <SUBJECT>Debarment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2909.406-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is the debarring official for DOL and is authorized to debar a contractor for any of the causes in FAR 9.406-2, using the procedures in 2909.406-3.</P>
              <P>(b) Exceptions to debarment made by another Executive Agency shall be made by the Director, Directorate of Procurement and Grant Management, in accordance with the conditions in FAR 9.406-1(c).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.406-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) <E T="03">Investigation and referral.</E> Whenever a cause for debarment, as listed in FAR 9.406-2, becomes known to a DOL employee, the head of the contracting activity affected shall be notified. The head of the contracting activity shall consult with the Office of the Solicitor and the Office of the Inspector General, as appropriate, and submit a formal recommendation which documents the cause for debarment to the Director, Directorate of Procurement and Grant Management.</P>
              <P>(b) <E T="03">Notice of proposal to debar.</E> Based upon review of the recommendation to debar and consultation with the Office of the Solicitor and Office of the Inspector General, as appropriate, the Director, Directorate of Procurement and Grant Management, shall initiate proposed debarment by taking the actions listed in FAR 9.406-3(c) and advising the contractor of DOL's rules under 2909.4.</P>
              <P>(c) <E T="03">Factfinding proceedings.</E> For actions listed under FAR 9.406-3(b)(2), the Director, Directorate of Procurement and Grant Management, shall afford the contractor the opportunity to appear at an informal factfinding as required by FAR 9.406-3(b)(2)(i). The hearing shall be conducted by the Office of Administrative Law Judges and shall be held at a date and location convenient to the parties concerned. Subject to the provisions of 29 CFR part 18, the contractor and any specifically named affiliates, may be represented by counsel or any duly authorized representative. Witnesses may be called by either party. The proceedings shall be conducted expeditiously and in such a manner that each party will have a full opportunity to present all information considered pertinent to the proposed debarment. A transcript of the proceedings shall be made available to the contractor under the conditions in FAR 9.406-3(b)(2)(ii).</P>
              <P>(d) <E T="03">Decision and notice.</E> The Director, Directorate of Procurement and Grant Management, shall make a decision on imposing debarment in accordance with the procedures in FAR 9.406-3(d), findings of fact of the Administrative Law Judge, and the conditions in FAR 9.406-4 and 9.406-5. Notice of the decision shall be provided to the contractor and any affiliates involved in accordance with the procedures in FAR 9.406-3(e).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.407</SECTNO>
              <SUBJECT>Suspension.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2909.407-1</SECTNO>
              <SUBJECT>General.</SUBJECT>

              <P>(a) The Director, Directorate of Procurement and Grant Management, is the suspending official for DOL and is authorized to suspend a contractor for any of the causes in FAR 9.407-2, using the procedures in 2909.407-3.<PRTPAGE P="23"/>
              </P>
              <P>(b) The Director, Directorate of Procurement and Grant Management, is authorized to make the statement regarding suspension by another agency suspending official under the conditions in FAR 9.407-1(d).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.407-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) <E T="03">Investigation and referral.</E> Whenever a cause for suspension, as listed in FAR 9.406-2, becomes known to a DOL employee, the head of the contracting activity affected shall be notified. The head of the contracting activity shall consult with the Office of the Solicitor and the Office of the Inspector General, as appropriate, and submit a formal recommendation, which documents the cause for suspension, to the Director, Directorate of Procurement and Grant Management.</P>
              <P>(b) <E T="03">Notice of suspension.</E> Based upon review of the recommendation to suspend and consultation with the Office of the Solicitor and the Office of the Inspector General, as required, the Director, Directorate of Procurement and Grant Management, shall initiate suspension by taking the actions listed in FAR 9.407-3(c) and advising the contractor of DOL's rules under 2909.4.</P>
              <P>(c) <E T="03">Factfinding proceedings.</E> For actions listed under FAR 9.407-3(b)(2), the Director, Directorate of Procurement and Grant Management, shall afford the contractor the opportunity to appear at an informal hearing as required by FAR 9.407-3(b)(2)(i). The hearing shall be conducted under the conditions in 2909.407-3(c).</P>
              <P>(d) <E T="03">Suspension decisions.</E> The Director, Directorate of Procurement and Grant Management, shall make a final decision on suspension as prescribed in FAR 9.407-3(d). Notice of the decision shall be provided to the contractor and any affiliates involved in accordance with the provisions in FAR 9.407-3(d)(4).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2909.5—Organizational Conflicts of Interest</HD>
            <SECTION>
              <SECTNO>2909.503</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is authorized to waive any general rule or procedure in FAR 9.5 when its application in a particular situation would not be in the Government's interest. Pursuant to FAR 9.503, this authority may not be redelegated.</P>
              <P>(b) Requests for waivers shall be made by the head of the contracting activity to the Director, Directorate of Procurement and Grant Management. Each request shall include:</P>
              <P>(1) An analysis of the facts involving the potential or actual conflict including benefits and detriments to the Government and prospective contractors;</P>
              <P>(2) A discussion of the factors which preclude avoiding, neutralizing, or mitigating the conflict; and</P>
              <P>(3) Identification of the provision(s) in FAR subpart 9.5 to be waived.</P>
              <P>(c) In making determinations under 2909.503(a), the Director, Directorate of Procurement and Grant Management, shall request the opinion of the Office of the Solicitor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.507</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) If a prospective contractor disagrees with the decision of a contracting officer regarding an organizational conflict of interest provision and requests higher level review in accordance with FAR 9.507(c)(4) the matter shall be referred to the Director, Directorate of Procurement and Grant Management for review and final decision.</P>
              <P>(b) Referrals shall be made by the head of the contracting agency concerned and include the contracting officer's decision and the position of the prospective contractor.</P>
              <P>(c) In making determinations under 2909.507(a), the Director, Directorate of Procurement and Grant Management, shall request the opinion of the Office of the Solicitor.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2910</EAR>
          <HD SOURCE="HED">PART 2910—SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE DESCRIPTIONS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>2910.004</SECTNO>
            <SUBJECT>Selecting specifications or descriptions for use.</SUBJECT>
            <SECTNO>2910.004-70</SECTNO>
            <SUBJECT>Brand name products or equal.</SUBJECT>
            <SECTNO>2910.007</SECTNO>
            <SUBJECT>Deviations.</SUBJECT>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8924, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <PRTPAGE P="24"/>
            <SECTNO>2910.004</SECTNO>
            <SUBJECT>Selecting specifications or descriptions for use.</SUBJECT>
            <P>(a) In accordance with FAR 10.1004(b)(2), purchase descriptions shall not specify a product, or specific feature of a product, peculiar to a manufacturer unless it is determined in writing by the Office initiating the purchase request that the product, or specific product feature, is essential to the Government's requirements and other similar products will not meet these requirements. This determination shall be in writing and shall accompany the purchase requisition.</P>
            <P>(b) A “brand name or equal” purchase description shall be used only under the conditions listed in FAR 10.004(b)(3) and in accordance with the policies and procedures in 2910.004-70.</P>
          </SECTION>
          <SECTION>
            <SECTNO>2910.004-70</SECTNO>
            <SUBJECT>Brand name products or equal.</SUBJECT>
            <P>(a) <E T="03">Limitations on use.</E> The identification of a requirement in a purchase description by use of one or more brand name products followed by the words “or equal” shall be used only under the conditions listed in FAR 10.004(b)(3). A “brand name product” means a current commercial product of a manufacturer described by its brand name, make, model number, catalog designation, or other description by which it is regularly offered for sale to the public in the commercial market place.</P>
            <P>(b) <E T="03">Invitation requirements.</E> (1) “Brand name or equal” purchase descriptions in invitations shall identify salient characteristics of the product (see 2910.004-70(b)(2)) and contain the following information to describe the specific item:</P>
            <P>(i) Identification of the item by generic descriptions;</P>
            <P>(ii) Make, model number, catalog designation (or other description), and identification of commercial catalog where it is listed; and</P>
            <P>(iii) Name of manufacturer, producer, or distributor of the item and complete address.</P>

            <P>(2) In accordance with the policy in FAR 10.002, whenever a “brand name or equal” purchase description is used, offerors shall be given the opportunity to offer products equal to the brand name if those products (including modifications thereto) satisfy the minimum needs of the Government. Therefore, all salient characteristics of the “brand name or equal” product which are determined by the office initiating the purchase request to be essential to the Government's minimum needs shall be identified separately under the heading of “Salient Characteristics” and included in the purchase description contained in the solicitation so the offeror understands the information to be submitted with its bid when offering an “equal” product for evaluation. In addition, the following certification shall be included at the end of each “brand name or equal” description in a solicitation for an offeror to identify its “equal” product:
            </P>
            <EXTRACT>

              <P>Offerors proposing to furnish an “equal” product, in accordance with the “Brand Name or Equal” provision of this solicitation, shall insert the following description for the product.
              </P>
              <FP SOURCE="FP-DASH">Bidding on:</FP>
              
              <FP SOURCE="FP-DASH">Manufacturer's Name:</FP>
              
              <FP SOURCE="FP-DASH">Address:</FP>
              
              <FP SOURCE="FP-DASH">Product Name (if any):</FP>
              
              <FP SOURCE="FP-DASH">Product make, model, or catalog description:</FP>
              
              <FP SOURCE="FP-DASH"/>
              <P>Offerors shall also be responsible for submitting all additional information on the above product necessary for the Government to determine whether the product offered meets the salient characteristics of the “brand name” as listed in the solicitation.</P>
            </EXTRACT>
            
          </SECTION>
          <SECTION>
            <SECTNO>2910.007</SECTNO>
            <SUBJECT>Deviations.</SUBJECT>
            <P>(a) Heads of contracting activities are authorized to approve deviations and exceptions to specifications or standards listed in the Index of Federal Specifications and Standards when the exceptions listed under FAR 10.006 do not apply. The Director, Directorate of Procurement and Grant Management, shall be notified formally and provided a copy of each deviation or exception approved.</P>
            <P>(b) Heads of contracting activities are responsible for accomplishing the actions required under FAR 10.007.</P>
          </SECTION>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="25"/>
        <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        <PART>
          <EAR>Pt. 2913</EAR>
          <HD SOURCE="HED">PART 2913—SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2913.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2913.106</SECTNO>
              <SUBJECT>Competition and price reasonableness.</SUBJECT>
              <SECTNO>2913.107</SECTNO>
              <SUBJECT>Solicitation and evaluation of quotations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2913.3—Fast Payment Procedure</HD>
              <SECTNO>2913.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2913.4—Imprest Fund</HD>
              <SECTNO>2913.403</SECTNO>
              <SUBJECT>Agency responsibilities.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2913.5—Purchase Orders</HD>
              <SECTNO>2913.503</SECTNO>
              <SUBJECT>Obtaining contractor acceptance and modifying purchase orders.</SUBJECT>
              <SECTNO>2913.503-70</SECTNO>
              <SUBJECT>Duplicate purchase orders.</SUBJECT>
              <SECTNO>2913.505</SECTNO>
              <SUBJECT>Purchase order and related forms.</SUBJECT>
              <SECTNO>2913.505-2</SECTNO>
              <SUBJECT>Agency order forms in lieu of optional forms 347 and 348.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8925, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2913.1—General</HD>
            <SECTION>
              <SECTNO>2913.106</SECTNO>
              <SUBJECT>Competition and price reasonableness.</SUBJECT>
              <P>When other than the lowest responsive quotation from a responsible supplier is used as the basis for the purchase, the Contracting Officer shall include in the purchase file documentation of the reason(s) for rejecting any lower quotation and the name of the individual responsible for making the determination to reject such quotation.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2913.107</SECTNO>
              <SUBJECT>Solicitation and evaluation of quotations.</SUBJECT>
              <P>Standard Form 18, Request for Quotations, shall be used as prescribed in FAR 13.107(a) unless an agency equivalent form has been authorized for use by the Director, Directorate of Procurement and Grant Management.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2913.3—Fast Payment Procedure</HD>
            <SECTION>
              <SECTNO>2913.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The fast payment procedure delineated in FAR subpart 13.3 shall not be utilized by DOL.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2913.4—Imprest Fund</HD>
            <SECTION>
              <SECTNO>2913.403</SECTNO>
              <SUBJECT>Agency responsibilities.</SUBJECT>
              <P>The DOL “Imprest Fund Handbook” incorporated in the Department of Labor Manual Series (DLMS 6, Chapter 1900, Handbook DLMS 6-5) contains internal DOL procedures for establishment, maintenance and use of imprest funds. Copies of the handbook may be obtained upon written request from the Directorate of Procurement and Grant Management, Office of the Assistant Secretary for Administration and Management, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210.</P>
              <CITA>[50 FR 8925, Mar. 5, 1985, as amended at 51 FR 40374, Nov. 6, 1986]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2913.5—Purchase Orders</HD>
            <SECTION>
              <SECTNO>2913.503</SECTNO>
              <SUBJECT>Obtaining contractor acceptance and modifying purchase orders.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2913.503-70</SECTNO>
              <SUBJECT>Duplicate purchase orders.</SUBJECT>

              <P>If the vendor reports non-receipt, loss or other inability to locate an original purchase order and requests another copy, the purchasing officer may issue to the vendor a duplicate copy as the vendor's basis of performance. This second issue should be conspicuously marked “Duplicate Copy.” To avoid the possibility of a duplicate shipment, a letter of transmittal or a notation on the purchase order should read as follows:
              </P>
              <EXTRACT>

                <P>This is a duplicate copy of the lost original purchase order, furnished in accordance with <PRTPAGE P="26"/>your request of ————— (Date). The Government will not be responsible for duplicate shipment.</P>
              </EXTRACT>
              <CITA>[50 FR 8925, Mar. 5, 1985, as amended at 51 FR 40374, Nov. 6, 1986]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>2913.505</SECTNO>
              <SUBJECT>Purchase order and related forms.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2913.505-2</SECTNO>
              <SUBJECT>Agency order forms in lieu of optional forms 347 and 348.</SUBJECT>
              <P>Department of Labor Form 1-90 (DL Form 1-90), entitled “Purchase Order” may be used by DOL in lieu of Optional Forms 347 and 348 prescribed in FAR 13.505.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2914</EAR>
          <HD SOURCE="HED">PART 2914—SEALED BIDDING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2914.2—Solicitation of Bids</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2914.203</SECTNO>
              <SUBJECT>Methods of soliciting bids.</SUBJECT>
              <SECTNO>2914.203-2</SECTNO>
              <SUBJECT>Dissemination of information concerning invitation for bids.</SUBJECT>
              <SECTNO>2914.205</SECTNO>
              <SUBJECT>Solicitation mailing lists.</SUBJECT>
              <SECTNO>2914.205-1</SECTNO>
              <SUBJECT>Establishment of lists.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2914.4—Opening of Bids and Award of Contract</HD>
              <SECTNO>2914.404</SECTNO>
              <SUBJECT>Rejection of bids.</SUBJECT>
              <SECTNO>2914.404-1</SECTNO>
              <SUBJECT>Cancellation of invitations after opening.</SUBJECT>
              <SECTNO>2914.406</SECTNO>
              <SUBJECT>Mistakes in bids.</SUBJECT>
              <SECTNO>2914.406-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
              <SECTNO>2914.406-4</SECTNO>
              <SUBJECT>Disclosure of mistakes after award.</SUBJECT>
              <SECTNO>2914.407</SECTNO>
              <SUBJECT>Award.</SUBJECT>
              <SECTNO>2914.407-8</SECTNO>
              <SUBJECT>Protests against award.</SUBJECT>
              <SECTNO>2914.407-70</SECTNO>
              <SUBJECT>Award when only one bid is received.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8925, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2914.2—Solicitation of Bids</HD>
            <SECTION>
              <SECTNO>2914.203</SECTNO>
              <SUBJECT>Methods of soliciting bids.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2914.203-2</SECTNO>
              <SUBJECT>Dissemination of information concerning invitation for bids.</SUBJECT>
              <P>Procedures for obtaining approval for paid advertisements in newspapers are contained in 2905.502.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2914.205</SECTNO>
              <SUBJECT>Solicitation mailing lists.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2914.205-1</SECTNO>
              <SUBJECT>Establishment of lists.</SUBJECT>
              <P>In accordance with FAR 14.205-1(b), prospective bidders which submit solicitation mailing list applications shall be notified by the Contracting Activity when added to a mailing list unless the bidder is expected to be issued a solicitation within thirty days after Government receipt of the application.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2914.4—Opening of Bids and Award of Contract</HD>
            <SECTION>
              <SECTNO>2914.404</SECTNO>
              <SUBJECT>Rejection of bids.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2914.404-1</SECTNO>
              <SUBJECT>Cancellation of invitations after opening.</SUBJECT>
              <P>The head of the contracting activity (HCA) is authorized to make the written determination required by FAR 14.404-1(c).</P>
              <CITA>[51 FR 40374, Nov. 6, 1986]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>2914.406</SECTNO>
              <SUBJECT>Mistakes in bids.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2914.406-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is authorized to make the administrative determinations under FAR 14.406-3. This authority may not be redelegated except as set forth in paragraph (b) of 2914.406-3.</P>

              <P>(b) If (1) a bidder requests permission to withdraw a bid rather than correct it, and (2) the evidence is determined convincing as to the mistake or (3) the evidence reasonably supports the existence of a mistake but is not clear and convincing, the head of the contracting office is authorized to make a written determination permitting the bidder to withdraw the bid after review, in accordance with established procedures, and concurrence by the appropriate Office of the Solicitor. Copies of all determinations made pursuant to this authority shall be promptly transmitted to the Director, Directorate of Procurement and Grant Management. If evidence of the intended bid is clear and convincing, even though the bidder has not requested permission to correct the bid, the case shall be processed in accordance with paragraph (c) of 2914.406-3.<PRTPAGE P="27"/>
              </P>
              <P>(c) Suspected or alleged mistakes in bids shall be processed in accordance with the requirements of FAR 14.406-3(g). The contracting officer shall submit a report together with the supporting data described in FAR 14.406-3(g)(3) through the head of the contracting activity to the Director, Directorate of Procurement and Grant Management.</P>
              <P>(d) The Director, Directorate of Procurement and Grant Management, is responsible for maintaining records of administrative determinations as required in FAR 14.406-3(h).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2914.406-4</SECTNO>
              <SUBJECT>Disclosure of mistakes after award.</SUBJECT>
              <P>(a) The head of the contracting activity is authorized to make the administrative determinations in FAR 14.406-4 after concurrence is received from the Office of the Solicitor as required by FAR 14.406-4(d). This authority may not be redelegated.</P>
              <P>(b) The contracting officer shall process a mistake and prepare a case file in accordance with the requirements of FAR 14.604-4(e). The file shall be submitted to the head of the contracting activity for determination.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2914.407</SECTNO>
              <SUBJECT>Award.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2914.407-8</SECTNO>
              <SUBJECT>Protests against award.</SUBJECT>
              <P>See DOLAR subpart 2933.1, “Protests”.</P>
              <CITA>[51 FR 40374, Nov. 6, 1986]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>2914.407-70</SECTNO>
              <SUBJECT>Award when only one bid is received.</SUBJECT>
              <P>When only one bid is received in response to an invitation for bids, such bid may be considered and accepted if the contracting officer makes a written determination that (a) the specifications used in the invitation were not unduly restrictive, (b) adequate competition was solicited and it could have been reasonably assumed that more than one bid would have been submitted, (c) the price is reasonable, and (d) the bid is otherwise in accordance with the invitation for bids. Such a determination shall be placed in the contract file.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2915</EAR>
          <HD SOURCE="HED">PART 2915—CONTRACTING BY NEGOTIATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2915.4—Solicitation and Receipt of Proposals and Quotations</HD>
              <SECTNO>2915.404</SECTNO>
              <SUBJECT>Presolicitation notices and conferences.</SUBJECT>
              <SECTNO>2915.405</SECTNO>
              <SUBJECT>Solicitations for information or planning purposes.</SUBJECT>
              <SECTNO>2915.405-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2915.413</SECTNO>
              <SUBJECT>Disclosure and use of information before award.</SUBJECT>
              <SECTNO>2915.413-1</SECTNO>
              <SUBJECT>Alternate I.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2915.5—Unsolicited Proposals</HD>
              <SECTNO>2915.505</SECTNO>
              <SUBJECT>Content of unsolicited proposals.</SUBJECT>
              <SECTNO>2915.505-1</SECTNO>
              <SUBJECT>Unsolicited research proposals.</SUBJECT>
              <SECTNO>2915.506</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2915.6—Source Selection</HD>
              <SECTNO>2915.607</SECTNO>
              <SUBJECT>Disclosure of mistakes before award.</SUBJECT>
              <SECTNO>2915.608</SECTNO>
              <SUBJECT>Proposal evaluation.</SUBJECT>
              <SECTNO>2915.612</SECTNO>
              <SUBJECT>Formal source selection.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2915.8—Price Negotiation</HD>
              <SECTNO>2915.803</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2915.804</SECTNO>
              <SUBJECT>Cost or pricing data.</SUBJECT>
              <SECTNO>2915.804-3</SECTNO>
              <SUBJECT>Exemptions from or waiver of submission of certified cost or pricing data.</SUBJECT>
              <SECTNO>2915.805</SECTNO>
              <SUBJECT>Proposal analysis.</SUBJECT>
              <SECTNO>2915.805-5</SECTNO>
              <SUBJECT>Field pricing support.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8926, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2915.4—Solicitation and Receipt of Proposals and Quotations</HD>
            <SECTION>
              <SECTNO>2915.404</SECTNO>
              <SUBJECT>Presolicitation notices and conferences.</SUBJECT>
              <P>A presolicitation conference (see FAR 15.404) shall not be used unless approved by the Head of the Contracting Activity or designee in accordance with Agency or Office procedures.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2915.405</SECTNO>
              <SUBJECT>Solicitations for information or planning purposes.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2915.405-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The written determination justifying use of a solicitation for information or planning purposes under FAR 15.405-1 shall be approved by the Head of the Contracting Activity before issuance of the solicitation.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="28"/>
              <SECTNO>2915.413</SECTNO>
              <SUBJECT>Disclosure and use of information before award.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2915.413-1</SECTNO>
              <SUBJECT>Alternate I.</SUBJECT>
              <P>The Department of Labor shall employ the procedures in FAR Alternate I regarding disclosure and use of information.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2915.5—Unsolicited Proposals</HD>
            <SECTION>
              <SECTNO>2915.505</SECTNO>
              <SUBJECT>Content of unsolicited proposals.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2915.505-1</SECTNO>
              <SUBJECT>Unsolicited research proposals.</SUBJECT>
              <P>In addition to the contents required by FAR 15.505, unsolicited proposals for research should contain a commitment to provide cost-sharing.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2915.506</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
              <P>(a) The contact points for submission of unsolicited proposals are those officials (Heads of Contracting Activities) with program responsibility listed in subpart 2901.6.</P>
              <P>(b) Heads of Contracting Activities shall assure that unsolicited proposals are controlled, evaluated, safeguarded and disposed of in accordance with FAR subpart 15.5.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2915.6—Source Selection</HD>
            <SECTION>
              <SECTNO>2915.607</SECTNO>
              <SUBJECT>Disclosure of mistakes before award.</SUBJECT>
              <P>The Head of the Contracting Activity is authorized to make the determination permitting proposal correction in accordance with the conditions in FAR 15.607(c)(3) and consultation with the Office of the Solicitor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2915.608</SECTNO>
              <SUBJECT>Proposal evaluation.</SUBJECT>
              <P>The head of contracting activity (HCA) is authorized to make the determination required by FAR 15.608(b).</P>
              <CITA>[51 FR 40374, Nov. 6, 1986]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>2915.612</SECTNO>
              <SUBJECT>Formal source selection.</SUBJECT>
              <P>(a) The Head of the Contracting Activity shall determine when a formal source selection process shall be used and shall establish procedures for implementing the requirements in FAR 15.612.</P>
              <P>(b) The procedures established under paragraph (a) of this section shall be forwarded for the review and approval of the Director, Directorate of Procurement and Grant Management.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2915.8—Price Negotiation</HD>
            <SECTION>
              <SECTNO>2915.803</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) Where the contractor insists on a price or demands a profit or fee that the contracting officer considers unreasonable, and the contracting officer has taken all authorized actions to resolve the matter (see FAR 15.803), the contract action shall be referred to the Head of the Contracting Activity for final resolution.</P>
              <P>(b) Resolution under paragraph (a) of this section, shall be documented and signed by the Head of the Contracting Activity, and included in the contract file.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2915.804</SECTNO>
              <SUBJECT>Cost or pricing data.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2915.804-3</SECTNO>
              <SUBJECT>Exemptions from or waiver of submission of certified cost or pricing data.</SUBJECT>
              <P>(a) The Head of the Contracting Activity is authorized to approve the contracting officer's finding supporting the unreasonableness of the lowest price (see FAR 15.804-3(b)(2)(iii).</P>
              <P>(b) The Director, Directorate of Procurement and Grant Management, is authorized to waive the requirement for submission of certified cost or pricing data.</P>
              <P>(c) Requests for waiver under paragraph (b) of this section, shall be submitted in writing by the Head of the Contracting Activity and shall contain a statement as to the reasons the waiver is necessary and the efforts made to obtain the data from the contractor or prospective contractor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2915.805</SECTNO>
              <SUBJECT>Proposal analysis.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2915.805-5</SECTNO>
              <SUBJECT>Field pricing support.</SUBJECT>

              <P>(a) As prescribed in FAR 15.805-5(c), the contracting officer shall initiate a cost or pricing review by sending a written request to the Director, Directorate of Procurement and Grant Management, OASAM. The contracting officer shall allow at least 30 calendar <PRTPAGE P="29"/>days when assigning a deadline for receipt of the cost and price analysis report.</P>
              <P>(b) Upon receipt of the cost or pricing review report, the contracting officer and the price analyst (if assigned) shall discuss any questions regarding the contents of the report with the reviewer. If a question cannot be resolved, or agreement cannot be reached on a recommendation in the report, the contracting officer shall prepare a written statement for the contract file which discusses the issue(s) in question and supports a final decision on the matter. An information copy of the statement shall be promptly forwarded to the Director, Directorate of Procurement and Grant Management.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2916</EAR>
          <HD SOURCE="HED">PART 2916—TYPES OF CONTRACTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2916.2—Fixed Price Contracts</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2916.203</SECTNO>
              <SUBJECT>Fixed-price contracts with economic price adjustment.</SUBJECT>
              <SECTNO>2916.203-4</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2916.3—Cost-Reimbursement Contracts</HD>
              <SECTNO>2916.306</SECTNO>
              <SUBJECT>Cost-plus-fixed-fee contracts.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2916.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
              <SECTNO>2916.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
              <SECTNO>2916.603-2</SECTNO>
              <SUBJECT>Application.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2916.7—Agreements</HD>
              <SECTNO>2916.702</SECTNO>
              <SUBJECT>Basic agreements.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8929, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2916.2—Fixed Price Contracts</HD>
            <SECTION>
              <SECTNO>2916.203</SECTNO>
              <SUBJECT>Fixed-price contracts with economic price adjustment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2916.203-4</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>An economic price adjustment clause based on cost indexes of labor or material may be used under the conditions listed in FAR 16.203-4(d) after approval by the Director, Directorate of Procurement and Grant Management, is obtained.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2916.3—Cost-Reimbursement Contracts</HD>
            <SECTION>
              <SECTNO>2916.306</SECTNO>
              <SUBJECT>Cost-plus-fixed-fee contracts.</SUBJECT>
              <P>The Contracting Officer is authorized to approve the determination establishing the basis for application of the statutory price or fee limitation prescribed in FAR 16.306(c)(2).</P>
              <CITA>[51 FR 40374, Nov. 6, 1986]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2916.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
            <SECTION>
              <SECTNO>2916.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2916.603-2</SECTNO>
              <SUBJECT>Application.</SUBJECT>
              <P>The Head of the Contracting Activity is authorized to extend the period for definitization of a letter contract required by FAR 16.603-2(c) in extreme cases where it is determined in writing that such action is in the best interest of the Government.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2916.7—Agreements</HD>
            <SECTION>
              <SECTNO>2916.702</SECTNO>
              <SUBJECT>Basic agreements.</SUBJECT>
              <P>Copies of basic agreements negotiated with contractors in accordance with FAR 16.702 shall be furnished by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, promptly after execution by the Government.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2917</EAR>
          <HD SOURCE="HED">PART 2917—SPECIAL CONTRACTING METHODS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2917.2—Options</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2917.203</SECTNO>
              <SUBJECT>Solicitations.</SUBJECT>
              <SECTNO>2917.206</SECTNO>
              <SUBJECT>Evaluation.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2917.4—Leader Company Contracting</HD>
              <SECTNO>2917.402</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2917.5—Interagency Acquisitions Under the Economy Act</HD>
              <SECTNO>2917.502</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8929, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <PRTPAGE P="30"/>
            <HD SOURCE="HED">Subpart 2917.2—Options</HD>
            <SECTION>
              <SECTNO>2917.203</SECTNO>
              <SUBJECT>Solicitations.</SUBJECT>
              <P>Option quantities in excess of the 50 percent limit prescribed in FAR 17.203(g)(2) may, in unusual circumstances, be approved by the Head of the Contracting Activity. The documentation required by FAR 17.205(a) shall include a written justification to fully support the need for such action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2917.206</SECTNO>
              <SUBJECT>Evaluation.</SUBJECT>
              <P>The Head of the Contracting Activity shall make the written determination required by FAR 17.206(a). This determination is required before use of the solicitation provision at FAR 52.217-5, Evaluation of Options, is authorized. See FAR 17.208(c).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2917.4—Leader Company Contracting</HD>
            <SECTION>
              <SECTNO>2917.402</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <P>Use of leader company contracting for a product, subject to the limitations in FAR 17.402, shall require the advance authorization of the Director, Directorate of Procurement and Grant Management. Authorization requests shall document the circumstances requiring such action and shall be submitted by the Head of the Contracting Activity.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2917.5—Interagency Acquisitions Under the Economy Act</HD>
            <SECTION>
              <SECTNO>2917.502</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The head of the contracting activity is authorized to make the determination prescribed in FAR 17.502 in accordance with the requirements contained in FAR 17.503.</P>
              <CITA>[51 FR 40374, Nov. 6, 1986]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="31"/>
        <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        <PART>
          <EAR>Pt. 2919</EAR>
          <HD SOURCE="HED">PART 2919—SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2919.2—Policies</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2919.201</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <SECTNO>2919.202</SECTNO>
              <SUBJECT>Specific policies.</SUBJECT>
              <SECTNO>2919.202-2</SECTNO>
              <SUBJECT>Locating small business sources.</SUBJECT>
              <SECTNO>2919.202-5</SECTNO>
              <SUBJECT>Data collection and reporting requirements.</SUBJECT>
              <SECTNO>2919.202-70</SECTNO>
              <SUBJECT>Annual plans and program goals.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2919.5—Set-Asides for Small Business</HD>
              <SECTNO>2919.501</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2919.503</SECTNO>
              <SUBJECT>Setting aside a class of acquisitions.</SUBJECT>
              <SECTNO>2919.503-70</SECTNO>
              <SUBJECT>Class set-aside for construction acquisitions.</SUBJECT>
              <SECTNO>2919.505</SECTNO>
              <SUBJECT>Rejection of set-aside recommendations.</SUBJECT>
              <SECTNO>2919.506</SECTNO>
              <SUBJECT>Withdrawal or modification of set-asides.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2919.6—Certificates of Competency and Determinations of Eligibility</HD>
              <SECTNO>2919.602</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>2919.602-1</SECTNO>
              <SUBJECT>Referrals.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2919.7—Subcontracting With Small Business and Small Disadvantaged Business Concerns</HD>
              <SECTNO>2919.705</SECTNO>
              <SUBJECT>Responsibilities of the contracting officer under the subcontracting assistance program.</SUBJECT>
              <SECTNO>2919.705-3</SECTNO>
              <SUBJECT>Solicitations.</SUBJECT>
              <SECTNO>2919.705-4</SECTNO>
              <SUBJECT>Reviewing the subcontracting plan.</SUBJECT>
              <SECTNO>2919.705-5</SECTNO>
              <SUBJECT>Awards involving subcontracting plans.</SUBJECT>
              <SECTNO>2919.705-6</SECTNO>
              <SUBJECT>Postaward responsibilities of the contracting officer.</SUBJECT>
              <SECTNO>2919.708</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2919.8—Contracting With the Small Business Administration</HD>
              <SECTNO>2919.802</SECTNO>
              <SUBJECT>Selecting firms for DOL acquisitions.</SUBJECT>
              <SECTNO>2919.803</SECTNO>
              <SUBJECT>Selecting acquisitions for the 8(a) program.</SUBJECT>
              <SECTNO>2919.810</SECTNO>
              <SUBJECT>Contract administration.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8929, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2919.2—Policies</HD>
            <SECTION>
              <SECTNO>2919.201</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <P>(a) The Director, Office of Small and Disadvantaged Business Utilization (OSDBU), is responsible for performing all functions and duties prescribed in FAR 19-201(c) and for:</P>
              <P>(1) Developing and monitoring policies, procedures and regulations for effective administration of the Department's small business and small disadvantaged business program;</P>
              <P>(2) Coordinating issues with the small and disadvantaged business specialist (SDBS) in each contracting office regarding the Department's small and small disadvantaged business program;</P>
              <P>(3) Conducting surveys and reviews of DOL contracting offices related to the small business and small disadvantaged business program, recommending changes and corrective action, as appropriate; and</P>
              <P>(4) Representing the Department before other Government agencies on matters primarily affecting small business, small disadvantaged business, women-owned business, historically black colleges and universities (HBCU), and advising the Under Secretary and other officials on matters relating to the program.</P>
              <P>(b) The Head of the Contracting Activity, or designee, in addition to the requirements of FAR 19.201(b), shall be responsible for:</P>
              <P>(1) Establishing annual goals for the small disadvantaged business programs; and</P>
              <P>(2) Appointing, as prescribed in FAR 19.201(d), a small and disadvantaged business specialist (SDBS) for each contract office.</P>

              <P>(c) The small and disadvantaged business specialist (SDBS) shall serve as advisor to the Head of the Contracting Activity, and shall be the contracting activity's central point of contact for inquiries and advice pertaining to the small business and small disadvantaged business program. The SDBS shall be responsible for:<PRTPAGE P="32"/>
              </P>
              <P>(1) Maintaining a program to locate capable small business, small disadvantaged business, and women-owned business sources to fulfill the Department's acquisition requirements;</P>
              <P>(2) Coordinating inquiries and requests for advice from small business, small disadvantaged business, women-owned business concerns and HBCU on DOL contracting and subcontracting opportunities and other acquisition matters;</P>
              <P>(3) Ensuring that contracting offices are kept abreast of new or revised small business, small disadvantaged business, women-owned business and HBCU regulations, policies, procedures and other related information;</P>
              <P>(4) Assisting in the Agency's advance acquisition planning process;</P>
              <P>(5) Reviewing all requirements to assure that small business, small disadvantaged business, women-owned business, businesses located in labor surplus areas (LSA) and HBCU will be afforded an equitable opportunity to compete, and as appropriate, initiating recommendations for small business set-asides;</P>
              <P>(6) Reviewing proposed requirements for possible breakout of items or services suitable for acquisition from participants of the small and disadvantaged business programs;</P>
              <P>(7) Attending, as appropriate, debriefings to unsuccessful small business and small disadvantaged business concerns to assist those firms in understanding requirements for responsiveness and responsibility so that the firm may be able to better qualify for future awards;</P>
              <P>(8) Participating in the evaluation of small business and small disadvantaged business subcontracting plans for prime contractors and other evaluation activities, as appropriate;</P>
              <P>(9) Maintaining a list of products and services which have been placed as repetitive small business set-asides;</P>
              <P>(10) Developing and maintaining records necessary to demonstrate maximum support for DOL's preferential programs, ensuring compilation of current, accurate, and complete data; and preparing all reports pertaining to program activities;</P>
              <P>(11) Participating in the development, implementation, and review of automated source systems to assure that the interest of small business, small disadvantaged business, women-owned business, and HBCU are fully considered;</P>
              <P>(12) Participating, as required, in governmental-industry conferences to assist small business, disadvantaged business, women-owned business, and HBCU, including Congressionally-sponsored Federal acquisition conferences, minority business enterprises acquisition seminars, and business opportunity committee meetings;</P>
              <P>(13) Initiating action, in writing, with appropriate personnel to assure the availability of adequate specifications and drawings, when necessary, to obtain small business, small disadvantaged business, women-owned business and HBCU participation in current and future acquisitions.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.202</SECTNO>
              <SUBJECT>Specific policies.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2919.202-2</SECTNO>
              <SUBJECT>Locating small business sources.</SUBJECT>
              <P>(a) It is the policy of the DOL to utilize the services of the SBA Procurement Automatic Source System (PASS) to identify small and small disadvantaged business sources. Obtaining sources from PASS or from local mailing lists does not negate the requirement that the contracting officer advertise the acquisition in accordance with FAR 5.</P>
              <P>(b) Historically black colleges and universities shall be considered as sources for fulfilling requirements except for small business set-asides.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.202-5</SECTNO>
              <SUBJECT>Data collection and reporting requirements.</SUBJECT>
              <P>In addition to the requirements of FAR 19.202-5, DOL Agencies/Offices shall accurately measure the extent of participation by historically black colleges and universities in their acquisitions in terms of the total value of contracts placed with such organizations during each fiscal year, and report data to the OSDBU at the end of the second and fourth quarters of each fiscal year. The OSDBU shall forward the Department's consolidated data to the Department of Education.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="33"/>
              <SECTNO>2919.202-70</SECTNO>
              <SUBJECT>Annual plans and program goals.</SUBJECT>
              <P>(a) Heads of Contracting Activities shall develop annual goals for each category of the small business and small disadvantaged business utilization programs, which shall include projected acquisition awards to small businesses, minority businesses, 8(a) concerns, women-owned businesses, and HBCU.</P>
              <P>(1) To the greatest extent possible, the goals shall be based on advance procurement plans, budget justifications, and past performance.</P>
              <P>(2) Goals must comply with the criteria established by OSDBU.</P>
              <P>(b) Goals are to be submitted to the OSDBU upon request of the Director. OSDBU shall analyze and evaluate proposed goals, consolidate departmental goals and forward such to the Small Business Administration (SBA), the General Services Administration (GSA), and the Minority Business Development Agency (MBDA), Department of Commerce.</P>
              <P>(c) OSDBU may be required to negotiate final departmental goals, depending on SBA, GSA, and/or MBDA concurrence or nonconcurrence.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2919.5—Set-Asides for Small Business</HD>
            <SECTION>
              <SECTNO>2919.501</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) The SDBS shall review individual requirements prior to issuance of solicitations to determine the suitability of the acquisition for award to the SBA under the section 8(a) Program (see FAR 19.803).</P>
              <P>(b) When the requirement cannot be awarded under section 8(a) procedures, the SDBS shall review individual requirements to determine the feasibility of small business set-asides in the order of precedence set forth in FAR 19.504. The SDBS recommendation shall be entered on Form DL1-2004, “Small Business Determination,” with the reasons for the “pro” or “con” set-aside recommendation. The form shall be placed in the contract file.</P>
              <P>(c) Upon receipt of the SDBS recommendation, the contracting officer shall promptly approve or disapprove the SDBS recommendation, stating in writing the reasons for any disapproval. If the contracting officer disapproves the SDBS recommendation, the proposed acquisition shall be promptly referred to the SBA PCR where available, for review; or where no SBA PCR is available, to the Head of the Contracting Activity. All negative recommendations shall be forwarded concurrently to the OSDBU.</P>
              <P>(d) All requirements expected to exceed $10,000 which have not been set-aside for small business shall be further reviewed by the SBA PCR, who shall indicate approval or disapproval of the SDBS/contracting officer's negative recommendation on Form DL 1-2004. If the SBA disapproves the SDBS/contracting officer's recommendation, the proposed action shall be appealed as provided in FAR 19.402(c)(3).</P>
              <P>(e) All future requirements for products or services previously acquired on a small business set-aside basis and which are not subject to simplified small purchase procedures, shall be acquired on the basis of a repetitive set-aside.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.503</SECTNO>
              <SUBJECT>Setting aside a class of acquisitions.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2919.503-70</SECTNO>
              <SUBJECT>Class set-aside for construction acquisitions.</SUBJECT>
              <P>(a) Each requirement for construction, alterations, maintenance, and repair (including architect-engineer services), estimated to cost up to $2 million shall be set aside for exclusive small business participation. Such set-asides shall be considered to be unilateral small business set-asides, and shall be withdrawn only in accordance with the procedures of FAR 19.506 and 2919.506 if found not to serve the best interest of the Government.</P>
              <P>(b) Small business set-aside preferences for construction acquisitions in excess of $2 million shall be considered on a case-by-case basis under conditions prescribed in FAR 19.502-2.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.505</SECTNO>
              <SUBJECT>Rejection of set-aside recommendations.</SUBJECT>

              <P>The Under Secretary of Labor shall make final decisions on any appeals of the Administrator of SBA concerning a DOL contracting officer's adverse set-aside recommendation. The contracting officer's written justification in support of the decision to reject the <PRTPAGE P="34"/>set-aside recommendation shall be approved by the Head of the Contracting Activity. The justification shall then be forwarded for review through the Director, Directorate of Procurement and Grant Management, and the Director, OSDBU, to the Under Secretary of Labor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.506</SECTNO>
              <SUBJECT>Withdrawal or modification of set-asides.</SUBJECT>
              <P>Disagreements between the contracting officer and the SDBS concerning withdrawals or modifications of individual or class set-asides shall be resolved by the SBA PCR in the National Office, or by the Head of the Contracting Activity where no SBA PCR is available. The SDBS shall concurrently notify the OSDBU of such disagreements.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2919.6—Certificates of Competency and Determinations of Eligibility</HD>
            <SECTION>
              <SECTNO>2919.602</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2919.602-1</SECTNO>
              <SUBJECT>Referrals.</SUBJECT>
              <P>Referrals by the contracting officer in accordance with FAR 19.602-1 shall be approved by the head of the contracting activity prior to submission to the appropriate SBA office. The contracting officer shall forward copies of each referral to the Director, OSDBU.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2919.7—Subcontracting With Small Business and Small Disadvantaged Business Concerns</HD>
            <SECTION>
              <SECTNO>2919.705</SECTNO>
              <SUBJECT>Responsibilities of the contracting officer under the subcontracting assistance program.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2919.705-3</SECTNO>
              <SUBJECT>Solicitations.</SUBJECT>
              <P>The contracting officer shall forward to the OSDBU any solicitation expected to result in a contract exceeding $500,000 ($1 million for construction of a public facility) prior to release to the public to ensure that appropriate subcontracting provisions are included in the Request for Proposals or Invitations for Bids. The OSDBU shall be allowed up to five working days for review of the solicitation, depending on the circumstances and complexity of the individual procurement.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.705-4</SECTNO>
              <SUBJECT>Reviewing the subcontracting plan.</SUBJECT>
              <P>The OSDBU shall be afforded the opportunity to review subcontracting plans submitted by apparent successful offerors to determine if small and small disadvantaged businesses are afforded the maximum practicable opportunity to participate as subcontractors. OSDBU shall recommend to the contracting officer needed changes to subcontracting plans determined to be unacceptable.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.705-5</SECTNO>
              <SUBJECT>Awards involving subcontracting plans.</SUBJECT>
              <P>The contracting officer shall forward for review, upon request of the Director, OSDBU, any acquisition package prior to execution of any negotiated contractual document requiring subcontracting plans.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.705-6</SECTNO>
              <SUBJECT>Postaward responsibilities of the contracting officer.</SUBJECT>
              <P>(a) The contracting officer shall forward to the Director, OSDBU, a copy of any subcontracting plan that was incorporated into a contract or contract modification.</P>
              <P>(b) The contracting officer shall maintain a list of active prime contracts containing a subcontracting plan.</P>
              <P>(c) Contracting officers shall collect quarterly and semi-annually subcontracting data from contractors required to establish subcontracting plans in support of small and small disadvantaged business concerns. Copies of the semi-annual report, Standard Form 294 (Subcontracting Report for Individual Contracts), and the quarterly report, Standard Form 295 (Summary Subcontracting Report), shall be forwarded to the Director, OSDBU, not later than the 30th day of the month following the close of the reporting period.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.708</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>

              <P>Advance approval is required prior to including any small and small disadvantaged business concerns incentive <PRTPAGE P="35"/>subcontracting provisions in any contract. Requests for approval shall be submitted by the Head of the Contracting Activity through the Director, Directorate of Procurement and Grant Management, to the Director, OSDBU.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2919.8—Contracting With the Small Business Administration</HD>
            <SECTION>
              <SECTNO>2919.802</SECTNO>
              <SUBJECT>Selecting firms for DOL acquisitions.</SUBJECT>
              <P>Contracting opportunities marketed by individual 8(a) firms may be reserved for the firm or group of firms which identified the opportunity; however, each 8(a) firm or group of firms nominated by DOL for a specific requirement must be approved by SBA for that particular requirement prior to any DOL technical discussions with the firm(s).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.803</SECTNO>
              <SUBJECT>Selecting acquisitions for the 8(a) program.</SUBJECT>
              <P>(a) Each DOL Agency shall identify in tentative Annual Advance Procurement Plans acquisitions to be fulfilled by 8(a) firms. Such tentative plans shall provide detailed descriptions of the nature of the services or work, or any other information pertinent to the requirement.</P>
              <P>(b) Project officers shall also be responsible for cooperating with the OSDBU to actively locate and identify qualified 8(a) sources and to structure and tailor acquisitions to permit their participation.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.810</SECTNO>
              <SUBJECT>Contract administration.</SUBJECT>
              <P>(a) Contracting officers, or designees, shall conduct periodic evaluations relative to the performance of an 8(a) contract at various stages of the contract period of performance. Any problems encountered during the performance evaluation which cannot be resolved shall be referred to OSDBU for subsequent review and discussion with the appropriate SBA official.</P>
              <P>(b) The OSDBU and SBA are to be notified at least 45 days prior to initiating final action to terminate a section 8(a) contract.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2920</EAR>
          <HD SOURCE="HED">PART 2920—LABOR SURPLUS AREA CONCERNS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2920.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2920.102</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2920.2—Set-Asides</HD>
              <SECTNO>2920.201</SECTNO>
              <SUBJECT>Set-asides for labor surplus area concerns.</SUBJECT>
              <SECTNO>2920.201-1</SECTNO>
              <SUBJECT>Total set-asides.</SUBJECT>
              <SECTNO>2920.201-70</SECTNO>
              <SUBJECT>Set-asides for construction acquisitions.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8932, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2920.1—General</HD>
            <SECTION>
              <SECTNO>2920.102</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <P>It is the policy of the Department of Labor (DOL) to award acquisitions with eligible labor-surplus area (LSA) concerns in accordance with FAR part 20. Responsibility for implementing the DOL LSA program is assigned to the Office of Small and Disadvantaged Business Utilization.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2920.2—Set-Asides</HD>
            <SECTION>
              <SECTNO>2920.201</SECTNO>
              <SUBJECT>Set-asides for labor surplus area concerns.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2920.201-1</SECTNO>
              <SUBJECT>Total set-asides.</SUBJECT>
              <P>Acquisitions shall be reviewed for potential combined small business/LSA set-aside consideration in accordance with FAR 19.501 and 2919.501.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2920.201-70</SECTNO>
              <SUBJECT>Set-asides for construction acquisitions.</SUBJECT>
              <P>(a) As prescribed in 2919.503-70, all acquisitions for construction, alterations, maintenance and repair (including architect-engineer services) estimated to cost up to $2 million shall be set-aside on a class basis for combined small business/LSA concern when the construction site is located in a LSA.</P>
              <P>(b) Small business/LSA set-aside preference for construction acquisitions in excess of $2 million shall be considered on a case-by-case basis under conditions prescribed in FAR 20.201-1.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="36"/>
          <EAR>Pt. 2922</EAR>
          <HD SOURCE="HED">PART 2922—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2922.1—Basic Labor Policies</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2922.101</SECTNO>
              <SUBJECT>Labor relations.</SUBJECT>
              <SECTNO>2922.101-3</SECTNO>
              <SUBJECT>Reporting labor disputes.</SUBJECT>
              <SECTNO>2922.101-4</SECTNO>
              <SUBJECT>Removal of items from contractor facilities affected by work stoppage.</SUBJECT>
              <SECTNO>2922.103</SECTNO>
              <SUBJECT>Overtime.</SUBJECT>
              <SECTNO>2922.103-4</SECTNO>
              <SUBJECT>Approvals.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2922.6—Walsh-Healy Public Contracts Act</HD>
              <SECTNO>2922.604</SECTNO>
              <SUBJECT>Exemptions.</SUBJECT>
              <SECTNO>2922.604-2</SECTNO>
              <SUBJECT>Regulatory exemptions.</SUBJECT>
              <SECTNO>2922.608</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>2922.608-4</SECTNO>
              <SUBJECT>Award pending final determination.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2922.8—Equal Employment Opportunity</HD>
              <SECTNO>2922.803</SECTNO>
              <SUBJECT>Responsibilities.</SUBJECT>
              <SECTNO>2922.804</SECTNO>
              <SUBJECT>Affirmative action programs.</SUBJECT>
              <SECTNO>2922.804-2</SECTNO>
              <SUBJECT>Construction.</SUBJECT>
              <SECTNO>2922.805</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>2922.807</SECTNO>
              <SUBJECT>Exemptions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2922.13—Special Disabled and Vietnam Era Veterans</HD>
              <SECTNO>2922.1303</SECTNO>
              <SUBJECT>Waivers.</SUBJECT>
              <SECTNO>2922.1306</SECTNO>
              <SUBJECT>Complaint procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2922.14—Employment of the Handicapped</HD>
              <SECTNO>2922.1403</SECTNO>
              <SUBJECT>Waivers.</SUBJECT>
              <SECTNO>2922.1406</SECTNO>
              <SUBJECT>Complaint procedures.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8932, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2922.1—Basic Labor Policies</HD>
            <SECTION>
              <SECTNO>2922.101</SECTNO>
              <SUBJECT>Labor relations.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2922.101-3</SECTNO>
              <SUBJECT>Reporting labor disputes.</SUBJECT>
              <P>Potential or actual labor disputes that may interfere with contract performance shall be reported by the contracting activity to the Office of the Solicitor for legal advice or assistance.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2922.101-4</SECTNO>
              <SUBJECT>Removal of items from contractor facilities affected by work stoppage.</SUBJECT>
              <P>Prior to initiating any action under FAR 22.101-4 for removal of items from contractors’ facilities, the contracting officer shall obtain legal advice from the Office of the Solicitor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2922.103</SECTNO>
              <SUBJECT>Overtime.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2922.103-4</SECTNO>
              <SUBJECT>Approvals.</SUBJECT>
              <P>The Head of the Contracting Activity is authorized to approve the use of overtime in accordance with the limitations in FAR 22.103-4(a).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2922.6—Walsh-Healy Public Contracts Act</HD>
            <SECTION>
              <SECTNO>2922.604</SECTNO>
              <SUBJECT>Exemptions.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2922.604-2</SECTNO>
              <SUBJECT>Regulatory exemptions.</SUBJECT>
              <P>The Secretary of Labor may exempt contracts from the Walsh Healy Public Contracts Act under FAR 22.604(c). A written finding justifying the exemption (see FAR 22.604-2(c)) shall be submitted by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2922.608</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2922.608-4</SECTNO>
              <SUBJECT>Award pending final determination.</SUBJECT>
              <P>The contracting officer's certification for award under FAR 22.608-4(a) shall be approved by the Head of the Contracting Activity.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2922.8—Equal Employment Opportunity</HD>
            <SECTION>
              <SECTNO>2922.803</SECTNO>
              <SUBJECT>Responsibilities.</SUBJECT>
              <P>Matters involving the applicability of Executive Order 11246 and implementing regulations of the Secretary of Labor to an acquisition or a class of acquisitions shall be reduced to writing by the contracting officer and forwarded through the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for resolution.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="37"/>
              <SECTNO>2922.804</SECTNO>
              <SUBJECT>Affirmative action programs.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2922.804-2</SECTNO>
              <SUBJECT>Construction.</SUBJECT>
              <P>Heads of Contracting Activities are responsible for maintaining lists of geographical areas subject to affirmative action requirements under FAR 22.804-2. Lists of areas for which OFCCP has designated specific affirmative action requirements are available through OFCCP. The list, including updates or revisions, shall be distributed to all contract offices which acquire construction.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2922.805</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>The contract office shall maintain ample supplies of the poster (OFCCP-1420) entitled, “Equal Opportunity is the Law” for use as required in FAR 22-805(b). The poster (stock number 7690-00-926-8988) may be ordered from the nearest regional GSA Supply Depot.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2922.807</SECTNO>
              <SUBJECT>Exemptions.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management shall make the determinations in FAR 22.807(a)(1).</P>
              <P>(b) Requests for exemptions under FAR 22.807 (a)(1), (a)(2), and (b)(5) shall be submitted in writing in accordance with FAR 22.807(c) by the contracting officer, through the Head of the Contracting Activity, to the Director, Directorate of Procurement and Grant Management, for further action.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2922.13—Special Disabled and Vietnam Era Veterans</HD>
            <SECTION>
              <SECTNO>2922.1303</SECTNO>
              <SUBJECT>Waivers.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management is authorized to (1) waive any or all terms of the clause at FAR 52.222-35, Affirmative Action for Special Disabled and Vietnam Era Veterans, under the conditions prescribed in FAR 22.1303(a) and (2) waive any requirement in FAR subpart 22.13 as prescribed in FAR 22.1303(b).</P>
              <P>(b) Requests for waivers under paragraph (a) of this section shall be made in writing by the contracting officer and submitted through the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2922.1306</SECTNO>
              <SUBJECT>Complaint procedures.</SUBJECT>
              <P>The contracting office shall forward complaints received about the Administration of the Vietnam Era Veterans Readjustment Assistance Act of 1972 directly to the Assistant Secretary for Veteran's Employment Service, DOL, as prescribed in FAR 22.1306.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2922.14—Employment of the Handicapped</HD>
            <SECTION>
              <SECTNO>2922.1403</SECTNO>
              <SUBJECT>Waivers.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management is authorized to (1) waive any or all of the terms of the clause at FAR 52.222-36, Affirmative Action for Handicapped Workers, under the conditions prescribed in FAR 22.1403(a) and (2) waive any requirement in FAR subpart 22.14 as prescribed in FAR 22.1403(b).</P>
              <P>(b) Requests for waivers under paragraph (a) of this section, shall be made in writing by the contracting officer and submitted through the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2922.1406</SECTNO>
              <SUBJECT>Complaint procedures.</SUBJECT>
              <P>The contracting office shall forward complaints received about administration of section 503 of the Rehabilitation Act of 1973, as amended, directly to the OFCCP as prescribed in FAR 22.1406.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2923</EAR>
          <HD SOURCE="HED">PART 2923—ENVIRONMENT, CONSERVATION, AND OCCUPATIONAL SAFETY</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2923.1—Pollution Control and Clean Air and Water</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2923.104</SECTNO>
              <SUBJECT>Exemptions.</SUBJECT>
              <SECTNO>2923.107</SECTNO>
              <SUBJECT>Compliance responsibilities.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8933, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <PRTPAGE P="38"/>
            <HD SOURCE="HED">Subpart 2923.1—Pollution Control and Clean Air and Water</HD>
            <SECTION>
              <SECTNO>2923.104</SECTNO>
              <SUBJECT>Exemptions.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management is authorized to exempt controls from the requirements of FAR subpart 23.1 under the conditions in FAR 23.104(c).</P>
              <P>(b) Requests for exemption shall be made in writing by the contracting officer and forwarded through the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2923.107</SECTNO>
              <SUBJECT>Compliance responsibilities.</SUBJECT>
              <P>Conditions involving noncompliance with clean air or water standards in facilities used in performing nonexempt contracts shall be reported in writing by the contracting officer to the Head of the Contracting Activity for transmittal directly to the EPA Administrator in accordance with FAR 23.107. A copy of the report shall be promptly sent to the Director, Directorate of Procurement and Grant Management.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2924</EAR>
          <HD SOURCE="HED">PART 2924—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2924.1—Protection of Individual Privacy</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2924.103</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2924.2—Freedom of Information Act</HD>
              <SECTNO>2924.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2924.1—Protection of Individual Privacy</HD>
            <SECTION>
              <SECTNO>2924.103</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>See 29 CFR part 70a.—Protection of Individual Privacy on Records, for the DOL Regulations relating to the maintenance or disclosure of information from systems of records on individuals.</P>
              <CITA>[50 FR 8934, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2924.2—Freedom of Information Act</HD>
            <SECTION>
              <SECTNO>2924.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>See 29 CFR part 70—Examination and Copying of Department of Labor Records, for the DOL regulations implementing the Freedom of Information Act.</P>
              <CITA>[50 FR 8934, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2925</EAR>
          <HD SOURCE="HED">PART 2925—FOREIGN ACQUISITION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2925.1—Buy American Act—Supplies</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2925.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>2925.105</SECTNO>
              <SUBJECT>Evaluating offers.</SUBJECT>
              <SECTNO>2925.108</SECTNO>
              <SUBJECT>Excepted articles, materials, and supplies.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2925.2—Buy American Act—Construction Materials</HD>
              <SECTNO>2925.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>2925.203</SECTNO>
              <SUBJECT>Evaluating offers.</SUBJECT>
              <SECTNO>2925.204</SECTNO>
              <SUBJECT>Violations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2925.3—Balance of Payments Program</HD>
              <SECTNO>2925.302</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>2925.304</SECTNO>
              <SUBJECT>Excess and non-excess foreign currencies.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2925.7—Restrictions on Certain Foreign Purchases</HD>
              <SECTNO>2925.703</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2925.9—Omission of the Examination of Records Clause</HD>
              <SECTNO>2925.903</SECTNO>
              <SUBJECT>Conditions for omission.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8934, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2925.1—Buy American Act—Supplies</HD>
            <SECTION>
              <SECTNO>2925.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management shall make the determinations prescribed in FAR 25.102 (a)(2) and (a)(3).</P>

              <P>(b) The Director, Directorate of Procurement and Grant Management, <PRTPAGE P="39"/>shall make the determination prescribed in FAR 25.102(a)(4) in accordance with the procedures in 2925.108.</P>
              <P>(c) Determinations under paragraph (a) of this section shall be prepared by the contracting officer and submitted by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2925.105</SECTNO>
              <SUBJECT>Evaluating offers.</SUBJECT>
              <P>(a) In unusual circumstances, the Assistant Secretary for Administration and Management may determine to use evaluation differentials other than those prescribed in FAR 25.105 for a particular acquisition.</P>
              <P>(b) Requests for use of other evaluation differentials shall be directed by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management for further action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2925.108</SECTNO>
              <SUBJECT>Excepted articles, materials, and supplies.</SUBJECT>
              <P>(a) Determinations for additional articles, materials, and supplies not included in the list under FAR 25.108(d) shall be made by the Director, Directorate of Procurement and Grant Management.</P>
              <P>(b) Determinations shall be prepared by the contracting officer and submitted by the Head of the Contracting Activity for approval.</P>
              <P>(c) Contracting activities which have information justifying the removal of an item from the list under FAR 25.108(d) shall submit such information to the Director, Directorate of Procurement and Grant Management, for further disposition as prescribed in FAR 25.108(c).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2925.2—Buy American Act—Construction Materials</HD>
            <SECTION>
              <SECTNO>2925.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management shall make the determinations prescribed in FAR 25.202(a)(2) and 2925.203.</P>
              <P>(b) The Director, Directorate of Procurement and Grant Management, shall make the determination prescribed in FAR 25.202(a)(3) in accordance with the procedures in 2925.108.</P>
              <P>(c) Determinations under paragraph (a) of this section shall be prepared by the contracting officer and submitted by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2925.203</SECTNO>
              <SUBJECT>Evaluating offers.</SUBJECT>
              <P>Unless the Assistant Secretary for Administration and Management determines otherwise, when the cost of a comparable domestic construction material exceeds by more than 6 percent for large business or 12 percent for small business or labor surplus area set-aside the cost of a foreign construction material proposed in an offer, use of the domestic construction material would unreasonably increase the cost of the contract and use of the foreign construction material is authorized and acceptable. This evaluation shall be made for each foreign construction material proposed in an offer and not specifically excepted by the solicitation. The cost of construction material shall be computed to include all delivery costs to the construction site, and the cost of foreign construction material shall also include any applicable duty (whether or not a duty-free entry certificate may be issued). The acceptable offer that remains low after adding (for evaluation purposes only) 6 percent or 12 percent, as applicable, of the cost of all foreign construction materials shall be considered the successful offer. The contract awarded under these circumstances shall contain a list of the authorized foreign construction materials as required by FAR 25.202(c) and the clause at FAR 52.225-5, Buy American Act—Construction Materials.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2925.204</SECTNO>
              <SUBJECT>Violations.</SUBJECT>
              <P>Failure of the contractor to comply with the clause at FAR 52.225-5, Buy American Act—Construction Materials, shall be documented in a report by the contracting officer and submitted to the Head of the Contracting Activity for initiation of debarment action in accordance with subpart 2909.4.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="40"/>
            <HD SOURCE="HED">Subpart 2925.3—Balance of Payments Program</HD>
            <SECTION>
              <SECTNO>2925.302</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, shall make the determination prescribed in FAR 25.302(b)(3) and 25.304(c). Differentials greater than 50 percent may be authorized as prescribed in FAR 25.302(c).</P>
              <P>(b) Determinations under paragraph (a) of this section shall be prepared by the contracting officer and submitted by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2925.304</SECTNO>
              <SUBJECT>Excess and non-excess foreign currencies.</SUBJECT>
              <P>The Director, Directorate of Procurement and Grant Management, shall consult with the Office of Management and Budget as required in FAR 25.304(c) prior to making the determination in 2925.302(a).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2925.7—Restrictions on Certain Foreign Purchases</HD>
            <SECTION>
              <SECTNO>2925.703</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management is authorized to approve exceptions, as prescribed in FAR 25.703, for all contracts other than small purchases.</P>
              <P>(b) Determinations under paragraph (a) of this section shall be prepared by the contracting officer and submitted by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2925.9—Omission of the Examination of Records Clause</HD>
            <SECTION>
              <SECTNO>2925.903</SECTNO>
              <SUBJECT>Conditions for omission.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management shall make the determination prescribed in FAR 25.903 (a)(1) and (a)(2).</P>
              <P>(b) Determinations under paragraph (a) of this section shall be prepared by the contracting officer in accordance with the requirements of FAR 25.904 and submitted by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
              <P>(c) The report required by FAR 25.903(b) shall be prepared and forwarded by the Directorate of Procurement and Grant Management.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="41"/>
        <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        <PART>
          <EAR>Pt. 2928</EAR>
          <HD SOURCE="HED">PART 2928—BONDS AND INSURANCE</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2928.2—Sureties</HD>
            <SECTION>
              <SECTNO>2928.203</SECTNO>
              <SUBJECT>Options in lieu of sureties.</SUBJECT>
              <P>Upon receipt of any of the types of securities listed in FAR 28.203-1 (except bonds or notes received in the District of Columbia) or FAR 28.203-2, the contracting officer shall turn the securities over to the finance office.</P>
              <CITA>[50 FR 8935, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2929</EAR>
          <HD SOURCE="HED">PART 2929—TAXES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2929.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2929.101</SECTNO>
              <SUBJECT>Resolving tax problems.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2929.3—State and Local Taxes</HD>
              <SECTNO>2929.303</SECTNO>
              <SUBJECT>Applications of State and local taxes to Government contractors and subcontractors.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2929.1—General</HD>
            <SECTION>
              <SECTNO>2929.101</SECTNO>
              <SUBJECT>Resolving tax problems.</SUBJECT>
              <P>Contract tax problems or questions shall be referred by the contracting officer to the Office of the Solicitor for resolution.</P>
              <CITA>[50 FR 8935, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2929.3—State and Local Taxes</HD>
            <SECTION>
              <SECTNO>2929.303</SECTNO>
              <SUBJECT>Applications of State and local taxes to Government contractors and subcontractors.</SUBJECT>
              <P>(a) Contractors to be treated as agents of the Government for the purposes set forth in FAR 29.303(a) shall require the written review and approval of the Assistant Secretary for Administration and Management.</P>
              <P>(b) Requests for approval under paragraph (a) of this section shall be submitted by the Head of the Contracting Activity, through the Office of the Solicitor, to the Director, Directorate of Procurement and Grant Management, for further action.</P>
              <CITA>[50 FR 8935, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2930</EAR>
          <HD SOURCE="HED">PART 2930—COST ACCOUNTING STANDARDS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2930.3—CAS Contract Requirements</HD>
            <SECTION>
              <SECTNO>2930.304</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is authorized to waive CASB requirements as provided in FAR 30.304(c).</P>
              <P>(b) Requests for waivers under paragraph (a) of this section shall be prepared by the contracting officer as prescribed in FAR 30.304(a) and submitted by the Head of the Contracting Activity.</P>
              <CITA>[50 FR 8935, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2931</EAR>
          <HD SOURCE="HED">PART 2931—CONTRACT COST PRINCIPLES AND PROCEDURES</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2931.1—Applicabililty</HD>
            <SECTION>
              <SECTNO>2931.101</SECTNO>
              <SUBJECT>Objectives.</SUBJECT>
              <P>Individual and class deviations concerning cost principles in FAR part 31 shall be processed as prescribed in subpart 2901.4.</P>
              <CITA>[50 FR 8935, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2932</EAR>
          <HD SOURCE="HED">PART 2932—CONTRACT FINANCING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2932.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2932.102</SECTNO>
              <SUBJECT>Description of contract financing methods.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2932.4—Advance Payments</HD>
              <SECTNO>2932.402</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <PRTPAGE P="42"/>
              <HD SOURCE="HED">Subpart 2932.5—Progress Payments Based on Costs</HD>
              <SECTNO>2932.502</SECTNO>
              <SUBJECT>Preaward matters.</SUBJECT>
              <SECTNO>2932.502-2</SECTNO>
              <SUBJECT>Contract finance office clearance.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2932.6—Contract Debts</HD>
              <SECTNO>2932.605</SECTNO>
              <SUBJECT>Responsibilities and cooperation among Government officials.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8935, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2932.1—General</HD>
            <SECTION>
              <SECTNO>2932.102</SECTNO>
              <SUBJECT>Description of contract financing methods.</SUBJECT>
              <P>(a) Progress payments based on a percentage or stage of completion accomplished are authorized for use in contracts for construction, alteration, or repair.</P>
              <P>(b) The Head of the Contracting Activity, or designee, is authorized to approve the use of progress payments based on percentage or stage of completion accomplished for contracts other than those listed in paragraph (a) of this section.</P>
              <P>(c) Requests for approval under paragraph (b) of this section, shall be in the form of a written determination by the contracting officer that:</P>
              <P>(1) Use of progress payments based on costs (see FAR subpart 32.5) is impracticable; and</P>
              <P>(2) Adequate measures exist for determining percentage or stage of completion as a basis for determining payment.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2932.4—Advance Payments</HD>
            <SECTION>
              <SECTNO>2932.402</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is authorized to approve findings and determinations and contract terms for advance payments as prescribed in FAR subpart 32.4.</P>
              <P>(b) The contracting officer shall review and analyze the contractor's application for advance payments to determine if it meets the information requirements of FAR 32.408. Applications which do not contain the required information shall not be processed until such information is obtained from the contractor.</P>
              <P>(c) The contracting officer shall submit a recommendation for approval or disapproval of the contractor's request through the Head of the Servicing Finance Office (see FAR 32.402(e)(2)) to the Head of the Contracting Activity for transmittal to the Director, Directorate of Procurement and Grant Management, under paragraph (a) of this section. Recommendations which do not contain the information required by FAR 32.409-1 or FAR 32.409-2 will not be processed by the Directorate of Procurement and Grant Management.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2932.5—Progress Payments Based on Costs</HD>
            <SECTION>
              <SECTNO>2932.502</SECTNO>
              <SUBJECT>Preaward matters.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2932.502-2</SECTNO>
              <SUBJECT>Contract finance office clearance.</SUBJECT>
              <P>(a) The contracting officer shall obtain the approval of the Head of the Contracting Activity before providing a progress payment rate higher than the customary rates prescribed in FAR 32.501-1.</P>
              <P>(b) For deviations to progress payment terms prescribed under FAR part 32, the contracting officer shall obtain approval as prescribed in 2901.403.</P>
              <P>(c) The contracting officer shall obtain the approval of the servicing finance office for the contract before taking the action in FAR 32.502-2.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2932.6—Contract Debts</HD>
            <SECTION>
              <SECTNO>2932.605</SECTNO>
              <SUBJECT>Responsibilities and cooperation among Government officials.</SUBJECT>
              <P>(a) The DOL contracting officer has primary responsibility for determining the amount of contract debt and notifying the cognizant finance office of such debt due the Government. The servicing DOL finance office making payments under the contract has primary responsibility for debt collection.</P>

              <P>(b) Each DOL Agency/Office is responsible for developing an internal debt collection system and prescribing internal procedures for collection of debts, including contract debts covered under FAR subpart 32.6. Agency/Office procedures should be in conformance <PRTPAGE P="43"/>with policies and procedures issued by DOL.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2933</EAR>
          <HD SOURCE="HED">PART 2933—PROTESTS, DISPUTES, AND APPEALS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2933.1—Protests</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2933.102</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2933.103</SECTNO>
              <SUBJECT>Protests to the DOL Agency.</SUBJECT>
              <SECTNO>2933.104</SECTNO>
              <SUBJECT>Protests to the GAO.</SUBJECT>
              <SECTNO>2933.105</SECTNO>
              <SUBJECT>Protests to the General Services Administration Board of Contract Appeals.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2933.2—Disputes and Appeals</HD>
              <SECTNO>2933.203</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>2933.203-70</SECTNO>
              <SUBJECT>Department of Labor Board of Contract Appeals.</SUBJECT>
              <SECTNO>2933.209</SECTNO>
              <SUBJECT>Suspected fraudulent claims.</SUBJECT>
              <SECTNO>2933.211</SECTNO>
              <SUBJECT>Contracting officer's decision.</SUBJECT>
              <SECTNO>2933.212</SECTNO>
              <SUBJECT>Contracting officer's duties upon appeal.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2933.1—Protests</HD>
            <SOURCE>
              <HD SOURCE="HED">Source:</HD>
              <P>51 FR 40375, Nov. 6, 1986, unless otherwise noted.</P>
            </SOURCE>
            <SECTION>
              <SECTNO>2933.102</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The Director, Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, shall be responsible for coordinating bid protests filed with the General Accounting Office (GAO). All communications relative to protests filed with GAO or GSBCA shall be coordinated with the Director, Office of Procurement and Grant Policy. Bid protests concerning automatic data processing (ADP) acquisitions filed with the General Services Administration Board of Contract Appeals (GSBCA) shall be coordinated by the contracting officer.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.103</SECTNO>
              <SUBJECT>Protests to the DOL Agency.</SUBJECT>
              <P>When protests are filed with a DOL Agency and received before award, the contracting office shall obtain the advice of the Director, Office of Procurement and Grant Policy, before making the determination under FAR 33.103(a).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.104</SECTNO>
              <SUBJECT>Protests to the GAO.</SUBJECT>
              <P>(a) <E T="03">Notice of protest.</E> Upon being advised telephonically by GAO or the receipt of a protest before or after award, the Office of Procurement and Grant Policy shall inform the appropriate contracting officer and request preparation of the protest report required by FAR 33.104(a)(2). For GAO protests concerning ADP acquisitions, the Office of Procurement and Grant Policy shall also inform the Director, Directorate of Information Resources Management, who, in turn, shall notify the appropriate DOL Agency Information Resources Management (IRM) contact. As required by FAR 33.104(a)(3) and 4 CFR 21.3, the contracting officer shall promptly notify all interested parties, including offerors (or the contractor, if the protest is after award) involved in or affected by the protest, that a protest has been filed with GAO and the basis for the protest. A written record of such notification shall be placed in the contract file. After receiving a copy of the protest from GAO and its request for an administrative report, the Office of Procurement and Grant Policy will promptly furnish the same to the contracting officer. The contracting officer shall promptly transmit by letter a copy of the protest to all interested parties previously notified and include a statement requiring furnishing of views and information directly to GAO. Copies of cover letters shall be sent to the Director, Office of Procurement and Grant Policy. Cover letters shall set forth a specified period of time for submission of comments (see FAR 33.104(a)(3)) and include instructions that any comments submitted to GAO should also be submitted simulaneously to the contracting officer and the Director, Office of Procurement and Grant Policy. Materials submitted by the protester may be withheld from interested parties in accordance with 4 CFR 21.3(b).</P>
              <P>(b) <E T="03">Submission of report.</E> (1) All personnel shall handle protests on a priority basis. Within 25 work days after receipt by the Office of Procurement and Grant Policy of GAO's telephonic notice of the protest, or within 10 work days after receipt from GAO of a determination to use the express option, a complete report shall be submitted to GAO (see FAR 33.104(a)(2)). If the specific circumstances of the protest require a longer period, the head of the <PRTPAGE P="44"/>contracting activity shall immediately notify the Office of Procurement and Grant policy which shall request, in writing, an extension of the time period in accordance with 4 CFR 21.3(d).</P>
              <P>(2) In addition to the requirements of FAR 33.104(a)(2), the report responsive to the protest shall be appropriately titled and dated; shall cite the GAO file number; and shall be signed by the contracting officer or the contracting officer's representative. Reports shall be prepared with the assistance of the Office of the Solicitor of Labor. If appropriate, the report shall contain a statement regarding any urgency for the acquisition and the extent to which a delay in award may result in significant performance difficulties or additional expense to the Government. If award is not urgent, a statement shall be included giving an estimate of the length of time an award may be delayed without significant expense or difficulty in performance. The head of the contracting activity shall submit an original and one copy of the contracting officer's report to the Director, Office of Procurement and Grant Policy, with a forwarding letter to GAO signed by the Assistant Secretary for Administration and Management. When the letter and report are dated and transmitted to GAO, the Director, Office of Procurement and Grant Policy, will inform the contracting officer. The contracting officer will then distribute copies of the report to all interested parties.</P>
              <P>(c) <E T="03">Notice to GAO.</E> The Assistant Secretary for Administration and Management shall submit the report required by FAR 33.104(f). The report shall be submitted to the Comptroller General through the Director, Office of Procurement and Grant Policy, and the Director, Directorate of Procurement and Grant Management. For decisions concerning ADP acquisitions, the report shall also be submitted through the Director, Directorate of Information Resources Management.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.105</SECTNO>
              <SUBJECT>Protests to General Services Administration Board of Contract Appeals.</SUBJECT>
              <P>(a) <E T="03">Notice of protest.</E> Immediately upon receipt of a copy of a protest to the General Services Administration Board of Contract Appeals (GSBCA), the contracting officer shall inform the Office of Procurement and Grant Policy, the Directorate of Information Resources Management, and the Office of the Solicitor of Labor. The contracting officer shall, within 1 work day after receipt of a copy of the protest, provide oral or written notice to all parties required to be notified by FAR 33.105(a)(2) and shall provide the GSBCA with a written list of all such parties to whom notice was provided within 5 work days after receipt of a copy of the protest. A copy of all notifications to interested parties and related correspondence with GSBCA shall be maintained in the contract file and a copy of the list of interested parties notified shall be provided to the Office of Procurement and Grant Policy simultaneously with submission to the GSBCA.</P>
              <P>(b) <E T="03">Submission of protest file.</E> An original and one copy of a protest file (see FAR 33.105(b)) plus one copy for each interested party which has a notice of intervention or a motion to intervene in accordance with the requirements of Rule 5(a)(3) of GSBCA Rules of Procedure (48 CFR 6101.5(a)(3)) shall be prepared by the contracting officer. The protest file shall be organized to comply with the requirements of Rule 4(b) of the GSBCA Rules of Procedure (48 CFR 6101.4(b)). The contracting officer shall submit the file to the GSBCA within 10 work days after filing of the protest and shall also send copies to the Director, Office of Procurement and Grant Policy, and to each interested party.</P>
              <P>(c) <E T="03">Hearings.</E> The Solicitor of Labor, or the Solicitor's representative, is responsible for representing the contracting officer at all stages of proceedings on suspension of the agency's delegation of procurement authority (see FAR 33.105(d)), at all stages of proceedings on the merits of the protest (see FAR 33.105(e)), and with respect to any other proceedings which may be heard by the GSBCA. The head of the contracting activity shall be responsible for executing the determination required by FAR 33.105(d)(1). The Office of the Solicitor shall notify the contracting officer and the Directorate of Information Resources Management of <PRTPAGE P="45"/>the results of such proceedings, including any hearing.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2933.2—Disputes and Appeals</HD>
            <SOURCE>
              <HD SOURCE="HED">Source:</HD>
              <P>50 FR 8936, Mar. 5, 1985, unless otherwise noted. Redesignated at 51 FR 40375, Nov. 6, 1986.</P>
            </SOURCE>
            <SECTION>
              <SECTNO>2933.203</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management shall make the determination prescribed under FAR 33.203(b).</P>
              <P>(b) Determinations under paragraph (a) of this section shall be submitted by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
              <CITA>[50 FR 8936, Mar. 5, 1985. Redesignated and amended at 51 FR 40375, Nov. 6, 1986]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>2933.203-70</SECTNO>
              <SUBJECT>Department of Labor Board of Contract Appeals.</SUBJECT>
              <P>(a) The Department of Labor Board of Contract Appeals (LBCA) is authorized by the Secretary to consider and determine appeals from decisions of contracting officers arising under a contract or relating to a contract made by the Department or any other executive agency when such agency or the Administrator of the Office of Federal Procurement Policy has designated the LBCA to decide the appeal.</P>
              <P>(b) The address of the LBCA is 1111 20th Street, NW., Washington, DC 20036.</P>
              <P>(c) The LBCA rules of procedure are contained in 41 CFR part 29-60.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.209</SECTNO>
              <SUBJECT>Suspected fraudulent claims.</SUBJECT>
              <P>The contracting officer shall refer all matters relating to suspected fraudulent claims by a contractor under the conditions in FAR 33.009 to the Office of the Inspector General for further action or investigation.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.211</SECTNO>
              <SUBJECT>Contracting officer's decision.</SUBJECT>
              <P>The written decision required by FAR 33.211(a)(4) shall include, in the paragraph listed under FAR 33.211(a)(4)(v), specific reference to the Department of Labor Board of Contract Appeals (LBCA), 1111 20th Street, NW., Washington, DC 20036, and its procedures under 41 CFR part 29-60. The LBCA optional small claims (expedited) procedures and accelerated procedures under 41 CFR 29-60.211 shall also be referenced as required by FAR.</P>
              <CITA>[50 FR 8936, Mar. 5, 1985. Redesignated and amended at 51 FR 40375, Nov. 6, 1986]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>2933.212</SECTNO>
              <SUBJECT>Contracting officer's duties upon appeal.</SUBJECT>
              <P>(a) When a notice of appeal has been received, the contracting officer shall endorse on the appeal the date of mailing (or the date of receipt if the notice was not mailed) and forward it to the LBCA by certified mail within five (5) days of receipt. The Solicitor of Labor shall also be notified of the appeal by the contracting officer. See 41 CFR 29-60.203.</P>
              <P>(b) The contracting officer shall prepare and transmit the data, documentation, and information required by 41 CFR 29-60.205 in the form of an appeal file and appellant or appellants counsel within 30 days after receipt of a notice of appeal or advice that an appeal has been docketed by the LBCA.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="46"/>
        <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        <PART>
          <EAR>Pt. 2935</EAR>
          <HD SOURCE="HED">PART 2935—RESEARCH AND DEVELOPMENT CONTRACTING</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SECTION>
            <SECTNO>2935.015</SECTNO>
            <SUBJECT>Contracts for research with educational institutions and nonprofit organizations.</SUBJECT>
            <P>(a) Heads of contracting activities shall furnish to the Director, Directorate of Procurement and Grant Management, copies of basic agreements pertaining to R&amp;D with educational institutions and nonprofit organizations in accordance with 2916.702.</P>
            <P>(b) The Director, Directorate of Procurement and Grant Management, shall furnish the list required under FAR 35.015(b)(3) to the FAR Secretariat.</P>
            <CITA>[50 FR 8936, Mar. 5, 1985]</CITA>
          </SECTION>
        </PART>
        <PART>
          <EAR>Pt. 2936</EAR>
          <HD SOURCE="HED">PART 2936—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2936.2—Special Aspects of Contracting for Construction</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2936.201</SECTNO>
              <SUBJECT>Evaluation of contractor performance.</SUBJECT>
              <SECTNO>2936.202</SECTNO>
              <SUBJECT>Specifications.</SUBJECT>
              <SECTNO>2936.209</SECTNO>
              <SUBJECT>Construction contracts with architect-engineer firms.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2936.5—Contract Clauses</HD>
              <SECTNO>2936.516</SECTNO>
              <SUBJECT>Quantity surveys.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2936.6—Architect-Engineer Services</HD>
              <SECTNO>2936.602</SECTNO>
              <SUBJECT>Selection of firms for architect-engineer contracts.</SUBJECT>
              <SECTNO>2936.602-1</SECTNO>
              <SUBJECT>Selection criteria.</SUBJECT>
              <SECTNO>2936.602-2</SECTNO>
              <SUBJECT>Evaluation boards.</SUBJECT>
              <SECTNO>2936.602-3</SECTNO>
              <SUBJECT>Evaluation based functions.</SUBJECT>
              <SECTNO>2936.602-4</SECTNO>
              <SUBJECT>Selection authority.</SUBJECT>
              <SECTNO>2936.602-5</SECTNO>
              <SUBJECT>Short selection processes for contracts not to exceed $10,000.</SUBJECT>
              <SECTNO>2936.603</SECTNO>
              <SUBJECT>Collecting data on and appraising firms’ qualifications.</SUBJECT>
              <SECTNO>2936.604</SECTNO>
              <SUBJECT>Performance evaluation.</SUBJECT>
              <SECTNO>2936.606</SECTNO>
              <SUBJECT>Negotiations.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8936, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2936.2—Special Aspects of Contracting for Construction</HD>
            <SECTION>
              <SECTNO>2936.201</SECTNO>
              <SUBJECT>Evaluation of contractor performance.</SUBJECT>
              <P>(a) The Head of the Contracting Activity shall establish procedures to evaluate construction contractor performance and prepare performance reports as required by FAR 36.201. Normally, the performance report shall be prepared by the contracting officer's authorized representative or other official who was responsible for monitoring contract performance and who is qualified to evaluate overall performance. DOL Agency/Office procedures shall prescribe instructions for review of the report, prior to distribution, as prescribed in FAR 36.201(b).</P>
              <P>(b) Performance reports shall be made using Standard Form 1420, Performance Evaluation (Construction), as prescribed in FAR 36.701(e). Details concerning unsatisfactory performance including Government notification to the contractor as required by FAR 36.201(a)(3), and written comments by the contractor, shall also be included in the report.</P>
              <P>(c) Performance reports shall be distributed to the Heads of Contracting Activities or designee for filing and other points required by DOL Agency/Office procedures. Copies of all reports shall also be promptly forwarded to the Director, Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, for central filing. All reports shall be retained for six years after the date of the report by the Office of Procurement and Grant Policy.</P>
              <P>(d) Before making a determination of prospective contractor responsibility, the contracting officer may contact the Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, for information regarding performance evaluation reports on file, unless other procedures are prescribed in DOL Agency/Office instructions.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="47"/>
              <SECTNO>2936.202</SECTNO>
              <SUBJECT>Specifications.</SUBJECT>
              <P>When “brand name or equal” product descriptions are necessary, the requirements of 2910.004-70 shall be followed.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.209</SECTNO>
              <SUBJECT>Construction contracts with architect-engineer firms.</SUBJECT>
              <P>(a) As required by FAR 36.209, no contract for construction of a project shall be awarded to the firm that designed the project or its subsidiaries or affiliates without the written approval of the Director, Directorate of Procurement and Grant Management.</P>
              <P>(b) Requests for approval under paragraph (a) of this section, shall be made by the Head of the Contracting Activity, through the appropriate Office of the Solicitor, to the Director, Directorate of Procurement and Grant Management. The request shall include the reason(s) why award to the design firm is required; an analysis of the facts involving potential or actual organizational conflicts of interest including benefits and detriments to the Government and the prospective contractor; and the measures which are to be taken to avoid, neutralize, or mitigate conflicts of interest.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2936.5—Contract Clauses</HD>
            <SECTION>
              <SECTNO>2936.516</SECTNO>
              <SUBJECT>Quantity surveys.</SUBJECT>
              <P>The Head of the Contracting Activity is authorized to make the determination regarding the impracticability of Government performance of original and final surveys as prescribed in FAR 36.516.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2936.6—Architect-Engineer Services</HD>
            <SECTION>
              <SECTNO>2936.602</SECTNO>
              <SUBJECT>Selection of firms for architect-engineer contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2936.602-1</SECTNO>
              <SUBJECT>Selection criteria.</SUBJECT>
              <P>Heads of contracting activities are authorized to approve the use of design competition under the conditions in FAR 36.602-1(b).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.602-2</SECTNO>
              <SUBJECT>Evaluation boards.</SUBJECT>
              <P>Heads of Contracting Activities shall establish procedures for providing permanent or ad hoc architect-engineer evaluation boards as prescribed in FAR 36.602-2. DOL Agency/Office procedures shall provide for the appointment of private practitioners of architecture, engineering, or related professions when such action is determined by the Head of the Contracting Activity to be essential to meet the Government's minimum needs.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.602-3</SECTNO>
              <SUBJECT>Evaluation based functions.</SUBJECT>
              <P>The selection report required in FAR 36.602-3(d) shall be prepared for the approval of the Head of the Contracting Activity.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.602-4</SECTNO>
              <SUBJECT>Selection authority.</SUBJECT>
              <P>The Head of the Contracting Activity is authorized to serve as the designated selection authority in accordance with FAR 36.602-4.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.602-5</SECTNO>
              <SUBJECT>Short selection processes for contracts not to exceed $10,000.</SUBJECT>
              <P>The selection process prescribed in FAR 36.602-5(b) shall be used for architect-engineer contracts not expected to exceed $10,000.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.603</SECTNO>
              <SUBJECT>Collecting data on and appraising firms’ qualifications.</SUBJECT>
              <P>(a) Heads of Contracting Activities which acquire architect-engineer services shall establish procedures to comply with the requirements of FAR 36.603.</P>
              <P>(b) Copies of procedures established under paragraph (a) of this section shall be submitted to the Director, Directorate of Procurement and Grant Management, for review and approval. These procedures shall include a list of names, addresses, and telephone numbers of offices or boards assigned to maintain architect-engineer qualification data files. The list shall be updated annually and submitted to the Director, Directorate of Procurement and Grant Management, no later than 30 days after the beginning of each fiscal year.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.604</SECTNO>
              <SUBJECT>Performance evaluation.</SUBJECT>

              <P>(a) The Head of the Contracting Activity shall establish procedures to evaluate architect-engineer contractor performance as required in FAR 36.604. Normally, the performance report shall be prepared by the contracting officer's <PRTPAGE P="48"/>authorized representative or other official who was responsible for monitoring contract performance and who is qualified to evaluate overall performance. DOL Agency/Office procedures shall prescribe instructions for review of the report, prior to distribution, as prescribed in FAR 36.604(b).</P>
              <P>(b) Performance reports shall be made using Standard Form 1421, Performance Evaluation (Architect-Engineer) as prescribed in FAR 36.702(c). Details covering unsatisfactory performance including Government notification to the contractor as required by FAR 36.604(a)(3) and written comments by the contractor shall also be included in the report.</P>
              <P>(c) Performance reports shall be distributed to the Head of Contracting Activities for filing, distribution points in FAR 36.604(c), and other points required by DOL Agency/Office procedures. Copies of all reports shall also be promptly forwarded to the Director, Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, for central filing. All reports shall be retained by the Office of Procurement and Grant Policy for six years after date of the report.</P>
              <P>(d) Evaluation boards or contracting offices may contact the Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, for information regarding performance evaluation reports on file, unless other procedures are prescribed in DOL Agency/Office instructions.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.606</SECTNO>
              <SUBJECT>Negotiations.</SUBJECT>
              <P>When a proposal is solicited from an architect-engineer firm selected for negotiations, the contracting officer shall include in the request for proposals a reference to 2936.209 of this title as required by FAR 36.606(c).</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2937</EAR>
          <HD SOURCE="HED">PART 2937—SERVICE CONTRACTING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2937.1—Service Contracts—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2937.103</SECTNO>
              <SUBJECT>Contracting officer responsibility.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2937.2—Consulting Services</HD>
              <SECTNO>2937.205</SECTNO>
              <SUBJECT>Management controls.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2937.1—Service Contracts—General</HD>
            <SECTION>
              <SECTNO>2937.103</SECTNO>
              <SUBJECT>Contracting officer responsibility.</SUBJECT>
              <P>Personal services contracts (see FAR 37.104) are not authorized.</P>
              <CITA>[50 FR 8938, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2937.2—Consulting Services</HD>
            <SECTION>
              <SECTNO>2937.205</SECTNO>
              <SUBJECT>Management controls.</SUBJECT>
              <P>(a) Heads of contracting activities having a requirement for consulting or related services by either contract or purchase order to be awarded without competition (regardless of dollar amount) and competitive actions ($50,000 or more) are required to prepare a written justification for such services. This written justification shall be submitted to the Procurement Review Board (PRB) at least 60 days prior to the proposed effective date of the contract. Generally, requests for such services will be scheduled for review by the PRB within 21 working days. Heads of Contracting Activities retain final approval authority for all competitive acquisitions under $50,000. However, a copy of the justification for competitive acquisitions under $50,000 must be forwarded to the Assistant Secretary for Administration and Management and the Inspector General within ten days of approval. Regardless of the type of action planned, the justification shall include the following:</P>
              <P>(1) A statement of need which certifies that the requested services do not unnecessarily duplicate any previously performed work.</P>
              <P>(2) Nature and scope of the problem, the results expected, and the manner in which the project will relate to an impact on the Contracting Activity administration and/or program management.</P>
              <P>(3) That the services described in the request are not prohibited by OMB Circular A-120.</P>

              <P>(4) Extent to which in-house staff availability was assessed, and the reasons why procurement of outside services are necessary.<PRTPAGE P="49"/>
              </P>
              <P>(5) Any additional information or data which support the requirement for a contract.</P>
              <P>(6) Name(s) and title(s) of official(s) who will be assigned as project officer(s) to work with the contractor, and who can be contacted for additional information.</P>
              <P>(b) In accordance with FAR 37.205(b)(7), all purchase requests for consulting services initiated in the fourth quarter of the fiscal year must be submitted to the Procurement Review Board for action and subsequent approval by the Assistant Secretary for Administration and Management.</P>
              <CITA>[50 FR 8938, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="50"/>
        <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        <PART>
          <EAR>Pt. 2942</EAR>
          <HD SOURCE="HED">PART 2942—CONTRACT ADMINISTRATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2942.2—Assignment of Contract Administration</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2942.202</SECTNO>
              <SUBJECT>Assignment of contract administration.</SUBJECT>
              <SECTNO>2942.203</SECTNO>
              <SUBJECT>Retention of contract administration.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2942.6—Corporate Administrative Contracting Officer</HD>
              <SECTNO>2942.602</SECTNO>
              <SUBJECT>Assignment and location.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2942.7—Indirect Cost Rates</HD>
              <SECTNO>2942.703</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8938, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2942.2—Assignment of Contract Administration</HD>
            <SECTION>
              <SECTNO>2942.202</SECTNO>
              <SUBJECT>Assignment of contract administration.</SUBJECT>
              <P>Unless otherwise prescribed in DOL Agency/Office procedures, the Head of the Contracting Activity is authorized to make the decision on withholding functions in FAR 42.202(b)(2).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2942.203</SECTNO>
              <SUBJECT>Retention of contract administration.</SUBJECT>
              <P>Unless otherwise prescribed in DOL Agency/Office procedures, the Head of the Contracting Activity is authorized to perform the review in FAR 42.203(b).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2942.6—Corporate Administrative Contracting Officer</HD>
            <SECTION>
              <SECTNO>2942.602</SECTNO>
              <SUBJECT>Assignment and location.</SUBJECT>
              <P>The Head of the Contracting Activity is authorized to approve the need for a corporate administrative contracting officer as prescribed in FAR 42.602(a)(2).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2942.7—Indirect Cost Rates</HD>
            <SECTION>
              <SECTNO>2942.703</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>The Office of Cost Determination, Directorate of Procurement and Grant Management, is responsible for establishing billing rates and indirect cost rates as prescribed in FAR subpart 42.7.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2943</EAR>
          <HD SOURCE="HED">PART 2943—CONTRACT MODIFICATIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2943.2—Change Orders</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2943.205</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2943.3—Forms</HD>
              <SECTNO>2943.301</SECTNO>
              <SUBJECT>Use of forms.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2943.2—Change Orders</HD>
            <SECTION>
              <SECTNO>2943.205</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>Heads of Contracting Activities may establish procedures, when appropriate, for authorizing the contracting officer to vary the 30-day period for submission of adjustment proposals to the clauses prescribed by FAR 43.205 (a)(1), (b)(1), (c), and (d).</P>
              <CITA>[50 FR 8938, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2943.3—Forms</HD>
            <SECTION>
              <SECTNO>2943.301</SECTNO>
              <SUBJECT>Use of forms.</SUBJECT>

              <P>FAR 43.301(a)(1)(vi) requires the use of Standard Form 30 (SF-30) to effect any obligation or deobligation of contract funds after award. The SF-30 also shall be used to deobligate funds when effecting contract closeout for a cost reimbursement contract when obligated funds exceed the final contract costs. In such an instance, the SF-30 may be issued as an administrative modification on a unilateral basis if the contractor's financial release has been separately obtained. The contracting officer shall include in any unilateral contract modification issued for contract close-out a statement that the contractor has signed a release of <PRTPAGE P="51"/>claims and indicate the date the release of claims was signed by the contractor.</P>
              <CITA>[51 FR 40376, Nov. 6, 1986, as amended at 53 FR 3839, Feb. 9, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2945</EAR>
          <HD SOURCE="HED">PART 2945—GOVERNMENT PROPERTY</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2945.3—Providing Government Property to Contractors</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2945.302</SECTNO>
              <SUBJECT>Providing facilities.</SUBJECT>
              <SECTNO>2945.302-1</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2945.4—Contractor Use and Rental of Government Property</HD>
              <SECTNO>2945.403</SECTNO>
              <SUBJECT>Rental—Use and Charges clause.</SUBJECT>
              <SECTNO>2945.405</SECTNO>
              <SUBJECT>Contracts with foreign governments or international organizations.</SUBJECT>
              <SECTNO>2945.407</SECTNO>
              <SUBJECT>Non-Government use of plant equipment.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2945.6—Reporting, Redistribution, and Disposal of Contractor Inventory</HD>
              <SECTNO>2945.608</SECTNO>
              <SUBJECT>Screening of contractor inventory.</SUBJECT>
              <SECTNO>2945.608-6</SECTNO>
              <SUBJECT>Waiver of screening requirements.</SUBJECT>
              <SECTNO>2945.610</SECTNO>
              <SUBJECT>Sale of surplus contractor inventory.</SUBJECT>
              <SECTNO>2945.610-2</SECTNO>
              <SUBJECT>Exemptions from sale by GSA.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8938, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2945.3—Providing Government Property to Contractors</HD>
            <SECTION>
              <SECTNO>2945.302</SECTNO>
              <SUBJECT>Providing facilities.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2945.302-1</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>The Head of the Contracting Activity is authorized to make the determination for providing facilities to a contractor as prescribed in FAR 45.302-1(a)(4).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2945.4—Contractor Use and Rental of Government Property</HD>
            <SECTION>
              <SECTNO>2945.403</SECTNO>
              <SUBJECT>Rental—Use and Charges Clause.</SUBJECT>
              <P>The Head of the Contracting Activity is authorized to make the determination for changing rent on the basis of use under the clause at FAR 52.245-9 as prescribed in FAR 45.403(a).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2945.405</SECTNO>
              <SUBJECT>Contracts with foreign governments or international organizations.</SUBJECT>
              <P>The Head of the Contracting Activity shall establish procedures, when required, for processing requests of foreign governments or international organizations to use Government property and for recovering costs for such use (see FAR 45.405).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2945.407</SECTNO>
              <SUBJECT>Non-Government use of plant equipment.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is authorized to approve the non-Government use of plant equipment as prescribed in FAR 45.407.</P>
              <P>(b) Requests for approval under paragraph (a) of this section shall be submitted by the Head of the Contracting Activity.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2945.6—Reporting, Redistribution, and Disposal of Contractor Inventory</HD>
            <SECTION>
              <SECTNO>2945.608</SECTNO>
              <SUBJECT>Screening of contractor inventory.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2945.608-6</SECTNO>
              <SUBJECT>Waiver of screening requirements.</SUBJECT>
              <P>(a) The Director, Directorate of Procurement and Grant Management, is authorized to waive screening requirements as prescribed in FAR 45.608-6.</P>
              <P>(b) Requests for waiver shall be submitted by the Head of the Contracting Activity.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2945.610</SECTNO>
              <SUBJECT>Sale of surplus contractor inventory.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2945.610-2</SECTNO>
              <SUBJECT>Exemptions from sale by GSA.</SUBJECT>
              <P>(a) The Assistant Secretary for Administration and Management is authorized to seek exemptions from sale as prescribed in FAR 45.610-2.</P>
              <P>(b) Requests for exemptions shall be submitted by the Head of the Contracting Activity to the Director, Directorate of Procurement and Grant Management, for further action.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="52"/>
          <EAR>Pt. 2948</EAR>
          <HD SOURCE="HED">PART 2948—VALUE ENGINEERING</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2948.1—Policies and Procedures</HD>
            <SECTION>
              <SECTNO>2948.102</SECTNO>
              <SUBJECT>Policies.</SUBJECT>
              <P>(a) The Head of the Contracting Activity is authorized to make the determination to extend the sharing base of a value engineering change proposal (VECP) as prescribed in FAR 48.102(e).</P>
              <P>(b) The Head of the Contracting activity is authorized to extend the sharing base of a VECP to include the entire contracting activity or any part of it (see FAR 48.102(e)).</P>
              <P>(c) When the sharing base is extended under paragraph (a) or (b) of this section, the contracting officer shall specify the base in the contract schedule as required in FAR 48.104-1(a).</P>
              <CITA>[50 FR 8939, Mar. 5, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2949</EAR>
          <HD SOURCE="HED">PART 2949—TERMINATION OF CONTRACTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2949.1—General Principles</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2949.106</SECTNO>
              <SUBJECT>Fraud or other criminal conduct.</SUBJECT>
              <SECTNO>2949.111</SECTNO>
              <SUBJECT>Review of proposed settlements.</SUBJECT>
              <SECTNO>2949.111-70</SECTNO>
              <SUBJECT>Settlement review boards.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8939, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2949.1—General Principles</HD>
            <SECTION>
              <SECTNO>2949.106</SECTNO>
              <SUBJECT>Fraud or other criminal conduct.</SUBJECT>
              <P>(a) Whenever fraud, such as falsified documents, false statements, or other criminal conduct related to the settlement of a terminated contract is suspected, the contracting officer shall discontinue negotiations and prepare a report of the facts. The report shall be submitted by the Head of the Contracting Activity to the Assistant Inspector General for Investigations along with copies of documents or other information connected with the suspected violation(s). A copy of the report shall also be submitted to the Director, Directorate of Procurement and Grant Management.</P>
              <P>(b) Depending on the findings of the Assistant Inspector General for Investigations, the Head of the Contracting Activity may initiate suspension or debarment action as prescribed in FAR subpart 9.4 and subpart 2909.4.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2949.111</SECTNO>
              <SUBJECT>Review of proposed settlements.</SUBJECT>
              <P>All proposed settlement agreements shall be reviewed by the Office of the Solicitor and approved at a level higher than the contracting officer in accordance with DOL Agency procedures. Settlement agreements of $50,000 or more shall be approved by the Head of the Contracting Activity.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2949.111-70</SECTNO>
              <SUBJECT>Settlement review boards.</SUBJECT>
              <P>(a) Heads of Contracting Activities shall establish settlement review boards for the review of each termination settlement or determination of amount due under the termination clause of a contract or approval or ratification of a subcontract settlement when the action involves $50,000 or more.</P>
              <P>(b) Settlement review boards may be established for actions below $50,000 when considered desirable by the Head of the Contracting Activity or when specifically requested by the contracting officer.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2951</EAR>
          <HD SOURCE="HED">PART 2951—USE OF GOVERNMENT SOURCES BY CONTRACTORS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2951.1—Contractor Use of Government Supply Sources</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2951.101</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>2951.102</SECTNO>
              <SUBJECT>Authorization to use Government supply sources.</SUBJECT>
              <SECTNO>2951.102-70</SECTNO>
              <SUBJECT>Exclusive use on Government work.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2951.2—Contractor Use of Interagency Motor Pool Vehicles</HD>
              <SECTNO>2951.201</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8939, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <PRTPAGE P="53"/>
            <HD SOURCE="HED">Subpart 2951.1—Contractor Use of Government Supply Sources</HD>
            <SECTION>
              <SECTNO>2951.101</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>It is DOL policy that cost-type contractors should meet their requirements from Government sources of supply when these sources are available to them, and if it is economically advantageous or otherwise in the best interest of the Government.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2951.102</SECTNO>
              <SUBJECT>Authorization to use Government supply sources.</SUBJECT>
              <P>(a) The Head of the Contracting Activity may authorize cost-type contractors and subcontractors, where all higher tier contracts and subcontracts are cost-type, to use Government supply sources in accordance with the requirements and procedures in FAR subpart 51. This authority may be redelegated to the level of contracting officer.</P>
              <P>(b) If the contracting officer decides to authorize a contractor to use Government supply sources under the conditions prescribed in FAR 51.102, a written request for a FEDSTRIP activity address code (see FPMR 101-26.203) shall be made directly to the DOL Agency, Headquarters Property Management Office.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2951.102-70</SECTNO>
              <SUBJECT>Exclusive use on Government work.</SUBJECT>
              <P>Materials, supplies, and equipment acquired from Government sources of supply under the procedures described herein must be used exclusively in connection with Government work, except as otherwise authorized by the Head of the Contracting Activity.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2951.2—Contractor Use of Interagency Motor Pool Vehicles</HD>
            <SECTION>
              <SECTNO>2951.201</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>If it is in the Government's interest, the contracting officer may authorize cost-reimbursement contractors to obtain, for official purposes only, as defined in FAR 51.201(a), interagency motor pool vehicles and related services for short-term use under Federal Supply Schedule Industrial Group 751.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="54"/>
        <HD SOURCE="HED">SUBCHAPTER H—CLAUSE AND FORMS</HD>
        <PART>
          <EAR>Pt. 2952</EAR>
          <HD SOURCE="HED">PART 2952—SOLICITATION PROVISIONS AND CONTRACT CLAUSES</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>2952.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2952.1—Instructions for Using Provisions and Clauses</HD>
              <SECTNO>2952.102-1</SECTNO>
              <SUBJECT>Incorporation by reference.</SUBJECT>
              <SECTNO>2952.170</SECTNO>
              <SUBJECT>Deviations.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8940, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>2952.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements FAR part 52 which sets forth contract clauses for use in connection with the acquisition of personal property and nonpersonal services (including construction).</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2952.1—Instructions for Using Provisions and Clauses</HD>
            <SECTION>
              <SECTNO>2952.102-1</SECTNO>
              <SUBJECT>Incorporation by reference.</SUBJECT>
              <P>(a) Preprinted standard general provisions sets will be maintained by the Office of Procurement and Grant Policy, Directorate of Procurement and Grant Management, and distributed to DOL contracting activities for use during the initial FAR and DOLAR familiarization period. Contracting activities will be responsible for inserting necessary additions and alterations into individual contracts to ascertain that the general provisions are current and appropriate to the circumstances of the individual contract.</P>
              <P>(b) At a later date, when the FAR general provisions are familiar to both DOL personnel and the Department's contractors, the general provisions will be incorporated by reference.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2952.170</SECTNO>
              <SUBJECT>Deviations.</SUBJECT>
              <P>(a) Individual or class deviations of provisions and clauses in FAR part 52 shall be authorized by the Director, Directorate of Procurement and Grant Management, as prescribed in subpart 2901.4.</P>
              <P>(b) Any FAR provision or clause used with a deviation authorized in accordance with paragraph (a) of this section shall be identified as prescribed in FAR 52.103.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2953</EAR>
          <HD SOURCE="HED">PART 2953—FORMS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>2953.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2953.1—General</HD>
              <SECTNO>2953.103</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <SECTNO>2953.108</SECTNO>
              <SUBJECT>Recommendations concerning forms.</SUBJECT>
              <SECTNO>2953.170</SECTNO>
              <SUBJECT>Forms for collection of information.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2953.2—Prescription of Forms</HD>
              <SECTNO>2953.200</SECTNO>
              <SUBJECT>Department of Labor forms.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2953.3—Illustrations of Forms</HD>
              <SECTNO>2953.300</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>2953.303</SECTNO>
              <SUBJECT>Agency forms.</SUBJECT>
              <SECTNO>2953.303-DL  1-1</SECTNO>
              <SUBJECT>Department of Labor Form DL 1-1, Requisition for Equipment, Supplies, or Services.</SUBJECT>
              <SECTNO>2953.303-DL  1-90</SECTNO>
              <SUBJECT>Department of Labor Form DL 1-90, Purchase Order.</SUBJECT>
              <SECTNO>2953.303-DL  1-194</SECTNO>
              <SUBJECT>Department of Labor Form DL 1-194, Certification Prior to Acquisition of Filing Equipment.</SUBJECT>
              <SECTNO>2953.303-DL  1-2004</SECTNO>
              <SUBJECT>Department of Labor Form DL 1-2004, Small Business Procurement Determination.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 8940, Mar. 5, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>2953.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part (a) prescribes Department of Labor (DL) forms for use in acquisition, (b) illustrates these forms, and (c) contains procedures for exceptions to forms prescribed in FAR part 53 or this part 2953.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2953.1—General</HD>
            <SECTION>
              <SECTNO>2953.103</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>(a) Requests for exceptions to standard forms in FAR part 53 shall be submitted, as prescribed in FAR 53.103, to the Director, Directorate of Procurement and Grant Management, for further action.</P>

              <P>(b) Requests for exceptions to Department of Labor (DL) forms in part <PRTPAGE P="55"/>2953 shall be handled as deviations (see subpart 2901.4).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2953.108</SECTNO>
              <SUBJECT>Recommendations concerning forms.</SUBJECT>
              <P>Recommendations concerning forms (see FAR 53.108) shall be made as prescribed in 2901.304(e).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2953.170</SECTNO>
              <SUBJECT>Forms for collection of information.</SUBJECT>
              <P>In accordance with the Paperwork Reduction Act of 1980 and 5 CFR part 1320, DOL Agencies/Offices imposing forms under contracts or subcontracts requiring the collection of information on identical items from 10 or more members of the public must obtain approval from the Office of Management and Budget.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2953.2—Prescription of Forms</HD>
            <SECTION>
              <SECTNO>2953.200</SECTNO>
              <SUBJECT>Department of Labor forms.</SUBJECT>
              <P>This subpart prescribes Department of Labor (DL) forms for use in acquisition. Consistent with the approach used in FAR subpart 53.2, this subpart is arranged by subject matter, in the same order as, and keyed to, the parts of the DOLAR in which the form usage requirements are addressed.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2953.3—Illustrations of Forms</HD>
            <SECTION>
              <SECTNO>2953.300</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart contains illustrations of Department of Labor (DL) forms used in acquisition.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2953.303</SECTNO>
              <SUBJECT>Agency forms.</SUBJECT>
              <P>This section illustrates Department of Labor (DL) forms specified by the DOLAR for use in acquisitions. The forms are illustrated in numerical order. The subsection numbers correspond with the DL form numbers.</P>
              <WIDE>
                <WSECT>
                  <PRTPAGE P="56"/>
                  <SECTNO>2953.303-DL  1-1</SECTNO>
                  <SUBJECT>Department of Labor Form DL 1-1, Requisition for Equipment, Supplies, or Services.</SUBJECT>
                </WSECT>
              </WIDE>
              <GPH DEEP="470" SPAN="2">
                <GID>EC02FE91.000</GID>
              </GPH>
              <WIDE>
                <WSECT>
                  <PRTPAGE P="57"/>
                  <SECTNO>2953.303-DL  1-90</SECTNO>
                  <SUBJECT>Department of Labor Form DL 1-90, Purchase Order.</SUBJECT>
                </WSECT>
              </WIDE>
              <GPH DEEP="470" SPAN="2">
                <GID>EC02FE91.001</GID>
              </GPH>
              <WIDE>
                <PRTPAGE P="58"/>
                <HD SOURCE="HED">
                  <E T="11">PURCHASE ORDER TERMS AND CONDITIONS</E>
                </HD>
                <FP SOURCE="FP-1">152.252-2CLAUSES INCORPORATED BY REFERENCE (Apr 1984). This contract incorporates the following clauses by reference with the same force and effect as if they were given in full text. Upon request the Contracting Officer will make their full text available:</FP>
                <HD SOURCE="HED">
                  <E T="11">FEDERAL AQUISITION REGULATION (48 CFR CHAPTER 1) CLAUSES</E>
                </HD>
                <FP SOURCE="FP-1">52.203-1Officials Not to Benefit (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.203-3Gratuities (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.203-4Covenant Against Contingent Fees (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.212-9Variation in Quantity (Apr 1984) (In the preceding clause the permissible variations are stated in the schedule)</FP>
                
                <FP SOURCE="FP-1">52.215-1Examination of Records by the Comptroller General</FP>
                
                <FP SOURCE="FP-1">52.219-13Utilization of Women-Owned Small Businesses</FP>
                
                <FP SOURCE="FP-1">52.222-3Convict Labor (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.222-4Contract Work Hours and Safety Standards Act—Overtime Compensation—General (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.222-20Walsh-Healey Public Contracts Act</FP>
                
                <FP SOURCE="FP-1">52.222-26Equal Opportunity (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.222-36Affirmative Action for Handicapped Workers (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.222-40Service Contract Act of 1965—Contracts of $2,500 or Less (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.222-41Service Contract Act of 1965 (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.225-3Buy American Act—Supplies (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.232-1Payments (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.232-8Discounts for Prompt Payment (Apr 1984) (With Alternate 1)</FP>
                
                <FP SOURCE="FP-1">52.233-1Disputes (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.243-1Changes—Fixed Price (Apr 1984)</FP>
                
                <FP SOURCE="FP-1">52.249-1Termination for Convenience of the Government (Fixed Price) Short Form) (Apr 1984)</FP>
              </WIDE>
              <WIDE>
                <WSECT>
                  <PRTPAGE P="59"/>
                  <SECTNO>2953.303-DL  1-194</SECTNO>
                  <SUBJECT>Department of Labor Form DL 1-194, Certification Prior to Acquisition of Filing Equipment.</SUBJECT>
                </WSECT>
              </WIDE>
              <GPH DEEP="440" SPAN="2">
                <GID>EC02FE91.002</GID>
              </GPH>
              <WIDE>
                <WSECT>
                  <PRTPAGE P="60"/>
                  <SECTNO>2953.303-DL  1-2004</SECTNO>
                  <SUBJECT>Department of Labor Form DL 1-2004, Small Business Procurement Determination.</SUBJECT>
                </WSECT>
              </WIDE>
              <GPH DEEP="440" SPAN="2">
                <GID>EC02FE91.003</GID>
              </GPH>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 34 (10-1-00 Edition)</LRH>
      <RRH>Department of Education</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="61"/>
          <HD SOURCE="HED">CHAPTER 34—DEPARTMENT OF EDUCATION ACQUISITION REGULATION</HD>
          <P>(Parts 3400 to 3499)</P>
        </TOCHD>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        </SUBCHAP>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>3401</PT>
          <SUBJECT>ED Acquisition Regulation System</SUBJECT>
          <PG>63</PG>
          <PT>3402</PT>
          <SUBJECT>Definitions of words and terms</SUBJECT>
          <PG>64</PG>
          <PT>3403</PT>
          <SUBJECT>Improper business practices and personal conflicts of interest</SUBJECT>
          <PG>64</PG>
          <PT>3404</PT>
          <SUBJECT>Administrative matters</SUBJECT>
          <PG>65</PG>
          <PT>3405</PT>
          <SUBJECT>Publicizing contract actions</SUBJECT>
          <PG>65</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3408</PT>
          <SUBJECT>Required sources of supplies and services</SUBJECT>
          <PG>67</PG>
          <PT>3409</PT>
          <SUBJECT>Contractor qualifications</SUBJECT>
          <PG>67</PG>
          <PT>3410</PT>
          <SUBJECT>Specification standards and other purchase descriptions</SUBJECT>
          <PG>67</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3413</PT>
          <SUBJECT>Small purchase and other simplified purchase procedures</SUBJECT>
          <PG>69</PG>
          <PT>3414</PT>
          <SUBJECT>Sealed bidding</SUBJECT>
          <PG>69</PG>
          <PT>3415</PT>
          <SUBJECT>Contracting by negotiation</SUBJECT>
          <PG>69</PG>
          <PT>3416</PT>
          <SUBJECT>Types of contracts</SUBJECT>
          <PG>70</PG>
          <PT>3417</PT>
          <SUBJECT>Special contracting methods</SUBJECT>
          <PG>71</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3419</PT>
          <SUBJECT>Small business and small disadvantaged business concerns</SUBJECT>
          <PG>72</PG>
          <PT>3424</PT>
          <SUBJECT>Protection of privacy and freedom of informa-tion</SUBJECT>
          <PG>73</PG>
          <PT>3425</PT>
          <SUBJECT>Foreign acquisition</SUBJECT>
          <PG>73</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3427</PT>
          <SUBJECT>Patents, data, and copyrights</SUBJECT>
          <PG>75</PG>
          <PT>3428</PT>
          <SUBJECT>Bonds and insurance</SUBJECT>
          <PG>75<PRTPAGE P="62"/>
          </PG>
          <PT>3432</PT>
          <SUBJECT>Contract financing</SUBJECT>
          <PG>75</PG>
          <PT>3433</PT>
          <SUBJECT>Protests, disputes, and appeals</SUBJECT>
          <PG>76</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3437</PT>
          <SUBJECT>Service contracting</SUBJECT>
          <PG>78</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3442</PT>
          <SUBJECT>Contract administration</SUBJECT>
          <PG>79</PG>
          <PT>3443</PT>
          <SUBJECT>Contract modifications</SUBJECT>
          <PG>79</PG>
          <PT>3445</PT>
          <SUBJECT>Government property</SUBJECT>
          <PG>79</PG>
          <PT>3447</PT>
          <SUBJECT>Transportation</SUBJECT>
          <PG>80</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER H—CLAUSES AND FORMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3452</PT>
          <SUBJECT>Solicitation provisions and contract clauses</SUBJECT>
          <PG>81</PG>
        </CHAPTI>
      </TOC>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="63"/>
        <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        <PART>
          <EAR>Pt. 3401</EAR>
          <HD SOURCE="HED">PART 3401—ED ACQUISITION REGULATION SYSTEM</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3401.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3401.1—Purpose, Authority, Issuance</HD>
              <SECTNO>3401.103</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3401.104</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
              <SECTNO>3401.104-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>
              <SECTNO>3401.104-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3401.3—Agency Acquisition Regulations</HD>
              <SECTNO>3401.304</SECTNO>
              <SUBJECT>Agency control and compliance procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3401.4—Deviations</HD>
              <SECTNO>3401.401</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <SECTNO>3401.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>
              <SECTNO>3401.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3401.5—Agency and Public Participation</HD>
              <SECTNO>3401.501</SECTNO>
              <SUBJECT>Solicitation of agency and public views.</SUBJECT>
              <SECTNO>3401.501-2</SECTNO>
              <SUBJECT>Opportunity for public comments.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3401.6—Contracting Authority and Responsibilities</HD>
              <SECTNO>3401.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19119, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3401.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>The Federal Acquisition Regulation System brings together, in title 48 of the Code of Federal Regulations, the acquisition regulations applicable to all executive agencies of the Government. This part establishes a system of Department of Education (ED) acquisition regulations, referred to as the EDAR, for the codification and publication of policies and procedures of ED which implement and supplement the Federal Acquisition Regulation (FAR).</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3401.1—Purpose, Authority, Issuance</HD>
            <SECTION>
              <SECTNO>3401.103</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>The FAR and the EDAR apply to all acquisitions as defined in FAR part 2 except where expressly excluded.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3401.104</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3401.104-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>
              <P>The regulations in this chapter may be referred to as the Department of Education Acquisition Regulation or the EDAR. References to the EDAR are made in the same manner as references to the FAR (See FAR 1.104-2(c)).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3401.104-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
              <P>Copies of the EDAR in the <E T="04">Federal Register</E> and Code of Federal Regulations (CFR) form may be purchased from the Superintendent of Documents, Government Printing Office (GPO), Washington, DC 20402.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3401.3—Agency Acquisition Regulations</HD>
            <SECTION>
              <SECTNO>3401.304</SECTNO>
              <SUBJECT>Agency control and compliance procedures.</SUBJECT>
              <P>The EDAR is subject to the same review procedures within the Department as other regulations of the Department.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3401.4—Deviations</HD>
            <SECTION>
              <SECTNO>3401.401</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <P>A deviation from the EDAR has the same meaning as a deviation from the FAR.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3401.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>
              <P>An individual deviation from the FAR or the EDAR must be approved by the Head of the Contracting Activity (HCA).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3401.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
              <P>A class deviation from the FAR or the EDAR must be approved by the Procurement Executive.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="64"/>
            <HD SOURCE="HED">Subpart 3401.5—Agency and Public Participation</HD>
            <SECTION>
              <SECTNO>3401.501</SECTNO>
              <SUBJECT>Solicitation of agency and public views.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3401.501-2</SECTNO>
              <SUBJECT>Opportunity for public comments.</SUBJECT>
              <P>Unless the Secretary of Education (Secretary) approves an exception, the Department issues the EDAR, including any amendments to the EDAR, in accordance with the procedures for public participation in 5 U.S.C. 553.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3401.6—Contracting Authority and Responsibilities</HD>
            <SECTION>
              <SECTNO>3401.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>Contracting authority vests with the Secretary. The Secretary has delegated this authority to the Deputy Under Secretary for Management who has delegated this authority, with the right to redelegate, to the Procurement Executive and the HCA.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3402</EAR>
          <HD SOURCE="HED">PART 3402—DEFINITIONS OF WORDS AND TERMS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3402.1—Definitions</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3402.101</SECTNO>
              <SUBJECT>[Reserved]</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3402.2—Definitions Clause</HD>
              <SECTNO>3402.201</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c), unless otherwise noted.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3402.1—Definitions</HD>
            <SECTION>
              <SECTNO>3402.101</SECTNO>
              <RESERVED>[Reserved]</RESERVED>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3402.2—Definitions Clause</HD>
            <SECTION>
              <SECTNO>3402.201</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.202-1, Definitions, in all solicitations and contracts in lieu of the clause in FAR 52.202-1, except—</P>
              <P>(a) A fixed-price research and development contract that is expected to be $2,500 or less; or</P>
              <P>(b) A purchase order.</P>
              <CITA>[53 FR 19119, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3403</EAR>
          <HD SOURCE="HED">PART 3403—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3403.1—Safeguards</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3403.101</SECTNO>
              <SUBJECT>Standards of conduct.</SUBJECT>
              <SECTNO>3403.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3403.2—Contractor Gratuities To Government Personnel</HD>
              <SECTNO>3403.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the Gratuities clause.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3403.3—Reports of Suspected Antitrust Violations</HD>
              <SECTNO>3403.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3403.4—Contingent Fees</HD>
              <SECTNO>3403.409</SECTNO>
              <SUBJECT>Misrepresentations or violations of the Covenant Against Contingent Fees.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3403.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
              <SECTNO>3403.602</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c)</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19120, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3403.1—Safeguards</HD>
            <SECTION>
              <SECTNO>3403.101</SECTNO>
              <SUBJECT>Standards of conduct.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3403.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>
              <P>ED regulations on standards of conduct are in 34 CFR part 73.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3403.2—Contractor Gratuities to Government Personnel</HD>
            <SECTION>
              <SECTNO>3403.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the Gratuities clause.</SUBJECT>
              <P>(a) Suspected violations of the Gratuities clause must be reported to the HCA in writing detailing the circumstances.</P>
              <P>(b) The HCA evaluates the report with the assistance of the Designated Agency Ethics Officer. If the HCA determines that a violation may have occurred, the HCA refers the report to the Procurement Executive for disposition.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="65"/>
            <HD SOURCE="HED">Subpart 3403.3—Reports of Suspected Antitrust Violations</HD>
            <SECTION>
              <SECTNO>3403.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) [Reserved]</P>
              <P>(b) Any Departmental personnel who have evidence of a suspected antitrust violation in an acquisition shall—</P>
              <P>(1) Report that evidence through the HCA to the Office of the General Counsel for referral to the Attorney General; and</P>
              <P>(2) Provide a copy of that evidence to the Procurement Executive.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3403.4—Contingent Fees</HD>
            <SECTION>
              <SECTNO>3403.409</SECTNO>
              <SUBJECT>Misrepresentations or violations of the Covenant Against Contingent Fees.</SUBJECT>
              <P>Any Departmental personnel who suspect or have evidence of attempted or actual exercise of improper influence, misrepresentation of a contingent fee arrangement, or other violation of the Covenant Against Contingent Fees, shall report the matter promptly in accordance with the procedures in 3403.203.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3403.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
            <SECTION>
              <SECTNO>3403.602</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>Exceptions under FAR 3.602 must be approved by the Deputy Under Secretary for Management.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3404</EAR>
          <HD SOURCE="HED">PART 3404—ADMINISTRATIVE MATTERS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3404.1—Contract Execution</HD>
            <SECTION>
              <SECTNO>3404.170</SECTNO>
              <SUBJECT>Ratification of unauthorized contract awards.</SUBJECT>
              <P>The execution of otherwise proper contracts made by individuals without contracting authority, or by contracting officers acting in excess of the limits of their delegated authority, may be later ratified by the Department. To be effective, a ratification must be—</P>
              <P>(a) A written document clearly stating that ratification of a previously unauthorized act is intended; and</P>
              <P>(b) Signed by the HCA, or higher level official of the Department, who could have granted authority to enter into the commitment at the time it was made and still has the power to do so.</P>
              <CITA>[53 FR 19120, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3405</EAR>
          <HD SOURCE="HED">PART 3405—PUBLICIZING CONTRACT ACTIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3405.2—Synopses of Proposed Contract Actions</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3405.270</SECTNO>
              <SUBJECT>Notices to perform market surveys.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3405.5—Paid Advertisements</HD>
              <SECTNO>3405.502</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3405.2—Synopses of Proposed Contract Actions</HD>
            <SECTION>
              <SECTNO>3405.270</SECTNO>
              <SUBJECT>Notices to perform market surveys.</SUBJECT>
              <P>(a) If a sole-source contract is anticipated, the issuance of a notice of a proposed contract action that is detailed enough to permit submission of meaningful responses and subsequent evaluation of the responses by the Government, constitutes an acceptable market survey.</P>
              <P>(b) The notice must include—</P>
              <P>(1) A clear statement of the supplies or services to be procured;</P>
              <P>(2) Any capabilities or experience required of a contractor and any other factors relevant to those requirements; and</P>
              <P>(3) The criteria, including relative weights, to be used in the evaluation of responses.</P>
              <CITA>[53 FR 19120, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="66"/>
            <HD SOURCE="HED">Subpart 3405.5—Paid Advertisements</HD>
            <SECTION>
              <SECTNO>3405.502</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <P>Authority to approve publication of paid advertisements in newspapers is delegated to the HCA.</P>
              <CITA>[53 FR 19120, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="67"/>
        <HD SOURCE="HED">SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING</HD>
        <PART>
          <EAR>Pt. 3408</EAR>
          <HD SOURCE="HED">PART 3408—REQUIRED SOURCES OF SUPPLIES AND SERVICES</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301, 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3408.8—Acquisition of Printing and Related Supplies</HD>
            <SECTION>
              <SECTNO>3408.870</SECTNO>
              <SUBJECT>Printing clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.208-70, Printing, in all solicitations and contracts other than purchase orders.</P>
              <CITA>[53 FR 19120, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3409</EAR>
          <HD SOURCE="HED">PART 3409—CONTRACTOR QUALIFICATIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3409.4—Debarment, Suspension, and Ineligibility</HD>
              <SECTNO>3409.403</SECTNO>
              <SUBJECT>[Reserved]</SUBJECT>
              <SECTNO>3409.406</SECTNO>
              <SUBJECT>Debarment.</SUBJECT>
              <SECTNO>3409.406-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3409.5—Organizational Conflicts of Interest</HD>
              <SECTNO>3409.502</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3409.503</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <SECTNO>3409.507</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3409.570</SECTNO>
              <SUBJECT>Offeror certification provision.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c), unless otherwise noted.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19120, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3409.4—Debarment, Suspension, and Ineligibility</HD>
            <SECTION>
              <SECTNO>3409.403</SECTNO>
              <RESERVED>[Reserved]</RESERVED>
            </SECTION>
            <SECTION>
              <SECTNO>3409.406</SECTNO>
              <SUBJECT>Debarment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3409.406-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>The debarring official may enter into a settlement with a contractor under which the contractor voluntarily excludes itself from, or restricts its participation in, Government contracting and subcontracting for a specified period.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3409.5—Organizational Conflicts of Interest</HD>
            <SECTION>
              <SECTNO>3409.502</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>This subpart applies to all ED contracts except contracts with other Federal agencies. However, this subpart applies to contracts with the Small Business Administration (SBA) under the 8(a) program.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3409.503</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <P>The HCA is designated as the official who may waive any general rule or procedure of FAR subpart 9.5 or of this subpart.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3409.507</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) If the effects of a potential or actual conflict of interest cannot be avoided, neutralized, or mitigated before award, the prospective contractor is not eligible for that award. If a potential or actual conflict of interest is identified after award and the effects cannot be avoided, neutralized, or mitigated, ED terminates the contract.</P>
              <P>(b) The Procurement Executive is designated as the official to conduct reviews and make final decisions under FAR 9.507(c)(4).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3409.570</SECTNO>
              <SUBJECT>Offeror certification provision.</SUBJECT>
              <P>The contracting officer shall insert the provision in 3452.209-70, Organizational Conflict of Interest, in all solicitations.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3410</EAR>
          <HD SOURCE="HED">PART 3410—SPECIFICATION STAND-ARDS AND OTHER PURCHASE DESCRIPTIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3410.7—Use of Metric System</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3410.701</SECTNO>
              <SUBJECT>Policy of the Department of Education with respect to use of the metric system.</SUBJECT>
              <SECTNO>3410.702</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>3410.703</SECTNO>
              <SUBJECT>Responsibilities of the Department of Education with respect to use of the metric system.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>15 U.S.C. 205b.</P>
          </AUTH>
          <SOURCE>
            <PRTPAGE P="68"/>
            <HD SOURCE="HED">Source:</HD>
            <P>58 FR 30088, May 25, 1993, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3410.7—Use of Metric System</HD>
            <SECTION>
              <SECTNO>3410.701</SECTNO>
              <SUBJECT>Policy of the Department of Education with respect to use of the metric system.</SUBJECT>
              <P>It is the policy of the Department of Education to encourage use of the metric system in industry standards, consistent with the legal status of this system as the preferred system of weights and measures for United States trade and commerce.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3410.702</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Department</E> means the United States Department of Education.</P>
              <P>
                <E T="03">Metric system</E> (a) This term means the International System of Units established by the General Conference of Weights and Measures in 1960.</P>
              <P>(b) The units are listed in Federal Standard 376A, “Preferred Metric Units for General Use by the Federal Government.”</P>
            </SECTION>
            <SECTION>
              <SECTNO>3410.703</SECTNO>
              <SUBJECT>Responsibilities of the Department of Education with respect to use of the metric system.</SUBJECT>
              <P>(a) Consistent with the Federal Acquisition Regulation System, contracting officers of the Department shall—</P>
              <P>(1) Accept, without prejudice, products and services dimensioned in metric units if they are offered at competitive prices and meet the needs of the Department; and</P>
              <P>(2) Ensure that acquisition planning considers these products and services.</P>
              <P>(b) Consistent with the policy in the Metric Conversion Act, as amended, and in 3410.701, if the metric system is the accepted system of weights and measures in a particular industry, the Department ensures that solicitations include specifications and purchase descriptions stated in metric units of measurement.</P>
              <P>(c) If the metric system is not the accepted system of weights and measures in a particular industry, the Department ensures that solicitations for procurements in excess of the small purchase threshold permit offerors to propose products or services in metric units of measurement, except when to do this would be detrimental to the purpose of the affected program.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="69"/>
        <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        <PART>
          <EAR>Pt. 3413</EAR>
          <HD SOURCE="HED">PART 3413—SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3413.1—General</HD>
            <SECTION>
              <SECTNO>3413.107</SECTNO>
              <SUBJECT>Solicitation and evaluation of quotations.</SUBJECT>
              <P>(a)-(c) [Reserved]</P>
              <P>(d) <E T="03">Information provided by ED.</E> If ED provides information to a potential quoter concerning a request for quotations, that information must also be provided to all other potential quoters, by amending the request, if—</P>
              <P>(1) The information is necessary to quoters in submitting quotations; or</P>
              <P>(2) The lack of the information would be otherwise prejudicial to other potential quoters.</P>
              <P>(e) <E T="03">Late quotations.</E> The procedures in FAR 15.412 must be used for quotations received after the time specified for receipt at the contracting activity, except that late quotations may be accepted if the contracting officer determines in writing prior to the award that it is in the best interest of the Government to do so.</P>
              <CITA>[53 FR 19121, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3414</EAR>
          <HD SOURCE="HED">PART 3414—SEALED BIDDING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3414.4—Opening of Bids and Award of Contract</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3414.406</SECTNO>
              <SUBJECT>Mistakes in bids.</SUBJECT>
              <SECTNO>3414.406-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3414.4—Opening of Bids and Award of Contract</HD>
            <SECTION>
              <SECTNO>3414.406</SECTNO>
              <SUBJECT>Mistakes in bids.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3414.406-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
              <P>(a)-(d) [Reserved]</P>
              <P>(e) Authority is delegated to the HCA to make determinations under FAR 14.406-3 (a) through (d).</P>
              <CITA>[53 FR 19121, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3415</EAR>
          <HD SOURCE="HED">PART 3415—CONTRACTING BY NEGOTIATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3415.4—Solicitation and Receipt of Proposals and Quotations</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3415.406-3</SECTNO>
              <SUBJECT>Part II—Contract clauses.</SUBJECT>
              <SECTNO>3415.407</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
              <SECTNO>3415.413-2</SECTNO>
              <SUBJECT>Alternate II.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3415.5—Unsolicited Proposals</HD>
              <SECTNO>3415.505</SECTNO>
              <SUBJECT>Content of unsolicited proposals.</SUBJECT>
              <SECTNO>3415.506</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3415.9—Profit</HD>
              <SECTNO>3415.902</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19121, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3415.4—Solicitation and Receipt of Proposals and Quotations</HD>
            <SECTION>
              <SECTNO>3415.406-3</SECTNO>
              <SUBJECT>Part II—Contract clauses.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.215-33, Order of Precedence, in all contracts other than purchase orders. The contracting officer shall use this clause in lieu of the clause in FAR 52.215-33.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3415.407</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
              <P>(a) The Freedom of Information Act (FOIA), 5 U.S.C. 552, may require ED to release data contained in an offeror's proposal even if the offeror has identified the data as restricted in accordance with the provision in FAR 52.215-12. The solicitation provision in 3452.215-70, Release of Restricted Data, informs offerors that ED is required to consider release of restricted data under FOIA and Executive Order 12600.</P>

              <P>(b) The contracting officer shall insert the provision in 3452.215-70, in all solicitations that include a reference <PRTPAGE P="70"/>to FAR 52.215-12, Restriction on Disclosure and Use of Data.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3415.413-2</SECTNO>
              <SUBJECT>Alternate II.</SUBJECT>
              <P>The Department uses the Alternate II procedures in FAR 15.413-2.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3415.5—Unsolicited Proposals</HD>
            <SECTION>
              <SECTNO>3415.505</SECTNO>
              <SUBJECT>Content of unsolicited proposals.</SUBJECT>
              <P>(a)-(c) [Reserved]</P>
              <P>(d) Each unsolicited proposal must contain the following certification:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Unsolicited Proposal Certification by Offeror</HD>
                <P>This is to certify, to the best of my knowledge and belief, that:</P>
                <P>a. This proposal has not been prepared under Government supervision.</P>
                <P>b. The methods and approaches stated in the proposal were developed by this offeror.</P>
                <P>c. Any contact with employees of the Department of Education has been within the limits of appropriate advance guidance set forth in FAR 15.504.</P>

                <P>d. No prior commitments were received from departmental employees regarding acceptance of this proposal.
                </P>
                <FP SOURCE="FP-DASH">Date:</FP>
                
                <FP SOURCE="FP-DASH">Organization:</FP>
                
                <FP SOURCE="FP-DASH">Name:</FP>
                
                <FP SOURCE="FP-DASH">Title:</FP>
                
                <FP>(This certification must be signed by a responsible person authorized to enter into contracts on behalf of the organization)</FP>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3415.506</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
              <P>(a) [Reserved]</P>
              <P>(b)(1) The HCA is the contact point to coordinate the receipt and handling of unsolicited proposals.</P>
              <P>(2) Offerors shall direct unsolicited proposals to the HCA.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3415.9—Profit</HD>
            <SECTION>
              <SECTNO>3415.902</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) [Reserved]</P>
              <P>(b) The contracting officer shall establish the profit or fee portion of the Government prenegotiation objective in accordance with 48 CFR chapter 3, part 315, subpart 315.9 (Department of Health and Human Services Acquisition Regulation).</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3416</EAR>
          <HD SOURCE="HED">PART 3416—TYPES OF CONTRACTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3416.3—Cost-Reimbursement Contracts</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3416.303</SECTNO>
              <SUBJECT>Cost-sharing contracts.</SUBJECT>
              <SECTNO>3416.307</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3416.6—Time-and-Materials, Labor-Hour and Letter Contracts</HD>
              <SECTNO>3416.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
              <SECTNO>3416.603-3</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3416.7—Agreements</HD>
              <SECTNO>3416.701</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <SECTNO>3416.702</SECTNO>
              <SUBJECT>Basic agreements.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19121, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3416.3—Cost-Reimbursement Contracts</HD>
            <SECTION>
              <SECTNO>3416.303</SECTNO>
              <SUBJECT>Cost-sharing contracts.</SUBJECT>
              <P>(a) [Reserved]</P>
              <P>(b) <E T="03">Application.</E> Costs that are not reimbursed under a cost-sharing contract may not be charged to the Government under any other grant, contract, cooperative agreement, or other arrangement.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3416.307</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>(a) If the clause in FAR 52.216-7, Allowable cost and Payment, is used in a contract with a hospital, the contracting officer shall modify the clause by deleting the words “subpart 31.2 of the Federal Acquisition Regulation (FAR)” from paragraph (a) and substituting “34 CFR part 74, appendix E.”</P>
              <P>(b) The contracting officer shall insert the clause in 3452.216-70, Additional Cost Principles, in all solicitations of and resultant cost-reimbursement contracts with nonprofit organizations other than educational institutional, hospitals, or organizations listed in Attachment C to Office of Management and Budget Circular A-122.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="71"/>
            <HD SOURCE="HED">Subpart 3416.6—Time-and-Materials, Labor-Hour and Letter Contracts</HD>
            <SECTION>
              <SECTNO>3416.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3416.603-3</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <P>If the HCA is to sign a letter contract as the contracting officer, the Procurement Executive executes the written determination under FAR 16.603-3.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3416.7—Agreements</HD>
            <SECTION>
              <SECTNO>3416.701</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.216-71, Negotiated Overhead Rates—Fixed, in contracts with organizations that have fixed indirect cost rates with carryforward adjustments approved by the Government agency responsible for negotiating the organization's indirect cost rates.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3416.702</SECTNO>
              <SUBJECT>Basic agreements.</SUBJECT>
              <P>(a)-(d) [Reserved]</P>
              <P>(e) <E T="03">Negotiated overhead rates.</E> Basic agreements may include negotiated overhead rates for cost-reimbursement contracts. If a negotiated overhead rate is included, the bases to which the rate applies and the period of applicability must also be stated. All pertinent provisions such as final rates for past periods, provisional rates for current or future periods, ceilings, and any specific items to be treated as indirect costs must also be included.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3417</EAR>
          <HD SOURCE="HED">PART 3417—SPECIAL CONTRACTING METHODS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3417.2—Options</HD>
            <SECTION>
              <SECTNO>3417.207</SECTNO>
              <SUBJECT>Exercise of options.</SUBJECT>
              <P>If any provision in a contract requires that an option may only be exercised within a specified time after funds become available, the same provision must specify that the date on which funds are available means the date funds become available to the contracting officer for obligation.</P>
              <CITA>[53 FR 19122, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="72"/>
        <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        <PART>
          <EAR>Pt. 3419</EAR>
          <HD SOURCE="HED">PART 3419—SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3419.7—Subcontracting With Small Business and Small Disadvantaged Business Concerns</HD>
              <SECTNO>3419.705</SECTNO>
              <SUBJECT>Responsibilities of the contracting officer under the subcontracting assistance program.</SUBJECT>
              <SECTNO>3419.705-2</SECTNO>
              <SUBJECT>Determining the need for a subcontracting plan.</SUBJECT>
              <SECTNO>3419.708</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3419.8—Contracting With the Small Business Administration (The 8(a) Program)</HD>
              <SECTNO>3419.801</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3419.870</SECTNO>
              <SUBJECT>Acquisition of technical requirements.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C.; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19122, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3419.7—Subcontracting With Small Business and Small Disadvantaged Business Concerns</HD>
            <SECTION>
              <SECTNO>3419.705</SECTNO>
              <SUBJECT>Responsibilities of the contracting officer under the subcontracting assistance program.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3419.705-2</SECTNO>
              <SUBJECT>Determining the need for a subcontracting plan.</SUBJECT>
              <P>Incremental funding actions must be included in determining whether an acquisition meets the dollar threshold requiring a subcontracting plan.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3419.708</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
              <P>(a) [Reserved]</P>
              <P>(b) If the clause “Small Business and Small Disadvantaged Business Subcontracting Plan” (see FAR 52.219-9) must be used in a solicitation, a notification must be included in the solicitation that advises prospective offerors that subcontracting plans may be requested from all concerns determined to be in the competitive range.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3419.8—Contracting With the Small Business Administration (The 8(a) Program)</HD>
            <SECTION>
              <SECTNO>3419.801</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The signing of a contract document by the Small Business Administration (SBA) may be accepted by the contracting officer as the certification under FAR 19.801(b)(1).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3419.870</SECTNO>
              <SUBJECT>Acquisition of technical requirements.</SUBJECT>
              <P>(a) <E T="03">Source selection.</E> (1) Except where SBA selects a concern for an award under section 8(a) or under the circumstances in paragraph (a)(5) of this section, ED selects a nominee for an 8(a) award by SBA through a limited technical competition if technical aspects, methodology, or approach are of primary importance rather than price.</P>
              <P>(2) If limited technical competition is used, the concerns to be included are decided by the contracting officer in consultation with OSDBU and the Contracting Officer's Technical Representative (COTR).</P>
              <P>(3)(i) ED may require the concerns participating in the limited technical competition to submit written technical proposals. Otherwise, ED holds oral discussions with the participating concerns.</P>
              <P>(ii) In a limited technical competition, cost factors may not be included in the technical proposals nor considered during technical discussions of the proposals.</P>
              <P>(4) ED evaluates the concerns participating in a limited technical competition based on the written technical proposals or oral discussions. ED nominates, to SBA for subcontract award, the concern that the contracting officer determines to have the best technical capability to perform the contract requirements.</P>

              <P>(5) Instead of selecting a nominee through limited technical competition, ED may nominate one 8(a) concern to SBA if that concern has exclusive or predominant capability among 8(a) <PRTPAGE P="73"/>concerns by reason of experience, specialized facilities, or technical competence to perform the work within the time required.</P>
              <P>(6) Each concern nominated for a specific 8(a) requirement must be approved by OSDBU or SBA for that particular requirement before the contracting officer initiates negotiation of 8(a) award terms with the concern.</P>
              <P>(b) <E T="03">Negotiation of 8(a) award.</E> The contracting officer shall give all possible assistance required by SBA with respect to SBA's negotiation of an 8(a) award.</P>
              <P>(c) <E T="03">Delegated 8(a) award administration.</E> If SBA delegates responsibility to ED for administration of the 8(a) award, ED informs SBA of all 8(a) award modifications, progress payments, problems experienced by the subcontractor, and other pertinent matters requested by SBA.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3424</EAR>
          <HD SOURCE="HED">PART 3424—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3424.1—Protection of Individual Privacy</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3424.103</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3424.2—Freedom of Information Act</HD>
              <SECTNO>3424.201</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3424.1—Protection of Individual Privacy</HD>
            <SECTION>
              <SECTNO>3424.103</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) If the Privacy Act of 1974 applies to a contract, the contracting officer shall specify in the contract the disposition to be made of the system or systems of records upon completion of performance of the contract. For example, the contract may require the contractor to completely destroy the records, to remove personal identifiers, to turn the records over to ED, or to keep the records but take certain measures to keep the records confidential and protect the individuals’ privacy.</P>

              <P>(b) If a notice of the system of records has not been published in the <E T="04">Federal Register,</E> the contracting officer may proceed with the acquisition but shall not award the contract until the notice is published, unless the contracting officer determines, in writing, that portions of the contract may proceed without maintaining information subject to the Privacy Act. In this case, the contracting officer may—</P>
              <P>(1) Award the contract, authorizing performance only of those portions not subject to the Privacy Act; and</P>
              <P>(2) After the notice is published and effective, authorize performance of the remainder of the contract.</P>
              <CITA>[53 FR 19123, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3424.2—Freedom of Information Act</HD>
            <SECTION>
              <SECTNO>3424.201</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <P>The Department's regulations implementing the Freedom of Information Act, 5 U.S.C. 552, are in 34 CFR part 5.</P>
              <CITA>[53 FR 19123, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3425</EAR>
          <HD SOURCE="HED">PART 3425—FOREIGN ACQUISITION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3425.1—Buy American Act—Supplies</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3425.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3425.3—Balance of Payments Program</HD>
              <SECTNO>3425.302</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3425.1—Buy American Act—Supplies</HD>
            <SECTION>
              <SECTNO>3425.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) [Reserved]</P>
              <P>(b) The HCA approves determinations under FAR 25.120(a)(4).</P>
              <CITA>[53 FR 19123, May 26, 1988]</CITA>
              
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="74"/>
            <HD SOURCE="HED">Subpart 3425.3—Balance of Payments Program</HD>
            <SECTION>
              <SECTNO>3425.302</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>The HCA is designated to make all determinations under FAR 25.302. This authority may not be redelegated.</P>
              <CITA>[53 FR 19123, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="75"/>
        <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        <PART>
          <EAR>Pt. 3427</EAR>
          <HD SOURCE="HED">PART 3427—PATENTS, DATA, AND COPYRIGHTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3427.4—Rights in Data and Copyrights</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3427.470</SECTNO>
              <SUBJECT>Publication and publicity clause.</SUBJECT>
              <SECTNO>3427.471</SECTNO>
              <SUBJECT>Paperwork Reduction Act clause.</SUBJECT>
              <SECTNO>3427.472</SECTNO>
              <SUBJECT>Advertising of awards clause.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19123, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3427.4—Rights in Data and Copyrights</HD>
            <SECTION>
              <SECTNO>3427.470</SECTNO>
              <SUBJECT>Publication and publicity clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.227-70, Publication and Publicity, in all solicitations and contracts other than purchase orders.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3424.471</SECTNO>
              <SUBJECT>Paperwork Reduction Act clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.227-71, Paperwork Reduction Act, in all solicitations and contracts.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3427.472</SECTNO>
              <SUBJECT>Advertising of awards clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.227-72, Advertising of Awards, in all solicitations and contracts other than purchase orders.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3428</EAR>
          <HD SOURCE="HED">PART 3428—BONDS AND INSURANCE</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3428.3—Insurance</HD>
            <SECTION>
              <SECTNO>3428.370</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.228-70, Required Insurance, in all solicitations and resultant cost-reimbursement contracts.</P>
              <CITA>[53 FR 19123, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3432</EAR>
          <HD SOURCE="HED">PART 3432—CONTRACT FINANCING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3432.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3432.170</SECTNO>
              <SUBJECT>Method of payment.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3432.4—Advance Payments</HD>
              <SECTNO>3432.402</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3432.407</SECTNO>
              <SUBJECT>Interest.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3432.7—Contract Funding</HD>
              <SECTNO>3432.704</SECTNO>
              <SUBJECT>Limitation of cost or funds.</SUBJECT>
              <SECTNO>3432.770</SECTNO>
              <SUBJECT>Prohibition against the use of ED funds to influence legislation or appropriations.</SUBJECT>
              <SECTNO>3432.771</SECTNO>
              <SUBJECT>Provision for incremental funding.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(C).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19123, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3432.1—General</HD>
            <SECTION>
              <SECTNO>3432.170</SECTNO>
              <SUBJECT>Method of payment.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.232-72, Method of Payment, in all solicitations and contracts.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3432.4—Advance Payments</HD>
            <SECTION>
              <SECTNO>3432.402</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a)-(d) [Reserved]</P>
              <P>(e) The HCA is designated to make determinations under FAR 32.402(c)(1)(iii)(A). This authority may not be redelegated.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3432.407</SECTNO>
              <SUBJECT>Interest.</SUBJECT>
              <P>The HCA is designated to authorize advance payments without interest under FAR 32.407(d).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3432.7—Contract Funding</HD>
            <SECTION>
              <SECTNO>3432.704</SECTNO>
              <SUBJECT>Limitation of cost or funds.</SUBJECT>
              <P>(a) Under the circumstances in FAR 32.704(a)(1), the contractor shall submit the following information in writing to the contracting officer:</P>
              <P>(1) Name and address of the contractor.<PRTPAGE P="76"/>
              </P>
              <P>(2) Contract number and expiration date.</P>
              <P>(3) Contract items and amounts that will exceed the estimated cost of the contract or the limit of the funds allotted.</P>
              <P>(4) The elements of cost that changed from the original estimate (for example: labor, material, travel, overhead), furnished in the following format:</P>
              <P>(i) Original estimate.</P>
              <P>(ii) Costs incurred to date.</P>
              <P>(iii) Estimated cost to completion.</P>
              <P>(iv) Revised estimate.</P>
              <P>(v) Amount of adjustment.</P>
              <P>(5) The factors responsible for the increase, such as error in estimate or changed conditions.</P>
              <P>(6) The latest date by which funds must be available to the contractor to avoid delays in performance, work stoppage, or other impairments.</P>
              <P>(b) A fixed fee provided in a contract may not be changed if a cost overrun is funded. Changes in a fixed fee may be made only to reflect changes in the scope of work that justify an increase or decrease in the fee.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3432.770</SECTNO>
              <SUBJECT>Prohibition against the use of ED funds to influence legislation or appropriations.</SUBJECT>
              <P>The contracting officer shall insert the clause at 3452.232-70, Prohibition Against the Use of ED Funds to Influence Legislation or Appropriations, in contracts with educational institutions, hospitals, and State and local governments. Contracts with commercial and nonprofit organizations shall be subject to the legislative lobbying prohibitions contained in FAR 31.205-22 and Office of Management and Budget Circular A-122, respectively.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3432.771</SECTNO>
              <SUBJECT>Provision for incremental funding.</SUBJECT>
              <P>The contracting officer shall insert the provision in 3452.232-71, Incremental Funding, in a solicitation if a cost-reimbursement contract using incremental funding is contemplated.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3433</EAR>
          <HD SOURCE="HED">PART 3433—PROTESTS, DISPUTES, AND APPEALS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3433.1—Protests</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3433.101</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>3433.103</SECTNO>
              <SUBJECT>Protests to the agency.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3433.2—Disputes and Appeals</HD>
              <SECTNO>3433.203</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3433.212</SECTNO>
              <SUBJECT>Contracting officer's duties upon appeal.</SUBJECT>
              <SECTNO>3433.214</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19124, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3433.1—Protests</HD>
            <SECTION>
              <SECTNO>3433.101</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Filed,</E> as used in this subpart, means that a document has been received by the contracting officer, the General Accounting Office (GAO), or the General Services Administration Board of Contract Appeals (GSBCA).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3433.103</SECTNO>
              <SUBJECT>Protests to the agency.</SUBJECT>
              <P>(a)(1) Protests to ED based on alleged improprieties in any type of solicitation that are apparent before bid opening or the closing date for receipt of proposals, must be filed before bid opening or the closing date for receipt of proposals. In the case of negotiated acquisitions, protests based on alleged improprieties that do not exist in the initial solicitation, but that are added later, must be filed not later than the next closing date for receipt of proposals following the addition. In other cases, protests to ED must be filed not later than ten (10) Federal Government working days after a basis for protest is known or should have been known, whichever is earlier.</P>
              <P>(b) With the concurrence of the HCA, the contracting officer is authorized to make a determination, using the criteria in FAR 33.103(a), to award a contract before resolution of a protest.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3433.2—Disputes and Appeals</HD>
            <SECTION>
              <SECTNO>3433.203</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>

              <P>The General Services Administration Board of Contract Appeals (GSBCA) is designated to hear any appeal from a final decision of a contracting officer issued pursuant to the “Disputes” clause in a contract. The rules and regulations of the GSBCA are in 48 CFR <PRTPAGE P="77"/>chapter 5, appendix B, and govern the processing of these appeals.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3433.212</SECTNO>
              <SUBJECT>Contracting officer's duties upon appeal.</SUBJECT>
              <P>The Office of the General Counsel is designated as the Government Trial Attorney to represent the Government in the defense of appeals before the GSBCA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3433.214</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>The contracting officer shall use the clause in FAR 52.233-1, Disputes, with its Alternate I.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="78"/>
        <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        <PART>
          <EAR>Pt. 3437</EAR>
          <HD SOURCE="HED">PART 3437—SERVICE CONTRACTING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3437.1—Service Contracts—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3437.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3437.2—Consulting Services</HD>
              <SECTNO>3437.270</SECTNO>
              <SUBJECT>Consulting services reporting clause.</SUBJECT>
              <SECTNO>3437.271</SECTNO>
              <SUBJECT>Services of consultants clause.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19124, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3437.1—Service Contracts—General</HD>
            <SECTION>
              <SECTNO>3437.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>If a service contract requires one or more end items of supply, FAR subpart 37.1 and this subpart apply only to the required services.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3437.2—Consulting Services</HD>
            <SECTION>
              <SECTNO>3437.270</SECTNO>
              <SUBJECT>Consulting services reporting clause.</SUBJECT>
              <P>The contracting officer shall include the clause in 3452.237-70, Identification of Reports Under Consulting Services Contracts, in all solicitations and contracts for consulting services.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3437.271</SECTNO>
              <SUBJECT>Services of consultants clause.</SUBJECT>

              <P>The contracting officer shall insert the clause in 3452.237-71, Services of Consultants, in all solicitations and resultant cost-reimbursement contracts.<PRTPAGE P="79"/>
              </P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        <PART>
          <EAR>Pt. 3442</EAR>
          <HD SOURCE="HED">PART 3442—CONTRACT ADMINISTRATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3442.7—Indirect Cost Rates</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3442.705</SECTNO>
              <SUBJECT>Final indirect cost rates.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3442.70—Contract Monitoring</HD>
              <SECTNO>3442.7001</SECTNO>
              <SUBJECT>Withholding of contract payments clause.</SUBJECT>
              <SECTNO>3442.7002</SECTNO>
              <SUBJECT>Litigation and claims clause.</SUBJECT>
              <SECTNO>3442.7003</SECTNO>
              <SUBJECT>Delays clause.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3442.71—Accessibility of Meetings, Conferences, and Seminars to Persons With Disabilities</HD>
              <SECTNO>3442.7101</SECTNO>
              <SUBJECT>Policy and clause.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19124, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3442.7—Indirect Cost Rates</HD>
            <SECTION>
              <SECTNO>3442.705</SECTNO>
              <SUBJECT>Final indirect cost rates.</SUBJECT>
              <P>The Chief, Cost Determination Branch, Grants and Contracts Service, is delegated the authority to establish final indirect cost rates under FAR 42.705-1 and 42.705-2.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3442.70—Contract Monitoring</HD>
            <SECTION>
              <SECTNO>3442.7001</SECTNO>
              <SUBJECT>Withholding of contract payments clause.</SUBJECT>
              <P>(a) The contracting officer shall insert the clause in 3452.242-72, Withholding of Contract Payments, in all solicitations and contracts other than purchase orders.</P>
              <P>(b) ED may withhold contract payments if any report required to be submitted by the contractor is overdue, or if the contractor fails to perform or deliver work or services as required by the contract.</P>
              <P>(c) The contracting officer shall notify the contractor in writing that payments are being withheld in accordance with the clause.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3442.7002</SECTNO>
              <SUBJECT>Litigation and claims clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.242-70, Litigation and Claims, in all solicitations and resultant cost-reimbursement contracts.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3442.7003</SECTNO>
              <SUBJECT>Delays clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.242-71, Notice to the Government of Delays, in all solicitations and contracts other than purchase orders.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3442.71—Accessibility of Meetings, Conferences, and Seminars to Persons With Disabilities</HD>
            <SECTION>
              <SECTNO>3442.7101</SECTNO>
              <SUBJECT>Policy and clause.</SUBJECT>
              <P>(a) It is the policy of ED that all meetings, conferences, and seminars be accessible to persons with disabilities.</P>
              <P>(b) The contracting officer shall insert the clause in 3452.242-73, Accessibility of Meetings, Conferences, and Seminars to Persons with Disabilities, in all solicitations and contracts.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3443</EAR>
          <HD SOURCE="HED">PART 3443—CONTRACT MODIFICATIONS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SECTION>
            <SECTNO>3443.106</SECTNO>
            <SUBJECT>Contract clause.</SUBJECT>
            <P>The contracting officer shall insert the clause in 3452.243-70, Key Personnel, in all solicitations and resultant cost-reimbursement contracts.</P>
            <CITA>[53 FR 19125, May 26, 1988]</CITA>
          </SECTION>
        </PART>
        <PART>
          <EAR>Pt. 3445</EAR>
          <HD SOURCE="HED">PART 3445—GOVERNMENT PROPERTY</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <PRTPAGE P="80"/>
            <HD SOURCE="HED">Subpart 3445.4—Contractor Use and Rental of Government Property</HD>
            <SECTION>
              <SECTNO>3445.405</SECTNO>
              <SUBJECT>Contracts with foreign governments or international organizations.</SUBJECT>
              <P>Requests by, or for the benefit of, foreign governments or international organizations to use ED production and research property must be approved by the HCA. The HCA shall determine the amount of cost to be recovered or rental charged, if any, based on the facts and circumstances of each case.</P>
              <CITA>[53 FR 19125, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3447</EAR>
          <HD SOURCE="HED">PART 3447—TRANSPORTATION</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3447.70—Foreign Travel</HD>
            <SECTION>
              <SECTNO>3447.7000</SECTNO>
              <SUBJECT>Foreign travel clause.</SUBJECT>
              <P>The contracting officer shall insert the clause in 3452.247-70, Foreign Travel, in all solicitations and resultant cost-reimbursement contracts.</P>
              <CITA>[53 FR 19125, May 26, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="81"/>
        <HD SOURCE="HED">SUBCHAPTER H—CLAUSES AND FORMS</HD>
        <PART>
          <EAR>Pt. 3452</EAR>
          <HD SOURCE="HED">PART 3452—SOLICITATION PROVISIONS AND CONTRACT CLAUSES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3452.2—Texts of Provisions and Clauses</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3452.202-1</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>3452.208-70</SECTNO>
              <SUBJECT>Printing.</SUBJECT>
              <SECTNO>3452.209-70</SECTNO>
              <SUBJECT>Organizational conflict of interest.</SUBJECT>
              <SECTNO>3452.215-33</SECTNO>
              <SUBJECT>Order of precedence.</SUBJECT>
              <SECTNO>3452.215-70</SECTNO>
              <SUBJECT>Release of restricted data.</SUBJECT>
              <SECTNO>3452.216-70</SECTNO>
              <SUBJECT>Additional cost principles.</SUBJECT>
              <SECTNO>3452.216-71</SECTNO>
              <SUBJECT>Negotiated overhead rates—fixed.</SUBJECT>
              <SECTNO>3452.227-70</SECTNO>
              <SUBJECT>Publication and publicity.</SUBJECT>
              <SECTNO>3452.227-71</SECTNO>
              <SUBJECT>Paperwork Reduction Act.</SUBJECT>
              <SECTNO>3452.227-72</SECTNO>
              <SUBJECT>Advertising of awards.</SUBJECT>
              <SECTNO>3452.228-70</SECTNO>
              <SUBJECT>Required insurance.</SUBJECT>
              <SECTNO>3452.232-70</SECTNO>
              <SUBJECT>Prohibition against the use of ED funds to influence legislation or appropriations.</SUBJECT>
              <SECTNO>3452.232-71</SECTNO>
              <SUBJECT>Incremental funding.</SUBJECT>
              <SECTNO>3452.232-72</SECTNO>
              <SUBJECT>Method of payment.</SUBJECT>
              <SECTNO>3452.237-70</SECTNO>
              <SUBJECT>Identification of reports under consulting services contracts.</SUBJECT>
              <SECTNO>3452.237-71</SECTNO>
              <SUBJECT>Services of consultants.</SUBJECT>
              <SECTNO>3452.242-70</SECTNO>
              <SUBJECT>Litigation and claims.</SUBJECT>
              <SECTNO>3452.242-71</SECTNO>
              <SUBJECT>Notice to the Government of delays.</SUBJECT>
              <SECTNO>3452.242-72</SECTNO>
              <SUBJECT>Withholding of contract payments.</SUBJECT>
              <SECTNO>3452.242-73</SECTNO>
              <SUBJECT>Accessibility of meetings, conferences, and seminars to persons with disabilities.</SUBJECT>
              <SECTNO>3452.243-70</SECTNO>
              <SUBJECT>Key personnel.</SUBJECT>
              <SECTNO>3452.247-70</SECTNO>
              <SUBJECT>Foreign travel.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>53 FR 19125, May 26, 1988, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3452.2—Texts of Provisions and Clauses</HD>
            <SECTION>
              <SECTNO>3452.202-1</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>As prescribed in 3402.201, insert the following clause in solicitations and contracts:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Definitions (Aug <E T="01">1987)</E>
                </HD>
                <P>(a) The term <E T="03">Secretary</E> or <E T="03">Head of the Agency</E> (also called <E T="03">Agency Head</E>) means the Secretary or Under Secretary of the Department of Education; and the term <E T="03">his/her duly authorized representative</E> means any person, persons, or board authorized to act for these officials.</P>
                <P>(b) The term <E T="03">contracting officer</E> means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer.</P>
                <P>(c) The term <E T="03">Contracting Officer's Technical Representative</E> means the person representing the Government for the purpose of technical monitoring of contract performance. The Contracting Officer's Technical Representative (COTR) is not authorized to issue any instructions or directions which effect any increases or decreases in the scope of work or which would result in the increase or decrease of the cost or price of this contract or a change in the delivery dates or performance period of this contract.</P>
                <P>(d) The term <E T="03">Department</E> or <E T="03">ED</E> means the Department of Education.</P>

                <P>(e) Except as otherwise provided in this contract, the term <E T="03">subcontract</E> includes, but is not limited to, purchase orders and changes and modifications to purchase orders under this contract.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.208-70</SECTNO>
              <SUBJECT>Printing.</SUBJECT>
              <P>As prescribed in 3408.870, insert the following clause in all solicitations and contracts other than purchase orders:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Printing (Aug <E T="01">1987)</E>
                </HD>
                <P>Unless otherwise specified in this contract, the contractor shall not engage in, nor subcontract for, and printing (as that term is defined in Title I of the Government Printing and Binding Regulations in effect on the effective date of this contract) in connection with the performance of work under this contract; except that performance involving the reproduction of less than 5,000 production units of any one page, or less than 25,000 production units in the aggregate of multiple pages, shall not be deemed to be printing. A production unit is defined as one sheet, size 8<FR>1/2</FR> by 11 inches, and one side and color only.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.209-70</SECTNO>
              <SUBJECT>Organizational conflict of interest.</SUBJECT>
              <P>As prescribed in 3409.570, insert the following provision in all certifications:</P>
              <EXTRACT>
                <PRTPAGE P="82"/>
                <HD SOURCE="HD1">Organizational Conflict of Interest (Oct <E T="01">1987)</E>
                </HD>
                <P>The offeror certifies that it (<E T="72">_</E>) is (<E T="72">_</E>) is not aware of any potential organization conflict of interest that it may have under this procurement. If the offeror is aware of any potential conflict of interest, the offeror shall submit a disclosure statement fully describing the situation. An organizational conflict of interest is as defined and illustrated in FAR 9.5.</P>
                <HD SOURCE="HD3">(End of provision)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.215-33</SECTNO>
              <SUBJECT>Order of precedence.</SUBJECT>
              <P>As prescribed in 3415.406-3, insert the following clause in contracts:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Order of Precedence (Aug <E T="01">1987)</E>
                </HD>
                <P>Any inconsistency in this contract shall be resolved by giving precedence in the following order:</P>
                <P>(a) The Schedule (exclusing the work statement or specification).</P>
                <P>(b) The contract clauses (Section I).</P>
                <P>(c) Any incorporated documents, exhibits, or attachment, excluding the work statement or specifications and the contractor's proposal, representations, and certifications,</P>
                <P>(d) The work statement or specifications, and</P>
                <P>(e) The contractor's proposal, as amended, including representations and certifications.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.215-70</SECTNO>
              <SUBJECT>Release of restricted data.</SUBJECT>
              <P>As prescribed in 3415.407, insert the following provision in solicitations:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Release of Restricted Data (Aug <E T="01">1987)</E>
                </HD>
                <P>(a) Offerors are hereby put on notice that regardless of their use of the legend set forth in FAR 52.215-12, Restriction on Disclosure and Use of Data, the Government may be required to release certain data contained in the proposal in response to a request for the data under the Freedom of Information Act. the Government's determination to withhold or disclose a record will be based upon the particular circumstance involving the data in question and whether the data may be exempted from disclosure under the Freedom of Information Act. In accordance with Executive Order 12600 and to the extent permitted by law, the Government will notify the offeror before it releases restricted data.</P>
                <P>(b) By submitting a proposal or quotation in response to this solicitation:</P>
                <P>(1) The offeror acknowledges that the Department may not be able to withhold nor deny access to data requested pursuant to the Act and that the Government's FOI officials shall make that determination;</P>
                <P>(2) The offeror agrees that the Government is not liable for disclosure if the Department has determined that disclosure is required by the Act;</P>
                <P>(3) The offeror acknowledges that proposals not resulting in a contract remain subject to the Act; and</P>
                <P>(4) The offeror agrees that the Government is not liable for disclosure or use of unmarked data and may use or disclose the data for any propose, including the release of the information pursuant to requests under the Act.</P>

                <P>(c) Offerors are cautioned that the Government reserves the right to reject any proposal submitted with (1) a restrictive legend or statement differing in substance from the one required by the solicitation provision in FAR 52.515-12, <E T="03">Restriction on Disclosure and Use of Data,</E> or (2) a statement taking exceptions to the terms of (a) or (b) of this provision.</P>
                <HD SOURCE="HD3">(End of provision)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.216-70</SECTNO>
              <SUBJECT>Additional cost principles.</SUBJECT>
              <P>Insert the following clause in solicitations and contracts as prescribed in 3416.307(b):</P>
              <EXTRACT>
                <HD SOURCE="HD1">Additional Cost Principles (Aug <E T="01">1987)</E>
                </HD>
                <P>(a) <E T="03">Bid and Proposal Costs.</E> Bid and proposal costs are the immediate costs of preparing bids, proposals, and applications for potential Federal and non-Federal grants, contracts, and other agreements, including the development of scientific, cost and other data needed to support the bids, proposals and applications. Bid and proposal costs of the current accounting period are allowable as indirect costs; bid and proposal costs of past accounting periods are unallowable as costs of the current period. However, if the organization's established practice is to treat these costs by some other method, they may be accepted if they are found to be reasonable and equitable. Bid and proposal costs do not include independent research and development costs or pre-award costs.</P>
                <P>(b) <E T="03">Independent research and development costs.</E> Independent research and development is research and development that is not sponsored by Federal and non-Federal grants, contracts, or other agreements. Independent research and development shall be allocated its proportionate share of indirect costs on the same basic as the allocation of indirect costs of sponsored research and development. The costs of independent research and development, including its proportionate share of indirect costs, are unallowable.<PRTPAGE P="83"/>
                </P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.216-71</SECTNO>
              <SUBJECT>Negotiated overhead rates—fixed.</SUBJECT>
              <P>Insert the following clause in cost-reimbursement contracts as prescribed in 3416.701:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Negotiated Overhead Rates—Fixed (Aug <E T="01">1987)</E>
                </HD>
                <P>(a) Notwithstanding the provisions of the clause entitled “Allowable Cost and Payment”, the allowable indirect costs under this contract shall be obtained by applying negotiated fixed overhead rates for the applicable period(s) to bases agreed upon by the parties, as specified below. A negotiated fixed rate(s) is based on an estimate of the costs which will be incurred during the period for which the rate(s) applies. If the application of the negotiated fixed rates(s) against the actual bases during a given fiscal period produces an amount greater or less than the indirect costs determined for that period, the greater or lesser amount(s) will be carried forward to a subsequent period.</P>
                <P>(b) The contractor, as soon as possible but no later than six months after the close of its fiscal year, or such other period as may be specified in the contract, shall submit to the contracting officer or the duly authorized representative, with a copy to the cognizant audit activity, a proposed fixed overhead rate or rates based on the contractor's actual cost experience during the fiscal year, including adjustment, if any, for amounts carried forward, together with supporting cost data. Negotiation of fixed overhead rates, including carry-forward adjustments, if any, by the contractor and the contracting officer, or the duly authorized representative, shall be undertaken as promptly as practicable after receipt of the contractor's proposal.</P>
                <P>(c) Allowability of costs and acceptability of cost allocation methods shall be determined in accordance with part 31 of the Federal Acquisition Regulation (FAR) in effect on the date of this contract.</P>
                <P>(d) The results of each negotiation shall be set forth in an amendment to this contract, which shall specify (1) the agreed fixed overhead rates, (2) the bases to which the rates apply, (3) the fiscal year, unless the parties agreed to a different period, for which the rates apply, and (4) the specific items treated as direct costs or any changes in the items previously agreed to be direct costs.</P>
                <P>(e) Pending establishment of fixed overhead rates for any fiscal year or different period agreed to by the parties, the contractor shall be reimbursed either at the rates fixed for the previous fiscal year or other period or at billing rates acceptable to the contracting officer, subject to appropriate adjustment when the final rates for the fiscal year or other period are established.</P>
                <P>(f) Any failure of the parties to agree on any fixed rate or rates or to the amount of any carry-forward adjustment under this clause shall not be considered a dispute for decision by the contracting officer within the meaning of the Disputes clause of this contract. If for any fiscal year or other period specified in the contract, the parties fail to agree to a fixed overhead rate or rates, it is agreed that the allowable indirect costs under this contract shall be obtained by applying negotiated final overhead rates, in accordance with the terms of the Allowable Cost and Payment clause, in effect on the date of this contract.</P>
                <P>(g) Submission of proposed fixed, provisional, and/or final overhead rates, together with appropriate data in support thereof, to the contracting officer or the duly authorized representative and agreements on fixed, provisional, and/or final overhead rates entered into between the contractor and the contracting officer or the duly authorized representative, as evidenced by negotiated overhead rate agreements signed by both parties, shall satisfy the requirements of paragraphs (b), (c), (d), and (e) of this clause.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.227-70</SECTNO>
              <SUBJECT>Publication and publicity.</SUBJECT>
              <P>As prescribed in 3427.470, insert the following clause in all solicitations and contracts other than purchase orders:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Publication and Publicity (Aug <E T="01">1987)</E>
                </HD>
                <P>(a) Unless otherwise specified in this contract, the contractor is encouraged to publish and otherwise promote the results of its work under this contract. A copy of each article or work submitted by the contractor for publication shall be promptly sent to the Contracting Officer's Technical Representative. The contractor shall also inform the representative when the article or work is published and furnish a copy in the published form.</P>
                <P>(b) The contractor shall acknowledge the support of the Department of Education in publicizing the work under this contract in any medium. This acknowledgment shall read substantially as follows:</P>

                <P>“This project has been funded at least in part with Federal funds from the U.S. Department of Education under contract number <E T="72">_____</E>. The content of this publication does not necessarily reflect the views or policies of the U.S. Department of Education nor does mention of trade names, commercial products, or organizations imply endorsement by the U.S. Government.”<PRTPAGE P="84"/>
                </P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.227-71</SECTNO>
              <SUBJECT>Paperwork Reduction Act.</SUBJECT>
              <P>As prescribed in 3427.471, insert the following clause in all solicitations and contracts:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Paperwork Reduction Act (Aug <E T="01">1987)</E>
                </HD>
                <P>(a) The Paperwork Reduction Act of 1980 (Pub. L. 96-511) applies to contractors that collect information for use or disclosure by the Federal Government.</P>
                <P>If the contractor will collect information requiring answers to identical questions from 10 or more people then no plan, questionnaire, interview guide, or other similar device for collecting information may be used without first obtaining clearance from the Deputy Under Secretary for Management (DUSM) or his/her delegate within the Department of Education (ED) and the Office of Management and Budget (OMB). Contractors and Contracting Officers’ Technical Representatives shall be guided by the provisions of 5 CFR part 1320, Controlling Paperwork Burdens on the Public, and seek the advice of the Department's Paperwork Clearance Officer to determine the procedures for acquiring DUSM and OMB clearance.</P>
                <P>(b) The contractor shall obtain the required DUSM and OMB clearance through the Contracting Officer's Technical Representative before expending any funds or making public contacts for the collection of information described in paragraph (a) of this clause. The authority to expend funds and proceed with the collection shall be in writing by the contracting officer. The contractor must plan at least 120 days for DUSM and OMB clearance. Excessive delay caused by the Government which arises out of causes beyond the control and without the fault or negligence of the contractor will be considered in accordance with the Excusable Delays or Default clause of this contract.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.227-72</SECTNO>
              <SUBJECT>Advertising of awards.</SUBJECT>
              <P>As prescribed in 3427.472, insert the following clause in all solicitations and contracts other than purchase orders:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Advertising of Awards (Aug <E T="01">1987)</E>
                </HD>
                <P>The contractor agrees not to refer to awards issued by the Department of Education in commercial advertising in such a manner as to state or imply that the product or service provided is endorsed by the Federal Government or is necessarily considered by the Government to be superior to other products or services.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.228-70</SECTNO>
              <SUBJECT>Required insurance.</SUBJECT>
              <P>As prescribed in 3428.370, insert the following clause in all solicitations and resultant cost-reimbursement contracts:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Required Insurance (Aug <E T="01">1987)</E>
                </HD>
                <P>(a) The contractor shall procure and maintain such insurance as required by law or regulation, including but not limited to the requirements of FAR subpart 28.3 or by the written direction of the contracting officer. Prior written approval of the contracting officer shall be required with respect to any insurance policy the premiums for which the contractor proposes to treat as a direct cost under this contract and with respect to any proposed qualified program of self-insurance. The terms of any other insurance policy shall be submitted to the contracting officer for approval upon request.</P>
                <P>(b) Unless otherwise authorized in writing by the contracting officer, the contractor shall not procure or maintain for its own protection any insurance covering loss or destruction of or damage to Government property.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.232-70</SECTNO>
              <SUBJECT>Prohibition against the use of ED funds to influence legislation or appropriations.</SUBJECT>
              <P>The following clause is to be used in accordance with 3432.770:</P>
              <EXTRACT>

                <HD SOURCE="HD1">Prohibition Against the Use of ED Funds to Influence Legislation or Appropriations (Apr <E T="01">1987)</E>
                </HD>
                <P>No part of any funds under this contract shall be used to pay the salary and expenses of any contractor, or agency acting for the contractor, to engage in any activity designed to influence legislation or appropriations pending before the Congress.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.232-71</SECTNO>
              <SUBJECT>Incremental funding.</SUBJECT>
              <P>As prescribed in 3452.771, insert the following provision in solicitations:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Incremental Funding (Aug <E T="01">1987)</E>
                </HD>

                <P>(a) Sufficient funds are not presently available to cover the total cost of the complete project described in this solicitation. However, it is the Government's intention to negotiate and award a contract using the incremental funding concepts described in the clause titled “Limitation of Funds” in FAR 52.232-22. Under that clause, which will be included in the resultant contract, initial <PRTPAGE P="85"/>funds will be obligated under the contract to cover an estimated base performance period. Additional funds are intended to be allotted to the contract by contract modification, up to and including the full estimated cost of the entire period of performance. This intent notwithstanding, the Government will not be obligated to reimburse the contractor for cost incurred in excess of the periodic allotments, nor will the contractor be obligated to perform in excess of the amount allotted.</P>
                <P>(b) The Limitation of Cost clause in FAR 52.232-20 shall supersede the Limitation of Funds clause in the event the contract becomes fully funded.</P>
                <HD SOURCE="HD3">(End of provision)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.232-72</SECTNO>
              <SUBJECT>Method of payment.</SUBJECT>
              <P>As prescribed in 3432.170, insert the following clause in all solicitations and contracts:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Method of Payment (Aug <E T="01">1987)</E>
                </HD>
                <P>(a) Payments under this contract will be made either by check or by wire transfer through the Treasury Financial Communications System at the option of the Government.</P>
                <P>(b) The contractor shall forward the following information in writing to (designated payment party) not later than seven days after receipt of notice of award.</P>
                <P>(1) Full name (where practicable), title, phone number, and complete mailing address of responsible official(s) to whom check payments are to be sent, and who may be contacted concerning the bank account information requested below.</P>
                <P>(2) The following bank account information required to accomplish wire transfers:</P>
                <P>(i) Name, address, and telegraphic abbreviation of the receiving financial institution:</P>
                <P>(ii) Receiving financial institution's nine-digit American Bankers Association (ABA) identifying number for routing transfer of funds. (Provide this number only if the receiving financial institution has access to the Federal Reserve Communications System.)</P>
                <P>(iii) Recipient's name and account number at the receiving financial institution to be credited with the funds.</P>
                <P>(iv) If the receiving financial institution does not have access to the Federal Reserve Communications System, provide the name of the correspondent financial institution through which the receiving financial institution receives electronic funds transfer messages. If a correspondent financial institution is specified, also provide the address and telegraphic abbreviation of that institution and its nine-digit ABA identifying number for routing transfer of funds.</P>
                <P>(c) Any changes to the information furnished under paragraph (b) of this clause shall be furnished to (designated payment office) in writing at least 30 days before the effective date of the change. It is the contractor's responsibility to furnish these changes promptly to avoid payments to erroneous addresses or bank accounts.</P>
                <P>(d) The document furnishing the information required in paragraphs (b) and (c) must be dated and contain the signature, title, and telephone number of the contractor's official authorized to provide it, as well as the contractor's name and contract number.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.237-70</SECTNO>
              <SUBJECT>Identification of reports under consulting services contracts.</SUBJECT>
              <P>As prescribed in 3437.270, insert the following clause in all solicitations and contracts for consulting services:</P>
              <EXTRACT>

                <HD SOURCE="HD1">Identification of Reports Under Consulting Service Contracts (Aug <E T="01">1987)</E>
                </HD>
                <P>The contractor shall set forth on the cover of every report submitted pursuant to this contract the following information:</P>
                <P>(a) Name and business address of the contractor; (b) contract number; (c) contract dollar amount; (d) whether the contract was competitively or noncompetitively awarded; (e) name of the Contracting Officer's Technical Representative and complete office identification and address; and (f) names of the managerial and professional personnel responsible for the content and preparation of the report.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.237-71</SECTNO>
              <SUBJECT>Services of consultants.</SUBJECT>
              <P>As prescribed in 3437.271, insert the following clause in all solicitations and resultant cost-reimbursement contracts:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Services of Consultants (Aug <E T="01">1987)</E>
                </HD>
                <P>Except as otherwise expressly provided elsewhere in this contract, and notwithstanding the provisions of the clause of the contract entitled “Subcontracts Under Cost-Reimbursement and Letter Contracts,” the prior written approval of the contracting officer shall be required:</P>
                <P>(a) If any employee of the contractor is to be paid as a “consultant” under this contract; and</P>

                <P>(b) For the utilization of the services of any consultant under this contract exceeding the daily rate set forth elsewhere in this contract or, if no amount is set forth, $150, exclusive of travel costs, or if the services of any consultant under this contract will exceed 10 days in any calendar year.<PRTPAGE P="86"/>
                </P>
                <P>If that contracting officer's approval is required, the contractor shall obtain and furnish to the contracting officer information concerning the need for the consultant services and the reasonableness of the fees to be paid, including, but not limited to, whether fees to be paid to any consultant exceed the lowest fee charged by consultant to others for performing consultant services of a similar nature.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.242-70</SECTNO>
              <SUBJECT>Litigation and claims.</SUBJECT>
              <P>As prescribed in 3442.7002, insert the following clause in all solicitations and resultant cost-reimbursement contracts:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Litigation and Claims (Aug <E T="01">1987)</E>
                </HD>
                <P>(a) The contractor shall give the contracting officer immediate notice in writing of:</P>
                <P>(1) Any action, filed against the contractor arising out of the performance of this contract, including any proceeding before any administrative agency or court of law, and also including, but not limited to, the performance of any subcontract hereunder; and</P>
                <P>(2) Any claim against the contractor for a cost which is allowable under the clause entitled “Allowable Cost and Payment.”</P>
                <P>(b) Except as otherwise directed by the contracting officer, the contractor shall immediately furnish the contracting officer copies of all pertinent papers received under that action or claim.</P>
                <P>(c) If required by the contracting officer, the contractor shall:</P>
                <P>(1) Effect an assignment and subrogation in favor of the Government of all the contractor's rights and claim (except those against the Government) arising out of the action or claim against the contractor; and</P>
                <P>(2) Authorize the Government to settle or defend the action or claim and to represent the contractor in, or to take charge of, the action.</P>
                <P>(d) If the settlement or defense of an action or claim is undertaken by the Government, the contractor shall furnish all reasonable required assistance. However, if an action against the contractor is not covered by a policy of insurance, the contractor shall notify the contracting officer and proceed with the defense of the action in good faith.</P>
                <P>(e) To the extent not in conflict with any applicable policy of insurance, the contractor may, with the contracting officer's approval, settle any such action or claim.</P>
                <P>(f)(1) The Government shall not be liable for the expense of defending any action or for any costs resulting from the loss thereof to the extent that the contractor would have been compensated by insurance that was required by law, regulation, contract clause, or other written direction of the contracting officer, but which the contractor failed to secure through its own fault or negligence.</P>
                <P>(2) In any event, unless otherwise expressly provided in this contract, the contractor shall not be reimbursed or indemnified by the Government for any cost or expense of liability that the contractor may incur or be subject to by reason of any loss, injury, or damage, to the person or to real or personal property of any third parties as may arise from the performance of this contract.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.242-71</SECTNO>
              <SUBJECT>Notice to the Government of delays.</SUBJECT>
              <P>As prescribed in 3442.7003, insert the following clause in all solicitations and contracts other than purchase orders:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Notice to the Government of Delays (Aug <E T="01">1987)</E>
                </HD>
                <P>Whenever the contractor has knowledge that any actual or potential situation, including but not limited to labor disputes, is delaying or threatens to delay the timely performance of work under this contract, the contractor shall immediately give written notice thereof, including all relevant information with respect thereto, to the contracting officer.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.242-72</SECTNO>
              <SUBJECT>Withholding of contract payments.</SUBJECT>
              <P>As prescribed in 3442.7001, insert the following clause in all solicitations and contacts other than purchase orders:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Withholding of Contract Payments (Aug <E T="01">1987)</E>
                </HD>

                <P>Notwithstanding any other payment provisions of this contract, failure of the contractor to submit required reports when due or failure to perform or deliver required work, supplies, or services, or failure to meet any of the requirements of the contract, will result in the withholding of payments under this contract in such amounts as the contracting officer deems appropriate, unless the failure arises out of causes beyond the control, and without the fault of negligence, of the contractor, as defined by the clause entitled “Excusable Delays” or “Default”, as applicable. The Government shall promptly notify the contractor of its intention to withhold payment of any invoice or voucher submitted. Payment will be withheld until the failure is cured, a new delivery schedule is agreed upon, or payment is made as part of a termination settlement.<PRTPAGE P="87"/>
                </P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.242-73</SECTNO>
              <SUBJECT>Accessibility of meetings, conferences, and seminars to persons with disabilities.</SUBJECT>
              <P>As prescribed in 3442.7101(b), insert the following clause in all solicitations and contracts:</P>
              <EXTRACT>

                <HD SOURCE="HD1">Accessibility of Meetings, Conferences, and Seminars to Persons With Disabilities (Aug <E T="01">1987)</E>
                </HD>
                <P>The contractor shall assure that any meeting, conference, or seminar held pursuant to the contract will meet all applicable standards for accessibility to persons with disabilities pursuant to section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794) and any implementing regulations of the Department.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.243-70</SECTNO>
              <SUBJECT>Key personnel.</SUBJECT>
              <P>As prescribed in 3443.106(b), insert the following clause in all solicitations and resultant cost-reimbursement contracts:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Key Personnel (Aug <E T="01">1987)</E>
                </HD>

                <P>The personnel designated as key personnel in this contract are considered to be essential to the work being performed hereunder. Prior to diverting any of the specified individuals to other programs, or otherwise substituting any other personnel for specified personnel, the contractor shall notify the contracting officer reasonably in advance and shall submit justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the contract effort. No diversion or substitution shall be made by the contractor without the written consent of the contracting officer; <E T="03">provided,</E> that the contracting officer may ratify a diversion or substitution in writing and that ratification shall constitute the consent of the contracting officer required by this clause. The contract shall be modified to reflect that addition or deletion personnel.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3452.247-70</SECTNO>
              <SUBJECT>Foreign travel.</SUBJECT>
              <P>As prescribed in 3447.7000, insert the following clause in all solicitations and resultant cost-reimbursement contracts:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Foreign Travel (Aug <E T="01">1987)</E>
                </HD>
                <P>Foreign travel shall not be undertaken without the prior written approval of the contracting officer. As used in this clause, “foreign travel” means travel outside the fifty States comprising the United States, the District of Columbia, and Canada.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 35 (10-1-00 Edition)</LRH>
      <RRH>Panama Canal Commission</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="89"/>
          <HD SOURCE="HED">CHAPTER 35—PANAMA CANAL COMMISSION</HD>
          <P>(Parts 3500 to 3599)</P>
        </TOCHD>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        </SUBCHAP>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>3501</PT>
          <SUBJECT>Federal Acquisition Regulations System</SUBJECT>
          <PG>91</PG>
          <PT>3502</PT>
          <SUBJECT>Definitions of words and terms</SUBJECT>
          <PG>97</PG>
          <PT>3503</PT>
          <SUBJECT>Improper business practices and personal conflicts of interest</SUBJECT>
          <PG>98</PG>
          <PT>3504</PT>
          <SUBJECT>Administrative matters</SUBJECT>
          <PG>101</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3505</PT>
          <SUBJECT>Publicizing contract actions</SUBJECT>
          <PG>102</PG>
          <PT>3506</PT>
          <SUBJECT>Competition requirements</SUBJECT>
          <PG>102</PG>
          <PT>3507</PT>
          <SUBJECT>Acquisition planning</SUBJECT>
          <PG>104</PG>
          <PT>3508</PT>
          <SUBJECT>Required sources of supplies and services</SUBJECT>
          <PG>105</PG>
          <PT>3509</PT>
          <SUBJECT>Contractor qualifications</SUBJECT>
          <PG>106</PG>
          <PT>3510</PT>
          <SUBJECT>Specifications, standards, and other purchase descriptions</SUBJECT>
          <PG>113</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3513</PT>
          <SUBJECT>Small purchase and other simplified purchase procedures</SUBJECT>
          <PG>116</PG>
          <PT>3514</PT>
          <SUBJECT>Sealed bidding</SUBJECT>
          <PG>119</PG>
          <PT>3515</PT>
          <SUBJECT>Contracting by negotiation</SUBJECT>
          <PG>120</PG>
          <PT>3516</PT>
          <SUBJECT>Types of contracts</SUBJECT>
          <PG>123</PG>
          <PT>3517</PT>
          <SUBJECT>Special contracting methods</SUBJECT>
          <PG>125</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3519</PT>
          <SUBJECT>Small business and small disadvantaged business concerns</SUBJECT>
          <PG>127</PG>
          <PT>3520</PT>
          <SUBJECT>Labor surplus area concerns</SUBJECT>
          <PG>127</PG>
          <PT>3522</PT>
          <SUBJECT>Application of labor laws to Government acquisitions</SUBJECT>
          <PG>128</PG>
          <PT>3524</PT>
          <SUBJECT>Protection of privacy and freedom of information</SUBJECT>
          <PG>131<PRTPAGE P="90"/>
          </PG>
          <PT>3525</PT>
          <SUBJECT>Foreign acquisition</SUBJECT>
          <PG>131</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3527</PT>
          <SUBJECT>Patents, data and copyrights</SUBJECT>
          <PG>136</PG>
          <PT>3528</PT>
          <SUBJECT>Bonds and insurance</SUBJECT>
          <PG>136</PG>
          <PT>3529</PT>
          <SUBJECT>Taxes</SUBJECT>
          <PG>138</PG>
          <PT>3531</PT>
          <SUBJECT>Contract cost principles and procedures</SUBJECT>
          <PG>139</PG>
          <PT>3532</PT>
          <SUBJECT>Contract financing</SUBJECT>
          <PG>139</PG>
          <PT>3533</PT>
          <SUBJECT>Protests, disputes, and appeals</SUBJECT>
          <PG>142</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3536</PT>
          <SUBJECT>Construction and architect-engineer contracts</SUBJECT>
          <PG>143</PG>
          <PT>3537</PT>
          <SUBJECT>Service contracting</SUBJECT>
          <PG>148</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3542</PT>
          <SUBJECT>Contract administration</SUBJECT>
          <PG>151</PG>
          <PT>3543</PT>
          <SUBJECT>Contract modifications</SUBJECT>
          <PG>151</PG>
          <PT>3547</PT>
          <SUBJECT>Transportation</SUBJECT>
          <PG>151</PG>
          <PT>3551</PT>
          <SUBJECT>Use of Government sources by contractors</SUBJECT>
          <PG>151</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER H—CLAUSES AND FORMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3552</PT>
          <SUBJECT>Solicitation provisions and contract clauses</SUBJECT>
          <PG>153</PG>
          <PT>3553</PT>
          <SUBJECT>Forms</SUBJECT>
          <PG>168</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER I—AGENCY SUPPLEMENTARY REGULATIONS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3570</PT>
          <SUBJECT>Acquisition of Panamanian supplies and services</SUBJECT>
          <PG>171</PG>
        </CHAPTI>
      </TOC>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="91"/>
        <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        <PART>
          <EAR>Pt. 3501</EAR>
          <HD SOURCE="HED">PART 3501—FEDERAL ACQUISITION REGULATIONS SYSTEM</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3501.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3501.1—Purpose, Authority, Issuance</HD>
              <SECTNO>3501.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <SECTNO>3501.102</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <SECTNO>3501.103</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3501.104</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
              <SECTNO>3501.104-1</SECTNO>
              <SUBJECT>Publication and code arrangement.</SUBJECT>
              <SECTNO>3501.104-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>
              <SECTNO>3501.104-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
              <SECTNO>3501.105</SECTNO>
              <SUBJECT>OMB approval under the Paperwork Reduction Act.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3501.2—Administration</HD>
              <SECTNO>3501.201</SECTNO>
              <SUBJECT>Maintenance of the FAR.</SUBJECT>
              <SECTNO>3501.201-1</SECTNO>
              <SUBJECT>The two councils.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3501.3—Agency Acquisition Regulations</HD>
              <SECTNO>3501.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3501.303</SECTNO>
              <SUBJECT>Publication and codification.</SUBJECT>
              <SECTNO>3501.304</SECTNO>
              <SUBJECT>Agency control and compliance procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3501.4—Deviations From the FAR and PAR</HD>
              <SECTNO>3501.401</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <SECTNO>3501.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>
              <SECTNO>3501.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
              <SECTNO>3501.405</SECTNO>
              <SUBJECT>Deviations pertaining to treaties and executive agreements.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3501.6—Contracting Authority and Responsibilities</HD>
              <SECTNO>3501.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3501.602</SECTNO>
              <SUBJECT>Contracting officers.</SUBJECT>
              <SECTNO>3501.602-3</SECTNO>
              <SUBJECT>Ratification of unauthorized commitments.</SUBJECT>
              <SECTNO>3501.602-370</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3501.603</SECTNO>
              <SUBJECT>Selection, appointment, and termination of appointment.</SUBJECT>
              <SECTNO>3501.603-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3501.670</SECTNO>
              <SUBJECT>Legal review of proposed contract actions.</SUBJECT>
              <SECTNO>3501.670-1</SECTNO>
              <SUBJECT>Contract actions requiring legal review.</SUBJECT>
              <SECTNO>3501.670-2</SECTNO>
              <SUBJECT>Documents to be submitted for legal review.</SUBJECT>
              <SECTNO>3501.670-3</SECTNO>
              <SUBJECT>General Counsel's legal review.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7635, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3501.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part sets forth basic policies and general information about the Panama Canal Commission Acquisition Regulation, referred to as the PAR, and its relationship to the Federal Acquisition Regulation, referred to as the FAR.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3501.1—Purpose, Authority, Issuance</HD>
            <SECTION>
              <SECTNO>3501.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <P>(a) The Federal Acquisition Regulations System brings together, in title 48 of the Code of Federal Regulations (CFR), the acquisition regulations of all executive agencies of the United States Government. This subpart establishes the PAR as chapter 35 of title 48, CFR. The FAR, which is the primary document for all agencies within this system, is issued as chapter 1 of title 48, CFR.</P>
              <P>(b) The purpose of the PAR is to implement the FAR where further implementation is needed and to supplement the FAR when coverage is needed for subject matter not contained in the FAR. The PAR is not, by itself, a complete regulation. It must be used in conjunction with, and is subordinate to, the FAR.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.102</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <P>The PAR and amendments thereto are issued by the Administrator of the Panama Canal Commission (Commission) pursuant to the authority of section 205(c) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 486(c)), as amended, and other applicable law.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.103</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>The FAR and the PAR apply to all acquisitions of the Commission, except where expressly excluded.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.104</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3501.104-1</SECTNO>
              <SUBJECT>Publication and code arrangement.</SUBJECT>
              <P>(a) The PAR is published in—<PRTPAGE P="92"/>
              </P>
              <P>(1) The <E T="04">Federal Register</E>;</P>
              <P>(2) Cumulated form at 48 CFR chapter 35; and</P>
              <P>(3) A separate loose-leaf form.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.104-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>
              <P>(a) <E T="03">General.</E> The PAR is divided into the same parts, subparts, sections, subsections and paragraphs as is the FAR. However, when the FAR coverage is adequate by itself, there will be no corresponding PAR coverage.</P>
              <P>(b) <E T="03">Numbering.</E> (1) Where the PAR implements the FAR, the implementing part, subpart, section or subsection of the PAR will be numbered and captioned, to the extent feasible, the same as the FAR part, subpart, section or subsection being implemented except that the implementation will be preceded with a 35 or a 350 such that there will always be four numbers to the left of the decimal. For example, the PAR implementation of FAR 1.104-1 is shown as 3501.104-1 and the PAR implementation of FAR subpart 24.1 is shown as subpart 3524.1. Similarly, individual paragraphs at the section and subsection levels of the PAR correspond, to the extent feasible, to the FAR paragraph designations that are being implemented.</P>
              <P>(2) Material which supplements the FAR as new parts, subparts, sections, or subsections will be assigned the numbers 70 and up. For example, there is no FAR coverage on the preferential acquisition of supplies and services obtainable in the Republic of Panama as provided for in Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977. This supplementary material is identified as part 3570.</P>
              <P>(3) Because the PAR implements the FAR only where further implementation is necessary, there are gaps in the PAR numbering and paragraphing sequence. For example, the PAR skips from part 3510 to part 3513, from subpart 3501.4 to subpart 3501.6, and from section 3501.301 to section 3501.303 because the FAR coverage at parts 11 and 12, subpart 1.5, and section 1.302, respectively, does not require further implementation. Similarly, section 3501.405 of the PAR begins at paragraph (d) because paragraphs (a), (b), and (c) at FAR 1.405 do not require further implementation.</P>
              <P>(c) <E T="03">References and citations.</E> (2) This regulation may be referred to as the Panama Canal Commission Acquisition Regulation or the PAR. References to PAR material outside this regulation may be cited in informal documents as PAR followed by the identifying number. For example, this subparagraph would be informally cited as PAR 3501.104-2(c)(2). In formal documents outside this regulation, such as legal briefs, references to PAR material should include reference to title 48 of the Code of Federal Regulations. For example, this subparagraph would be formally cited as 48 CFR 3501.104-2(c)(2).</P>
              <P>(3) References to FAR or PAR material within this regulation will be made as follows:</P>
              <P>(i) FAR parts or subparts will be referred to in those terms followed by the identifying number—for example, FAR part 1; FAR subpart 1.1. FAR subdivisions below the subpart level (i.e., sections, subsections, paragraphs, subparagraphs, or subdivisions) will simply state FAR followed by the identifying number—for example, FAR 1.104-2(c)(3)(i).</P>
              <P>(ii) PAR parts or subparts will be referred to only as part or subpart followed by the identifying number—for example, part 1; subpart 1.1. PAR subdivisions below the subpart level will simply indicate the identifying number—for example, this subdivision would be cited as 3501.104-2(c)(3)(ii).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.104-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
              <P>Copies of the PAR in <E T="04">Federal Register</E> and CFR form may be purchased from the Superintendent of Documents, Government Printing Office (GPO), Washington, DC 20402. Copies of the loose-leaf PAR are distributed within the Panama Canal Commission and may be obtained from the Administrative Services Division, Records Management Branch, telephone (507) 52-7642.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.105</SECTNO>
              <SUBJECT>OMB approval under the Paperwork Reduction Act.</SUBJECT>

              <P>The information collection and recordkeeping requirements contained in <PRTPAGE P="93"/>the PAR have been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act of 1980 (Pub. L. 96-511). OMB control number 3207-0007 is assigned to the following PAR sections:</P>
              <EXTRACT>
                <HD SOURCE="HD2">PAR Sections</HD>
                <FP SOURCE="FP-1">3513.107(a)(4)(i)</FP>
                <FP SOURCE="FP-1">3513.107(a)(4)(ii)</FP>
                <FP SOURCE="FP-1">3513.107(a)(4)(iii)</FP>
                <FP SOURCE="FP-1">3513.107(a)(4)(iv)</FP>
                <FP SOURCE="FP-1">3515.804-6</FP>
                <FP SOURCE="FP-1">3536.571 </FP>
              </EXTRACT>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3501.2—Administration</HD>
            <SECTION>
              <SECTNO>3501.201</SECTNO>
              <SUBJECT>Maintenance of the FAR.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3501.201-1</SECTNO>
              <SUBJECT>The two councils.</SUBJECT>
              <P>(e)(2) The Commission's Procurement Executive, in consultation with the General Counsel, is responsible for overseeing the development of the agency position on proposed revisions to the FAR and responding to the FAR Secretariat when such action is appropriate.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3501.3—Agency Acquisition Regulations</HD>
            <SECTION>
              <SECTNO>3501.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a)(1) The Procurement Executive, in consultation with the General Counsel and such other agency officials as may be appropriate, is responsible for the development, preparation, and maintenance of PAR issuances by the Administrator. In addition, the Procurement Executive is authorized to issue internal policies, procedures, instructions, and guidelines to clarify or implement the FAR or PAR within the Commission. Such internal issuances are subject to review by the General Counsel.</P>
              <P>(2) Heads of contracting activities and division chiefs are authorized to issue internal guidance of the type described in FAR 1.301(a)(2).</P>
              <P>(b) Public participation in the promulgation of the PAR shall be in the same manner as specified for the FAR in FAR subpart 1.5. Where solicitation of public comment on significant revisions is impracticable prior to promulgation, the revisions may be set forth in temporary regulations. Comments will be solicited on the temporary regulations and considered prior to formulating the final regulations.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.303</SECTNO>
              <SUBJECT>Publication and codification.</SUBJECT>
              <P>(a) The PAR is codified as chapter 35 in title 48, Code of Federal Regulations.</P>
              <P>(c) The PAR replaces the former Part 87—Procurement, of the Panama Canal Administration and Regulations (PCAR), in its entirety.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.304</SECTNO>
              <SUBJECT>Agency control and compliance procedures.</SUBJECT>

              <P>(a) Whenever contracting activities and organizational components thereof wish to propose for publication in the <E T="04">Federal Register</E> an agency acquisition regulation that they consider necessary to implement or supplement the FAR or PAR, they must prepare a memorandum that explains the need, background, justification, and significant aspects of the proposed regulation and send it to the Procurement Executive. The Procurement Executive and General Counsel will (1) review the proposed regulation to assure compliance with FAR part 1, and (2) either approve or disapprove it. If approved, the Procurement Executive will prepare the proposed regulation in <E T="04">Federal Register</E> format for issuance by the Administrator.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3501.4—Deviations From the FAR and PAR</HD>
            <SECTION>
              <SECTNO>3501.401</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <P>A deviation from the PAR is defined in the same manner as a deviation from the FAR (see FAR 1.401).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>
              <P>Requests for individual deviations from the FAR and the PAR shall be submitted by the Head of the Contracting Activity (HCA) through the General Counsel to the Procurement Executive for approval. Requests submitted shall cite the specific part of the FAR or PAR from which it is desired to deviate, shall set forth the nature of the deviation(s), and shall give the reasons for the action requested. The Procurement Executive shall transmit copies of approved individual FAR deviations to the FAR Secretariat.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="94"/>
              <SECTNO>3501.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
              <P>Requests for class deviations to the PAR shall be submitted in advance by the HCA through the General Counsel to the Procurement Executive for processing in accordance with FAR 1.404 and this section. Requests submitted shall include the same type of information as required for individual deviations as prescribed in 3501.403. The Procurement Executive may approve class deviations to the FAR and the PAR and shall transmit copies of approved class FAR deviations to the FAR Secretariat as required by FAR 1.404.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.405</SECTNO>
              <SUBJECT>Deviations pertaining to treaties and executive agreements.</SUBJECT>
              <P>(d) The Procurement Executive is designated as the central control point within the Commission for transmittal of deviations from the FAR required to comply with treaties and executive agreements to which the United States is a party. Copies of the text of any deviation authorized in accordance with FAR 1.405 (b) or (c) shall be forwarded by the HCA to the Procurement Executive through the General Counsel for further transmittal to the FAR Secretariat.</P>
              <P>(e) When a deviation required to comply with a treaty or executive agreement is inconsistent with FAR coverage based on law, the Procurement Executive shall forward a request for deviation to the FAR Secretariat for processing as required by FAR 1.405(e).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3501.6—Contracting Authority and Responsibilities</HD>
            <SECTION>
              <SECTNO>3501.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) Commission contracting activities are established within the General Services Bureau for the acquisition of supplies and services, and the Engineering and Construction Bureau for the acquisition of construction, including architect-engineer services and other services related to construction. The Directors of these bureaus are designated by the Administrator as Heads of Contracting Activities and are the officials who have the authority and responsibility to appoint contracting officers to contract for authorized supplies and services, including construction and architect-engineer services, that fall within the scope of their respective contracting activities.</P>
              <P>(b) In addition, bureau directors and heads of independent units are delegated contracting authority, not to exceed amounts established by the General Services Director, for the decentralized procurement of supplies and services on Division Purchase Orders (see 3513.505-71). This authority is granted to assist Commission activities in expediting minor purchases. Such authority may be redelegated pursuant to 3513.505-71(b)(1)(ii).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.602</SECTNO>
              <SUBJECT>Contracting officers.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3501.602-3</SECTNO>
              <SUBJECT>Ratification of unauthorized commitments.</SUBJECT>
              <P>(a) <E T="03">Definitions.</E>
              </P>
              <P>
                <E T="03">Responsible contracting officer,</E> as used in 3501.602-370, means the individual at the appropriate level of contracting authority who can execute any contractual document that may be required to formalize an unauthorized commitment. Depending on the circumstances, the term can apply to the existing contracting officer, the prospective contracting officer (when a purchase order or contract does not exist) or, in the case of a contracting officer who acted in excess of the limits of his delegated authority, the next individual in the chain of contracting authority who has the appropriate authority to execute the necessary contractual document.</P>
              <P>(b) <E T="03">Policy.</E> (1) Unauthorized commitments do not legally obligate the Commission for the expenditure of funds. If an unauthorized commitment would have been valid had it been authorized by a contracting officer acting within the limits of his delegated authority, then the unauthorized commitment may be ratified in accordance with the procedures prescribed in 3501.602-370. If an unauthorized commitment is otherwise improper, it cannot be ratified and the Commission must deny legal liability, in which case the individual who made the unauthorized commitment may be personally liable for such action.<PRTPAGE P="95"/>
              </P>
              <P>(2) The cognizant Head of the Contracting Activity (HCA) is the ratification official for the approval of unauthorized commitments and the Procurement Executive is the reviewing official for such approvals. The HCA may ratify an unauthorized commitment only if:</P>
              <P>(i) The conditions in FAR 1.602-3(c) are applicable, and</P>
              <P>(ii) The Procurement Executive concurs with the proposed ratification.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.602-370</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>These procedures apply to all unauthorized commitments, whether written or oral and without regard to dollar value. Unauthorized commitments (other than claims to be processed in accordance with FAR subpart 33.2) shall be processed as follows:</P>
              <P>(a) Whenever it is discovered that any person is performing or has performed work as a result of an unauthorized commitment, that person shall be advised by the cognizant contracting office that such work is being or was performed at that person's own risk pending establishment of valid contractual coverage.</P>
              <P>(b) The individual who made the unauthorized commitment shall furnish to the responsible contracting officer all records and documents concerning the commitment and a complete, written statement of the facts including, but not limited to, a description of the work or product ordered; why the work or product was necessary to and for the benefit of the Commission; the estimated or agreed upon price; citation of funds available at time of commitment; the current status of performance by the actual or prospective contractor; the reason why normal acquisition procedures were not followed and, if a contract does not exist, a statement as to why the prospective contractor was selected including, if applicable, identification of other sources that were considered.</P>
              <P>(c) The responsible contracting officer shall—</P>
              <P>(1) Obtain from the head of the requisitioning office with appropriate approval authority:</P>
              <P>(i) Affirmation that the Commission has or will obtain a benefit from the unauthorized commitment,</P>
              <P>(ii) A written certification by the responsible funding certification officer that funds presently are available and were available at the time the unauthorized commitment was made, and when applicable,</P>
              <P>(iii) A statement of corrective action that office will take to preclude repetition of the incident;</P>
              <P>(2) Review and determine the adequacy of all facts, records, and documents furnished, and when necessary, obtain any additional material or information pertinent to the review and evaluation of the unauthorized commitment;</P>
              <P>(3) Determine whether the price is fair and reasonable, and state in the record the reason therefor;</P>
              <P>(4) Prepare, certify, and obtain any necessary written approval of a justification for other than full and open competition when required pursuant to FAR subpart 6.3;</P>
              <P>(5) State in the record the corrective action to be taken to preclude repetition of the incident if the individual that made the unauthorized commitment is under the supervision of the responsible contracting officer; and</P>
              <P>(6) Forward the request for ratification (i.e., all the information required in paragraphs (b) and (c) of this subsection) to the cognizant HCA, together with a written recommendation of an appropriate course of action including, at a minimum, a specific recommendation as to whether payment should be made and the reasons therefor.</P>
              <P>(d) The cognizant HCA, upon receipt and review of the request for ratification file, shall determine whether ratification is in order. If so, the HCA shall forward the file to the Procurement Executive for review. If not, the HCA shall return the file to the responsible contracting officer, together with a written explanation for the decision and instructions for disposition of the case.</P>

              <P>(e) The Procurement Executive shall review proposed ratifications submitted by HCAs. If the Procurement Executive concurs that ratification is in order, he shall obtain General Counsel concurrence that payment may be <PRTPAGE P="96"/>made and return the file to the cognizant HCA for that individual's ratification and subsequent return to the responsible contracting officer together with, when appropriate, instructions to issue a purchase order, contract, or contract modification, as applicable. If the Procurement Executive does not concur with the proposed ratification, he shall return the file to the HCA, together with a written explanation for the decision and instructions for disposition of the case. He will provide a copy to the General Counsel.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.603</SECTNO>
              <SUBJECT>Selection, appointment, and termination of appointment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3501.603-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>Heads of Contracting Activities may appoint as contracting officers one or more capable and qualified individuals of their respective staffs. These appointments may be made by memoranda delegating contracting authority, including any limitations to such authority, to positions or to named individuals. Appointments shall be evidenced by a “Certificate of Appointment”, as required by FAR 1.603-3. If contracting authority is delegated to a position by memorandum, the “Certificate of Appointment” shall state the name of the individual assigned to the position.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.670</SECTNO>
              <SUBJECT>Legal review of proposed contract actions.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3501.670-1</SECTNO>
              <SUBJECT>Contract actions requiring legal review.</SUBJECT>
              <P>The following contract actions shall be submitted to the General Counsel for review for legal sufficiency:</P>
              <P>(a) All proposed contracts with an estimated cost of $100,000 or more (in advance of issuance);</P>
              <P>(b) All alleged mistakes in bids, other than apparent clerical mistakes that can be corrected pursuant to FAR 14.406-2;</P>
              <P>(c) All determinations and findings required under the FAR;</P>
              <P>(d) All proposed utility contracts;</P>
              <P>(e) All proposed contracts containing insurance requirements not prescribed in the FAR or this PAR;</P>
              <P>(f) In sealed bid procurements, all proposed awards to other than the lowest responsible and responsive bidder;</P>
              <P>(g) Rejections of all bids and cancellations of invitations for bids;</P>
              <P>(h) Proposed letter contracts;</P>
              <P>(i) Written protests, whether before or after award;</P>
              <P>(j) Unusual, novel, or unique proposed agreements, and unsolicited proposals that are to be negotiated pursuant to FAR subpart 15.5 and subpart 3515.5;</P>
              <P>(k) Proposed ADP contracts of $25,000 or more when purchase is to be from other than a Federal Supply Service contract source;</P>
              <P>(l) Termination actions, including pre-termination letters;</P>
              <P>(m) All actions taken under the Disputes clause, including final decisions;</P>
              <P>(n) Any action concerning suspension or debarment of an individual or concern;</P>
              <P>(o) Deviations from the FAR or PAR;</P>
              <P>(p) Any contract matter relating to litigation, disputes, or protest resolution before the courts of the United States or of the Republic of Panama, or before the Corps of Engineers Board of Contract Appeals or the Comptroller General of the United States;</P>
              <P>(q) Determinations of nonrespon-si-bility;</P>
              <P>(r) Any proposed contract modification, including proceed orders, which may result in a change in the contract price of more than $25,000, or any proposed contract modification or proceed order granting a time extension of more than 20 calendar days;</P>
              <P>(s) Any proposed contract modification resulting from either a contractor's settlement proposal under the Termination for Convenience clause, or a contractor's claim under the Suspension of Work clause, regardless of the contract value or the terms of the proposed modification;</P>
              <P>(t) Freedom of Information Act and Privacy Act matters involving contractors or arising under or in relation to any contract;</P>
              <P>(u) Administrative setoffs to recoup Government funds under any contract; and</P>
              <P>(v) Requests for approval of advance payments on contracts other than those excluded in FAR 32.404.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="97"/>
              <SECTNO>3501.670-2</SECTNO>
              <SUBJECT>Documents to be submitted for legal review.</SUBJECT>
              <P>The following documents are to be submitted in connection with contract actions requiring legal review pursuant to 3501.670-1:</P>
              <P>(a) For proposed construction contracts, a copy of the solicitation documents, excluding drawings, prior to the time they are furnished to prospective offerors, when feasible;</P>
              <P>(b) For all other proposed contracts and agreements, a copy of the document to be used in the solicitation and/or award, including any other documents, excluding drawings, which support the proposed procurement action, prior to the time they are mailed to the prospective offerors, when feasible;</P>
              <P>(c) For all other contract actions not specified in paragraph (a) or (b) of this subsection, a copy of the document itself and copies of all other documents, excluding drawings, relating to the action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3501.670-3</SECTNO>
              <SUBJECT>General Counsel's legal review.</SUBJECT>
              <P>(a) The General Counsel shall conduct a review of the legal sufficiency of the contract action. The General Counsel shall provide to the contracting officer a written determination of whether the proposed action is legally sufficient, or the details of any insufficiency and a recommended course of action to overcome the insufficiency. A contracting officer shall not take action which is contrary to a written and timely determination of legal insufficiency from the General Counsel.</P>
              <P>(b) The General Counsel shall complete the legal review as quickly as possible, with due regard to those procurement actions where circumstances dictate an unusually short period for completing the action.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3501</EAR>
          <HD SOURCE="HED">PART 3502—DEFINITIONS OF WORDS AND TERMS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article XI of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3502.1—Definitions</HD>
            <SECTION>
              <SECTNO>3502.101</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Administrator</E> means the chief executive officer of the Panama Canal Commission. The Administrator, subject to the direction and under the supervision of the Board of Directors, exercises general and active control over the Commission's offices, business and operations, and general supervision over its officials, agents, attorneys, and employees. As contemplated at FAR 2.101, unless otherwise indicated, “Administrator” also means the Commission's Deputy Administrator.</P>
              <P>
                <E T="03">Agency head</E> means the Administrator of the Panama Canal Commission.</P>
              <P>
                <E T="03">Bureau Director</E> means an official appointed by the Administrator to direct and manage one of the Commission's three operating bureaus.</P>
              <P>
                <E T="03">Commission</E> means the Panama Canal Commission.</P>
              <P>
                <E T="03">Designated Agency Ethics Official</E> means an individual appointed by the Administrator pursuant to the “Ethics in Government Act of 1978” to coordinate and manage the agency's ethics program and to act as the principal contact with the Office of Government Ethics.</P>
              <P>
                <E T="03">Designated contractors</E> (sometimes referred to as “special regime contractors”) means:</P>
              <P>(a)(1) Natural persons who are nationals or permanent residents of the United States, or</P>
              <P>(2) Corporations or other legal entities organized under the laws of the United States, any state thereof, or the District of Columbia, and which are under the effective control of such natural persons—</P>
              <P>(i) To whom contracts are awarded by the Panama Canal Commission for work to be performed in whole or in part in the Republic of Panama, and</P>
              <P>(ii) Who are so designated in writing by the Commission.</P>

              <P>(b) The term also includes subcontractors of designated contractors (1) who are nationals or permanent residents of the United States, or (2) which are corporations or other legal entities organized under the laws of the <PRTPAGE P="98"/>United States, any state thereof, or the District of Columbia, and which are under the effective control of United States nationals or permanent residents.</P>
              <P>
                <E T="03">Head of Independent Unit</E> means an official appointed by the Administrator to direct and manage one of the Administrator's staff offices.</P>
              <P>
                <E T="03">Head of the Contracting Activity</E> (HCA) means the General Services Director and the Engineering and Construction Director.</P>
              <P>
                <E T="03">Implementing Agreement</E> means the Agreement in Implementation of Article III of the Panama Canal Treaty (TIAS 10031), signed at Washington, DC on September 7, 1977.</P>
              <P>
                <E T="03">Inspector General</E> means the Office of the Inspector General.</P>
              <P>
                <E T="03">Procurement Executive</E> means an individual designated as the senior procurement executive pursuant to 41 U.S.C. 414(3), by the Administrator from members of his staff. The Procurement Executive is delegated agency-wide responsibility to oversee development of procurement systems, establish procurement policy, evaluate procurement system performance in accordance with approved criteria, carry out specific responsibilities as assigned in this PAR, enhance career management of the procurement work force, and certify to the Administrator that procurement systems meet approved criteria.</P>
              <P>
                <E T="03">Treaty</E> means the Panama Canal Treaty (TIAS 10030), signed at Washington, DC on September 7, 1977.</P>
              <CITA>[55 FR 7638, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3503</EAR>
          <HD SOURCE="HED">PART 3503—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3503.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3503.1—Safeguards</HD>
              <SECTNO>3503.101</SECTNO>
              <SUBJECT>Standards of conduct.</SUBJECT>
              <SECTNO>3503.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>
              <SECTNO>3503.103</SECTNO>
              <SUBJECT>Independent pricing.</SUBJECT>
              <SECTNO>3503.103-2</SECTNO>
              <SUBJECT>Evaluating the certification.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3503.2—Contractor Gratuities to Government Personnel</HD>
              <SECTNO>3503.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the Gratuities clause.</SUBJECT>
              <SECTNO>3503.204</SECTNO>
              <SUBJECT>Treatment of violations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3503.3—Reports of Suspected Antitrust Violations</HD>
              <SECTNO>3503.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3503.4—Contingent Fees</HD>
              <SECTNO>3503.408</SECTNO>
              <SUBJECT>Evaluation of the SF 119.</SUBJECT>
              <SECTNO>3503.408-1</SECTNO>
              <SUBJECT>Responsibilities.</SUBJECT>
              <SECTNO>3503.409</SECTNO>
              <SUBJECT>Misrepresentations or violations of the Covenant Against Contingent Fees.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3503.5—Other Improper Business Practices</HD>
              <SECTNO>3503.502</SECTNO>
              <SUBJECT>Subcontractor kickbacks.</SUBJECT>
              <SECTNO>3503.502-2</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3503.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
              <SECTNO>3503.600-70</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3503.600-71</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>3503.601</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3503.602</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <SECTNO>3503.603</SECTNO>
              <SUBJECT>Responsibilities of the contracting officer.</SUBJECT>
              <SECTNO>3503.670</SECTNO>
              <SUBJECT>Exclusions.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7638, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3503.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements FAR part 3, cites Commission regulations on employee responsibilities and conduct, establishes responsibility for reporting violations and related actions, and provides for authorization of exceptions to policy.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3503.1—Safeguards</HD>
            <SECTION>
              <SECTNO>3503.101</SECTNO>
              <SUBJECT>Standards of conduct.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3503.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>

              <P>Commission regulations on Employee Responsibilities and Conduct are contained in the Commission's “Employee Code of Conduct”. All personnel involved in acquisition actions shall become familiar with the statutory and <PRTPAGE P="99"/>regulatory prohibitions governing employee conduct. Any problems or questions concerning standards of conduct shall be referred to the Designated Agency Ethics Official.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3503.103</SECTNO>
              <SUBJECT>Independent pricing.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3503.103-2</SECTNO>
              <SUBJECT>Evaluating the certification.</SUBJECT>
              <P>(b)(3) Whenever an offer is rejected under FAR 3.103-2, or the Certificate of Independent Price Determination is suspected of being false, the contracting officer shall report the situation to the General Counsel through the cognizant Head of the Contracting Activity for referral to the Attorney General in accordance with FAR 3.303.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3503.2—Contractor Gratuities to Government Personnel</HD>
            <SECTION>
              <SECTNO>3503.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the Gratuities clause.</SUBJECT>
              <P>Any Commission employee who suspects that a violation of the Gratuities clause has occurred shall immediately report the suspected violation to the cognizant Head of the Contracting Activity. Upon being notified of the suspected violation, the HCA shall inform the Designated Agency Ethics Official and the Procurement Executive, by written memorandum, of the pertinent details of the suspected violation.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3503.204</SECTNO>
              <SUBJECT>Treatment of violations.</SUBJECT>
              <P>(b) When the HCA determines that there is probable cause to believe that a violation of the Gratuities clause has been committed, the case shall be handled as provided in the Commission debarment and suspension procedures in subpart 3509.4.</P>
              <P>(c) The final decision as to which remedies the Commission may pursue if a violation of the Gratuities clause is found by the Debarment Committee (see 3509.406-3(b)), is reserved to the Administrator.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3503.3—Reports of Suspected Antitrust Violations</HD>
            <SECTION>
              <SECTNO>3503.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(b) The contracting officer shall report any suspected violations of antitrust laws to the General Counsel through the cognizant Head of the Contracting Activity for referral to the Attorney General and the Commission's Debarment Committee in accordance with FAR subpart 3.3.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3503.4—Contingent Fees</HD>
            <SECTION>
              <SECTNO>3503.408</SECTNO>
              <SUBJECT>Evaluation of the SF 119.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3503.408-1</SECTNO>
              <SUBJECT>Responsibilities.</SUBJECT>
              <P>(b) The contracting officer's documentation of the evaluation of the Standard Form 119, Statement of Contingent or Other Fees, conclusions, and any proposed actions shall be reviewed by the cognizant Head of the Contracting Activity in coordination with the General Counsel.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3503.409</SECTNO>
              <SUBJECT>Misrepresentations or violations of the Covenant Against Contingent Fees.</SUBJECT>
              <P>(a) Commission personnel who suspect or have evidence of attempted or actual exercise of improper influence, misrepresentations, or violations of the Covenant Against Contingent Fees shall report the matter promptly to the Designated Agency Ethics Official and the cognizant Head of the Contracting Activity.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3503.5—Other Improper Business Practices</HD>
            <SECTION>
              <SECTNO>3503.502</SECTNO>
              <SUBJECT>Subcontractor kickbacks.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3503.502-2</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>Any Commission employee who suspects that a violation of the Anti-Kickback Act has occurred shall immediately report the suspected violation to the Designated Agency Ethics Official and the cognizant Head of the Contracting Activity. Suspected violations shall be treated in accordance with the debarment and suspension procedures at subpart 3509.4.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3503.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
            <SECTION>
              <SECTNO>3503.600-70</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>

              <P>This subpart implements and supplements FAR subpart 3.6 and sets forth <PRTPAGE P="100"/>Commission policy and procedures for identifying and dealing with conflicts of interest and improper influence or favoritism in connection with contracts involving current or former Commission employees. This subpart does not apply to agreements with other departments or agencies of the Federal Government.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3503.600-71</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Commission employee</E> means:</P>
              <P>(a) Any officer or employee of the Panama Canal Commission who is employed or appointed, with or without compensation, to serve more than 130 days during any period of 365 consecutive days, or</P>
              <P>(b) Any officer or employee of the Commission who is retained, designated, appointed or employed to perform, with or without compensation, temporary duties either on a full-time or intermittent basis for not more than 130 days during any period of 365 consecutive days and who actually served more than 60 days during such 365-day period.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3503.601</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>Except as authorized at 3503.602 or excluded at 3503.670, no contract shall be awarded without competition to a—</P>
              <P>(a) Former Commission employee (or to a business concern or other organization owned or substantially owned or controlled by a former Commission employee) whose employment terminated within 365 calendar days before submission of an offer to the Commission; or</P>
              <P>(b) Prospective contractor which employs, or proposes to employ, a current Commission employee or a former Commission employee whose employment terminated within 365 calendar days before submission of an offer to the Commission, if either of the following conditions exist:</P>
              <P>(1) The current or former Commission employee is or was involved in developing or negotiating the offer for the prospective contractor.</P>
              <P>(2) The current or former Commission employee will be involved directly or indirectly in the management, administration, or performance of the contract.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3503.602</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>(a) The Director, Office of Executive Administration in his capacity as the Designated Agency Ethics Official may authorize an exception, in writing, to the policy in FAR 3.601 and 3503.601 for the reasons stated in FAR 3.602, if the exception would not involve a violation of 18 U.S.C. 203, 18 U.S.C. 205, 18 U.S.C. 207, 18 U.S.C. 208, section 27 of the Office of Federal Procurement Policy Act, or Commission regulations in the “Employee Code of Conduct”. The Director, Office of Executive Administration shall consult with the cognizant Bureau or Staff Director who originated the request and with the General Counsel before authorizing any exceptions.</P>
              <P>(b) This subpart does not apply to subcontracts, that is, agreements to undertake part of the work as an independent contractor. However, where subcontracts essentially create an “employer-employee” relationship between the Commission and the subcontractors, the subpart shall apply. In determining whether such a relationship exists, the contracting officer shall generally be guided by the standards of Chapter 304, Subchapter 1-4 of the “Federal Personnel Manual” in distinguishing between employees and independent contractors.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3503.603</SECTNO>
              <SUBJECT>Responsibilities of the contracting officer.</SUBJECT>
              <P>Before awarding a contract, the contracting officer shall obtain an authorization under 3503.602 for any of the reasons stated in FAR 3.603.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3503.670</SECTNO>
              <SUBJECT>Exclusions.</SUBJECT>

              <P>Former or current Commission employees who participated personally and substantially in the conduct of any Commission procurement of supplies or services, including those who were responsible for reviewing and approving the award, modification, or extension of any contract for such procurement, are excluded from the 365 calendar day “before submission of an offer” time period specified in 3503.601 (a) and (b). Instead, the time period for such employees shall be two years after the last date the employee participated personally and substantially in the <PRTPAGE P="101"/>conduct of any Commission procurement of supplies or services, or personally reviewed and approved the award, modification, or extension of any contract for such procurement. This two-year prohibition applies irrespective of whether the contract being sought is on a competitive or noncompetitive basis.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3504</EAR>
          <HD SOURCE="HED">PART 3504—ADMINISTRATIVE MATTERS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3504.6—Contract Reporting</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3504.602</SECTNO>
              <SUBJECT>Federal Procurement Data System.</SUBJECT>
              <SECTNO>3504.903</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3504.6—Contract Reporting</HD>
            <SECTION>
              <SECTNO>3504.602</SECTNO>
              <SUBJECT>Federal Procurement Data System.</SUBJECT>
              <P>(b) As indicated in the FPDS Reporting Manual, the Commission is exempt from the reporting requirements of the Federal Procurement Data System, except for the procurement data that is required to be provided in accordance with Public Law 96-39 (Trade Agreements Act of 1979) as prescribed by OFPP Policy Letter 80-8 (as amended).</P>
              <CITA>[55 FR 7640, Mar. 2, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3504.903</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>The Commission will report the information required under FAR 4.902(b) directly to the IRS.</P>
              <CITA>[55 FR 7640, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="102"/>
        <HD SOURCE="HED">SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING</HD>
        <PART>
          <EAR>Pt. 3505</EAR>
          <HD SOURCE="HED">PART 3505—PUBLICIZING CONTRACT ACTIONS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3505.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3505.2—Synopses of Proposed Contract Actions</HD>
              <SECTNO>3505.202</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3505.5—Paid Advertisements</HD>
              <SECTNO>3505.502</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <SECTNO>3505.503</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3505.503-70</SECTNO>
              <SUBJECT>Authorization.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7640, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3505.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements FAR part 5 and provides Commission policies and procedures for publicizing contract opportunities, and provides for an additional exception to the requirements for use of “Commerce Business Daily” notices.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3505.2—Synopses of Proposed Contract Actions</HD>
            <SECTION>
              <SECTNO>3505.202</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>(a)(13) The contract action is one for which participation in the acquisition will be limited to sources in Panama pursuant to the conditions prescribed in 3570.102(e). The Procurement Executive will monitor and maintain a record of proposed contract actions that are exempt from the notice requirements of FAR 5.201 by operation of this exception.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3505.5—Paid Advertisements</HD>
            <SECTION>
              <SECTNO>3505.502</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <P>(a) <E T="03">Newspapers.</E> Authority to approve the publication of paid advertisements in newspapers is vested in the HCA or designee.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3505.503</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) <E T="03">General.</E> When there is a reasonable probability that supplies or services (including construction) are available in Panama that are comparable in quality and price to those which may be obtained from other sources, and when local advertising is reasonably practical, the contracting officer shall request authorization from the HCA or designee to advertise the procurement action within the appropriate Panamanian market. The request for authorization shall include—</P>
              <P>(1) A description of the proposed procurement action and the supplies or services to be procured;</P>
              <P>(2) A description of how the determination was made that the Panamanian preference may apply; and</P>
              <P>(3) A summary of how the appropriate advertising market was identified.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3505.503-70</SECTNO>
              <SUBJECT>Authorization.</SUBJECT>
              <P>The HCA or designee shall review the request for authorization of paid advertising and, if concurring, shall grant authorization in writing to the contracting officer to proceed. The written authorization shall specify any limitations on the advertising that are deemed appropriate. The HCA shall furnish a copy of each such authorization to the Procurement Executive.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3506</EAR>
          <HD SOURCE="HED">PART 3506—COMPETITION REQUIREMENTS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3506.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3506.3—Other Than Full and Open Competition</HD>
              <SECTNO>3506.300</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3506.302-4</SECTNO>
              <SUBJECT>International agreement.</SUBJECT>
              <SECTNO>3506.303</SECTNO>
              <SUBJECT>Justifications.</SUBJECT>
              <SECTNO>3506.303-1</SECTNO>
              <SUBJECT>Requirements.</SUBJECT>
              <SECTNO>3506.303-2</SECTNO>
              <SUBJECT>Content.</SUBJECT>
              <SECTNO>3506.304</SECTNO>
              <SUBJECT>Approval of the justification.</SUBJECT>
              <SECTNO>3506.304-70</SECTNO>
              <SUBJECT>Class justifications.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3506.5—Competition Advocate</HD>
              <SECTNO>3506.501</SECTNO>
              <SUBJECT>Requirement.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <PRTPAGE P="103"/>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7640, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3506.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements FAR part 6 and prescribes Commission policies and procedures related to competition requirements.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3506.3—Other Than Full and Open Competition</HD>
            <SECTION>
              <SECTNO>3506.300</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart provides guidance on:</P>
              <P>(a) The application of the Panama Canal Treaty of 1977 between the United States and Panama as an exemption to the requirement for full and open competition, and</P>
              <P>(b) The preparation and approval of individual and class Justifications for Other Than Full and Open Competition (JOFOC's).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3506.302-4</SECTNO>
              <SUBJECT>International agreement.</SUBJECT>
              <P>(a) <E T="03">Authority.</E> Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977 establishes that the Commission shall give preference to Panamanian supplies and services in its procurement activities. Such preference is understood to mean that if supplies or services (including construction) of comparable quality and price are available when required and can be obtained from sources both within and without the Republic of Panama, preference shall be afforded to those sources within the Republic of Panama to the maximum extent possible. When choosing between goods from sources within the Republic of Panama, preference shall be given to those with a larger percentage of components of Panamanian origin. This is not intended to require the purchase of Panamanian supplies and services, as defined herein, where superior quality or lower prices are available from other sources. Part 3570 sets forth specific guidance and policy with respect to the Commission's implementation of Article IX.</P>
              <P>(c) <E T="03">Limitations.</E> Solicitations above the small purchase limitation that are intended for exclusive acquisition from sources in Panama shall be supported by a class or individual determination and findings as required by 3570.102(e).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3506.303</SECTNO>
              <SUBJECT>Justifications.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3506.303-1</SECTNO>
              <SUBJECT>Requirements.</SUBJECT>
              <P>(c) The scope of the actual procurement shall not exceed the scope of the proposed procurement cited in the JOFOC. If a change to the contract exceeds this limitation, the contract change shall not be consummated until an amended JOFOC has been approved.</P>
              <P>(d) When contract actions are subject to the Agreement on Government Procurement and the authority of FAR 6.302-3(a)(2)(i) or 6.302-7 is being cited as the basis for not providing full and open competition, a copy of the justification shall be forwarded to the Procurement Executive as the point of contact with the Office of the United States Trade Representative.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3506.303-2</SECTNO>
              <SUBJECT>Content.</SUBJECT>
              <P>In addition to the requirements of FAR 6.303-2, the justification shall include—</P>
              <P>(a) The type of contract;</P>
              <P>(b) A statement of delivery requirements;</P>
              <P>(c) The total estimated dollar value, including options, for the acquisitions covered by the justification; and</P>
              <P>(d) A copy of the approved Acquisition Plan when the acquisitions meet the criteria for a written Acquisition Plan under subpart 3507.1.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3506.304</SECTNO>
              <SUBJECT>Approval of the justification.</SUBJECT>
              <P>(a) Except as noted at FAR 6.304(b), the approval of a justification for other than full and open competition shall be in writing and at the levels given below—</P>
              <P>(1) For a proposed contract not exceeding $100,000, the HCA is the approval authority. This approval is not required when the contract is one of those cited in FAR 6.304(a)(1) (i) through (iv).</P>
              <P>(2) For a proposed contract over $100,000, but not exceeding $1,000,000, the Competition Advocate is the approval authority.</P>

              <P>(3) For a proposed contract over $1,000,000, but not exceeding $5,000,000, <PRTPAGE P="104"/>the Procurement Executive is the approval authority.</P>
              <P>(4) For a proposed contract over $5,000,000, the Administrator is the approval authority.</P>
              <P>(b) Contracting officers shall consult with the Competition Advocate prior to submitting any justification for approval pursuant to paragraph (a) of this section.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3506.304-70</SECTNO>
              <SUBJECT>Class justifications.</SUBJECT>
              <P>(a) Class justifications shall be approved in the same manner as individual justifications. To determine the approval level for a class justification, the aggregate estimated dollar value of all actions contemplated for one year shall be used to establish the appropriate dollar threshold for approval.</P>
              <P>(b) The following are examples of appropriate class justifications:</P>
              <P>(1) A basic ordering agreement (BOA) including all orders to be issued under the BOA for the term of the BOA;</P>
              <P>(2) Contracts to be awarded to more than one contractor to provide Government-furnished property for assembly into an end item, in which case the circumstances of the class justification must justify all the contracts proposed under the justification.</P>
              <P>(c) Requests for approval at any level must be submitted to the approval authority before release of the solicitation. The solicitation shall not be released until the justification is approved in writing (but see FAR 6.303-1(e)).</P>
              <P>(d) The Procurement Executive shall maintain a list of products, materials, and services that have been granted a class justification for exclusive acquisition from sources in Panama (see 3506.302-4(c)).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3506.5—Competition Advocate</HD>
            <SECTION>
              <SECTNO>3506.501</SECTNO>
              <SUBJECT>Requirement.</SUBJECT>
              <P>The Administrator shall designate in writing one Competition Advocate who shall serve as the agency and procuring activities competition advocate for all Commission acquisitions.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3507</EAR>
          <HD SOURCE="HED">PART 3507—ACQUISITION PLANNING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3507.1—Acquisition Plans</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3507.103</SECTNO>
              <SUBJECT>Agency-head responsibilities.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3507.3—Contractor Versus Government Performance</HD>
              <SECTNO>3507.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3507.1—Acquisition Plans</HD>
            <SECTION>
              <SECTNO>3507.103</SECTNO>
              <SUBJECT>Agency-head responsibilities.</SUBJECT>
              <P>(c)(1) Formal acquisition planning provided at FAR subpart 7.1 is primarily designed for complex and costly acquisitions. However, the disciplines of the prescribed planning process are useful to all acquisitions, even if on a less formal basis.</P>
              <P>(2) Written acquisition plans shall be prepared for—</P>
              <P>(i) All development (see FAR 35.001) acquisitions whose estimated contractual cost is $1,000,000 or more annually;</P>
              <P>(ii) Supply, service, and construction acquisitions whose estimated contractual cost is $3,000,000 or more for any fiscal year. Excluded are repetitive requirements-type and fuel contracts.</P>
              <P>(d) The Acquisition Plan (AP) shall include all subsystems, Government-furnished property, major component contractual actions, and all other contracts which have a significant effect on the total program.</P>
              <P>(f) The planner for acquisitions requiring a formal, written plan shall be the program manager or other official having overall responsibility for the program concerned.</P>
              <P>(g)(1) The planner shall obtain the written concurrence of the appropriate contracting officer for each acquisition plan.</P>

              <P>(2) The Head of the Contracting Activity shall review and approve the acquisition plan and ensure that (i) the objectives of the AP are realistic and achievable, and (ii) solicitations and contracts are appropriately structured to equitably distribute the technical, financial, and business risks, considering the phase of the acquisition, the <PRTPAGE P="105"/>technical requirements, and business and legal constraints.</P>
              <P>(3) Acquisition plans shall be furnished by the cognizant HCA to the Procurement Executive.</P>
              <P>(j) When a need is urgent enough to require an unusually compressed delivery or performance schedule, and the preparation of a detailed written AP would interfere with the successful meeting of that schedule, the Procurement Executive may waive appropriate requirements of FAR subpart 7.1 and this subpart 3507.1. The waiver shall be in writing and shall specifically designate those requirements that are waived.</P>
              <CITA>[55 FR 7641, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3507.3—Contractor Versus Government Performance</HD>
            <SECTION>
              <SECTNO>3507.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) For the purposes of OMB Circular No. A-76, a commercial source is defined as “a business or other non-Federal activity located in the United States, its territories and possessions, the District of Columbia or the Commonwealth of Puerto Rico, which provides a commercial product or service.” Accordingly, by virtue of the Commission's location in the Republic of Panama, FAR subpart 7.3 is not applicable to the Panama Canal Commission because commercial services would have to be contracted out to sources located in Panama. Commission policy regarding commercial services to be contracted out to sources in Panama is set forth in paragraph (b) of this section.</P>
              <P>(b) Commercial work and services shall be contracted out when there are available reliable local contractors and the expected cost is beneficial to the Commission. However, when commercial work/service to be done requires skills that the Commission should have and/or develop, then a careful evaluation shall be made before such work/service is contracted outside the agency. The cognizant Head of the Contracting Activity shall be the approving official for commercial work and services to be contracted out pursuant to this policy.</P>
              <CITA>[55 FR 7641, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3508</EAR>
          <HD SOURCE="HED">PART 3508—REQUIRED SOURCES OF SUPPLIES AND SERVICES</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3508.001</SECTNO>
            <SUBJECT>Priorities for use of Government supply sources.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3508.4—Ordering From Federal Supply Schedules</HD>
              <SECTNO>3508.404</SECTNO>
              <SUBJECT>Using schedules.</SUBJECT>
              <SECTNO>3508.404-1</SECTNO>
              <SUBJECT>Mandatory use.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7642, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3508.001</SECTNO>
            <SUBJECT>Priorities for use of Government supply sources.</SUBJECT>
            <P>(a) Under Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977, the Panama Canal Commission is required under certain conditions to give preference, to the maximum extent possible, to procuring supplies and services obtainable in Panama (see 3506.302-4(a), subpart 3525.8, and part 3570). Therefore, when supplies or services are to be procured from sources in Panama under the preference requirement of Article IX, the mandatory use of sources for a like item of supply or service, as required by FAR part 8, shall not be applicable.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3508.4—Ordering From Federal Supply Schedules</HD>
            <SECTION>
              <SECTNO>3508.404</SECTNO>
              <SUBJECT>Using schedules.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3508.404-1</SECTNO>
              <SUBJECT>Mandatory use.</SUBJECT>
              <P>When supplies or services are procured from sources in Panama under the preference requirement of Article IX, as stated in 3508.001(a), the mandatory use of a Federal Supply Schedule for a like item of supply or service shall not be applicable. When a procurement is not made under the Panamanian preference of Article IX, and delivery or performance is to be made in Panama, the mandatory supply schedule should be carefully evaluated for the following exceptions to mandatory use:</P>
              <P>(d) <E T="03">Geographic coverage.</E> Each Federal Supply Schedule delineates the specific <PRTPAGE P="106"/>geographic area for which it is mandatory for use. The geographic area applies to the location where final delivery of the supplies is to be made, or the service to be performed, and not to the location of the ordering office. In most cases, the Republic of Panama will not be within the geographic limitations of the schedule and mandatory use will not be applicable. The mandatory use provisions of FAR 8.4 and 41 CFR 101-26.4 are applicable to Commission offices located in the United States when ordering supplies or services to be delivered or performed in the United States for their own use.</P>
              <P>(e) <E T="03">Lower prices for identical items.</E> The Commission may purchase products from any source pursuant to the conditions set forth in FAR 8.404-1(e).</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3509</EAR>
          <HD SOURCE="HED">PART 3509—CONTRACTOR QUALIFICATIONS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3509.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3509.1—Responsible Prospective Contractors</HD>
              <SECTNO>3509.104-3</SECTNO>
              <SUBJECT>Application of standards.</SUBJECT>
              <SECTNO>3509.106</SECTNO>
              <SUBJECT>Preaward surveys.</SUBJECT>
              <SECTNO>3509.106-70</SECTNO>
              <SUBJECT>Professional type services preaward surveys.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3509.2—Qualification Requirements</HD>
              <SECTNO>3509.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3509.206</SECTNO>
              <SUBJECT>Acquisitions subject to qualification requirements.</SUBJECT>
              <SECTNO>3509.206-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3509.4—Debarment, Suspension and Ineligibility</HD>
              <SECTNO>3509.400</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3509.403</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>3509.404</SECTNO>
              <SUBJECT>List of parties excluded from Federal procurement and nonprocurement programs.</SUBJECT>
              <SECTNO>3509.405</SECTNO>
              <SUBJECT>Effect of listing.</SUBJECT>
              <SECTNO>3509.405-1</SECTNO>
              <SUBJECT>Continuation of current contracts.</SUBJECT>
              <SECTNO>3509.405-2</SECTNO>
              <SUBJECT>Restrictions on subcontracting.</SUBJECT>
              <SECTNO>3509.406</SECTNO>
              <SUBJECT>Debarment.</SUBJECT>
              <SECTNO>3509.406-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3509.406-2</SECTNO>
              <SUBJECT>Causes for debarment.</SUBJECT>
              <SECTNO>3509.406-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3509.406-70</SECTNO>
              <SUBJECT>Settlement.</SUBJECT>
              <SECTNO>3509.406-71</SECTNO>
              <SUBJECT>Voluntary exclusion.</SUBJECT>
              <SECTNO>3509.407</SECTNO>
              <SUBJECT>Suspension.</SUBJECT>
              <SECTNO>3509.407-2</SECTNO>
              <SUBJECT>Causes for suspension.</SUBJECT>
              <SECTNO>3509.407-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3509.407-70</SECTNO>
              <SUBJECT>Settlement.</SUBJECT>
              <SECTNO>3509.407-71</SECTNO>
              <SUBJECT>Voluntary exclusion.</SUBJECT>
              <SECTNO>3509.470</SECTNO>
              <SUBJECT>Special notice.</SUBJECT>
              <SECTNO>3509.471</SECTNO>
              <SUBJECT>Equal application.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3509.5—Organizational Conflicts of Interest</HD>
              <SECTNO>3509.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3509.502</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3509.503</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <SECTNO>3509.504</SECTNO>
              <SUBJECT>Contracting officer responsibilities.</SUBJECT>
              <SECTNO>3509.506</SECTNO>
              <SUBJECT>Information sources.</SUBJECT>
              <SECTNO>3509.507</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3509.508</SECTNO>
              <SUBJECT>Solicitation provision and contract clause.</SUBJECT>
              <SECTNO>3509.508-1</SECTNO>
              <SUBJECT>Solicitation provision.</SUBJECT>
              <SECTNO>3509.508-2</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7642, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3509.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements FAR part 9 and provides Commission policy and procedures pertaining to: contractor's responsibility; debarment, suspension, and ineligibility; qualified products; and organizational conflicts of interest.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3509.1—Responsible Prospective Contractors</HD>
            <SECTION>
              <SECTNO>3509.104-3</SECTNO>
              <SUBJECT>Application of standards.</SUBJECT>
              <P>(c) <E T="03">Satisfactory performance record.</E> If the contracting officer invokes the presumption of nonresponsibility required by FAR 9.104-3(c), the contracting officer shall give notice, together with the reasons for invoking the presumption, to the Procurement Executive.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.106</SECTNO>
              <SUBJECT>Preaward surveys.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3509.106-70</SECTNO>
              <SUBJECT>Professional type services preaward surveys.</SUBJECT>
              <P>(a) Generally, preaward surveys are not performed for acquisition of professional type services such as those provided by medical doctors, lawyers or other licensed and/or regulated professions.</P>
              <P>(b) To assist in making a determination of responsibility for professional type services, the types of information listed below shall be obtained from the offeror when applicable:</P>

              <P>(1) Organizational structure and plan contemplated to accomplish the service;<PRTPAGE P="107"/>
              </P>
              <P>(2) Summary of experience in performing the same or similar service;</P>
              <P>(3) Resumes of key personnel with particular emphasis on academic accomplishments pertinent to the service to be performed;</P>
              <P>(4) Evidence of professional liability insurance, or evidence such insurance can be obtained;</P>
              <P>(5) Membership in professional organizations;</P>
              <P>(6) Information on pertinent state and local licenses; and</P>
              <P>(7) Information on the firm or key individuals that reflect their status or professional recognition in their field of endeavor, such as awards and published articles in professional journals or magazines.</P>
              <P>(c) When the statement of work includes a review of credentials by the requiring activity, this review should be considered a part of the preaward survey, and other information requested from the offeror should be minimized.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3509.2—Qualification Requirements</HD>
            <SECTION>
              <SECTNO>3509.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a)(1) The contracting officer shall ensure that the written justification required by FAR 9.202(a)(1) is prepared prior to establishing a requirement for testing or other quality assurance demonstration that must be completed by an offeror before the offeror is awarded a contract.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.206</SECTNO>
              <SUBJECT>Acquisitions subject to qualification requirements.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3509.206-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(b) The contracting officer is designated to make the determination required by FAR 9.206-1(b).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3509.4—Debarment, Suspension and Ineligibility</HD>
            <SOURCE>
              <HD SOURCE="HED">Source:</HD>
              <P>61 FR 3846, Feb. 2, 1996, unless otherwise noted.</P>
            </SOURCE>
            <SECTION>
              <SECTNO>3509.400</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart supplements, and shall be applied in conformity with, FAR subpart 9.4.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.403</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Debarring official</E> means the Administrator of the Panama Canal Commission (hereinafter “Commission”). In the event the Administrator is ineligible from participating personally in Commission actions with respect to the particular contractor, named individual or affiliate subject to the proposed debarment due to a conflict of interest or in view of a previously established recusal statement, the Commission Deputy Administrator shall be the debarring official.</P>
              <P>
                <E T="03">Fact-finding official</E> means a person not employed by the Commission or any agency of the U.S. Government retained at Commission expense to conduct fact-finding under this subpart. The individual must have no prior knowledge of the particular subject matter and no conflict of interest with respect to any of the parties involved in the debarment or suspension action. He shall have knowledge of the laws and regulations governing the federal procurement system, and shall have experience in receiving evidence and formulating findings of fact.</P>
              <P>
                <E T="03">Suspending official</E> means the Commission Administrator. In the event the Administrator is ineligible from participating personally in Commission actions with respect to the particular contractor, named individual or affiliate subject to the proposed suspension due to a conflict of interest or in view of a previously established recusal statement, the Commission Deputy Administrator shall be the suspending official.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.404</SECTNO>
              <SUBJECT>List of parties excluded from Federal procurement and nonprocurement programs.</SUBJECT>
              <P>(c) The Commission Procurement Executive (hereinafter “PE”) shall perform the actions required by FAR 9.404(c).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.405</SECTNO>
              <SUBJECT>Effect of listing.</SUBJECT>
              <P>The PE is the designee of the agency head for the purposes of FAR 9.405(a) and (d)(2) and (3) and may, upon the written recommendation of the pertinent Head of the Contracting Activity (hereinafter “HCA”), make the determinations referenced therein.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="108"/>
              <SECTNO>3509.405-1</SECTNO>
              <SUBJECT>Continuation of current contracts.</SUBJECT>
              <P>The PE is the designee of the agency head for the purposes of FAR 9.405-1(a) and (c) and may, upon the written recommendation of the pertinent HCA, take the actions referenced therein.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.405-2</SECTNO>
              <SUBJECT>Restrictions on subcontracting.</SUBJECT>
              <P>(a) The PE is the designee of the agency head for the purposes of FAR 9.405-2(a) and may, upon the written recommendation of the pertinent HCA, take the action referenced therein.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.406</SECTNO>
              <SUBJECT>Debarment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3509.406-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(c) The PE is the designee of the agency head for the purposes of FAR 9.406-1(c) and may, upon the written recommendation of the pertinent HCA, take the action referenced therein.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.406-2</SECTNO>
              <SUBJECT>Causes for debarment.</SUBJECT>
              <P>In addition to the causes listed in FAR 9.406-2, the use of a Panama Canal Commission employee or a member of the Commission's Board of Directors as an agent or advocate for a Commission contractor, or prospective contractor, shall be a cause for debarment.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.406-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) <E T="03">Investigation and referral.</E>
              </P>
              <P>(1)(i) Any Commission official or employee who suspects or has knowledge of any conduct, statement, act, or omission of, or attributable to, a Commission contractor or a potential Commission contractor which could justify debarment under FAR subpart 9.4 or this subpart shall immediately report this information to the Commission General Counsel (hereinafter “GC”) or to the appropriate contracting officer.</P>
              <P>(ii) Any Commission official or employee who suspects or has knowledge that a debarred individual or company has reestablished itself under a new name shall immediately report this information to the GC or to the appropriate contracting officer.</P>
              <P>(2) When the GC receives such information he shall refer the matter to the appropriate contracting officer for investigation and shall notify the PE and the pertinent HCA. When the contracting officer receives such information he shall notify the PE and the pertinent HCA.</P>
              <P>(3) The contracting officer shall, in coordination with the pertinent HCA, promptly investigate the matter, assemble all relevant information and prepare a written report containing all available evidentiary material, including copies of indictments and conviction notices when applicable, and the names of the owners and officers, as well as any affiliates, of the contractor in question. The written report shall include a recommendation whether a debarment action should be commenced and, if so, shall identify the causes for debarment, see FAR 9.406-2 and 3509.406-2 of this subpart, and identify each company and individual, including divisions of companies and affiliates, which the contracting officer recommends should be specifically named in the action.</P>
              <P>(4) The contracting officer shall submit his report to the pertinent HCA and a copy thereof to the PE and the GC. The HCA shall study the report and promptly advise the PE, in writing, whether or not he concurs in the contracting officer's recommendation and shall explain the reasons for his concurrence or nonconcurrence.</P>
              <P>(5) The PE shall study the contracting officer's report and the recommendation of the HCA. If the HCA and the PE agree that a debarment action should not be commenced, the PE shall so inform the debarring official and shall prepare a memorandum for record describing and closing the matter. If, however, either the HCA or the PE recommend that a debarment action should be commenced, the PE shall forward the contracting officer's report to the debarring official, together with the recommendation of the HCA as well as the PE's own written recommendation.</P>
              <P>(b) <E T="03">Decisionmaking process.</E>
              </P>

              <P>(1) If the debarring official, after reviewing the contracting officer's report and the recommendations of the HCA and the PE, considering fully the provisions of FAR 9.402 and 9.406-1(a), and consulting with the GC, determines there is a reasonable basis to commence a debarment action, the debarring official shall instruct the PE to <PRTPAGE P="109"/>sign and send to each specifically named company, individual or affiliate to which the action is to apply, via certified mail, return receipt requested, either:</P>

              <P>(i) An informal notice of the Commission's intention to propose debarment, <E T="03">see</E> 3509.406-3(b)(2) of this subpart; or</P>
              <P>(ii) A formal notice of the Commission's proposal to debar under FAR 9.406-3(c).</P>
              <P>(2) An informal notice of the Commission's intention to propose debarment shall advise the addressee, in writing, of the following:</P>
              <P>(i) The issuance under FAR 9.406-3(c) of a formal notice of proposal to debar the addressee is seriously being considered by the Commission;</P>
              <P>(ii) The basic factual reasons for the contemplated debarment;</P>
              <P>(iii) The causes relied upon under FAR 9.406-2 and 3509.406-2 of this subpart;</P>
              <P>(iv) The Commission's procedures governing the debarment process;</P>
              <P>(v) The addressee's right to reply to the PE in writing within 21 calendar days of receipt of the informal notice, and show cause why the Commission should not issue, to the addressee, a formal notice of proposal to debar under FAR 9.406-3(c) for the reasons and causes cited by the Commission;</P>
              <P>(vi) That, if the PE does not receive a reply from the addressee to the informal notice within 21 calendar days of the addressee's receipt of the informal notice, the Commission will issue to the addressee a formal notice of proposal to debar;</P>
              <P>(vii) The effect of the issuance of a formal notice of proposal to debar;</P>
              <P>(viii) The potential effect of an actual debarment; and</P>
              <P>(ix) That, while the Commission will carefully consider the content of a timely reply to the informal notice, the Commission reserves the right to issue a formal notice of proposal to debar without additional discussion or correspondence.</P>
              <P>(3) The PE shall study the timely reply of an addressee to an informal notice and shall forward the reply to the GC and the debarring official with the PE's evaluation and recommendation.</P>
              <P>(4) If, after reviewing a timely reply to an informal notice, as well as the views of the PE and the GC, the debarring official determines, considering fully the provisions of FAR 9.402 and 9.406-1(a), that a formal debarment action should commence, the debarring official shall instruct the PE to sign and send a formal notice of proposal to debar to the addressee.</P>
              <P>(c) <E T="03">Notice of proposal to debar.</E> In addition to the matters listed at FAR 9.406-3(c), a formal notice of proposal to debar shall advise the contractor and any specifically named individual or affiliate of the specific, fundamental allegations of material fact supporting the proposed debarment.</P>
              <P>(d) <E T="03">Debarring official's decision.</E>
              </P>
              <P>(1) A submission in opposition to the Commission's formal notice of proposal to debar presented by a contractor, or any named individual or affiliate, shall include information and argument in opposition to the proposed debarment, including any additional specific information or documents that raise a genuine dispute over material facts. The submission shall be addressed to the PE.</P>
              <P>(2) If a timely submission in opposition to a formal notice of proposal to debar is not presented by a named contractor, individual or affiliate to whom a formal notice was sent, the PE shall, with respect only to each such contractor, individual or affiliate that failed to present a timely submission, study all the information in the administrative record and shall forward the entire record to the debarring official with an evaluation and recommendation whether to debar the nonresponding contractor, individual or affiliate and, if so, for what period of time.</P>
              <P>(3) If a timely submission in opposition to a formal notice of proposal to debar is submitted in actions based upon a conviction or civil judgment, the PE shall evaluate all the information in the administrative record, including the submission in opposition, and shall forward these materials to the debarring official with a recommendation whether to debar and, if so, for what period of time.</P>

              <P>(4)(i) If a timely submission in opposition to a formal notice of proposal to <PRTPAGE P="110"/>debar is presented in actions not based upon a conviction or civil judgment, the PE shall evaluate the formal notice of proposal to debar and the submission in opposition and shall determine, with the advice of the GC, if the submission raises a genuine dispute over any facts material to the proposed debarment. If it does not, the PE shall forward the entire administrative record, including the submission in opposition, to the debarring official with an evaluation and a recommendation whether to debar and, if so, for what period of time.</P>
              <P>(ii) If, however, the PE determines, in consultation with the GC, that a timely submission in opposition to a formal notice of proposal to debar in actions not based upon a conviction or civil judgment raises a genuine dispute over any fact material to the proposed debarment, the PE shall so advise the contractor, named individual or affiliate, and shall inquire whether a fact-finding hearing is desired. If a fact-finding hearing is not requested by the contractor, named individual or affiliate, the PE shall forward the entire administrative record, including the submission in opposition, to the debarring official with an evaluation and a recommendation whether to debar and, if so, for what period of time.</P>
              <P>(iii) If a fact-finding hearing is requested, the PE shall appoint a fact-finding official to whom all matters involving disputed material facts shall be referred. The PE will provide the fact-finding official with a copy of the entire administrative record including the submission in opposition. The fact-finding official shall study the Commission's notice(s) of proposal to debar and the submission(s) in opposition, and shall identify specifically the material facts in genuine dispute and so advise the pertinent contractor, named individual or affiliate, as well as the Commission's designated advocate in the Office of General Counsel. A fact-finding hearing shall be scheduled and conducted by the fact-finding official, and shall take place in a Commission facility in Panama unless the fact-finding official determines that fundamental fairness compels the use of another location. The rules governing the fact-finding hearing shall be established by the fact-finding official but shall conform fully with FAR 9.406-3(b)(2) and (d)(2) and (3).</P>
              <P>(5) The fact-finding official shall present written findings of fact and the transcribed record of the hearing, if made, to the debarring official within 21 calendar days from his receipt of the transcript or from the final day of the hearing if no transcript is ordered. The findings shall resolve each material fact previously determined to be in genuine dispute based on a preponderance of the evidence presented.</P>
              <P>(6) Upon receiving the complete administrative record and the evaluation and recommendation of the PE or, if there was a fact-finding hearing, upon receiving the hearing record and the findings of fact of the fact-finding official and the evaluation and recommendation of the PE, the debarring official shall, considering fully the provisions of FAR 9.402 and 9.406-1(a), make a final decision whether to impose debarment. If debarment is chosen, the debarring official shall also determine the period of debarment.</P>
              <P>(e) <E T="03">Notice of debarring official's decision.</E> The debarring official shall promptly notify the contractor and any named individual or affiliate of the final decision in writing by certified mail, return receipt requested.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.406-70</SECTNO>
              <SUBJECT>Settlement.</SUBJECT>
              <P>(a) At any time prior to the debarring official's issuance of a final decision whether to debar, the debarring official may, in the best interests of the U.S. Government, forgo or withdraw a proposed debarment by entering into a written agreement with the contractor, named individual or affiliate, in which the contractor, individual or affiliate agrees to perform, accomplish or implement such remedial measures or mitigating factors as are listed at FAR 9.406-1(a). The contractor, individual or affiliate shall also agree that its failure to observe any term or condition of the agreement shall constitute sufficient cause for the immediate imposition of debarment by the debarring official without entitlement to a fact-finding hearing.</P>

              <P>(b) The debarring official shall not enter into a settlement agreement if the proposed debarment is based on a <PRTPAGE P="111"/>conviction of or civil judgment for any of the causes in FAR 9.406-2(a).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.406-71</SECTNO>
              <SUBJECT>Voluntary exclusion.</SUBJECT>
              <P>(a)(1) At any time prior to the debarring official's issuance of a final decision whether to debar, the debarring official may, in the best interests of the U.S. Government, forgo or withdraw a proposed debarment by entering into a written agreement with the contractor, named individual or affiliate, in which the contractor, individual or affiliate agrees to voluntarily refrain, for a specified period of time, from attempting to obtain, and from entering into, any contract, purchase agreement or other form of contractual relationship, regardless of dollar amount, with, as the debarring official may determine, either: (i) the Commission; or (ii) the Commission and one or more, or all, other agencies, departments or entities of the U.S. Government.</P>
              <P>(2) A voluntary exclusion will not be reported to the GSA nor appear in the “List of Parties Excluded from Federal Procurement and Nonprocurement Programs,” and if the contractor, individual or affiliate is currently listed due to a Commission notice of proposal to debar the PE will advise the GSA of the voluntary exclusion and request the immediate cessation of the listing. The contractor, individual or affiliate shall agree that its failure to observe any term or condition of the voluntary exclusion shall constitute sufficient cause for the immediate imposition of debarment by the debarring official without entitlement to a fact-finding hearing.</P>
              <P>(b) The debarring official shall not enter into a voluntary exclusion agreement if the proposed debarment is based on a conviction of or civil judgment for any of the causes in FAR 9.406-2(a).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.407</SECTNO>
              <SUBJECT>Suspension.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3509.407-2</SECTNO>
              <SUBJECT>Causes for suspension.</SUBJECT>
              <P>In addition to the causes listed in FAR 9.407-2, the cause for debarment identified in 48 CFR (PAR) 3509.406-2 also applies to suspension actions.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.407-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) The procedures set forth in 48 CFR (PAR) 3509.406-3 for debarment also apply, insofar as they are compatible with the procedures set forth in FAR 9.407-3, to suspension actions except those procedures identified in paragraph (b) of this subsection.</P>

              <P>(b) The following procedures in 48 CFR (PAR) 3509.406-3 do <E T="03">not</E> apply to suspension actions: 3509.406-3(b)(1)(i), 3509.406-3(b) (2) through (4) and 3509.406-3(c).</P>
              <P>(c) <E T="03">Notice of suspension.</E> In addition to the matters listed at FAR 9.407-3(c), in actions not based on an indictment, a notice of suspension shall advise the contractor and any specifically named individual or affiliate of the specific, fundamental allegations of material fact supporting the suspension.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.407-70</SECTNO>
              <SUBJECT>Settlement.</SUBJECT>
              <P>Where a suspension is being considered, the suspending official may enter into a settlement agreement in the same manner and under the same terms as are provided in 48 CFR (PAR) 3509.406-70.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.407-71</SECTNO>
              <SUBJECT>Voluntary exclusion.</SUBJECT>
              <P>Where a suspension is being considered, the suspending official may enter into a voluntary exclusion agreement in the same manner and under the same terms as are provided in 48 CFR (PAR) 3509.406-71.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.470</SECTNO>
              <SUBJECT>Special notice.</SUBJECT>
              <P>The Commander in Chief, United States Southern Command, shall be notified by the Procurement Executive of the issuance of any Commission notice of proposal to debar and of any debarment or suspension decision made by the debarring or suspending official.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.471</SECTNO>
              <SUBJECT>Equal application.</SUBJECT>

              <P>These procedures for debarment and suspension apply equally to all firms, individuals and affiliates doing business with the Panama Canal Commission regardless of their nationality, residence or location.
              </P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="112"/>
            <HD SOURCE="HED">Subpart 3509.5—Organizational Conflicts of Interest</HD>
            <SECTION>
              <SECTNO>3509.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart establishes Commission policy and procedures for identifying, evaluating, and resolving organizational conflicts of interest. It is the Commission's policy to avoid, neutralize, or mitigate organizational conflicts of interest. If the Commission is unable to neutralize or mitigate the effects of a potential conflict of interest, it will disqualify the prospective contractor or will terminate the contract when potential or actual conflicts are identified after award.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.502</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>This subpart applies to all Commission contracts except agreements with other Federal agencies.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.503</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <P>The Commission's General Counsel is designated as the authority to waive any general rule or procedure of this subpart by determining that its application in a particular situation would not be in the Commission's interest. Any request for waiver must be in accordance with FAR 9.503.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.504</SECTNO>
              <SUBJECT>Contracting officer responsibilities.</SUBJECT>
              <P>(a) Contracting officers will be responsible for determining the existence of actual and potential organizational conflicts of interest which would result from the award of the contract. The contracting officer will be guided by information submitted by offerors and by the contracting officer's own judgment. The contracting officer may obtain the advice of legal counsel and the assistance of technical specialists in evaluating potential organizational conflicts.</P>
              <P>(b) If it is determined that organizational conflicts of interest will be created by the award of the contract, the contracting officer may find an offeror nonresponsible.</P>
              <P>(c) Notwithstanding the existence of organizational conflicts of interest, it may be determined that the award of the contract would be in the best interest of the Commission. In that case, the contracting officer may, with the approval of the cognizant Head of the Contracting Activity, set terms and conditions which will reduce the organizational conflicts of interest to the greatest extent possible.</P>
              <P>(d) The contracting officer shall, in addition to any certifications required by this subpart, require in all solicitations for consulting services that the offeror submit as part of an offer a statement which discloses all relevant facts relating to existing or potential organizational conflicts of interest surrounding the contract, including disclosure of such conflicts of interest with respect to proposed subcontractors.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.506</SECTNO>
              <SUBJECT>Information sources.</SUBJECT>
              <P>(a) <E T="03">Disclosure.</E> At the request of the contracting officer, prospective Commission contractors responding to solicitations or submitting unsolicited proposals shall provide information to the contracting officer for use in identifying, evaluating, or resolving potential organizational conflicts of interest. The submittal may be a certification or a disclosure, pursuant to paragraphs (a)(1) or (2) of this section.</P>
              <P>(1) If the prospective contractor is not aware of any information bearing on the existence of any organizational conflict of interest, the contractor shall so certify.</P>
              <P>(2) Prospective contractors not certifying in accordance with paragraph (a)(1) of this section must provide a disclosure statement which describes concisely all relevant facts concerning any past, present, or planned interests relating to the work to be performed and bearing on whether they, including their chief executives, directors, or any proposed consultant or subcontractor, may have a potential organizational conflict of interest.</P>
              <P>(b) <E T="03">Failure to disclose information.</E> Any prospective contractor failing to provide full disclosure, certification, or other required information will not be eligible for award. Nondisclosure or misrepresentation of any relevant information may also result in disqualification from award, termination of the contract for default, or debarment from Government contracts, as well as other legal action or prosecution. In response to solicitations requesting the <PRTPAGE P="113"/>information in paragraph (a) of this section, the Commission will consider any inadvertent failure to provide disclosure certification as a “minor informality” (as explained in FAR 14.405); however, the prospective contractor must correct the omission promptly.</P>
              <P>(c) <E T="03">Exception.</E> When the contractor has previously submitted a conflict of interest certification or disclosure for a contract, only an update of such statement is required when the contract is modified.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.507</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) The contracting officer shall document in writing the resolution of any potential or actual conflicts of interest identified. This documentation shall be reviewed and approved by the General Counsel prior to award. If the organizational conflict of interest cannot be resolved, the contracting officer shall disqualify the prospective contractor from receiving the contract award.</P>
              <P>(b) The General Counsel shall review and make the final decision required at FAR 9.507(c)(4) on any contractor request for higher review of the contracting officer's decision.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.508</SECTNO>
              <SUBJECT>Solicitation provision and contract clause.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3509.508-1</SECTNO>
              <SUBJECT>Solicitation provision.</SUBJECT>
              <P>The contracting officer shall insert the provision at 3552.209-70, Organizational Conflict of Interest Certification/Disclosure in solicitations that in the contracting officer's judgment may be susceptible to organizational conflicts of interest.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3509.508-2</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>The contracting officer shall insert the clause at 3552.209-71, Organizational Conflict of Interest, in solicitations and contracts that will include the provision at 3552.209-70, Organizational Conflict of Interest Certification/Disclosure.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3510</EAR>
          <HD SOURCE="HED">PART 3510—SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE DESCRIPTIONS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3510.001</SECTNO>
            <SUBJECT>Definitions.</SUBJECT>
            <SECTNO>3510.004</SECTNO>
            <SUBJECT>Selecting specifications or descriptions for use.</SUBJECT>
            <SECTNO>3510.004-70</SECTNO>
            <SUBJECT>Brand name or equal purchase descriptions.</SUBJECT>
            <SECTNO>3510.007</SECTNO>
            <SUBJECT>Deviations.</SUBJECT>
            <SECTNO>3510.011</SECTNO>
            <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7644, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3510.001</SECTNO>
            <SUBJECT>Definitions.</SUBJECT>
            <P>
              <E T="03">Salient characteristics</E> mean those particular characteristics that specifically describe the essential physical and/or functional features of a brand name product. They are those essential physical and/or functional features which are identified in the specifications as a mandatory requirement which a proposed “equal” product must possess in order for the product to be considered responsive. The term excludes those physical and/or functional features of a brand name product that:</P>
            <P>(a) Are not essential to the needs of the Commission, or</P>
            <P>(b) Do not affect the suitability of the product for its intended use.</P>
          </SECTION>
          <SECTION>
            <SECTNO>3510.004</SECTNO>
            <SUBJECT>Selecting specifications or descriptions for use.</SUBJECT>
          </SECTION>
          <SECTION>
            <SECTNO>3510.004-70</SECTNO>
            <SUBJECT>Brand name or equal purchase descriptions.</SUBJECT>
            <P>(a) Purchase descriptions which contain references to one or more brand name products followed by the words “or equal” may be used only under the conditions indicated in FAR 10.004(b) (2) and (3) and shall be in accordance with this subsection. The office initiating the “brand name or equal” purchase request is responsible for documenting to the contracting officer's satisfaction that the conditions for its use are valid. Where feasible, all known acceptable brand name products should be referenced.</P>
            <P>(b) The words “or equal” should not be added when the contracting officer has determined, with the concurrence of the General Counsel and the signed approval of the cognizant HCA, that only a particular product meets the essential requirements of the Commission.</P>

            <P>(c) Brand name or equal purchase descriptions shall include, in addition to those characteristics set forth in FAR <PRTPAGE P="114"/>10.004(b)(1) to the extent they are applicable, the following type of information to clearly identify the specific item named by brand(s) and its salient characteristics:</P>
            <P>(1) Complete common generic identification of the item required;</P>
            <P>(2) Applicable model, make, or catalog number for each brand name product referenced, and identity, if applicable, of the commercial catalog in which it appears;</P>
            <P>(3) Name of manufacturer, producer, or distributor of each brand name product reference (and address if company is not well known); and</P>
            <P>(4) All salient characteristics of the brand name product or products which have been determined by the initiating office, with the concurrence of the contracting officer, to be essential to meet the Commission's minimum physical and/or functional requirements. The purchase description shall state or otherwise indicate that the salient characteristics are mandatory features which proposed equal products must possess in order to be considered responsive.</P>

            <P>(d) Except as provided in paragraph (e) of this subsection, when a brand name or equal purchase description is included in a solicitation, the following shall be inserted after each item so described in the solicitation schedule for completion by the offeror:
            </P>
            <EXTRACT>
              <FP>To be completed by offeror:</FP>
              <FP SOURCE="FP-DASH">Manufacturer's Name:</FP>
              <FP SOURCE="FP-DASH">Manufacturer's Address:</FP>
              <FP SOURCE="FP-DASH">Brand Name of Product (if any):</FP>
              <NOTE>
                <HD SOURCE="HED">Note:</HD>
                <P>Offerors are cautioned and advised to read provision 3552.210-70, Brand Name Products or Equal, located elsewhere in this solicitation, prior to completing the above. As indicated therein, offerors proposing to furnish an “equal” product must furnish all descriptive material necessary to determine the acceptability of such product.</P>
              </NOTE>
            </EXTRACT>
            

            <P>(e) Where component parts of an end item are described in the solicitation by a brand name or equal purchase description and the contracting officer determines that application of the provision at 3552.210-70 to such component parts would be impracticable, the requirements of paragraph (d) of this subsection and 3510.011(h) shall not apply with respect to such component parts. However, if the provision is included in the solicitation for other reasons, there shall also be included in the solicitation a statement to identify either the component parts (described by brand name or equal purchase descriptions) to which the provision applies or those to which it does not apply. Depending upon whether the former or latter alternative is used, the statement should be substantially as follows:
            </P>
            <EXTRACT>

              <P>The provision 3552.210-70, Brand Name Products or Equal, located elsewhere in this solicitation, applies to the following component parts: (List the component parts to which the provision applies.)
              </P>
              <P>or
              </P>
              <P>The provision 3552.210-70, Brand Name Products or Equal, located elsewhere in this solicitation, does not apply to the following component parts: (List the component parts to which the provision does not apply.)</P>
            </EXTRACT>
            
            <FP>This paragraph (e) also applies to accessories related to an end item where a brand name or equal purchase description of the accessories is a part of the description of the end item.</FP>
            <P>(f) When considered appropriate by the contracting officer, solicitations incorporating brand name or equal purchase descriptions may require the submission of offer samples in the case of offerors proposing to furnish “equal” products; such samples shall not be required from offerors who offer brand name products referenced in purchase descriptions.</P>
            <P>(g) Offers proposing to furnish products other than those specifically referenced by brand name shall be considered for award when the contracting officer determines under provision 3552.210-70 that the offered products meet the salient characteristics identified in the purchase description. Offers shall not be rejected as nonresponsive for failure of the product to equal a characteristic of a brand name product if such characteristic was not specified as a salient characteristic in the brand name or equal purchase description. However, if it is clearly established that the unspecified characteristic is essential to the intended use, the solicitation is defective and no award shall be made. In such cases, the contracting officer should resolicit the requirements, using a purchase description that sets forth all salient characteristics.</P>

            <P>(h) The brand name or equal policies and procedures in this subsection may <PRTPAGE P="115"/>be used in small purchase acquisitions to the extent that they are applicable and practicable.</P>
            <P>(i) This subsection is not applicable to construction contracts since the use of equal equipment, materials, articles, or processes are covered by FAR clause 52.236-5, Material and Workmanship.</P>
          </SECTION>
          <SECTION>
            <SECTNO>3510.007</SECTNO>
            <SUBJECT>Deviations.</SUBJECT>
            <P>Heads of Contracting Activities are designated to authorize the deviations permitted under FAR 10.007 and are responsible for ensuring that the actions required by FAR 10.007 are accomplished.</P>
          </SECTION>
          <SECTION>
            <SECTNO>3510.011</SECTNO>
            <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
            <P>(h) The contracting officer shall insert the provision at 3552.210-70, Brand Name Products or Equal, in solicitations that call for the delivery of a brand name or equal product, selecting the language that is appropriate for (1) invitation for bids, or (2) requests for proposals, as parenthetically indicated in the provision. (However, see 3510.004-70(e) regarding the applicability of the provision to component parts of an end item and to accessories related to an end item.)</P>
          </SECTION>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="116"/>
        <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        <PART>
          <EAR>Pt. 3513</EAR>
          <HD SOURCE="HED">PART 3513—SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3513.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3513.1—General</HD>
              <SECTNO>3513.105</SECTNO>
              <SUBJECT>Small business-small purchase set-asides.</SUBJECT>
              <SECTNO>3513.107</SECTNO>
              <SUBJECT>Solicitation and evaluation of quotations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3513.2—Blanket Purchase Agreements</HD>
              <SECTNO>3513.201</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3513.203</SECTNO>
              <SUBJECT>Establishment of Blanket Purchase Agreements.</SUBJECT>
              <SECTNO>3513.203-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3513.204</SECTNO>
              <SUBJECT>Purchases under Blanket Purchase Agreements.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3513.5—Purchase Orders</HD>
              <SECTNO>3513.505</SECTNO>
              <SUBJECT>Purchase order and related forms.</SUBJECT>
              <SECTNO>3513.505-2</SECTNO>
              <SUBJECT>Agency order forms in lieu of Optional Forms 347 and 348.</SUBJECT>
              <SECTNO>3513.505-70</SECTNO>
              <SUBJECT>Purchase requisition.</SUBJECT>
              <SECTNO>3513.505-71</SECTNO>
              <SUBJECT>Division Purchase Order.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>54 FR 7645, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3513.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements and supplements FAR part 13 and provides Commission policies and procedures relating to small business-small purchase set-asides, blanket purchase agreements, and purchase order forms.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3513.1—General</HD>
            <SECTION>
              <SECTNO>3513.105</SECTNO>
              <SUBJECT>Small business-small purchase set-asides.</SUBJECT>
              <P>(a) The requirements of Public Law 95-507 relating to setting aside acquisitions of supplies or services with an anticipated dollar value of $25,000 or less do not apply to such purchases when delivery or performance is to be made to or within the Republic of Panama. The requirements do apply to Commission offices located in the United States for the purchase of supplies or services for their own use and not for delivery or performance in Panama.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3513.107</SECTNO>
              <SUBJECT>Solicitation and evaluation of quotations.</SUBJECT>
              <P>(a) <E T="03">Forms.</E> (4) The following Commission forms may be used by the Logistical Support Division in lieu of Standard Form 18 for requesting small purchase price quotations:</P>
              <P>(i) <E T="03">Panama Canal Form No. 1821, Request For Quotation.</E> This form may be used by the Purchasing and Contracts Branch for the solicitation of nonstock items and services. It must be used in conjunction with forms 7071 and 7074 (see paragraph (a)(4)(iv) of this section).</P>
              <P>(ii) <E T="03">Panama Canal Form No. 1822, Request For Quotation Continuation.</E> This form may be used with Panama Canal Form No. 1821 when additional space is needed.</P>
              <P>(iii) <E T="03">Panama Canal Form No. 2008, This Is A Request For Prices; It Is Not An Order.</E> This form may be used by the Inventory Management Branch for the solicitation of standard stock items. It must be used in conjunction with forms 7071 and 7074 (see paragraph (a)(4)(iv) of this section).</P>
              <P>(iv) <E T="03">Panama Canal Commission Form 7071, General Contract Clauses And Provisions, Small Purchases;</E> and <E T="03">Panama Canal Commission Form 7074, Information Sheet.</E> These two forms shall be forwarded to prospective suppliers together with either Panama Canal Form No. 1821 or Panama Canal Form No. 2008, as applicable.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3513.2—Blanket Purchase Agreements</HD>
            <SECTION>
              <SECTNO>3513.201</SECTNO>
              <SUBJECT>General.</SUBJECT>

              <P>(a) Except for the rental of construction equipment, blanket purchase agreements (BPA's) may be established only by contracting officers within the General Services Bureau. The contracting officers authorized to establish BPA's are:<PRTPAGE P="117"/>
              </P>
              <P>(1) Chief, Inventory Management Branch for acquisition of inventory stocks;</P>
              <P>(2) Chief, New Orleans Branch for acquisition of parts in the New Orleans area for the Motor Transportation Division and such other items as may be designated by the General Services Director;</P>
              <P>(3) Chief, Construction Division, Engineering and Construction Bureau, for the rental of construction equipment; and</P>
              <P>(4) Chief, Purchasing and Contracts Branch for acquisition of supplies or services not covered under paragraphs (a) (1) through (3) of this section.</P>
              <CITA>[55 FR 7645, Mar. 2, 1990; 55 FR 38331, Sept. 18, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3513.203</SECTNO>
              <SUBJECT>Establishment of Blanket Purchase Agreements.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3513.203-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) Blanket purchase agreements may be established for supplies or services which are readily available and for which their purchase does not require detailed technical specifications, technical inspection, or complex terms and conditions.</P>
              <P>(b) Only the contracting officer (CO) and officials authorized by a CO and designated in the BPA shall be permitted to request deliveries. Delivery (call) orders shall usually be made by telephone or in person. Before placing a call order against the BPA, each requirement shall be screened for availability from Commission inventory sources and from the mandatory sources of supply prescribed in FAR part 8. Necessary controls shall be maintained by the person placing the call orders under the BPA to ensure that any limitation stated therein is not exceeded. The BPA identification number shall be specified each time a delivery is requested.</P>
              <P>(c) The procedure for establishing and using BPA's is prescribed in the Commission's Financial Systems Manual 14.020, covering BPA's in general, and 14.007, covering BPA's for automotive parts.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3513.204</SECTNO>
              <SUBJECT>Purchases under Blanket Purchase Agreements.</SUBJECT>
              <P>(a) Individual call orders under a BPA shall not exceed the dollar limitation specified in the BPA, which limitation shall not exceed the dollar limitations established by the:</P>
              <P>(1) Engineering and Construction Director for the rental of construction equipment, and</P>
              <P>(2) General Services Director for all other BPA's.</P>
              <P>(b) Purchases under BPA's shall be documented on Panama Canal Form No. 3099, Request For Purchase/Call Order.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3513.5—Purchase Orders</HD>
            <SECTION>
              <SECTNO>3513.505</SECTNO>
              <SUBJECT>Purchase order and related forms.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3513.505-2</SECTNO>
              <SUBJECT>Agency order forms in lieu of Optional Forms 347 and 348.</SUBJECT>
              <P>The following Commission order forms may be used in lieu of Optional Forms 347 and 348 for the purposes described below:</P>
              <P>(a) <E T="03">Panama Canal Form No. 1010, Purchase Order.</E> This form may be used by the Inventory Management Branch (1) for the small purchase acquisition of standard stock items, and (2) as a delivery order for ordering or scheduling deliveries against established contracts or from Government sources of supply.</P>
              <P>(b) <E T="03">Panama Canal Form No. 1820, Purchase Order.</E> This form may be used by the Purchasing and Contracts Branch (1) for the small purchase acquisition of non-stock items and services, and (2) as a delivery order for ordering or scheduling deliveries against established contracts or from Government sources of supply.</P>
              <P>(c) <E T="03">Panama Canal Form No. 3083, Purchase Order Continuation.</E> This form may be used with Panama Canal Form No. 1820 when additional space is needed.</P>
              <P>(d) <E T="03">Panama Canal Form No. 3163, Division Purchase Order.</E> This form may be used by all activities having contracting authority for the decentralized procurement of supplies and services (see 3513.505-71).</P>
              <P>(e) <E T="03">Panama Canal Form No. 3163-MTD, Division Purchase Order.</E> This form may <PRTPAGE P="118"/>be used by the Motor Transportation Division and the New Orleans Branch, Logistical Support Division for purchases of nonstandard stock automotive repair parts that do not exceed dollar amounts established by the General Services Director.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3513.505-70</SECTNO>
              <SUBJECT>Purchase requisition.</SUBJECT>
              <P>Panama Canal Form No. 1821, Purchase Requisition, shall be used by requiring activities to request purchasing action by the Purchasing and Contracts Branch, Logistical Support Division. The procedure for using purchase requisitions is prescribed in the Commission's Financial Systems Manual 14.010.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3513.505-71</SECTNO>
              <SUBJECT>Division Purchase Order.</SUBJECT>
              <P>(a) <E T="03">General.</E> The Division Purchase Order (DPO), PCC Form No. 3163, may be used by all activities that have contracting authority for the decentralized procurement of supplies and services (see 3501.601(b)). When repetitive purchases within the authorized DPO dollar limitation are made for the same supplies or services, the activity shall request the Chief, Purchasing and Contracts Branch to establish a BPA (see subpart 3513.2). A detailed procedure for the use of the DPO is prescribed in the Commission's Financial Systems Manual 14.005, covering DPO's in general, and 14.007, covering DPO's for automotive parts.</P>
              <P>(b) <E T="03">Responsibilities.</E> (1) Bureau directors and heads of independent units that use the DPO shall—</P>
              <P>(i) Ensure that, whenever practicable, the functions of procurement approval, receipt documentation, and payment approval in the use of a DPO are performed by three separate persons. In no case shall the same person be permitted to perform all three functions.</P>
              <P>(ii) Approve and sign all DPO's, subject to the conditions specified in paragraphs (b) (2)(iii) and (3) of this subsection, or appoint in writing by position or by name one or more purchasing agents to act as approval and signatory authority. Such appointees shall be at an organizational level sufficient to ensure responsible control over the obligation of funds that the DPO represents.</P>
              <P>(2) Designated purchasing agents shall—</P>
              <P>(i) Approve and sign DPO's within their delegated dollar authority.</P>
              <P>(ii) Supervise the use and issuance of DPO's and verify that such use and issuance are in compliance with the FAR, this PAR, and the Commission's Financial Systems Manual.</P>
              <P>(iii) Ensure that the following conditions exist before approving purchases to be made on DPO's:</P>
              <P>(A) There is a valid need for the supplies or services;</P>
              <P>(B) A unit fund controller has certified the availability of funds for the proposed purchase;</P>
              <P>(C) The vendor is reputable and the price is reasonable; and</P>
              <P>(D) The DPO is not being used as a means to purchase a known requirement in excess of the authorized DPO dollar limitation by fragmentizing the requirement (i.e., by breaking the total quantity of the requirement into smaller quantities that can be purchased on two or more DPO's, each of which does not exceed the authorized dollar limitation but which, collectively, will result in the purchase of the total quantity of the requirement).</P>
              <P>(3) Individuals authorized to approve and sign DPO's shall ensure that Government funds are not expended for standard stock items, unauthorized office supplies, furnishings, appliances, or for items that are intended solely for personal convenience or to satisfy personal desires of an official or that are nonessential to the needs of the Government and do not contribute to the fulfillment of the Commission's mission.</P>
              <P>(4) The General Services Director shall delegate authority for contracting by means of DPO's to bureau directors and heads of independent units. Such delegation shall be published from time to time in bulletin or memorandum form and shall conform to dollar limitations approved by the Administrator.</P>
              <P>(c) <E T="03">Panama Preference.</E> DPO purchases shall conform to the Treaty preference given to supplies and services obtainable in Panama, as prescribed in subpart 3570.1.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="119"/>
          <EAR>Pt. 3514</EAR>
          <HD SOURCE="HED">PART 3514—SEALED BIDDING</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3514.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3514.2—Solicitation of Bids</HD>
              <SECTNO>3514.201-6</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
              <SECTNO>3514.205</SECTNO>
              <SUBJECT>Solicitation mailing lists.</SUBJECT>
              <SECTNO>3514.205-1</SECTNO>
              <SUBJECT>Establishment of lists.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3514.4—Opening of Bids and Award of Contract</HD>
              <SECTNO>3514.404</SECTNO>
              <SUBJECT>Rejection of bids.</SUBJECT>
              <SECTNO>3514.404-1</SECTNO>
              <SUBJECT>Cancellation of invitations after opening.</SUBJECT>
              <SECTNO>3514.406</SECTNO>
              <SUBJECT>Mistakes in bids.</SUBJECT>
              <SECTNO>3514.406-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
              <SECTNO>3514.406-4</SECTNO>
              <SUBJECT>Mistakes after award.</SUBJECT>
              <SECTNO>3514.407</SECTNO>
              <SUBJECT>Award.</SUBJECT>
              <SECTNO>3514.407-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3514.407-6</SECTNO>
              <SUBJECT>Equal low bids.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7647, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3514.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements and supplements FAR part 14 by providing additional solicitation provisions and additional guidance on establishment of solicitation mailing lists, cancellation of invitations after opening, mistakes in bids, and contract award.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3514.2—Solicitation of Bids</HD>
            <SECTION>
              <SECTNO>3514.201-6</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
              <P>(a) In addition to the provisions prescribed in FAR 14.201-6, the contracting officer shall insert in all invitations for bids the provisions at—</P>
              <P>(1) 3552.214-70, Price—Sealed Bidding; and</P>
              <P>(2) 3552.214-73, Caution—Sealed Bidding.</P>
              <P>(b) The contracting officer shall insert the following provisions in all invitations for bids for construction. These provisions may also be used in invitations for bids for supplies or services if the contracting officer determines that their use is appropriate:</P>
              <P>(1) 3552.214-71, Additional Data To Be Submitted.</P>
              <P>(2) 3552.214-72, Rejection of Bids.</P>
              <P>(c) The contracting officer shall insert the provision at 3552.214-74, All or None Award—Sealed Bidding, in invitations for bids for supplies or services if the contracting officer determines that award will be made on an “all or none” basis to one bidder for all items because of the nature of the items (e.g., supply items must interface or otherwise be fully compatible with each other; items covering services are so interrelated that it would be impracticable to split the award).</P>
              <P>(d)(1) The contracting officer shall insert the provision at 3552.214-75, All or None Award—Sealed Bidding—Construction, in invitations for bids for construction work that is estimated to exceed $10,000 if the contracting officer determines:</P>
              <P>(i) To require bidding on all items, and</P>
              <P>(ii) That award will be made on an “all or none” basis to one bidder for all items.</P>
              <P>(2) If the construction work is not estimated to exceed $10,000, the contracting officer shall use the Alternate I version of provision 3552.214-75.</P>
              <P>(3) If the contracting officer determines that:</P>
              <P>(i) The contract work, regardless of its estimated value, will be awarded to one bidder for all the work, and</P>
              <P>(ii) Bidding on all items will not be required, the Alternate II version of provision 3552.214-75 is to be used.</P>
              <CITA>[55 FR 7647, Mar. 2, 1990; 55 FR 38331, Sept. 18, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3514.205</SECTNO>
              <SUBJECT>Solicitation mailing lists.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3514.205-1</SECTNO>
              <SUBJECT>Establishment of lists.</SUBJECT>
              <P>(a) Each Commission contracting activity shall establish solicitation mailing lists as required by FAR 14.205-1.</P>
              <P>(b) In order to carry out the requirements of the Treaty to give preference to the acquisition of supplies and services obtainable from sources in the Republic of Panama, each Commission contracting activity shall develop solicitation lists of local companies which can provide such supplies or services.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="120"/>
            <HD SOURCE="HED">Subpart 3514.4—Opening of Bids and Award of Contract</HD>
            <SECTION>
              <SECTNO>3514.404</SECTNO>
              <SUBJECT>Rejection of bids.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3514.404-1</SECTNO>
              <SUBJECT>Cancellation of invitations after opening.</SUBJECT>
              <P>(c) The Procurement Executive, upon recommendation of the cognizant HCA, is authorized to make the determinations prescribed in FAR 14.404-1(c) when an invitation is to be cancelled and all bids rejected after bid opening but prior to award.</P>
              <P>(e)(1) The Procurement Executive, upon recommendation of the cognizant HCA, may authorize the contracting officer to complete the acquisition through negotiation in the determination to cancel the invitation for bids when the conditions in FAR 14.404-1(c) (6) or (7) apply.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3514.406</SECTNO>
              <SUBJECT>Mistakes in bids.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3514.406-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
              <P>The cognizant HCA is delegated the authority to make the administrative determinations in connection with mistakes in bids prior to award. This authority may not be redelegated. The General Counsel must review and concur with all determinations under FAR 14.406-3.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3514.406-4</SECTNO>
              <SUBJECT>Mistakes after award.</SUBJECT>
              <P>(b) The cognizant HCA is authorized to make determinations on mistakes in bids disclosed after award. The General Counsel must review and concur with all determinations made under FAR 14.406.4.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3514.407</SECTNO>
              <SUBJECT>Award.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3514.407-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) The contracting officer shall make a contract award to that responsible bidder whose bid, conforming to the invitation, will be most advantageous to the Government, considering only the price and price-related factors contained in FAR 14.201-8. Particular attention shall be paid in supply contracts to evaluation of transportation costs to ensure that the award is made to the lowest overall responsive and responsible bidder.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3514.407-6</SECTNO>
              <SUBJECT>Equal low bids.</SUBJECT>
              <P>(a) Contracts shall be awarded in the following order of priority when two or more low bids are equal in all respects:</P>
              <P>(1) Preference shall be given to the bidder whose supplies or services are obtainable in the Republic of Panama;</P>
              <P>(2) When two or more bidders offer supplies or services obtainable in Panama, preference shall be given to the bidder whose bid has a larger percentage of components of Panamanian origin;</P>
              <P>(3) If two or more bidders remain equally low after application of paragraphs (a) (1) and (2) of this subsection, the tie-breaking procedures prescribed in FAR 14.407-6(b) shall be followed;</P>
              <P>(4) The order of precedence established in FAR 14.407-6 (a) and (b).</P>
              <P>(c) When award is made by using the priorities under this 3514.407-6, the contracting officer shall incorporate the written agreement prescribed in FAR 14.407-6(c) in the contract.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3515</EAR>
          <HD SOURCE="HED">PART 3515—CONTRACTING BY NEGOTIATION</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3515.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3515.4—Solicitation and Receipt of Proposals and Quotations</HD>
              <SECTNO>3515.407</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3515.5—Unsolicited Proposals</HD>
              <SECTNO>3515.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3515.502</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3515.503</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3515.504</SECTNO>
              <SUBJECT>Advance guidance.</SUBJECT>
              <SECTNO>3515.506</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
              <SECTNO>3515.506-1</SECTNO>
              <SUBJECT>Receipt and initial review.</SUBJECT>
              <SECTNO>3515.506-2</SECTNO>
              <SUBJECT>Evaluation.</SUBJECT>
              <SECTNO>3515.507</SECTNO>
              <SUBJECT>Contracting methods.</SUBJECT>
              <SECTNO>3515.508</SECTNO>
              <SUBJECT>Prohibitions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3515.8—Price Negotiation</HD>
              <SECTNO>3515.802</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3515.804</SECTNO>
              <SUBJECT>Cost or pricing data.</SUBJECT>
              <SECTNO>3515.804-2</SECTNO>
              <SUBJECT>Requiring certified cost or pricing data.</SUBJECT>
              <SECTNO>3515.804-3</SECTNO>
              <SUBJECT>Exemptions from or waiver of submission of certified cost or pricing data.</SUBJECT>
              <SECTNO>3515.804-6</SECTNO>
              <SUBJECT>Procedural requirements.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3515.9—Profit</HD>
              <SECTNO>3515.902</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <PRTPAGE P="121"/>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7648, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3515.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements and supplements FAR part 15 by providing additional solicitation provisions and by providing Commission policies and procedures on unsolicited proposals, price negotiations, and profit.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3515.4—Solicitation and Receipt of Proposals and Quotations</HD>
            <SECTION>
              <SECTNO>3515.407</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
              <P>(a) In addition to the provisions prescribed in FAR 15.407, the contracting officer shall insert in solicitations the provisions at—</P>
              <P>(1) 3552.215-70, Price; and</P>
              <P>(2) 3552.215-71, Caution.</P>
              <P>(b) The contracting officer shall insert the provision at 3552.215-72, All or None Award, in solicitations for supplies or services if the contracting officer determines that award will be made on an “all or none” basis to one offeror for all items because of the nature of the items (e.g., supply items must interface or otherwise be fully compatible with each other; items covering services are so interrelated that it would be impracticable to split the award). This provision may also be used in solicitations for construction if the contracting officer determines that its use is appropriate.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3515.5—Unsolicited Proposals</HD>
            <SECTION>
              <SECTNO>3515.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart implements and supplements the policies and procedures governing unsolicited proposals prescribed in FAR subpart 15.5. It also establishes the Commission contact point for coordinating the receipt, evaluation, and disposition of unsolicited proposals.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.502</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>It is the policy of the Commission to receive, review, and consider for acceptance unsolicited proposals, as that term is defined in FAR 15.501 and further described in FAR 15.503(c). As indicated in FAR 15.502, such proposals may be accepted for sole source negotiation only when appropriate authority exists in FAR subpart 6.3 and when all conditions in FAR 15.507(b) have been complied with.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.503</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(f) Unsolicited proposals for the performance of services are, except as discussed in this paragraph, unacceptable as the performance of services is unlikely to necessitate innovative and unique concepts. There may be rare instances in which an unsolicited proposal offers an innovative and unique approach to the accomplishment of a service. If such a proposal offers a previously unknown or an alternative approach to generally recognized techniques for the accomplishment of a specific service, and such approach will provide significantly greater economy or enhanced quality, it may be considered for acceptance, provided that such acceptance can be made in conformance with the policy in 3515.502.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.504</SECTNO>
              <SUBJECT>Advance guidance.</SUBJECT>
              <P>(a) It is not uncommon for sales representatives and engineers to approach field personnel of the Commission to discuss their products or proposals. Bureau Directors and Heads of Independent Units shall take the necessary steps to ensure that Commission employees do not make any commitments, explicit or implied, on behalf of the Commission to eventually procure such products or proposals. Whenever any person orally makes an “unsolicited proposal”, Commission personnel shall inform the offeror that unsolicited proposals must be in writing and that further information should be obtained from the Commission's Procurement Executive or Assistant Procurement Executive before the offeror proceeds with the submission of a written proposal. Commission personnel may provide copies, if practicable, of FAR subpart 15.5 and subpart 3515.5 of this regulation to persons interested in submitting unsolicited proposals.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="122"/>
              <SECTNO>3515.506</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
              <P>(a) In order to allow the Commission sufficient time to evaluate the unsolicited proposal and negotiate any resultant contract, prospective contractors should submit their proposals, in triplicate, well in advance of the time they desire to commence their effort or activity. A minimum of six months advance submission is suggested (see FAR 15.505(c)(2)).</P>
              <P>(b) The Procurement Executive is the Commission contact point to coordinate the receipt and handling of unsolicited proposals within the commission.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.506-1</SECTNO>
              <SUBJECT>Receipt and initial review.</SUBJECT>
              <P>(a) The Procurement Executive shall conduct an initial review of each unsolicited proposal to determine if it appears to (1) constitute a valid unsolicited proposal as described in FAR 15.503(c), and (2) meet the requirements contained in FAR 15.506-1(a). If so, the Procurement Executive shall acknowledge its receipt to the sender and initiate processing of the proposal for evaluation in accordance with 3515.506-2 of this subpart. If the proposal does not meet the requirements of FAR 15.506-1(a), or otherwise does not qualify as an unsolicited proposal, the Procurement Executive shall return it to the sender with appropriate comments.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.506-2</SECTNO>
              <SUBJECT>Evaluation.</SUBJECT>
              <P>(a) Promptly after receipt of an unsolicited proposal deemed to satisfy the requirements of 3515.506-1(a), the Procurement Executive shall forward the original and all copies to the cognizant contracting officer for further coordination of the technical evaluation of the proposal. The cognizant contracting officer shall (1) determine the appropriate Commission organization that would fund the acquisition (see FAR 15.507(b)(3)) in the event the unsolicited proposal would be acceptable for a negotiated award pursuant to FAR 15.507(b), and (2) forward a copy to that organization for technical evaluation. If more than one organization has a potential interest in the proposal, or should otherwise be included in the evaluation phase because of its technical expertise, copies of the proposal shall be circulated to each such office.</P>
              <P>(b) Evaluating organizations shall complete their evaluations as quickly as practicable and forward them, together with all copies of the unsolicited proposal, to the cognizant contracting officer. Evaluations shall take into consideration the factors in FAR 15.506-2(a), shall be in writing, and shall include, in addition to a comprehensive technical analysis and conclusion(s), a recommendation as to the ultimate disposition of the proposal. When the recommendation is to accept the unsolicited proposal, the evaluation shall include the documentation required in FAR 15.507(b)(3).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.507</SECTNO>
              <SUBJECT>Contracting methods.</SUBJECT>
              <P>(a) If the unsolicited proposal is not recommended for acceptance after technical evaluation, the cognizant contracting officer shall return the proposal and all copies thereof to the offeror, citing the reasons why the proposal is not acceptable. A copy of the letter shall be furnished to the Procurement Executive.</P>
              <P>(c) If the unsolicited proposal is acceptable as a basis for negotiation, the cognizant contracting officer shall:</P>
              <P>(1) Obtain the concurrence of the General Counsel before proceeding with negotiations, and</P>
              <P>(2) Advise the Procurement Executive in writing of such action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.508</SECTNO>
              <SUBJECT>Prohibitions.</SUBJECT>
              <P>(b) All unsolicited proposals received by units of the Commission shall be treated “FOR OFFICIAL USE ONLY” and shall be protected from unauthorized disclosure. No copies shall be made except as authorized by the Procurement Executive or cognizant contracting officer, as appropriate. All Commission personnel who handle a proposal are responsible for safeguarding the information therein, and shall not disclose the information to unauthorized personnel within or outside of the Commission.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3515.8—Price Negotiation</HD>
            <SECTION>
              <SECTNO>3515.802</SECTNO>
              <SUBJECT>Policy.</SUBJECT>

              <P>It is the policy of the Commission to obtain the cost or pricing data required pursuant to FAR 15.804 from all U.S. or <PRTPAGE P="123"/>foreign (including Panama) prime contractors and subcontractors.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.804</SECTNO>
              <SUBJECT>Cost or pricing data.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3515.804-2</SECTNO>
              <SUBJECT>Requiring certified cost or pricing data.</SUBJECT>
              <P>When determining the contract amount for purposes of applying the dollar threshold at FAR 15.804-2(a) for requesting certified cost or pricing data, the value of the contract shall include any priced options. Exercise of a priced option is not considered a price adjustment and does not require submission of cost or pricing data.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.804-3</SECTNO>
              <SUBJECT>Exemptions from or waiver of submission of certified cost or pricing data.</SUBJECT>
              <P>All findings rendered pursuant to FAR 15.804-3 (b)(2)(iii) and (c)(8) shall be approved by the cognizant HCA with the concurrence of the General Counsel. The exemptions permitted under FAR 15.804-3(g) and the waivers permitted under FAR 15.804-3(i) shall be authorized by the cognizant HCA with the concurrence of the General Counsel.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3515.804-6</SECTNO>
              <SUBJECT>Procedural requirements.</SUBJECT>
              <P>For requests for proposals or modifications not exceeding $25,000, the contracting officer may require contractors to submit information for cost or price analysis on Panama Canal Form No. 6122, Cost Breakdown, at 3553.215.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3515.9—Profit</HD>
            <SECTION>
              <SECTNO>3515.902</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) The Commission shall use a structured approach to determine the profit or fee prenegotiation objective in acquisition actions of $500,000 or more that require cost analysis based on the profit analysis factors in FAR 15.905.</P>
              <P>(b) The following types of acquisitions are exempt from the requirements of the structured approach, but the contracting officer shall comply with FAR 15.905-1 when analyzing profit for these contracts or actions:</P>
              <P>(1) All actions which do not require cost analysis;</P>
              <P>(2) Architect-engineer contracts;</P>
              <P>(3) Construction contracts;</P>
              <P>(4) Contracts primarily requiring delivery of material supplied by subcontractors;</P>
              <P>(5) Termination settlements; and</P>
              <P>(6) Other professional services.</P>
              <P>(c) In developing a profit or fee prenegotiation objective, the contracting officer shall comply with the requirements in FAR 15.903.</P>
              <P>(d) When profit analysis is required, any amount proposed by the prospective contractor for the cost of money for facilities capital allowable under FAR 31.205-10 shall be deducted from the prenegotiation cost base objective before calculating the profit objective.</P>
              <P>(e) The cognizant HCA is responsible for establishing procedures to ensure compliance with this subpart.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3516</EAR>
          <HD SOURCE="HED">PART 3516—TYPES OF CONTRACTS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3516.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3516.3—Cost-Reimbursement Contracts</HD>
              <SECTNO>3516.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3516.301-3</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3516.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
              <SECTNO>3516.601</SECTNO>
              <SUBJECT>Time-and-materials contracts.</SUBJECT>
              <SECTNO>3516.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
              <SECTNO>3516.603-2</SECTNO>
              <SUBJECT>Application.</SUBJECT>
              <SECTNO>3516.603-3</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <SECTNO>3516.603-70</SECTNO>
              <SUBJECT>Information to be furnished when requesting authority to issue a letter contract.</SUBJECT>
              <SECTNO>3516.603-71</SECTNO>
              <SUBJECT>Approval for modifications to letter contracts.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7650, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3516.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements and supplements FAR part 16. It provides Commission policies and procedures for preparation of determinations and findings authorizing use of cost-reimbursement contracts, and for use of time-and-materials and letter contracts.</P>
          </SECTION>
          <SUBPART>
            <PRTPAGE P="124"/>
            <HD SOURCE="HED">Subpart 3516.3—Cost-Reimbursement Contracts</HD>
            <SECTION>
              <SECTNO>3516.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3516.301-3</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <P>(c) The following format shall be used and executed by the contracting officer as the determination and findings authorizing the use of a cost-reimbursement contract:</P>
              <EXTRACT>
                <HD SOURCE="HD3">PANAMA CANAL COMMISSION</HD>
                <HD SOURCE="HD3">Determination and Findings</HD>
                <HD SOURCE="HD2">Authority to Use Cost-Reimbursement Contract</HD>
                <P>I hereby find that:</P>

                <P>(1) The (Bureau/Division name) proposes to contract with (name of proposed contractor) for (describe work, service, or product) (identify program or project). The estimated cost is ($<E T="72">____</E>) (if contract is CPFF type, insert, (“plus a fixed fee of ($<E T="72">____</E>) which is <E T="72">__</E> percent of the estimated cost exclusive of fee”).</P>
                <P>(2) (Set forth facts and circumstances that show why it is impracticable to acquire supplies or services of the kind or quality required without the use of the proposed type of contract or why the proposed method of contracting is likely to be less costly than other methods.)</P>
                <P>I hereby determine that:</P>

                <P>On the basis of the above findings, it is impracticable to acquire supplies or services of the kind or quality required without the use of a (cost, cost-sharing, or cost-plus-a-fixed fee*) type of contract, or the (cost, cost-sharing, or cost-plus-a-fixed fee*) method of contracting is likely to be less costly than other methods.
                </P>
                <FP SOURCE="FP-DASH">Date</FP>
                <FP SOURCE="FP-DASH"/>
                <FP>(Signature)</FP>
                

                <P>*Contracting officer inserts appropriate type of contract.
                </P>
                <P>The determination and findings for all cost-reimbursement and incentive/award fee type contracts shall be reviewed and approved by the HCA. </P>
              </EXTRACT>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3516.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
            <SECTION>
              <SECTNO>3516.601</SECTNO>
              <SUBJECT>Time-and-materials contracts.</SUBJECT>
              <P>(c) <E T="03">Limitations.</E> The format prescribed in 3516.301-3(c) shall be used and executed by the contracting officer as the determination and findings authorizing the use of either a time-and-materials contract or a labor-hour contract, except that in lieu of the final paragraph insert the following:
              </P>
              <EXTRACT>
                <P>I hereby determine that:</P>
                <P>On the basis of the above findings, no other type of contract will suitably serve for the acquisition of the required supplies or services. </P>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3516.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3516.603-2</SECTNO>
              <SUBJECT>Application.</SUBJECT>
              <P>(a) It is the policy of the Panama Canal Commission to refrain from issuing letter contracts. Exceptions to this policy will be permitted only in those cases in which all matters of a substantive nature, such as statements of work, delivery schedules, and general and special clauses have been resolved and agreed upon. Exceptions to this policy must be approved by the Administrator.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3516.603-3</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <P>The cognizant HCA is designated to execute the prescribed determination that no other contract is suitable. However, if the cognizant HCA is to sign the letter contract as the contracting officer, the Procurement Executive shall execute the determination.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3516.603-70</SECTNO>
              <SUBJECT>Information to be furnished when requesting authority to issue a letter contract.</SUBJECT>
              <P>The following information should be included by the contracting officer in any memorandum requesting approval to issue a letter contract:</P>
              <P>(a) Name and address of proposed contractor.</P>
              <P>(b) Location where contract is to be performed.</P>
              <P>(c) Contract number, including modification number, if possible.</P>
              <P>(d) Brief description of work and services to be performed.</P>
              <P>(e) Performance or delivery schedule.</P>
              <P>(f) Amount of letter contract.</P>
              <P>(g) Estimated total amount of definitized contract.</P>
              <P>(h) Type of contract to be executed (fixed price, cost-reimbursement, etc.)</P>

              <P>(i) Statement of the necessity and advantage to the Commission of the use of the proposed letter contract.<PRTPAGE P="125"/>
              </P>
              <P>(j) Statement of the percentage of the estimated cost of the proposed acquisition that the obligation of funds represents. In those rare instances in which the obligation represents 50 percent or more of the proposed estimated cost of the acquisition, a justification for that obligation must be included describing the basis and necessity for the obligation (e.g., the contractor requires a large initial outlay of funds for major subcontract awards or an extensive purchase of materials to meet an urgent delivery requirement). In every case, documentation must ensure that the amount to be obligated is not in excess of an amount reasonably required to perform the work.</P>
              <P>(k) Period of effectiveness of the proposed letter contract.</P>
              <P>(l) Statement of any substantive matters that need to be resolved.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3516.603-71</SECTNO>
              <SUBJECT>Approval for modifications to letter contracts.</SUBJECT>
              <P>All letter contract modifications must be approved by the cognizant HCA responsible for the acquisition. Requests for authority to issue letter contract modifications shall be processed in the same manner as requests for authority to issue letter contracts and shall include the following:</P>
              <P>(a) Name and address of the contractor.</P>
              <P>(b) Description of work and services.</P>
              <P>(c) Date original request was approved and approving official.</P>
              <P>(d) Letter contract number and date issued.</P>
              <P>(e) Complete justification as to why the letter contract cannot be definitized at this time.</P>
              <P>(f) Complete justification as to why the level of funding must be increased.</P>
              <P>(g) Complete justification as to why the period of effectiveness is increased, if applicable.</P>
              <P>(h) If the funding of letter contracts is to be increased to more than 50 percent of the estimated cost of the acquisition, the information required by 3516.603-70(j) must be included.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3517</EAR>
          <HD SOURCE="HED">PART 3517—SPECIAL CONTRACTING METHODS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3517.2—Options</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3517.200</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3517.203</SECTNO>
              <SUBJECT>Solicitations.</SUBJECT>
              <SECTNO>3517.204</SECTNO>
              <SUBJECT>Contracts.</SUBJECT>
              <SECTNO>3517.207</SECTNO>
              <SUBJECT>Exercise of options.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3517.5—Interagency Acquisitions Under the Economy Act</HD>
              <SECTNO>3517.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3517.501</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>3517.502</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3517.504</SECTNO>
              <SUBJECT>Ordering procedures.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7651, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3517.2—Options</HD>
            <SECTION>
              <SECTNO>3517.200</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart does not apply to contracts for services involving:</P>
              <P>(a) Construction, alteration, or repair of real property;</P>
              <P>(b) Architect-engineer services;</P>
              <P>(c) Automatic data processing equipment systems; and</P>
              <P>(d) Telecommunication equipment and services.</P>
              <FP>However, it does not preclude the use of options in those contracts.</FP>
            </SECTION>
            <SECTION>
              <SECTNO>3517.203</SECTNO>
              <SUBJECT>Solicitations.</SUBJECT>
              <P>(g)(2) The use of options for increased quantities of supplies or services which exceed 50 percent of the base quantity specified in the contract for a particular period shall be approved by the cognizant HCA prior to issuing the solicitation. In the case of supplies, the 50 percent limitation applies only to contracts which have a base quantity of more than one.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3517.204</SECTNO>
              <SUBJECT>Contracts.</SUBJECT>

              <P>(e) The use of option periods which, when combined with the base contract period, results in a total contract period of performance exceeding twelve <PRTPAGE P="126"/>months shall be approved by the cognizant HCA prior to issuing the solicitation. In no event, however, shall the total of the base and option periods exceed sixty (60) months in duration.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3517.207</SECTNO>
              <SUBJECT>Exercise of options.</SUBJECT>
              <P>(h) The contracting officer, if the contract so provides, may, subject to the conditions in FAR 17.204(d) and FAR 32.703-2, exercise an option contingent upon the availability of funds. Under no circumstances shall any action be taken which could be construed as creating a legal liability on the part of the Commission until a formal notice of availability of funds in the form of a contract modification has been issued by the contracting officer.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3517.5—Interagency Acquisitions Under the Economy Act</HD>
            <SECTION>
              <SECTNO>3517.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart prescribes policies and procedures applicable to the use of Interservice Support Agreements and Memorandums of Understanding.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3517.501</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Interservice Support Agreement</E> (ISA) means an agreement entered into between the Panama Canal Commission and any other department or agency of the United States for the use of facilities, furnishing of supplies or services, or performance of functions. ISA's may be based upon Memorandums of Understanding.</P>
              <P>
                <E T="03">Memorandum of Understanding</E> (MOU) means the basic document which outlines host-tenant relationships. MOU's serve as the standard for relationships between host units and supporting or supported activities.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3517.502</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The General Services Director is the Commission official authorized to enter into ISA's. The Director, by written appointment, may delegate this authority to one or more contracting officers in the General Services Bureau. The determination and findings required by FAR 17.503 shall be made by the General Services Director or the appointee(s), as applicable.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3517.504</SECTNO>
              <SUBJECT>Ordering procedures.</SUBJECT>
              <P>(a) The procedures in FAR 17.504 shall apply to Commission ISA's.</P>
              <P>(b) When the other agency to an ISA is a DOD activity, the DOD forms and format normally shall be followed.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="127"/>
        <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        <PART>
          <EAR>Pt. 3519</EAR>
          <HD SOURCE="HED">PART 3519—SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3519.2—Policies</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3519.201</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <SECTNO>3519.202-3</SECTNO>
              <SUBJECT>Equal low bids.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3519.2—Policies</HD>
            <SECTION>
              <SECTNO>3519.201</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <P>(a) Any acquisition which requires the solicitation of bids, proposals, or quotes from sources within Panama and also from sources within the United States shall not be restricted by any United States statute that is inconsistent with Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty.</P>
              <P>(d) The Chief, New Orleans Branch, Logistical Support Division, shall discharge the functions of the Small and Disadvantaged Business Utilization Specialist (SDBUS).</P>
              <CITA>[55 FR 7651, Mar. 2, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3519.202-3</SECTNO>
              <SUBJECT>Equal low bids.</SUBJECT>
              <P>In the event of equal low bids, contracts shall be awarded in the order of priority set forth in 3514.407-6.</P>
              <CITA>[55 FR 7651, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3520</EAR>
          <HD SOURCE="HED">PART 3520—LABOR SURPLUS AREA CONCERNS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3520.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3520.102</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <SECTNO>3520.103</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3520.2—Set-asides</HD>
              <SECTNO>3520.201</SECTNO>
              <SUBJECT>Set-asides for labor surplus area concerns.</SUBJECT>
              <SECTNO>3520.201-1</SECTNO>
              <SUBJECT>Total set-asides.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3520.3—Labor Surplus Area Subcontracting Program</HD>
              <SECTNO>3520.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7651, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3520.1—General</HD>
            <SECTION>
              <SECTNO>3520.102</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <P>Subject to the order of precedence in FAR 19.504, the Panama Canal Commission shall award appropriate contracts to eligible labor surplus area (LSA) concerns and encourage contractors to place subcontracts with LSA concerns only when all of the following circumstances exist:</P>
              <P>(a) The acquisition is to be performed within the United States, its territories and possessions, the Commonwealth of Puerto Rico, and the Trust Territory of the Pacific Islands.</P>
              <P>(b) The concern, together with its first-tier subcontractors, will perform substantially in labor surplus areas as defined in FAR 20.101; and</P>
              <P>(c) The value of the acquisition is estimated to exceed the small purchase limitation in FAR part 13.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3520.103</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>(b) The contract clause at FAR -52.220-1, Preference for Labor Surplus Area Concerns, shall be included in solicitations and contracts only as prescribed by FAR 20.103(b) and under those conditions set forth in 3520.102.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3520.2—Set-asides</HD>
            <SECTION>
              <SECTNO>3520.201</SECTNO>
              <SUBJECT>Set-asides for labor surplus area concerns.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3520.201-1</SECTNO>
              <SUBJECT>Total set-asides.</SUBJECT>
              <P>The contracting officer shall set aside the entire amount of an individual acquisition or class of acquisitions for LSA concerns only under those conditions set forth in 3520.102.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3520.3—Labor Surplus Area Subcontracting Program</HD>
            <SECTION>
              <SECTNO>3520.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The provisions of FAR subpart 20.3 apply only under those conditions set forth in 3520.102.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="128"/>
          <EAR>Pt. 3522</EAR>
          <HD SOURCE="HED">PART 3522—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3522.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3522.1—Basic Labor Policies</HD>
              <SECTNO>3522.100</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3522.103</SECTNO>
              <SUBJECT>Overtime.</SUBJECT>
              <SECTNO>3522.103-4</SECTNO>
              <SUBJECT>Approvals.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3522.2—Convict Labor</HD>
              <SECTNO>3522.270</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3522.3—Contract Work Hours and Safety Standards Act</HD>
              <SECTNO>3522.370</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3522.4—Labor Standards for Contracts Involving Construction</HD>
              <SECTNO>3522.402</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3522.6—Walsh-Healey Public Contracts Act</HD>
              <SECTNO>3522.603</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3522.608</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3522.608-3</SECTNO>
              <SUBJECT>Protests against eligibility.</SUBJECT>
              <SECTNO>3522.608-4</SECTNO>
              <SUBJECT>Award pending final determination.</SUBJECT>
              <SECTNO>3522.608-6</SECTNO>
              <SUBJECT>Postaward.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3522.8—Equal Employment Opportunity</HD>
              <SECTNO>3522.803</SECTNO>
              <SUBJECT>Responsibilities.</SUBJECT>
              <SECTNO>3522.804</SECTNO>
              <SUBJECT>Affirmative action programs.</SUBJECT>
              <SECTNO>3522.804-2</SECTNO>
              <SUBJECT>Construction.</SUBJECT>
              <SECTNO>3522.805</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3522.807</SECTNO>
              <SUBJECT>Exemptions.</SUBJECT>
              <SECTNO>3522.808</SECTNO>
              <SUBJECT>Complaints.</SUBJECT>
              <SECTNO>3522.809</SECTNO>
              <SUBJECT>Enforcement.</SUBJECT>
              <SECTNO>3522.810</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3522.10—Service Contract Act of 1965, as Amended</HD>
              <SECTNO>3522.1003</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3522.13—Special Disabled and Vietnam Era Veterans</HD>
              <SECTNO>3522.1302</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3522.1303</SECTNO>
              <SUBJECT>Waivers.</SUBJECT>
              <SECTNO>3522.1306</SECTNO>
              <SUBJECT>Complaint procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3522.14—Employment of the Handicapped</HD>
              <SECTNO>3522.1402</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3522.1403</SECTNO>
              <SUBJECT>Waivers.</SUBJECT>
              <SECTNO>3522.1406</SECTNO>
              <SUBJECT>Complaint procedures.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7652, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3522.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part prescribes—</P>
            <P>(a) Labor laws of the United States and their application to acquisitions conducted by the Panama Canal Commission; and</P>
            <P>(b) Contracting policy and procedures for the implementation of pertinent labor laws in contracts with United States and Panamanian business concerns. (See subpart 3525.8 for policies and procedures pertaining specifically to contracts with Panamanian business concerns or others to which Panamanian laws may apply.)</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3522.1—Basic Labor Policies</HD>
            <SECTION>
              <SECTNO>3522.100</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>The provisions of FAR subpart 22.1 shall apply specifically to contracts with United States business concerns to the extent prescribed throughout FAR part 22.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.103</SECTNO>
              <SUBJECT>Overtime.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3522.103-4</SECTNO>
              <SUBJECT>Approvals.</SUBJECT>
              <P>(a) Overtime requests by contractors may be approved under the conditions contemplated in FAR 22.103-4(a). Such approvals are required under cost-reimbursement, time-and-materials, and labor-hour contracts since such contracts place substantial cost risk on the Government.</P>
              <P>(b) The Commission officials for approval of contractor requests for overtime in cost-reimbursement contracts as contemplated in FAR 22.103-4 (a), (b), and (f) are the cognizant Heads of Contracting Activities.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3522.2—Convict Labor</HD>
            <SECTION>
              <SECTNO>3522.270</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>

              <P>As indicated at FAR 22.202, the policies and procedures in FAR subpart 22.2 are applicable only to contracts which are to be performed within any State, <PRTPAGE P="129"/>the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, or the Trust Territory of the Pacific Islands. The policies and procedures do not apply to contracts which are to be performed within the Republic of Panama or within any other foreign country.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3522.3—Contract Work Hours and Safety Standards Act</HD>
            <SECTION>
              <SECTNO>3522.370</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>As indicated at FAR 22.305, the policies and procedures in FAR subpart 22.3 shall not be applied to contracts to be performed solely within the Republic of Panama, other foreign countries, or within a territory under United States jurisdiction other than a State, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf Lands as defined in the Outer Continental Shelf Lands Act (43 U.S.C. 1331), American Samoa, Guam, Wake Island, and Johnston Island.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3522.4—Labor Standards for Contracts Involving Construction</HD>
            <SECTION>
              <SECTNO>3522.402</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>(c) <E T="03">Contracts to be performed outside the United States.</E> As indicated by paragraphs (a) through (d) at FAR 22.407, the requirements of FAR subpart 22.4 do not apply to contracts for construction to be performed within the Republic of Panama or within any other foreign country.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3522.6—Walsh-Healey Public Contracts Act</HD>
            <SECTION>
              <SECTNO>3522.603</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>As indicated at FAR 22.603 and FAR 22.604-2, the requirements and procedures of FAR subpart 22.6 and this subpart 3522.6 do not apply to contracts for supplies that are manufactured in the Republic of Panama or elsewhere outside the United States, Puerto Rico or the Virgin Islands.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.608</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3522.608-3</SECTNO>
              <SUBJECT>Protests against eligibility.</SUBJECT>
              <P>The contracting officer shall forward the determination of eligibility, after concurrence by legal counsel, to the cognizant Head of Contracting Activity (HCA) for referral to the Department of Labor (DOL) or to the Small Business Administration if the offeror is a small business.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.608-4</SECTNO>
              <SUBJECT>Award pending final determination.</SUBJECT>
              <P>(a) If an offeror's eligibility case is pending review by the DOL or SBA, the contracting officer shall obtain the concurrence of legal counsel and approval of the cognizant HCA prior to making an award.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.608-6</SECTNO>
              <SUBJECT>Postaward.</SUBJECT>
              <P>(c) In the event of a violation of a stipulation required under the Act, the contracting officer shall, with concurrence by legal counsel and approval by the cognizant HCA, notify the appropriate regional office of the DOL.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3522.8—Equal Employment Opportunity</HD>
            <SECTION>
              <SECTNO>3522.803</SECTNO>
              <SUBJECT>Responsibilities.</SUBJECT>
              <P>(d) If the applicability of Executive Order 11246 and implementing regulations are questioned by any commercial firm or other entity with whom the Panama Canal Commission has contracted or contemplates contracting, the contracting officer shall route the matter to the cognizant HCA, who shall obtain the opinion of legal counsel.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.804</SECTNO>
              <SUBJECT>Affirmative action programs.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3522.804-2</SECTNO>
              <SUBJECT>Construction.</SUBJECT>
              <P>(b) The HCA having construction contract responsibility shall maintain and distribute a current list of geographical areas subject to affirmative action requirements to the principally affected contracting officers. The list may be obtained from the regional Office of Federal Contract Compliance Policy (OFCCP).</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="130"/>
              <SECTNO>3522.805</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) The contracting officer shall obtain a preaward clearance as required by FAR 22.805(a) (2), (3), and (5). Where, as contemplated in FAR 22.805(a)(7), there exists a potential delay in award of an urgent and critical contract, and where the OFCCP advises of its inability to timely complete the review, a written justification for award shall be forwarded to the cognizant HCA for approval of award without preaward clearance.</P>
              <P>(b) The contracting officer shall obtain and maintain an adequate supply of the posters entitled “Equal Opportunity is the Law” for distribution to contractors when applicable.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.807</SECTNO>
              <SUBJECT>Exemptions.</SUBJECT>
              <P>(b) Panama Canal Commission contracts are exempt from the Equal Employment Opportunity provisions of Executive Order 11246 to the extent that work is performed outside the United States by employees who were not recruited within the United States. (See FAR 22.801 for the meaning of “United States” as used herein.)</P>
              <P>(c) Requests for exemption pursuant to FAR 22.807(c) shall be submitted to the Director, OFCCP, through the cognizant HCA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.808</SECTNO>
              <SUBJECT>Complaints.</SUBJECT>
              <P>Information regarding all complaints and subsequent referrals shall be forwarded to the cognizant HCA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.809</SECTNO>
              <SUBJECT>Enforcement.</SUBJECT>
              <P>The Procurement Executive is designated to make the determinations that may be exercised against contractors pursuant to FAR 22.809.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.810</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
              <P>All solicitation provisions and contract clauses prescribed in FAR 22.810 are applicable to contracts awarded by the Panama Canal Commission unless an exemption exists or has been obtained in accordance with FAR 22.807 and 3522.807.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3522.10—Service Contract Act of 1965, as Amended</HD>
            <SECTION>
              <SECTNO>3522.1003</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>As indicated at FAR 22.1003-2, the policies and procedures in FAR subpart 22.10 do not apply to service contracts to be performed in the Republic of Panama or elsewhere outside the United States. (See FAR 22.1001 for the meaning of “United States” as used herein.)</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3522.13—Special Disabled and Vietnam Era Veterans</HD>
            <SECTION>
              <SECTNO>3522.1302</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>Panama Canal Commission contracts are exempt from the provisions of the Vietnam Era Veterans Readjustment Assistance Act of 1972 to the extent that the work is performed outside the United States by employees who were not recruited in the United States. (See FAR 22.1308(a)(1) for the meaning of “United States” as used herein.)</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.1303</SECTNO>
              <SUBJECT>Waivers.</SUBJECT>
              <P>(a) The Administrator of the Panama Canal Commission is the “agency head” or the “head of a civilian agency” for purposes of the provisions of FAR 22.1303 (a) and (b)(1), respectively.</P>
              <P>(c) Requests for waivers shall be forwarded to the cognizant HCA for referral to the administrator for approval.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.1306</SECTNO>
              <SUBJECT>Complaint procedures.</SUBJECT>
              <P>The contracting officer shall forward written complaints to the cognizant HCA for subsequent referral to the Director, OFCCP.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3522.14—Employment of the Handicapped</HD>
            <SECTION>
              <SECTNO>3522.1402</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>(a) Panama Canal Commission contracts are exempt from the Rehabilitation Act of 1973 to the extent that the work is performed outside the United States by employees who were not recruited within the United States. (See FAR 22.1408(a)(1) for the meaning of “United States” as used herein.)</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="131"/>
              <SECTNO>3522.1403</SECTNO>
              <SUBJECT>Waivers.</SUBJECT>
              <P>(a) The Administrator of the Panama Canal Commission is the “agency head” or the “head of a civilian agency” for purposes of the provisions of FAR 22.1403 (a) and (b)(1), respectively.</P>
              <P>(c) Requests for waivers shall be forwarded through the cognizant HCA to the Administrator for approval.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3522.1406</SECTNO>
              <SUBJECT>Complaint procedures.</SUBJECT>
              <P>Complaints regarding administration of the Act shall be forwarded to the cognizant HCA prior to submission to the OFCCP.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3524</EAR>
          <HD SOURCE="HED">PART 3524—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3524.1—Protection of Individual Privacy</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3524.102</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3524.2—Freedom of Information Act</HD>
              <SECTNO>3524.270</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3524.1—Protection of Individual Privacy</HD>
            <SECTION>
              <SECTNO>3524.102</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>Personal information obtained by the agency to be used in determining an individual's right to a benefit, or to otherwise incur an obligation, will be solicited directly from the subject of the record to the extent practicable. The system manager responsible for the maintenance and dissemination of personal information about individuals shall ensure that the information is collected and disclosed in compliance with the provisions of the Privacy Act of 1974 and part 10 of 35 CFR, this agency's regulations implementing the Act.</P>
              <CITA>[55 FR 7653, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3524.2—Freedom of Information Act</HD>
            <SECTION>
              <SECTNO>3524.270</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>Freedom of Information Act (FOIA) requests for contractual information shall be processed in accordance with part 9 of 35 CFR.</P>
              <P>(a) Upon receipt, all FOIA requests shall be forwarded immediately to the Agency Records Officer (Chief, Administrative Services Division) for acknowledgment and processing within the statutory time limitations as stipulated in the Act.</P>
              <P>(b) Prior to release of any contractual information to FOIA requesters, the Agency Records Officer shall coordinate with other agency offices or officials having a substantial subject matter interest.</P>
              <CITA>[55 FR 7653, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3525</EAR>
          <HD SOURCE="HED">PART 3525—FOREIGN ACQUISITION</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3525.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3525.1—Buy American Act—Supplies</HD>
              <SECTNO>3525.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3525.2—Buy American Act—Construction Materials</HD>
              <SECTNO>3525.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3525.3—Balance of Payments Program</HD>
              <SECTNO>3525.300-70</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3525.302</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3525.4—Purchases Under the Trade Agreements Act of 1979</HD>
              <SECTNO>3525.402</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3525.670—Customs and Duties, Republic of Panama</HD>
              <SECTNO>3525.670-1</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3525.670-2</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3525.8—International Agreements and Coordination</HD>
              <SECTNO>3525.801</SECTNO>
              <SUBJECT>International agreements.</SUBJECT>
              <SECTNO>3525.801-70</SECTNO>
              <SUBJECT>Language.</SUBJECT>
              <SECTNO>3525.801-71</SECTNO>
              <SUBJECT>Choice of law.</SUBJECT>
              <SECTNO>3525.801-72</SECTNO>
              <SUBJECT>Immunity.</SUBJECT>
              <SECTNO>3525.801-73</SECTNO>
              <SUBJECT>Designated contractors.</SUBJECT>
              <SECTNO>3525.801-74</SECTNO>
              <SUBJECT>Panamanian preference.</SUBJECT>
              <SECTNO>3525.801-75</SECTNO>
              <SUBJECT>Customary local business usage.</SUBJECT>
              <SECTNO>3525.801-76</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <PRTPAGE P="132"/>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article VIII of the Panama Canal Treaty of 1977 and Articles IX, XI, and XVI of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7654, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3525.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part provides policies and procedures related to the application of the Buy American Act, the Balance of Payments Act, and purchases under the Trade Agreements Act of 1979 to Commission acquisitions. This part also provides policies and procedures for the application of international agreements to Commission acquisitions.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3525.1—Buy American Act—Supplies</HD>
            <SECTION>
              <SECTNO>3525.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>The Buy American Act does not apply to purchases of supplies, or services that involve the furnishing of supplies, for use in the Republic of Panama because such use is outside the United States, as provided in FAR 25.102(a)(1).</P>
              <CITA>[55 FR 7654, Mar. 2, 1990; 55 FR 38331, Sept. 18, 1990]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3525.2—Buy American Act—Construction Materials</HD>
            <SECTION>
              <SECTNO>3525.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>The Buy American Act does not apply to contracts for the construction, alteration, or repair of any public building or public work in the Republic of Panama. The Act applies only to acquisitions for use inside the United States, as provided in FAR 25.202.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3525.3—Balance of Payments Program</HD>
            <SECTION>
              <SECTNO>3525.300-70</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>In accordance with Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty, the Balance of Payments provisions limiting purchase of foreign products or services shall not apply to purchases for use by the Commission of—</P>
              <P>(a) Articles, materials, or supplies that are produced in Panama (mined, produced, or manufactured);</P>
              <P>(b) End products, the largest percentage of which are components of Panamanian origin; and</P>
              <P>(c) Services which are available in Panama.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3525.302</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) The cognizant HCA is the official designated to make the determination required by FAR 25.302(b)(3) that a requirement can only be filled by a foreign end product or service, and that it is not feasible to forego filling it or to provide a domestic substitute.</P>
              <P>(b)(6) The Procurement Executive is the official designated to make the determination, with the assistance of legal counsel, that the acquisition of foreign end products or services is required by a treaty or executive agreement between governments.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3525.4—Purchases Under the Trade Agreements Act of 1979</HD>
            <SECTION>
              <SECTNO>3525.402</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(c) Pursuant to a delegation from the United States Trade Representative under the authority provided by section 302(b)(2) of the Trade Agreements Act, the Administrator of the Panama Canal Commission is authorized to waive, on a case-by-case basis, the purchasing prohibition of section 302(a)(1) of the Act. The Administrator has delegated this waiver authority to the Procurement Executive.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3525.670—Customs and Duties, Republic of Panama</HD>
            <SECTION>
              <SECTNO>3525.670-1</SECTNO>
              <SUBJECT>Policy.</SUBJECT>

              <P>(a) Article XVI of the Agreement in Implementation of Article III of the Panama Canal Treaty provides that all property imported into the Republic of Panama for the official use or benefit of the Commission, including that imported by its contractors or subcontractors in connection with the various activities authorized under said Agreement, shall be exempt from the payment of all customs duties or other import taxes and charges and from all license requirements.<PRTPAGE P="133"/>
              </P>
              <P>(b) All property imported into the Republic of Panama free of customs duties and other taxes may be exported free of customs duties, export permits, export taxes, and other assessments. All property acquired in the Republic of Panama by, or in the name of, the Commission may be exported free of customs duties, export licenses, and other export taxes or charges.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3525.670-2</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>When requested by the contractor or its representative, the contracting officer will initiate a cargo certification document stating that the property being imported is for the official use or benefit of the Commission. The cargo certification document is then processed by the Cargo Documentation Section of the Commission's Administrative Services Division for presentation by the contractor or representative to the appropriate authorities in the Republic of Panama.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3525.8—International Agreements and Coordination</HD>
            <SECTION>
              <SECTNO>3525.801</SECTNO>
              <SUBJECT>International agreements.</SUBJECT>
              <P>The Panama Canal Treaty and the Agreement in Implementation of Article III of the Treaty affect the contracting activities of the Commission. Contracting officers shall give particular attention to the provisions in these agreements that pertain to acquisition procedures, contractors’ taxes, facilities, and other matters relating to contracting.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3525.801-70</SECTNO>
              <SUBJECT>Language.</SUBJECT>
              <P>(a) Solicitations and contracts shall be issued in the English language.</P>
              <P>(b) All offers, correspondence and documents related to solicitations and contracts shall be submitted in the English language.</P>
              <P>(c) Where inconsistencies between the terms of solicitations or contracts and any translation into another language occur, the English language meaning shall control.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3525.801-71</SECTNO>
              <SUBJECT>Choice of law.</SUBJECT>
              <P>All matters relating to the validity, construction, interpretation, performance, and enforcement of any contract awarded by the Commission shall be determined in accordance with the applicable Federal law of the United States.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3525.801-72</SECTNO>
              <SUBJECT>Immunity.</SUBJECT>
              <P>Under Article VIII of the Treaty, agencies and instrumentalities of the Government of the United States of America operating in the Republic of Panama pursuant to the Treaty and related agreements shall be immune from the jurisdiction of the Republic of Panama, and their installations, official archives and documents, shall be inviolable.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3525.801-73</SECTNO>
              <SUBJECT>Designated contractors.</SUBJECT>
              <P>(a) <E T="03">Definition.</E>
              </P>
              <P>
                <E T="03">Designated contractors</E> means:</P>
              <P>(1)(i) Natural persons who are nationals or permanent residents of the United States, or</P>
              <P>(ii) Corporations or other legal entities organized under the laws of the United States, any state thereof, or the District of Columbia, and which are under the effective control of such natural persons—</P>
              <P>(A) To whom contracts are awarded by the Commission, and</P>
              <P>(B) Who are so designated in writing by the Commission.</P>
              <P>(2) The term also includes subcontractors of designated contractors:</P>
              <P>(i) Who are nationals or permanent residents of the United States, or</P>
              <P>(ii) Which are corporations or other legal entities organized under the laws of the United States, any state thereof, or the District of Columbia, and which are under the effective control of United States nationals or permanent residents.</P>

              <P>(3) Because Article XI of the Treaty's Implementing Agreement (see paragraph (b) of this subsection and 3502.101) imposes certain obligations and confers certain benefits on designated contractors, all of which are dependent upon their or their employees’ physical presence in Panama, the term is understood to mean only those contractors and/or subcontractors that will perform all or a portion of the contract work in the Republic of Panama. Such contractors are normally designated at the time of contract award.<PRTPAGE P="134"/>
              </P>
              <P>(b) <E T="03">Obligations and benefits.</E> Designated contractors are subject to the laws and regulations of the Republic of Panama except for certain obligations and benefits established in Article XI of the Agreement in Implementation of Article III of the Treaty. These obligations and benefits are cited below.</P>
              <P>(1) The contractor must engage exclusively in activities related to the execution of the work for which the contractor has been contracted by the Commission or related to other works or activities authorized by the Republic of Panama.</P>
              <P>(2) The contractor must refrain from carrying out practices which may constitute violations of the laws of the Republic of Panama.</P>
              <P>(3) The contractor shall enter and depart from the territory of the Republic of Panama in accordance with procedures prescribed for United States citizen employees in Article XII of the Implementing Agreement.</P>
              <P>(4) The contractor must obtain a document indicating his/her identity as a contractor, which the proper authorities of the United States shall issue when they are satisfied that the contractor is duly qualified. This certificate shall be sufficient to permit the contractor to operate under Panamanian law as a contractor of the United States. Nevertheless, the authorities of the Republic of Panama may require the registration of the appropriate documents to establish juridical presence in the Republic of Panama.</P>
              <P>(5) The contractor shall not be obliged to pay any tax or other assessment to the Republic of Panama on income derived under a contract with the Commission, so long as the contractor is taxed in the United States at a rate substantially equivalent to the corresponding taxes and assessments of the Republic of Panama.</P>
              <P>(6) The contractor may move freely within the Republic of Panama, and shall have exemptions from customs duties and other charges, as provided for United States citizen employees in the Implementing Agreement.</P>
              <P>(7) The contractor may use public services and installations in accordance with the terms and conditions of Article XIII of the Implementing Agreement and, on a non-discriminatory basis, shall pay the Republic of Panama highway tolls and taxes on plates for private vehicles.</P>
              <P>(8) The contractor shall be exempt from any taxes imposed on depreciable assets belonging to the contractor, other than real estate, which are used exclusively for the execution of contracts with the United States.</P>
              <P>(9) The contractor may use the services and facilities provided for in Articles X and XVIII of the Agreement in Implementation of Article IV of the Panama Canal Treaty, to the extent such use is authorized by the United States; provided, however, that after five years from the entry into force of the Implementing Agreement, the use of military postal services by such contractors shall be limited to that related to the execution of contracts with the United States.</P>
              <P>(c) <E T="03">Notification of designation.</E> The contracting officer shall, through the Director, Office of Executive Administration, advise contractors that they are “designated contractors” within the meaning of Article XI of the Implementing Agreement and advise them to review their obligations thereunder. Such designations shall be communicated to the authorities of the Republic of Panama by the authorities of the United States. Contracting officers shall maintain current lists of “designated contractors” at all times.</P>
              <P>(d) <E T="03">Withdrawal of designation.</E> The Commission shall withdraw the designation of a contractor when any of the following circumstances occur:</P>
              <P>(1) Completion or termination of the contract with the Commission.</P>
              <P>(2) Proof that during the life of the contract such contractors have engaged in the Republic of Panama in business activities not related to their contracts with the United States nor authorized by the Republic of Panama.</P>

              <P>(3) Proof that such contractors are engaged in practices which in the view of the Republic of Panama constitute serious violations of the laws of the Republic of Panama.
                <PRTPAGE P="135"/>
              </P>
              <FP>The authorities of the United States shall notify the authorities of the Republic of Panama whenever the designation of a contractor has been withdrawn. If, within sixty days after notification of the withdrawal of the designation of a contractor who entered the territory of the Republic of Panama in the capacity of a contractor, the authorities of the Republic of Panama require such contractor to leave its territory, the United States shall ensure that the Republic of Panama shall not incur any expense due to the cost of transportation.</FP>
              <P>(e) <E T="03">Impact on subcontractors, employees, and dependents.</E> The provisions of this 3525.801-73 shall similarly apply to the subcontractors and to the employees of the contractors and subcontractors and their dependents who are nationals or residents of the United States. These employees and dependents shall not be subject to the Panamanian Social Security system.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3525.801-74</SECTNO>
              <SUBJECT>Panamanian preference.</SUBJECT>

              <P>(a) Article IX of the Agreement in Implementation of Article III of the Treaty provides that:
              </P>
              <EXTRACT>
                <P>In procuring supplies and services, the Commission shall give preference to those obtainable in the Republic of Panama. Such preference shall apply to the maximum extent possible when such supplies and services are available as required, and are comparable in quality and price to those which may be obtained from other sources. For the comparison of prices there shall be taken into account the cost of transport to the Republic of Panama, including freight, insurance and handling, of the supplies and services which compete with Panamanian supplies and services. In the acquisition of goods in the Republic of Panama, preference shall be given to goods having a larger percentage of components of Panamanian origin.</P>
              </EXTRACT>
              
              <P>(b) Part 3570 provides guidance on the implementation of the Panamanian preference provisions of the Treaty's Implementing Agreement.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3525.801-75</SECTNO>
              <SUBJECT>Customary local business usage.</SUBJECT>
              <P>In acquisitions conducted in the Republic of Panama, customary local business usage, where not inconsistent with the applicable Federal law of the United States, may be followed. When conflicts develop between local business usage and the requirements of the Federal Acquisition Regulation, the matter shall be referred to the Procurement Executive, who shall seek the opinion of legal counsel, as a deviation for processing as required by 3501.405 and FAR 1.405.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3525.801-76</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>As used in this subsection, the term “foreign” means any country other than the United States. The contracting officer shall insert the following clauses in solicitations and contracts, as indicated below:</P>
              <P>(a) In lieu of FAR clause 52.225-14, Inconsistency Between English Version and Translation of Contract, the clause at 3552.225-70, Language, whenever foreign offers are anticipated or contracts are awarded to foreign contractors.</P>
              <P>(b) The clause at 3552.225-71, Notice of Applicability of United States Federal Law, whenever foreign offers are anticipated or contracts are awarded to foreign contractors.</P>
              <P>(c) The clause at 3552.225-72, Designated Contractors, whenever the contract work is to be performed in whole or in part in the Republic of Panama and offers are anticipated from, or contracts are awarded to, U.S. contractors.</P>
              <P>(d) The clause at 3552.225-73, Responsibility for Observance of Laws, Orders, and Regulations, whenever the contract work is to be performed in whole or in part in the Republic of Panama.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="136"/>
        <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        <PART>
          <EAR>Pt. 3527</EAR>
          <HD SOURCE="HED">PART 3527—PATENTS, DATA AND COPYRIGHTS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3527.3—Patent Rights Under Government Contracts</HD>
            <SECTION>
              <SECTNO>3527.304-3</SECTNO>
              <SUBJECT>Contracts for construction work or architect-engineer services.</SUBJECT>
              <P>(b) The contracting officer shall insert the clause at 3552.227-70, Government Rights, in all solicitations and contracts for architect-engineer services or for construction involving architect-engineer services, except those that call for or can be expected to involve only “standard types of construction” to be built by previously developed equipment, methods, and processes. (See FAR 27.304-3(b) for the meaning of the term “standard types of construction”.)</P>
              <CITA>[55 FR 7656, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3528</EAR>
          <HD SOURCE="HED">PART 3528—BONDS AND INSURANCE</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3528.1—Bonds</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3528.100</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3528.101</SECTNO>
              <SUBJECT>Bid or proposal guarantees.</SUBJECT>
              <SECTNO>3528.101-3</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <SECTNO>3528.102</SECTNO>
              <SUBJECT>Performance and payment bonds for construction contracts.</SUBJECT>
              <SECTNO>3528.102-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3528.102-3</SECTNO>
              <SUBJECT>Solicitation requirements.</SUBJECT>
              <SECTNO>3528.103</SECTNO>
              <SUBJECT>Performance and payment bonds for other than construction contracts.</SUBJECT>
              <SECTNO>3528.103-2</SECTNO>
              <SUBJECT>Performance bonds.</SUBJECT>
              <SECTNO>3528.103-3</SECTNO>
              <SUBJECT>Payment bonds.</SUBJECT>
              <SECTNO>3528.103-70</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3528.2—Sureties</HD>
              <SECTNO>3528.201</SECTNO>
              <SUBJECT>Requirements for sureties.</SUBJECT>
              <SECTNO>3528.202</SECTNO>
              <SUBJECT>Acceptability of corporate sureties.</SUBJECT>
              <SECTNO>3528.202-70</SECTNO>
              <SUBJECT>Corporate seals.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3528.3—Insurance</HD>
              <SECTNO>3528.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3528.305</SECTNO>
              <SUBJECT>Overseas workers’ compensation and war-hazard insurance.</SUBJECT>
              <SECTNO>3528.309</SECTNO>
              <SUBJECT>Contract clause for workers’ compensation insurance.</SUBJECT>
              <SECTNO>3528.370</SECTNO>
              <SUBJECT>Contract clause for special Panama insurance.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article XVIII of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7656, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3528.1—Bonds</HD>
            <SECTION>
              <SECTNO>3528.100</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>Bid or proposal guarantees, performance bonds, and payment bonds in Panama Canal Commission acquisitions may be required in contracts for construction as that term is defined at FAR 36.102, and in contracts for other than construction as explained at FAR 28.103.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3528.101</SECTNO>
              <SUBJECT>Bid or proposal guarantees.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3528.101-3</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>(a) When a guarantee is required, the contracting officer shall insert the clause at 3552.228-70, Bid Guarantee Amount, in sealed bid solicitations and contracts, or the clause at 3552.228-75, Proposal Guarantee, in negotiated solicitations and contracts, as applicable.</P>
              <P>(b) If the contract is to be negotiated, the contracting officer shall insert the clause at 3552.228-75, Proposal Guarantee, in lieu of the bid guarantee clause at FAR 52.228-1.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3528.102</SECTNO>
              <SUBJECT>Performance and payment bonds for construction contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3528.102-1</SECTNO>
              <SUBJECT>General.</SUBJECT>

              <P>(a) The Miller Act (40 U.S.C. 270a-270f) requires performance and payment bonds for any construction contract (including contracts for alteration, or repair of any public building or public work) exceeding $25,000, except that this requirement may be waived by the contracting officer for work to be performed in a foreign country upon the finding contemplated in FAR 28.102-1(a)(1). It has been determined by the Panama Canal Commission General Counsel, however, that the contracting officer may also establish requirements for such bonds for lesser dollar value contracts when it <PRTPAGE P="137"/>has been determined that the financial protection against damages is in the best interests of the Government. Accordingly, the provisions of 3528.102-3 regarding solicitation requirements must be followed.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3528.102-3</SECTNO>
              <SUBJECT>Solicitation requirements.</SUBJECT>
              <P>When performance or payment bonds are required, the contracting officer shall insert the clauses at 3552.228-71, Bonds and Insurance, and 3552.228-72, Bonds, in the solicitation and contract.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3528.103</SECTNO>
              <SUBJECT>Performance and payment bonds for other than construction contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3528.103-2</SECTNO>
              <SUBJECT>Performance bonds.</SUBJECT>
              <P>(a) Contracts for high dollar acquisitions of vital supplies, such as cargo lot shipments of Bunker C fuel oil, is another situation that may warrant a performance bond.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3528.103-3</SECTNO>
              <SUBJECT>Payment bonds.</SUBJECT>
              <P>(a) A payment bond may be considered to be in the Government's interest when substantial progress payments are made before delivery of end items starts (for example, in the acquisition of tugboats and dredges).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3528.103-70</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>(a) <E T="03">Performance bonds.</E> When a performance bond for other than construction contracts is required pursuant to FAR 28.103-2(a), but a payment bond is not required, the contracting officer shall insert the clause at 3552.228-76, Performance Bond, in all such solicitations and contracts. If a payment bond is also required (see FAR 28.103-3(a) and 3528.103-3(a)), the contracting officer shall insert the clause at 3552.228-77, Performance and Payment Bonds, in lieu of clause 3552.228-76.</P>
              <P>(b) <E T="03">Payment bonds.</E> When a payment bond for other than construction contracts is required pursuant to FAR 28.103-3(a) and 3528.103-3(a), the contracting officer shall insert the clause at 3552.228-77, Performance and Payment Bonds, in all such solicitations and contracts.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3528.2—Sureties</HD>
            <SECTION>
              <SECTNO>3528.201</SECTNO>
              <SUBJECT>Requirements for sureties.</SUBJECT>
              <P>(a) In addition to those acceptable forms of security enumerated in FAR 28.201, contracting officers may accept such Panamanian sureties as may be approved in accordance with 3528.202(b).</P>
              <P>(b) Contracting officers may not preclude the use by any offeror of any type of security or surety permitted by FAR subpart 28.2 or this subpart.</P>
              <CITA>[55 FR 7656, Mar. 2, 1990; 55 FR 38331, Sept. 18, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3528.202</SECTNO>
              <SUBJECT>Acceptability of corporate sureties.</SUBJECT>
              <P>(b) The authority delegated to contracting officers in FAR 28.202(b) to determine the acceptability of sureties not appearing on Treasury Department Circular 570 for contracts performed in a foreign country is vested in the Chief Financial Officer of the Panama Canal Commission. The procedure for approving such sureties is prescribed in the Commission's Financial Systems Manual 99.333.</P>
              <CITA>[55 FR 7656, Mar. 2, 1990. Redesignated and amended at 55 FR 38331, Sept. 18, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3528.202-70</SECTNO>
              <SUBJECT>Corporate seals.</SUBJECT>
              <P>(a) In the event that a “Corporate Seal,” as required in the instructions for preparation of any standard form or document, is not used due to the dictates of custom, practice, or law within Panama or other foreign countries, such bonds shall be accepted provided the contracting officer is satisfied, with the concurrence of legal counsel, that the person signing the bond is authorized to bind the surety (see FAR 4.102).</P>
              <P>(b) In the case of acquisitions conducted using the sealed bid method described in FAR part 14, bids which do not include required bid bonds must be rejected as nonresponsive except as provided in FAR 28.101-4. See also FAR 14.405 regarding minor informalities or irregularities in bids.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="138"/>
            <HD SOURCE="HED">Subpart 3528.3—Insurance</HD>
            <SECTION>
              <SECTNO>3528.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(b) In addition to the requirements of FAR 28.301(b), designated contractors (see 3525.801-73(a)), as prescribed at paragraph 7 of Article XVIII of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977, shall, upon initiation of work or construction activities, obtain appropriate insurance to cover civil liabilities in the Republic of Panama that may arise as a result of acts or omissions done in the performance of official duty by their employees. The insurance coverage shall include coverage for the tortious conduct of their employees. Such insurance may be obtained from insurance companies licensed to engage in such business within the Republic of Panama.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3528.305</SECTNO>
              <SUBJECT>Overseas workers’ compensation and war-hazard insurance.</SUBJECT>
              <P>(d) Pursuant to a waiver granted by the Secretary of Labor, effective January 22, 1980, the provisions of the Defense Base Act are not applicable to any public-work contract awarded by the Panama Canal Commission in the Panama Canal area with respect to non-U.S. citizen employees, i.e., any Panamanian or other foreign national, employed under such contracts. The waiver does not apply, however, to employees who are:</P>
              <P>(1) Hired in the United States by any contractor;</P>
              <P>(2) Residents of the United States; or</P>
              <P>(3) Citizens of the United States.</P>
              <FP>The waiver was granted with the proviso that the non-U.S. citizen employees thus exempted from the provisions of the Defense Base Act will be provided workers’ compensation benefits prescribed in the Panamanian Social Security System.</FP>
            </SECTION>
            <SECTION>
              <SECTNO>3528.309</SECTNO>
              <SUBJECT>Contract clause for workers’ compensation insurance.</SUBJECT>
              <P>(a) In addition to FAR clause 52.228-3, Workers’ Compensation Insurance (Defense Base Act), prescribed at FAR 28.309(a)(1), the contracting officer shall insert the clause at 3552.228-73, Non-U.S. Workers’ Compensation Insurance, in all public-work solicitations and contracts in which the employment of Panamanian or other foreign nationals is anticipated (see 3528.305(d)).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3528.370</SECTNO>
              <SUBJECT>Contract clause for special Panama insurance.</SUBJECT>
              <P>The contracting officer shall insert the clause at 3552.228-74, Special Panama Insurance, in all public-work solicitations and contracts:</P>
              <P>(a) Which are to be performed in whole or in part in the Republic of Panama, and</P>
              <P>(b) For which offers are anticipated from, or contracts are awarded to, U.S. contractors.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3529</EAR>
          <HD SOURCE="HED">PART 3529—TAXES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3529.4—Contract Clauses</HD>
              <SECTNO>3529.402</SECTNO>
              <SUBJECT>Foreign contracts.</SUBJECT>
              <SECTNO>3529.402-1</SECTNO>
              <SUBJECT>Foreign fixed-price contracts.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Articles XI and XII of the Agreements in Implementation of Articles III and IV of the Panama Canal Treaty of 1977, respectively.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3529.4—Contract Clauses</HD>
            <SECTION>
              <SECTNO>3529.402</SECTNO>
              <SUBJECT>Foreign contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3529.402-1</SECTNO>
              <SUBJECT>Foreign fixed-price contracts.</SUBJECT>
              <P>(a) <E T="03">Procedures regarding FAR clause 52.229-6.</E> In recognition of the fundamental purpose of paragraph 2(e) of Articles XI and XII of the Agreements in Implementation of Articles III and IV of the Panama Canal Treaty of 1977, respectively, representatives of the Governments of the United States and Panama approved an Agreement on Taxation of Contractors on August 6, 1986. This taxation agreement impacts on U.S. contractors in certain circumstances. In order to alert prospective contractors to this possibility, the following procedures shall apply regarding FAR clause 52.229-6:</P>
              <P>(1) The contracting officer shall supplement FAR clause 52.229-6, Taxes—Foreign Fixed-Price Contracts, by inserting the following note at the end of the clause in all solicitations and contracts, unless the acquisition is a small purchase under FAR part 13 that:</P>
              <P>(i) Will not require the contractor's presence in Panama, or</P>
              <P>(ii) Does not solicit U.S. offerors:</P>
              <NOTE>
                <PRTPAGE P="139"/>
                <HD SOURCE="HED">Note:</HD>
                <P>If the Contractor is a U.S. contractor, such contractor is advised that, pursuant to a taxation agreement between the Governments of the United States and Panama, U.S. contractors and subcontractors, including their U.S. citizen or U.S. permanent resident employees, may be required to file tax returns with, as well as provide corresponding U.S. tax information to, the Government of Panama on income arising under or relating to Panama Canal Commission contracts. This requirement is applicable when the contractor, subcontractor, or individual employee is present in the Republic of Panama in connection with one or more Commission contracts for more than 90 calendar days during the relevant tax year. This description of the stated requirement is not intended, nor should it be construed, to be a legal analysis of the taxation agreement. The Commission assumes no responsibility or liability for a contractor's or individual's obligation under the taxation agreement, nor for the interpretation of such agreement. A copy of the taxation agreement will be provided to the contractor or prospective contractor upon request to the contracting officer.</P>
              </NOTE>
              <P>(2) If clause 52.229-6 is incorporated by reference, rather than in full text, insert the note directly below the title of the clause.</P>
              <P>(3) Include elsewhere in the body of the solicitation the following note to alert offerors that clause 52.229-6 has been supplemented. In supply and service solicitations, this note should normally be inserted in Section B following the blanks provided for offerors to insert line item prices. In construction solicitations, the note should normally be attached to Standard Form 1442 or inserted in the solicitation's Special Conditions. In small purchase acquisitions, the note is to be included in the document requesting prices or by separate attachment to the document. If a U.S. contractor wins the small purchase award, the note shall be incorporated either (i) in full text, or (ii) by reference, on the purchase order or other award document.</P>
              <NOTE>
                <HD SOURCE="HED">Note:</HD>
                <P>Offerors’ attention is directed to the note added at the end of clause 52.229-6, Taxes—Foreign Fixed-Price Contracts. The note is an advisory notice regarding possible tax obligations under certain circumstances of U.S. contractors, subcontractors, and their employees to the Government of Panama. If the circumstances appear to be applicable, offerors may obtain additional information by contacting the contracting office at the address or phone number provided elsewhere in this solicitation.</P>
              </NOTE>
              <P>(4) If additional information regarding the taxation agreement is requested of Panama Canal Commission employees, either before or after award, the individual who receives the request shall promptly notify the contracting officer and the Office of General Counsel who shall determine, in conjunction with the Office of Executive Administration, the appropriate action to be taken.</P>
              <P>(5) Contracting officers shall serve as the official liaison, for purposes of the taxation agreement, between offerors/contractors and the Commission. The taxation agreement provides for the classification of contractors into two categories, resident and non-resident, by representatives of the Governments of the United States and Panama according to criteria set forth in the agreement. The representative of the United States Government is the Assistant Director, Policy and Programs, Office of Executive Administration. Classifications, when confirmed by the two representatives, will be communicated to the respective contractors by the contracting officer.</P>
              <CITA>[55 FR 7657, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3531</EAR>
          <HD SOURCE="HED">PART 3531—CONTRACT COST PRINCIPLES AND PROCEDURES</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3531.2—Contracts with Commercial Organizations</HD>
            <SECTION>
              <SECTNO>3531.205-46</SECTNO>
              <SUBJECT>Travel costs.</SUBJECT>
              <P>(a) Fixed-price type contracts that provide for separate reimbursement of travel and per diem shall state that such reimbursement will not exceed rates established in applicable Federal Travel Regulations.</P>
              <P>(b) The clause at 3552.231-70, Travel Costs, shall be included in contracts as described in paragraph (a) of this subsection.</P>
              <CITA>[55 FR 7658, Mar 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3532</EAR>
          <HD SOURCE="HED">PART 3532—CONTRACT FINANCING</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3532.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <PRTPAGE P="140"/>
              <HD SOURCE="HED">Subpart 3532.1—General</HD>
              <SECTNO>3532.111</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3532.4—Advance Payments</HD>
              <SECTNO>3532.402</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3532.407</SECTNO>
              <SUBJECT>Interest.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3532.6—Contract Debts</HD>
              <SECTNO>3532.600</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3532.601</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <SECTNO>3532.602</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3532.603</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3532.608</SECTNO>
              <SUBJECT>Negotiation of contract debts.</SUBJECT>
              <SECTNO>3532.608-70</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3532.610</SECTNO>
              <SUBJECT>Demand for payment of contract debt.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3532.7—Contract Funding</HD>
              <SECTNO>3532.705</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <SECTNO>3532.705-1</SECTNO>
              <SUBJECT>Clauses for contracting in advance of funds.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3532.8—Assignment of Claims</HD>
              <SECTNO>3532.802</SECTNO>
              <SUBJECT>Conditions.</SUBJECT>
              <SECTNO>3532.806</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3532.9—Prompt Payment</HD>
              <SECTNO>3532.901</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7658, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3532.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements and supplements FAR part 32 and provides Commission policies and procedures for contract financing and other payment matters, including—</P>
            <P>(a) Advance payments;</P>
            <P>(b) Contract debts;</P>
            <P>(c) Assignment of claims; and</P>
            <P>(d) Prompt payment implementation.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3532.1—General</HD>
            <SECTION>
              <SECTNO>3532.111</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>(a)(7) The clause at 3552.232-70, Contract Payments, in solicitations and contracts for construction when the contracting officer determines that the value of materials delivered to the work site may be taken into account in preparing the progress payment estimate.</P>
              <P>(8) The clause at 3552.232-73, Invoices, in all solicitations and contracts except small purchases. The clause or a modified version of the clause may be used in small purchases.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3532.4—Advance Payments</HD>
            <SECTION>
              <SECTNO>3532.402</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(e)(1) The Procurement Executive is responsible for approving findings and determinations supporting the use of advance payments and approving contract terms concerning advance payments. These approvals must have the concurrence of the General Counsel.</P>
              <P>(2) The contracting officer shall coordinate proposed advance payment authorizations with the Accounting Division.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3532.407</SECTNO>
              <SUBJECT>Interest.</SUBJECT>
              <P>(d) The Procurement Executive is authorized to approve advance payments without interest.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3532.6—Contract Debts</HD>
            <SECTION>
              <SECTNO>3532.600</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart assigns responsibilities and provides procedures for the collection of contract debts, including collection of debts under contracts for the transportation of household goods.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3532.601</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <P>
                <E T="03">Responsible official</E>, as used in this subpart, means the contracting officer.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3532.602</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>In addition to the examples cited in FAR 32.602, contract debts may include those arising from claims under contracts for the transportation of household goods.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3532.603</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>When the Commission withholds payments due a contractor to satisfy a contractor's debt to the Government, the Debt Collection Act of 1982 and FAR subpart 32.6 apply. As a claim arising under a Government contract, any offset is governed by the Contract Disputes Act of 1979.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="141"/>
              <SECTNO>3532.608</SECTNO>
              <SUBJECT>Negotiation of contract debts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3532.608-70</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>The Commission shall adhere to the following procedures prior to withholding a payment due a contractor to satisfy a debt owed by the contractor.</P>
              <P>(a) The Commission shall use all proper means available for collecting a contract debt as rapidly as possible. This includes direct communication to obtain full payment or to negotiate an appropriate settlement.</P>
              <P>(b) If the contractor fails to respond expeditiously and in good faith to contacts from the contracting officer, and if justifiable under the contract, the contracting officer shall promptly make a unilateral determination of the amount the contractor owes the Commission. The unilateral debt determination is made when neither payment nor a settlement has been reached. The unilateral debt determination is issued to the contractor by the contracting officer as a final decision under the Contract Disputes Act.</P>
              <P>(c) A demand for payment of the contract debt shall be made contemporaneously with the contracting officer's issuance of the unilateral debt determination to the contractor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3532.610</SECTNO>
              <SUBJECT>Demand for payment of contract debt.</SUBJECT>
              <P>(b) Demands for payment shall include, in addition to those items listed in FAR 32.610(b), the following:</P>
              <P>(1) The offer of an opportunity to inspect and copy the records of the Commission related to the debt, 31 U.S.C. 3716(a)(2).</P>
              <P>(2) The offer of an opportunity of a review of the Commission's decision relating to the debt, 31 U.S.C. 3716(3).</P>
              <P>(3) The offer of an opportunity to enter into an agreement with the Commission to repay the amount of the debt.</P>
              <P>(c) With respect to contracts for the transportation of household goods, claims by employees and, in turn, by the Commission, must be processed in a timely manner. The usual commercial terms for bills of lading require that any claim be filed against the contractor within nine months of shipment delivery. Government bills of lading are subject to these same rules and conditions. FAR clause 52.247-23, which is included in contracts for the transportation of household goods, specifies that the contractors will be notified of any damages within a maximum of 45 days from date of delivery.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3532.7—Contract Funding</HD>
            <SECTION>
              <SECTNO>3532.705</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3532.705-1</SECTNO>
              <SUBJECT>Clauses for contracting in advance of funds.</SUBJECT>
              <P>In lieu of either of the clauses prescribed at FAR 32.705-1(a) and (b), the contracting officer may insert the clause at 3552.232-71, Availability of Funds, in solicitations and contracts—</P>
              <P>(a) That are to be awarded in one fiscal year with performance to begin in the following fiscal year, or</P>
              <P>(b) That are to extend into the following fiscal year, or</P>
              <P>(c) In situations when the circumstances in paragraphs (a) and (b) of this subsection both apply.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3532.8—Assignment of Claims</HD>
            <SECTION>
              <SECTNO>3532.802</SECTNO>
              <SUBJECT>Conditions.</SUBJECT>
              <P>(b) Panamanian firms may assign contracts to a local bank in accordance with recognized local banking practice.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3532.806</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>(a) In addition to the clauses prescribed in FAR 32.806, the contracting officer may insert the clause at 3552.232-72, Presentation of Statement of Release from Claims, in solicitations and contracts when appropriate, unless the contract will prohibit the assignment of claims.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3532.9—Prompt Payment</HD>
            <SECTION>
              <SECTNO>3532.901</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>In consonance with subpart 3570.1, Panamanian Preference, the Administrator has determined, pursuant to FAR 32.904, to extend coverage of the interest penalty provisions of FAR subpart 32.9 to contracts awarded to Commission vendors located in the Republic of Panama.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="142"/>
          <EAR>Pt. 3533</EAR>
          <HD SOURCE="HED">PART 3533—PROTESTS, DISPUTES, AND APPEALS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3533.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3533.1—Protests</HD>
              <SECTNO>3533.103</SECTNO>
              <SUBJECT>Protests to the agency.</SUBJECT>
              <SECTNO>3533.104</SECTNO>
              <SUBJECT>Protests to GAO.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3533.2—Disputes and Appeals</HD>
              <SECTNO>3533.203</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7659, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3533.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part prescribes Commission policies and procedures for filing protests and for processing contract disputes and appeals.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3533.1—Protests</HD>
            <SECTION>
              <SECTNO>3533.103</SECTNO>
              <SUBJECT>Protests to the agency.</SUBJECT>
              <P>(a) The cognizant Head of the Contracting Activity is the official designated to make the determination(s) required by FAR 33.103(a)(1), (2), or (3) whenever an award is contemplated notwithstanding the protest to the agency.</P>
              <P>(c)(1) Protests to the Commission based upon alleged improprieties in a solicitation which are apparent prior to bid opening or the closing date for receipt of initial proposals shall be filed with the contracting officer prior to bid opening or the closing date for receipt of initial proposals, or any extended bid opening or closing date for receipt of proposals.</P>
              <P>(2) All other protests to the Commission shall be filed with the contracting officer not later than 10 working days after the basis of the protest is known or should have been known.</P>
              <P>(d) The General Counsel shall review protests to the Commission as a matter of first priority, and advise the contracting officer expeditiously.</P>
              <P>(e) The contracting officer shall decide protests to the Commission within 10 working days from receipt of a protest and promptly inform the protestor and other interested parties of that decision.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3533.104</SECTNO>
              <SUBJECT>Protests to GAO.</SUBJECT>
              <P>(a) <E T="03">General.</E> Protests to the General Accounting Office (GAO) concerning Commission acquisitions shall be processed in accordance with FAR 33.104. The General Counsel shall prepare the report to GAO required at FAR 33.104(a)(5) and shall serve as the designated contact office for GAO. The contracting officer shall review protests to GAO as a matter of first priority, and shall advise, support, and furnish information to the General Counsel expeditiously.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3533.2—Disputes and Appeals</HD>
            <SECTION>
              <SECTNO>3533.203</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>Pursuant to an interagency agreement between the Panama Canal Commission and the Corps of Engineers Board of Contract Appeals (ENGBCA), the ENGBCA will hear appeals from final decisions of Commission contracting officers issued pursuant to the Contract Disputes Act.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="143"/>
        <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        <PART>
          <EAR>Pt. 3536</EAR>
          <HD SOURCE="HED">PART 3536—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3536.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3536.101</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3536.103</SECTNO>
              <SUBJECT>Methods of contracting.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3536.2—Special Aspects of Contracting for Construction</HD>
              <SECTNO>3536.201</SECTNO>
              <SUBJECT>Evaluation of contractor performance.</SUBJECT>
              <SECTNO>3536.203</SECTNO>
              <SUBJECT>Government estimate of construction costs.</SUBJECT>
              <SECTNO>3536.207</SECTNO>
              <SUBJECT>Pricing fixed-price construction contracts.</SUBJECT>
              <SECTNO>3536.207-70</SECTNO>
              <SUBJECT>Use of indefinite-delivery contracts.</SUBJECT>
              <SECTNO>3536.209</SECTNO>
              <SUBJECT>Construction contracts with architect-engineer firms.</SUBJECT>
              <SECTNO>3536.270</SECTNO>
              <SUBJECT>Special aspects of contracting for construction in Panama.</SUBJECT>
              <SECTNO>3536.270-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3536.270-2</SECTNO>
              <SUBJECT>Special contract considerations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3536.3—Special Aspects of Sealed Bidding in Construction Contracting</HD>
              <SECTNO>3536.303</SECTNO>
              <SUBJECT>Invitations for bids.</SUBJECT>
              <SECTNO>3536.370</SECTNO>
              <SUBJECT>Additive items.</SUBJECT>
              <SECTNO>3536.371</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3536.5—Contract Clauses and Form</HD>
              <SECTNO>3536.570</SECTNO>
              <SUBJECT>Special Panama Canal Commission contract clauses.</SUBJECT>
              <SECTNO>3536.571</SECTNO>
              <SUBJECT>Special Panama Canal Commission form.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3536.6—Architect-Engineer Services</HD>
              <SECTNO>3536.602</SECTNO>
              <SUBJECT>Selection of firms for architect-engineer contracts.</SUBJECT>
              <SECTNO>3536.602-2</SECTNO>
              <SUBJECT>Evaluation boards.</SUBJECT>
              <SECTNO>3536.602-4</SECTNO>
              <SUBJECT>Selection authority.</SUBJECT>
              <SECTNO>3536.602-5</SECTNO>
              <SUBJECT>Short selection processes for contracts not to exceed $10,000.</SUBJECT>
              <SECTNO>3536.604</SECTNO>
              <SUBJECT>Performance evaluation.</SUBJECT>
              <SECTNO>3536.605</SECTNO>
              <SUBJECT>Government cost estimate for architect-engineer work.</SUBJECT>
              <SECTNO>3536.606</SECTNO>
              <SUBJECT>Negotiations.</SUBJECT>
              <SECTNO>3536.606-70</SECTNO>
              <SUBJECT>Modifications.</SUBJECT>
              <SECTNO>3536.670</SECTNO>
              <SUBJECT>Government rights to plans, specifications, and drawings.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7660, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3536.1—General</HD>
            <SECTION>
              <SECTNO>3536.101</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>(a) Construction, which includes alteration, maintenance, and repair of real property, and architect-engineer contracts are subject to the requirements in other parts of this regulation, which shall be followed when applicable.</P>
              <P>(b) When a requirement in this part is inconsistent with a requirement in another part of this regulation, this part 3536 shall take precedence if the acquisition of architect-engineer services is involved.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.103</SECTNO>
              <SUBJECT>Methods of contracting.</SUBJECT>
              <P>(a) Notwithstanding the exception in FAR 36.103(a) for contracts to be performed outside the United States, construction in Panama shall be acquired using sealed bid procedures, unless one of the four conditions in FAR 6.401(a) cannot be met. In that event, the contracting officer shall document the contract file in accordance with FAR 6.401.</P>
              <P>(b) Contracting officers shall acquire architect-engineer services by negotiation, and select sources in accordance with applicable law, FAR subpart 36.6, and subpart 3536.6 of this regulation.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3536.2—Special Aspects of Contracting for Construction</HD>
            <SECTION>
              <SECTNO>3536.201</SECTNO>
              <SUBJECT>Evaluation of contractor performance.</SUBJECT>
              <P>(a) <E T="03">Preparation of performance evaluation reports.</E> The authorized representative of the contracting officer (COR) shall prepare the contractor performance report prescribed in FAR 36.201 within two weeks after final acceptance of the work or contract termination. Prior to submitting any report of unsatisfactory performance to the reviewing official, the COR shall advise the contractor of any proposed unsatisfactory rating and include any written comments from the contractor regarding such rating in the report (see FAR 36.201(a)(3)).<PRTPAGE P="144"/>
              </P>
              <P>(b) <E T="03">Review of performance reports.</E> The contracting officer shall review each performance report.</P>
              <P>(c) <E T="03">Distribution and use of performance reports.</E> Information from the performance report shall not be released outside of the Commission, except to other Government agencies at their written request, and on condition that the information will not be made available outside the Government. Requests from non-Government sources for information from performance reports shall be processed in accordance with 35 CFR part 9.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.203</SECTNO>
              <SUBJECT>Government estimate of construction costs.</SUBJECT>
              <P>(c) The overall amount of the Government's estimate shall not be disclosed prior to award under any circumstance to persons other than Commission personnel whose official duties, as determined by the contracting officer, require knowledge of the estimate.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.207</SECTNO>
              <SUBJECT>Pricing fixed-price construction contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3536.207-70</SECTNO>
              <SUBJECT>Use of indefinite-delivery contracts.</SUBJECT>
              <P>Any of the forms of indefinite-delivery contracts described in FAR subpart 16.5 may be used to contract for construction when deemed appropriate by the contracting officer.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.209</SECTNO>
              <SUBJECT>Construction contracts with architect-engineer firms.</SUBJECT>
              <P>No contract for construction shall be awarded to the firm, or its subsidiaries or affiliates, that designed the project except with the approval of the Head of Contracting Activity.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.270</SECTNO>
              <SUBJECT>Special aspects of contracting for construction in Panama.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3536.270-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>In contracts which are entered into with Panamanian or other foreign contractors for performance in Panama, the term “United States” shall appear before the word “Government.”</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.270-2</SECTNO>
              <SUBJECT>Special contract considerations.</SUBJECT>
              <P>When construction is to be performed in the Republic of Panama by designated United States contractors, Panamanian contractors, or others, the solicitation and contract should include references to the applicable laws, regulations, treaties, and agreements of the United States and the Republic of Panama (see subpart 3525.8) relating to:</P>
              <P>(a) The duty-free importation of material and equipment;</P>
              <P>(b) The payment of taxes applicable to contractors, personnel, materials, and equipment (see parts 3525 and 3529);</P>
              <P>(c) The applicability of workmen's compensation laws and other labor laws to citizens of the United States, citizens of Panama, and citizens of other countries (see subpart 3528.3);</P>
              <P>(d) The provision of utility services;</P>
              <P>(e) The provision of Commission or Government-owned materials or services;</P>
              <P>(f) The disposition of surplus materials and equipment;</P>
              <P>(g) The need for civil liability insurance for employees of contractors and subcontractors (see 3528.301);</P>
              <P>(h) The handling of claims and litigation;</P>
              <P>(i) The requirements for bid or proposal guarantees, performance bonds, and payment bonds (see subpart 3528.1);</P>
              <P>(j) Acceptability of sureties not listed in Treasury Department Circular 570 (see subpart 3528.2);</P>
              <P>(k) Consideration of Panamanian preference in accordance with part 3570;</P>
              <P>(l) Any other special solicitation provisions prescribed in subpart 3536.3; and</P>
              <P>(m) Any other problems which can be foreseen and appropriately resolved contractually.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3536.3—Special Aspects of Sealed Bidding in Construction Contracting</HD>
            <SECTION>
              <SECTNO>3536.303</SECTNO>
              <SUBJECT>Invitations for bids.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3536.370</SECTNO>
              <SUBJECT>Additive items.</SUBJECT>

              <P>Prior to the issuance of an invitation for bids, the contracting officer shall ascertain that adequate funds have been certified as being available for the proposed acquisition. However, if funds <PRTPAGE P="145"/>appear to be insufficient for all features of the Government's requirement, the contracting officer shall insert in the invitation a solicitation provision for a base bid and one or more additive items, as prescribed at 3536.371(a) (7) or (8).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.371</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
              <P>(a) The contracting officer shall insert the following provisions in invitations for bids for construction when applicable:</P>
              <P>(1) The provision at 3552.214-70, Price—Sealed Bidding, as prescribed at 3514.201-6(a)(1);</P>
              <P>(2) The provision at 3552.214-71, Additional Data To Be Submitted, as prescribed at 3514.201-6(b)(1);</P>
              <P>(3) The provision at 3552.214-72, Rejection of Bids, as prescribed at 3514.201-6(b)(2);</P>
              <P>(4) The provision at 3552.214-73, Caution—Sealed Bidding, as prescribed at 3514.201-6(a)(2);</P>
              <P>(5) The provision at 3552.214-75, All or None Award—Sealed Bidding—Construction, as prescribed at 3514.201-6(d);</P>
              <P>(6) The provision at 3552.236-70, Mailing of Correspondence and Bids, in all invitations for bids for construction;</P>
              <P>(7) The provision at 3552.236-71, Additive Items, in invitations for bids for construction that contain one or more additive bid items to be awarded with the base bid item in the numerical order of priority that the additive bid items appear in the bid schedule within the funds available;</P>
              <P>(8) The provision at 3552.236-71, Additive Items—Alternate I, in invitations for bids for construction that contain one or more additive bid items to be awarded with the base bid item in any combination within the funds available; and</P>
              <P>(9) The provision at 3552.236-72, Cost Limitation, in invitations for bids for construction that contain one or more items subject to statutory cost limitations, except when a waiver has been granted pursuant to FAR 36.205.</P>
              <P>(b) The contracting officer shall insert the following provisions in negotiated solicitations for construction when applicable:</P>
              <P>(1) The provision at 3552.215-70, Price, as prescribed at 3515.407(a)(1);</P>
              <P>(2) The provision at 3552.215-71, Caution, as prescribed at 3515.407(a)(2); and</P>
              <P>(3) The provision at 3552.215-72, All or None Award, as prescribed at 3515.407(b).</P>
              <P>(c) The contracting officer shall insert the provision at 3552.209-70, Organizational Conflict of Interest Certification/Disclosure, in invitations for bids and negotiated solicitations for construction when applicable, as prescribed at 3509.508-1.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3536.5—Contract Clauses and Form</HD>
            <SECTION>
              <SECTNO>3536.570</SECTNO>
              <SUBJECT>Special Panama Canal Commission contract clauses.</SUBJECT>
              <P>The contracting officer shall insert the following clauses in solicitations and contracts for construction when applicable:</P>
              <P>(a) The clause at 3552.225-70, Language, as prescribed at 3525.801-76(a);</P>
              <P>(b) The clause at 3552.225-71, Notice of Applicability of United States Federal Law, as prescribed at 3525.801-76(b);</P>
              <P>(c) The clause at 3552.225-72, Designated Contractors, as prescribed at 3525.801-76(c);</P>
              <P>(d) The clause at 3552.225-73, Responsibility for Observance of Laws, Orders, and Regulations, as prescribed at 3525.801-76(d);</P>
              <P>(e) The clause at 3552.228-70, Bid Guarantee Amount, or the clause at 3552.228-75, Proposal Guarantee, as prescribed at 3528.101-3(a). If the proposal guarantee clause is used, the bid guarantee clause at FAR 52.228-1 shall not be used (see 3528.101-3(b));</P>
              <P>(f) The clause at 3552.228-71, Bonds and Insurance, as prescribed at 3528.102-3;</P>
              <P>(g) The clause at 3552.228-72, Bonds, as prescribed at 3528.102-3;</P>
              <P>(h) In addition to FAR clause 52.228-3, Workers’ Compensation Insurance (Defense Base Act), the clause at 3552.228-73, Non-U.S. Workers’ Compensation Insurance, as prescribed at 3528.309(a);</P>
              <P>(i) The clause at 3552.228-74, Special Panama Insurance, as prescribed at 3528.370;</P>

              <P>(j) In addition to FAR clause 52.232-5, Payments Under Fixed-Price Construction Contracts, the clause at 3552.232-70, Contract Payments, as prescribed at <PRTPAGE P="146"/>3532.111(a)(7), the clause at 3552.232-72, Presentation of Statement of Release from Claims, as prescribed at 3532.806(a), and the clause at 3552.232-73, Invoices, as prescribed at 3532.111(a)(8);</P>
              <P>(k) The clause at 3552.236-73, Scope of Work, in all solicitations and contracts for construction;</P>
              <P>(l) In addition to FAR clause 52.236-10, Operations and Storage Areas, the clause at 3552.236-74, Work Sites, Yards, Shops, and Offices, when a fixed-price construction contract is contemplated;</P>
              <P>(m) The clause at 3552.236-75, Work Time Limitations, in all solicitations and contracts for construction;</P>
              <P>(n) In lieu of FAR clause 52.236-13, Accident Prevention, insert the clause at 3552.236-76, Accident Prevention, when a fixed-price construction contract is contemplated;</P>
              <P>(o) The clause at 3552.236-77, Working in Confined Spaces, when the contracting officer anticipates that the contractor may have to work in confined or enclosed spaces;</P>
              <P>(p) The clause at 3552.236-78, Safety Sign, when the contracting officer determines that the location of the work site warrants its inclusion;</P>
              <P>(q) The clause at 3552.236-79, Protection of Material and Work, in all solicitations and contracts for construction;</P>
              <P>(r) The clause at 3552.236-80, Toilet Facilities, when the contracting officer determines that the location of the work site warrants its inclusion;</P>
              <P>(s) The clause at 3552.236-81, Drinking Water, when the contracting officer determines that the location of the work site warrants its inclusion;</P>
              <P>(t) In addition to FAR clause 52.236-15, Schedules for Construction Contracts, the clause at 3552.236-82, Contract Bid Breakdown, when a fixed-price construction contract is contemplated and the period of actual work performance is expected to exceed 60 days;</P>
              <P>(u) In addition to FAR clause 52.236-21, Specifications and Drawings for Construction, and FAR clause 52.236-5, Material and Workmanship, the clauses at: 3552.236-83, Descriptive Data and Correspondence, 3552.236-84, Instruction Books, and 3552.236-85, Record Drawings, when a fixed-price construction contract is contemplated;</P>
              <P>(v) The clause at 3552.236-86, Restricted Areas, when the contracting officer anticipates that any portion of the contract work may have to be performed in a restricted area;</P>
              <P>(w) The clause at 3552.243-70, Modification Proposals—Price Breakdown, as prescribed at 3543.205;</P>
              <P>(x) The clause at 3552.244-70, Subcontractors, in all solicitations and contracts for construction;</P>
              <P>(y) The clause at 3552.236-87, Surplus Space, in all solicitations and contracts for construction. The clause may also be used in solicitations and contracts for supplies or services if the contracting officer determines that its use is appropriate.</P>
              <P>(z) The clause at 3552.209-71, Organizational Conflict of Interest, as prescribed at 3509.508-2.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.571</SECTNO>
              <SUBJECT>Special Panama Canal Commission form.</SUBJECT>
              <P>Panama Canal Form 3062, Submittal Data For Approval, shall be used by contractors as a transmittal document when data and/or samples are to be submitted for the contracting officer's approval pursuant to FAR clause 52.236-5 or clause 3552.236-83 of this regulation.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3536.6—Architect-Engineer Services</HD>
            <SECTION>
              <SECTNO>3536.602</SECTNO>
              <SUBJECT>Selection of firms for architect-engineer contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3536.602-2</SECTNO>
              <SUBJECT>Evaluation boards.</SUBJECT>
              <P>(a) The Panama Canal Commission Architect-Engineer Evaluation Board is established as a central board within the Commission under authority delegated to the Director, Engineering and Construction Bureau. The Board shall perform all Commission architect-engineer evaluations, data collection, and files maintenance. The Commission Board shall be composed of not less than three nor more than five voting members and one non-voting advisory member from the contracting office. The following constitutes the minimum composition of the Board:</P>

              <P>(1) Member and Chairman—A designee of the Chief, Engineering Division;<PRTPAGE P="147"/>
              </P>
              <P>(2) Member—A professional engineer or architect from a division of one of the Commission's other bureaus, to be designated by the Chairman;</P>
              <P>(3) Member—A program official initiating the requirement or a designated representative; and</P>
              <P>(4) Advisory Member—A contracting officer or representative.</P>
              <P>(b) The Chief, Engineering Division may appoint additional voting members as may be appropriate for a particular project.</P>
              <P>(c) In the event of an emergency or extended absence, a member may designate, in writing, with the concurrence of the Chairman, an alternate experienced in architecture, engineering, or construction to serve in the member's absence.</P>
              <P>(d) The duties of the advisory member shall include, but not be limited to, assuring that—</P>
              <P>(1) The criteria set forth in the public notice are applied in the evaluation process; and</P>
              <P>(2) Actions taken during the evaluation process do not compromise subsequent procurement actions.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.602-4</SECTNO>
              <SUBJECT>Selection authority.</SUBJECT>
              <P>The Director, Engineering and Construction Bureau shall serve as the Commission's selection authority for the evaluation board.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.602-5</SECTNO>
              <SUBJECT>Short selection processes for contracts not to exceed $10,000.</SUBJECT>
              <P>Both short selection processes permitted by FAR 36.602-5 are authorized.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.604</SECTNO>
              <SUBJECT>Performance evaluation.</SUBJECT>
              <P>Evaluation of architect-engineer contracts shall be in accordance with the procedures prescribed in 3536.201, except that SF 1421, Performance Evaluation (Architect-Engineer), shall be used in lieu of SF 1420, and that a copy of the performance evaluation shall be provided to the Architect-Engineer Evaluation Board for its files pursuant to FAR 36.604(c).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.605</SECTNO>
              <SUBJECT>Government cost estimate for architect-engineer work.</SUBJECT>
              <P>(b) The overall amount of the Government's cost estimate shall not be disclosed under any circumstance to persons other than Government personnel whose official duties, in the judgment of the contracting officer, require knowledge of the estimate.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.606</SECTNO>
              <SUBJECT>Negotiations.</SUBJECT>
              <P>(a) Negotiations shall be conducted with the first selected architect-engineer until a price which is fair and reasonable and not in excess of the Government estimate, revised to correct errors of fact or judgment, has been obtained. When the negotiations result in a price in excess of the Government estimate, as revised, the contracting officer shall terminate the negotiations and request a proposal from the architect-engineer next in order of preference.</P>
              <P>(1) In no event shall a contract for architect-engineer services for the preparation of designs, plans, drawings and specifications exceed the statutory limitation of six percent (6 percent) of the estimated construction costs of the project. If the contract also covers any type of services other than the preparation of designs, plans, drawings and specifications, the part of the contract price for such other services shall not be subject to the six percent (6 percent) limitation.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3536.606-70</SECTNO>
              <SUBJECT>Modifications.</SUBJECT>
              <P>When a modification involves work not initially included in the contract, the limitation on the total contract price set forth in 3536.606(a)(1) is applicable, as applied to the revised total estimated construction costs. When redesign is required and the contract is modified, the following method shall be used to insure that the six percent (6 percent) statutory limitation is not exceeded:</P>
              <P>(a) The estimated construction cost of the redesigned features will be added to the original estimated construction cost;</P>
              <P>(b) The contract cost for the original design will be added to the contract cost for redesign; and</P>
              <P>(c) The total contract design cost obtained by paragraph (b) of this subsection will be divided by the total construction cost obtained by paragraph (a) of this subsection. The resulting percentage may not exceed the six percent (6 percent) statutory limitation.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="148"/>
              <SECTNO>3536.670</SECTNO>
              <SUBJECT>Government rights to plans, specifications, and drawings.</SUBJECT>
              <P>All solicitations and contracts for architect-engineer services or for construction involving architect-engineer services, except those involving “standard types of construction”, shall contain the clause at 3552.227-70, Government Rights, as prescribed at 3527.304-3(b).</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3537</EAR>
          <HD SOURCE="HED">PART 3537—SERVICE CONTRACTING</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3537.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3537.1—Service Contracts—General</HD>
              <SECTNO>3537.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3537.104</SECTNO>
              <SUBJECT>Personal services contracts.</SUBJECT>
              <SECTNO>3537.104-70</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3537.2—Advisory and Assistance Services</HD>
              <SECTNO>3537.200</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3537.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3537.204</SECTNO>
              <SUBJECT>Exclusions.</SUBJECT>
              <SECTNO>3537.206</SECTNO>
              <SUBJECT>Requesting activity responsibilities.</SUBJECT>
              <SECTNO>3537.206-70</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3537.270</SECTNO>
              <SUBJECT>Duration.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7662, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3537.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements FAR part 37 and provides additional Commission policies and procedures for the acquisition of personal and nonpersonal services, including advisory and assistance services.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3537.1—Service Contracts—General</HD>
            <SECTION>
              <SECTNO>3537.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) The Commission's policy regarding the contracting out of commercial services is set forth at 3507.301.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3537.104</SECTNO>
              <SUBJECT>Personal services contracts.</SUBJECT>
              <P>(b) Authority for the acquisition by contract of the personal services of experts and consultants is found at 5 U.S.C. 3109 which provides that, when authorized by an appropriation or other statute, the head of an agency may acquire by contract the temporary (not to exceed one year) or intermittent services of experts or consultants. For the purpose of this section, the terms “experts” and “consultants” are not interchangeable. Consequently, their meanings are distinguishable from the meaning of the collective term “Individual experts and consultants” at FAR 37.203(a). As used herein, an “expert” is an individual who is a recognized professional or highly skilled practitioner normally used to perform or supervise an operating function, rather than to provide advisory or consulting services. A “consultant”, as used herein, is an individual possessing special, current knowledge or skill who primarily serves in an advisory capacity in a particular field, rather than in the performance or supervision of an operating function. Acquiring the personal services of individual experts or consultants shall be subject to the limitations applicable to advisory and assistance services at FAR 37.202(c). In addition, the services of individual experts and consultants shall be acquired through personal services contracts only—</P>
              <P>(1) When the services required cannot be obtained by appointment in accordance with standard Commission personnel procedures, and</P>
              <P>(2) If the nature of the duties to be performed is temporary (not more than one year) or intermittent (not cumulatively more than 130 days in one year). Accordingly, no such contract shall be entered into for longer than one year at a time.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3537.104-70</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>Requests for the acquisition of personal services should include:</P>
              <P>(a) A description of the services to be performed;</P>
              <P>(b) Name and address of the person or firm;</P>
              <P>(c) Background material to show the unique qualifications of such person or firm to accomplish the requirement;</P>
              <P>(d) Place where the duties are to be performed and the period of service;</P>
              <P>(e) The estimated cost; and</P>
              <P>(f) Determinations that:</P>

              <P>(1) It is not feasible to obtain personnel with the necessary skills <PRTPAGE P="149"/>through standard Commission personnel appointment procedures;</P>
              <P>(2) A nonpersonal services contract is not practicable; and</P>
              <P>(3) Existing staffing is inadequate to furnish the services.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3537.2—Advisory and Assistance Services</HD>
            <SECTION>
              <SECTNO>3537.200</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart provides additional policy and management controls for the acquisition of personal and nonpersonal advisory and assistance services.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3537.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(d) The acquisition of advisory and assistance services shall conform to the Competition in Contracting Act of 1984. Preference shall, however, be given to sources located in the Republic of Panama when the services are available as required and are comparable in quality and price to those which may be obtained from other sources (see part 3570). However, see subpart 3503.6 concerning contracts with current or former Commission employees.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3537.204</SECTNO>
              <SUBJECT>Exclusions.</SUBJECT>
              <P>In addition to the exclusions or exemptions identified at FAR 37.204, the services of arbitrators for the resolution of labor disputes are exempted from the definition of advisory and assistance services. As authorized by section 7121 of the Federal Service Labor-Management Relations Act, 5 U.S.C. 7121, the procedure for the contracting of arbitrators shall be governed by the negotiated grievance procedure set forth in the individual collective bargaining agreements between the Commission and the various certified representatives (i.e., unions).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3537.206</SECTNO>
              <SUBJECT>Requesting activity responsibilities.</SUBJECT>
              <P>(c) Requests for the acquisition of advisory and assistance services shall include the documentation required at FAR 37.206 (a), (b), and (d), and shall be prepared by the initiating bureau director or head of independent unit and forwarded to the Administrator for approval, through, in turn, the Personnel Director; General Counsel; Chief Financial Officer; and the General Services Director for their review and concurrence. Before the proposal is routed to the Administrator, the General Services Director will add the cognizant contracting officer's determination as to whether or not the requested acquisition constitutes advisory and assistance services as described in FAR subpart 37.2. As mandated by FAR 37.207, the contracting officer's determination shall be final.</P>
              <CITA>[55 FR 7662, Mar. 2, 1990; 55 FR 38331, Sept. 18, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3537.206-70</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) When a request has been approved pursuant to 3537.206(c), the initiating bureau director or head of independent unit shall—</P>
              <P>(1) Forward all papers to the cognizant contracting officer for processing the contract action. If not already included in the request for approval, the forwarding official shall provide the contracting officer with a work statement that is specific and complete, including: a detailed description of services to be performed; the place where the services are to be performed; the period of performance; the names and addresses of potential contractors (if applicable); and any other information the contracting officer considers to be pertinent.</P>
              <P>(2) Coordinate with the Director, Office of Executive Administration or the contracting officer, as applicable, to obtain certification as a Panama Canal Commission designated contractor, entry/exit permits, identification cards, and any other required legal documents.</P>
              <P>(3) Prepare replies to all inquiries from the General Accounting Office, the Office of Management and Budget, and the Congress, in coordination with the Personnel Director, Chief Financial Officer, General Counsel and the contracting officer, as may be necessary.</P>
              <P>(b) At the conclusion of the contract, the initiating bureau director or head of independent unit shall furnish to the contracting officer the written evaluation required at FAR 37.205.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3537.270</SECTNO>
              <SUBJECT>Duration.</SUBJECT>

              <P>No contract for advisory and assistance services shall be entered into for <PRTPAGE P="150"/>longer than one year at a time. In unusual circumstances, and when approved by the Administrator, options for additional one-year extensions may be used when the need for continuity of services carries beyond a one-year period. In no case shall the total period under a specific contract exceed the basic year plus four additional optional years.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="151"/>
        <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        <PART>
          <EAR>Pt. 3542</EAR>
          <HD SOURCE="HED">PART 3542—CONTRACT ADMINISTRATION</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3542.12—Novation and Change-of-Name Agreements</HD>
            <SECTION>
              <SECTNO>3542.1200-70</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>When “CORPORATE SEALS,” as required in the instructions for preparation and execution of novation agreements in FAR 42.1204 and in agreements to recognize contractor's change of name in FAR 42.1205, are not used due to the dictates of custom, practice, or law within the Republic of Panama or other foreign countries, the contracting officer may execute such agreements, provided the contracting officer, with the concurrence of legal counsel, is satisfied that the persons signing such agreements are authorized to bind their companies.</P>
              <CITA>[55 FR 7663, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3543</EAR>
          <HD SOURCE="HED">PART 3543—CONTRACT MODIFICATIONS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3543.2—Change Orders</HD>
            <SECTION>
              <SECTNO>3543.205</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>The contracting officer shall insert the clause at 3552.243-70, Modification Proposals—Price Breakdown, in all solicitations and contracts for construction.</P>
              <CITA>[55 FR 7664, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3547</EAR>
          <HD SOURCE="HED">PART 3547—TRANSPORTATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3547.3—Transportation in Supply Contracts</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3547.306</SECTNO>
              <SUBJECT>Transportation factors in the evaluation of offers.</SUBJECT>
              <SECTNO>3547.370</SECTNO>
              <SUBJECT>Solicitation provision.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3547.3—Transportation in Supply Contracts</HD>
            <SECTION>
              <SECTNO>3547.306</SECTNO>
              <SUBJECT>Transportation factors in the evaluation of offers.</SUBJECT>
              <P>For purposes of evaluating comparability of costs of supplies obtainable in the Republic of Panama with those obtainable from other sources, pursuant to the Panamanian preference provisions of the Panama Canal Treaty's Implementing Agreement (see part 3570), consideration shall be given to transportation costs to the Republic of Panama, including freight, insurance and handling of supplies.</P>
              <CITA>[55 FR 7664, Mar. 2, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3547.370</SECTNO>
              <SUBJECT>Solicitation provision.</SUBJECT>
              <P>The contracting officer shall insert the provision at 3552.247-70, Evaluation of Delivery Terms in Contract Awards, in solicitations that include alternate terms of delivery, i.e., f.o.b. destination (New Orleans) and c.i.f. destination (Panama).</P>
              <CITA>[55 FR 7664, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3551</EAR>
          <HD SOURCE="HED">PART 3551—USE OF GOVERNMENT SOURCES BY CONTRACTORS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3551.1—Contractor Use of Government Supply Sources</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3551.102</SECTNO>
              <SUBJECT>Authorization to use Government supply sources.</SUBJECT>
              <SECTNO>3551.103</SECTNO>
              <SUBJECT>Ordering from Government supply sources.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3551.1—Contractor Use of Government Supply Sources</HD>
            <SECTION>
              <SECTNO>3551.102</SECTNO>
              <SUBJECT>Authorization to use Government supply sources.</SUBJECT>

              <P>(a) When a contractor is performing one of the types of contracts specified in FAR 51.101, the contracting officer shall consider whether to allow the contractor to use Government supply sources. In addition to the factors listed for consideration at FAR 51.102(a), <PRTPAGE P="152"/>the contracting officer shall consider whether—</P>
              <P>(1) Materials necessary to the performance of the contract are not available locally except at Government sources; and</P>
              <P>(2) Materials, though available to the contractor, require such a long lead time for delivery that contractor performance is threatened if Government sources are not used.</P>
              <P>(e)(4) In those instances where contractor-furnished equipment and materials required by a contract have been authorized by the contracting officer to be obtained through Government sources as Government-furnished equipment and materials, for reasons established by FAR part 51, the contracting officer shall negotiate a change to the contract reducing the price by the commercial cost plus transportation costs.</P>
              <CITA>[55 FR 7664, Mar. 2, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3551.103</SECTNO>
              <SUBJECT>Ordering from Government supply sources.</SUBJECT>
              <P>(b) “Contracting agency” as used in FAR 51.103(b) shall mean the cognizant Commission contracting officer.</P>
              <CITA>[55 FR 7664, Mar. 2, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="153"/>
        <HD SOURCE="HED">SUBCHAPTER H—CLAUSES AND FORMS</HD>
        <PART>
          <EAR>Pt. 3552</EAR>
          <HD SOURCE="HED">PART 3552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3552.2—Texts of Provisions and Clauses</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3552.209-70</SECTNO>
              <SUBJECT>Organizational Conflict of Interest Certification/Disclosure.</SUBJECT>
              <SECTNO>3552.209-71</SECTNO>
              <SUBJECT>Organizational Conflict of Interest.</SUBJECT>
              <SECTNO>3552.210-70</SECTNO>
              <SUBJECT>Brand Name Products or Equal.</SUBJECT>
              <SECTNO>3552.214-70</SECTNO>
              <SUBJECT>Price—Sealed Bidding.</SUBJECT>
              <SECTNO>3552.214-71</SECTNO>
              <SUBJECT>Additional Data To Be Submitted.</SUBJECT>
              <SECTNO>3552.214-72</SECTNO>
              <SUBJECT>Rejection of Bids.</SUBJECT>
              <SECTNO>3552.214-73</SECTNO>
              <SUBJECT>Caution—Sealed Bidding.</SUBJECT>
              <SECTNO>3552.214-74</SECTNO>
              <SUBJECT>All or None Award—Sealed Bidding.</SUBJECT>
              <SECTNO>3552.214-75</SECTNO>
              <SUBJECT>All or None Award—Sealed Bidding—Construction.</SUBJECT>
              <SECTNO>3552.215-70</SECTNO>
              <SUBJECT>Price.</SUBJECT>
              <SECTNO>3552.215-71</SECTNO>
              <SUBJECT>Caution.</SUBJECT>
              <SECTNO>3552.215-72</SECTNO>
              <SUBJECT>All or None Award.</SUBJECT>
              <SECTNO>3552.225-70</SECTNO>
              <SUBJECT>Language.</SUBJECT>
              <SECTNO>3552.225-71</SECTNO>
              <SUBJECT>Notice of Applicability of United States Federal Law.</SUBJECT>
              <SECTNO>3552.225-72</SECTNO>
              <SUBJECT>Designated Contractors.</SUBJECT>
              <SECTNO>3552.225-73</SECTNO>
              <SUBJECT>Responsibility for Observance of Laws, Orders, and Regulations.</SUBJECT>
              <SECTNO>3552.227-70</SECTNO>
              <SUBJECT>Government Rights.</SUBJECT>
              <SECTNO>3552.228-70</SECTNO>
              <SUBJECT>Bid Guarantee Amount.</SUBJECT>
              <SECTNO>3552.228-71</SECTNO>
              <SUBJECT>Bonds and Insurance.</SUBJECT>
              <SECTNO>3552.228-72</SECTNO>
              <SUBJECT>Bonds.</SUBJECT>
              <SECTNO>3552.228-73</SECTNO>
              <SUBJECT>Non-U.S. Workers’ Compensation Insurance.</SUBJECT>
              <SECTNO>3552.228-74</SECTNO>
              <SUBJECT>Special Panama Insurance.</SUBJECT>
              <SECTNO>3552.228-75</SECTNO>
              <SUBJECT>Proposal Guarantee.</SUBJECT>
              <SECTNO>3552.228-76</SECTNO>
              <SUBJECT>Performance Bond.</SUBJECT>
              <SECTNO>3552.228-77</SECTNO>
              <SUBJECT>Performance and Payment Bonds.</SUBJECT>
              <SECTNO>3552.231-70</SECTNO>
              <SUBJECT>Travel Costs.</SUBJECT>
              <SECTNO>3552.232-70</SECTNO>
              <SUBJECT>Contract Payments.</SUBJECT>
              <SECTNO>3552.232-71</SECTNO>
              <SUBJECT>Availability of Funds.</SUBJECT>
              <SECTNO>3552.232-72</SECTNO>
              <SUBJECT>Presentation of Statement of Release From Claims.</SUBJECT>
              <SECTNO>3552.232-73</SECTNO>
              <SUBJECT>Invoices.</SUBJECT>
              <SECTNO>3552.236-70</SECTNO>
              <SUBJECT>Mailing of Correspondence and Bids.</SUBJECT>
              <SECTNO>3552.236-71</SECTNO>
              <SUBJECT>Additive Items.</SUBJECT>
              <SECTNO>3552.236-72</SECTNO>
              <SUBJECT>Cost Limitation.</SUBJECT>
              <SECTNO>3552.236-73</SECTNO>
              <SUBJECT>Scope of Work.</SUBJECT>
              <SECTNO>3552.236-74</SECTNO>
              <SUBJECT>Work Sites, Yards, Shops, and Offices.</SUBJECT>
              <SECTNO>3552.236-75</SECTNO>
              <SUBJECT>Work Time Limitations.</SUBJECT>
              <SECTNO>3552.236-76</SECTNO>
              <SUBJECT>Accident Prevention.</SUBJECT>
              <SECTNO>3552.236-77</SECTNO>
              <SUBJECT>Working in Confined Spaces.</SUBJECT>
              <SECTNO>3552.236-78</SECTNO>
              <SUBJECT>Safety Sign.</SUBJECT>
              <SECTNO>3552.236-79</SECTNO>
              <SUBJECT>Protection of Material and Work.</SUBJECT>
              <SECTNO>3552.236-80</SECTNO>
              <SUBJECT>Toilet Facilities.</SUBJECT>
              <SECTNO>3552.236-81</SECTNO>
              <SUBJECT>Drinking Water.</SUBJECT>
              <SECTNO>3552.236-82</SECTNO>
              <SUBJECT>Contract Bid Breakdown.</SUBJECT>
              <SECTNO>3552.236-83</SECTNO>
              <SUBJECT>Descriptive Data and Correspondence.</SUBJECT>
              <SECTNO>3552.236-84</SECTNO>
              <SUBJECT>Instruction Books.</SUBJECT>
              <SECTNO>3552.236-85</SECTNO>
              <SUBJECT>Record Drawings.</SUBJECT>
              <SECTNO>3552.236-86</SECTNO>
              <SUBJECT>Restricted Areas.</SUBJECT>
              <SECTNO>3552.236-87</SECTNO>
              <SUBJECT>Surplus Space.</SUBJECT>
              <SECTNO>3552.243-70</SECTNO>
              <SUBJECT>Modification Proposals—Price Breakdown.</SUBJECT>
              <SECTNO>3552.244-70</SECTNO>
              <SUBJECT>Subcontractors.</SUBJECT>
              <SECTNO>3552.247-70</SECTNO>
              <SUBJECT>Evaluation of Delivery Terms in Contract Awards.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Articles IX and XI of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7664, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3552.2—Texts of Provisions and Clauses</HD>
            <SECTION>
              <SECTNO>3552.209-70</SECTNO>
              <SUBJECT>Organizational Conflict of Interest Certification/Disclosure.</SUBJECT>
              <P>As prescribed in 3509.508-1, insert the following provision:</P>
              <EXTRACT>

                <HD SOURCE="HD1">Organizational Conflict of Interest Certification/Disclosure (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) An “organizational conflict of interest” exists when the nature of the work to be performed under a proposed Government contract may, without some restriction on future activities, (1) result in an unfair competitive advantage to the contractor, or (2) impair the contractor's objectivity in performing the contract work.</P>
                <P>(b) The offeror certifies, to the best of its knowledge and belief, that it [] is, [] is not (check applicable block) aware of any information bearing on the existence of any potential organizational conflict of interest. If the offeror is aware of information bearing on whether a potential conflict may exist, the offeror shall provide a disclosure statement with its offer which describes all relevant information concerning any past, present, or planned interests bearing on whether it (including its chief executives and directors, or any proposed consultant or subcontractor) may have a potential organizational conflict of interest.</P>
                <P>(c) The offeror should refer to FAR subpart 9.5 and PAR subpart 3509.5 for policies and procedures for avoiding, neutralizing, or mitigating organizational conflicts of interest.</P>

                <P>(d) If the Contracting Officer determines that a potential conflict exists, the offeror shall not receive an award unless the conflict <PRTPAGE P="154"/>can be avoided or otherwise resolved through the inclusion of a special contract clause or other appropriate means. The terms of any special clause are subject to negotiation.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.209-71</SECTNO>
              <SUBJECT>Organizational Conflict of Interest.</SUBJECT>
              <P>As prescribed in 3509.508-2, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Organizational Conflict of Interest (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) The Contractor warrants that, to the best of the Contractor's knowledge and belief: (1) There are no relevant facts or circumstances which could give rise to an organizational conflict of interest, as defined in provision 3552.209-70, Organizational Conflict of Interest Certification/Disclosure, of the solicitation; or (2) That the Contractor has disclosed all such relevant information.</P>
                <P>(b) The Contractor agrees that if an actual or potential organizational conflict of interest is discovered after award, the Contractor will make a full disclosure in writing to the Contracting Officer. This disclosure shall include a description of actions which the Contractor has taken or proposes to take, after consultation with the Contracting Officer, to avoid, mitigate, or neutralize the actual or potential conflict.</P>
                <P>(c) Remedies—The Panama Canal Commission may terminate this contract for convenience, in whole or in part, if it deems such termination necessary to avoid an organizational conflict of interest. If the Contractor was aware of a potential organizational conflict of interest prior to award or discovered an actual or potential conflict after award and did not disclose or misrepresented relevant information to the Contracting Officer, the Government may terminate the contract for default, debar the Contractor from Government contracting, or pursue such other remedies as may be permitted by law or this contract.</P>
                <P>(d) The contractor further agrees to insert in any subcontract or consultant agreement hereunder, terms which shall conform substantially to the language of this clause, including this paragraph (d).</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.210-70</SECTNO>
              <SUBJECT>Brand Name Products or Equal.</SUBJECT>
              <P>As prescribed in 3510.011(h), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Brand Name Products or Equal (Jan <E T="01">1990)</E>
                </HD>
                <P>(As used in this provision, the term “brand name” includes identification of products by make and model.)</P>
                <P>(a) If items called for by this (<E T="03">invitation for bids/request for proposals</E>) have been identified in the schedule by a “brand name or equal” description, such identification is characteristic of products that will be satisfactory. (<E T="03">Bids/Proposals</E>) offering “equal” products (including products of the brand name manufacturer other than the one described by brand name) will be considered for award if such products are clearly identified in the (<E T="03">bids/proposals</E>) and are determined by the Government to meet fully the salient characteristics, requirements listed in the invitation.</P>
                <P>(b) Unless the (<E T="03">bidder/offeror</E>) clearly indicates in its (<E T="03">bid/proposal</E>) that it is offering an “equal” product, its (<E T="03">bid/proposal</E>) shall be considered as offering a brand name product referenced in the (<E T="03">invitation for bids/request for proposals).</E>
                </P>
                <P>(c)(1) If the (<E T="03">bidder/offeror</E>) proposes to furnish an “equal” product, the brand name, if any, of the product to be furnished shall be inserted in the space identified in the (<E T="03">bid/proposal</E>). The evaluation of (<E T="03">bids/proposals</E>) and the determination as to equality of the product offered shall be the responsibility of the Government and will be based on information furnished by the (<E T="03">bidder/offeror</E>) or identified in its (<E T="03">bid/proposal</E>) as well as other information reasonably available to the purchasing activity. Caution to (<E T="03">bidders/offerors</E>): the purchasing activity is not responsible for locating or securing any information which is not identified in the (<E T="03">bid/proposal</E>) and reasonably available to the purchasing activity. Accordingly, to ensure that sufficient information is available, the (<E T="03">bidder/offeror</E>) shall furnish as part of its (<E T="03">bid/proposal</E>) all descriptive material (such as cuts, illustrations, drawings, or other information) necessary for the purchasing activity to (i) determine whether the product offered meets the salient characteristics requirement of the (<E T="03">invitation for bids/request for proposals</E>), and (ii) establish exactly what the (<E T="03">bidder/offeror</E>) proposes to furnish and what the Government would be binding itself to purchase by making an award. The information furnished may include specific references to information previously furnished or to information otherwise available to the purchasing activity.</P>
                <P>(2) If the (<E T="03">bidder/offeror</E>) proposes to modify a product so as to make it conform to the requirements of the (<E T="03">invitation for bids/request for proposals</E>). It shall (i) include in its (<E T="03">bid/proposal</E>) a clear description of such proposed modifications, and (ii) clearly mark any descriptive material to show the proposed modifications.</P>
                <P>(3) Modifications proposed after (<E T="03">bid/proposal</E>) opening to make a product conform to a brand name product referenced in the (<E T="03">invitation for bids/request for proposals</E>) will not be considered.<PRTPAGE P="155"/>
                </P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.214-70</SECTNO>
              <SUBJECT>Price—Sealed Bidding.</SUBJECT>
              <P>As prescribed in 3514.201-6(a)(1), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Price—Sealed Bidding (Jan <E T="01">1990)</E>
                </HD>
                <P>Only bids stating a firm, fixed-price expressed in U.S. dollars shall be considered for award. Bids that qualify the bid price in terms of the rate of exchange between U.S. dollars and a foreign currency will be rejected as nonresponsive.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.214-71</SECTNO>
              <SUBJECT>Additional Data To Be Submitted.</SUBJECT>
              <P>As prescribed in 3514.201-6(b)(1), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Additional Data to Be Submitted (Jan <E T="01">1990)</E>
                </HD>
                <P>Prior to award of the contract, the Contracting Officer may require the apparent low bidder to furnish the following information:</P>
                <P>(a) Evidence establishing that the bidder maintains a permanent place of business and has satisfactory and acceptable financial resources to meet obligations incident to the work.</P>
                <P>(b) A brief description of work experience by the bidder and the location of major projects.</P>
                <P>(c) A list of key personnel which the bidder has available for prosecution of the work to be performed, and a brief summary of such personnel's experience in work similar to that required by this contract.</P>
                <P>(d) A complete list and description of all equipment, shops, yards, and storage facilities that the bidder now has or will have available for commencement and prosecution of the work.</P>
                <P>(e) Evidence establishing that the bidder positively meets responsibility requirements, such as experience, which are included in the solicitation.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.214-72</SECTNO>
              <SUBJECT>Rejection of Bids.</SUBJECT>
              <P>As prescribed in 3514.201-6(b)(2), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Rejection of Bids (Jan <E T="01">1990)</E>
                </HD>
                <P>Any bid will be rejected that is conditioned upon or proposes that the Panama Canal Commission agree to the use of a price adjustment clause calling for an upward revision of the bid price or to the use of a cost-plus-fixed-fee or comparable pricing arrangement. The right is reserved, as the interest of the Panama Canal Commission may require, to reject any and all bids and to waive any informality in the bids. A bid may be rejected if the bidder fails to furnish a guaranty and submit the data required with the bid; or if the bidder cannot show to the satisfaction of the Contracting Officer that it has the experience and owns or controls by firm option, or can procure the necessary plant to commence work within the time prescribed in the specifications and, thereafter, to prosecute and complete the work at the rate or time specified; or if the bidder cannot show that he is not already obligated to perform other work contemplated in this Solicitation. Any unbalanced bid which, in the opinion of the Contracting Officer, jeopardizes the interests of the Panama Canal Commission will be subject to rejection for that reason.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.214-73</SECTNO>
              <SUBJECT>Caution—Sealed Bidding.</SUBJECT>
              <P>As prescribed in 3514.201-6(a)(2), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Caution—Sealed Bidding (Jan <E T="01">1990)</E>
                </HD>
                <P>Bidders are cautioned that any condition, qualification, provision, or comment in their bid, or in a letter transmitting their bid, which in any way modifies, takes exception to, or is inconsistent with the specifications, requirements, or any of the terms, conditions, or provisions of this solicitation, may require the rejection of their bid as nonresponsive.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.214-74</SECTNO>
              <SUBJECT>All or None Award—Sealed Bidding.</SUBJECT>
              <P>As prescribed in 3514.201-6(c), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">All or None Award—Sealed Bidding (Jan <E T="01">1990)</E>
                </HD>

                <P>Notwithstanding paragraph (c) of provision 52.214-10, Contract Award—Sealed Bidding, award will be made on an “all or none” basis to one bidder for all items, in the quantities and at the unit prices specified for each item. Consequently, for the purpose of determining the most advantageous bid in accordance with paragraph (a) of provision 52.214-10, the word “price” as used therein shall be construed to mean the bidder's aggregate price for all items. Any bid which fails to quote on all items, in the quantities specified for each item, shall be rejected as nonresponsive.<PRTPAGE P="156"/>
                </P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.214-75</SECTNO>
              <SUBJECT>All or None Award—Sealed Bidding—Construction.</SUBJECT>
              <P>As prescribed in 3514.201-6(d)(1), insert the following provision:</P>
              <EXTRACT>

                <HD SOURCE="HD1">All or None Award—Sealed Bidding—Construction (Jan <E T="01">1990)</E>
                </HD>
                <P>Regarding paragraph (c) of provision 52.214-19, Contract Award—Sealed Bidding—Construction, award will be made on an “all or none” basis to one bidder for all items. Consequently, for the purpose of determining the most advantageous bid in accordance with paragraph (a) of provision 52.214-19, the word “price” as used therein shall be construed to mean the bidder's aggregate price for all items. As indicated in paragraph (c) of provision 52.214-18, Preparation of Bids—Construction, failure to bid on all items will disqualify the bid.</P>
                <HD SOURCE="HD3">(End of provision)</HD>
                <HD SOURCE="HD2">Alternate I (Jan <E T="01">1990)</E>
                </HD>
                <P>If the construction work is not estimated to exceed $10,000, substitute the following text in place of the basic text:</P>
                <P>A contract award will be made on an “all or none” basis to one bidder for all items at the prices specified for each item. The award will be made, without discussions, to the overall low, responsible bidder whose bid, conforming to the solicitation, will be the most advantageous to the Government considering only the bidder's aggregate price for all items and the price-related factors, if any, specified elsewhere in the solicitation. Consequently, bidders are required to bid on all items. Failure to do so will disqualify the bid.</P>
                <HD SOURCE="HD2">Alternate II (Jan <E T="01">1990)</E>
                </HD>
                <P>If the contracting officer determines that (a) the contract work, regardless of its estimated value, will be awarded to one bidder for all the work, and (b) bidding on all items will not be required, substitute the following text in place of the basic text:</P>
                <P>A contract award will be made on an “all or none” basis to one bidder for all the contract work. The award will be made, without discussions, to the overall low, responsible bidder whose bid, conforming to the solicitation, will be the most advantageous to the Government considering only the bidder's aggregate price for all items and the price-related factors, if any, specified elsewhere in the solicitation. </P>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.215-70</SECTNO>
              <SUBJECT>Price.</SUBJECT>
              <P>As prescribed in 3515.407(a)(1), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Price (Jan <E T="01">1990)</E>
                </HD>
                <P>Only offers stating a firm-fixed-price expressed in U.S. dollars shall be considered for award. Offers that qualify the offer price in terms of the rate of exchange between U.S. dollars and a foreign currency will be rejected as nonresponsive.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.215-71</SECTNO>
              <SUBJECT>Caution.</SUBJECT>
              <P>As prescribed in 3515.407(a)(2), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Caution (Jan <E T="01">1990)</E>
                </HD>
                <P>Offerors are cautioned that any condition, qualification, provision, or comment in their offer, or in a letter transmitting their offer, which in any way modifies, takes exception to, or is inconsistent with the specifications, requirements, or any of the terms, conditions, or provisions of this solicitation, may require the rejection of their offer as nonresponsive.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.215-72</SECTNO>
              <SUBJECT>All or None Award.</SUBJECT>
              <P>As prescribed in 3515.407(b), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">All or None Award (Jan <E T="01">1990)</E>
                </HD>
                <P>Notwithstanding paragraph (d) of provision 52.215-16, Contract Award, a contract award will be made on an “all or none” basis to one offeror for all items, in the quantities and at the unit prices specified for each item. Consequently, for the purpose of determining the most advantageous offer in accordance with paragraph (a) of provision 52.215-16, the words “cost or price” as used therein shall be construed to mean the offeror's aggregate cost or price for all items. Therefore, offerors are cautioned to quote on all items, in the quantities specified for each item. Failure to do so will, in effect, eliminate the offeror from consideration for contract award in the event a contract is to be awarded on the basis of initial offers received without discussions, pursuant to paragraph (c) of provision 52.215-16.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.225-70</SECTNO>
              <SUBJECT>Language.</SUBJECT>
              <P>As prescribed in 3525.801-76(a), Language, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Language (Jan <E T="01">1990)</E>
                </HD>

                <P>All offers, correspondence and documents required by this solicitation or contract must be submitted in the English language. In the event of inconsistency between any terms of this solicitation or contract and <PRTPAGE P="157"/>any translation thereof into another language, the English language meaning shall control.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.225-71</SECTNO>
              <SUBJECT>Notice of Applicability of United States Federal Law.</SUBJECT>
              <P>As prescribed in 3525.801-76(b), insert the following clause:</P>
              <EXTRACT>

                <HD SOURCE="HD1">Notice of Applicability of United States Federal Law (Jan <E T="01">1990)</E>
                </HD>
                <P>All matters relating to the validity, construction, interpretation, performance and enforcement of the contract shall be determined in accordance with applicable federal law of the United States of America.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.225-72</SECTNO>
              <SUBJECT>Designated Contractors.</SUBJECT>
              <P>As prescribed in 3525.801-76(c), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Designated Contractors (Jan <E T="01">1990)</E>
                </HD>
                <P>Article XI, “Contractors and Contractors’ Personnel,” of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977, prescribes, among other things, that—</P>
                <P>(a) Whenever contracts are awarded by the Commission to natural persons who are nationals or permanent residents of the United States or to corporations or other legal entities organized under the laws of the United States and under the effective control of such persons, such contractors shall be so designated by the United States and such designations shall be communicated to the authorities of the Republic of Panama.</P>
                <P>(b) Designated contractors shall be subject to the laws and regulations of the Republic of Panama except with respect to the special provisions established by the above named international agreement, which enumerate such obligations and benefits as, among others:</P>
                <P>(1) Designated contractors must, while in Panama, engage exclusively in the work for which they have been contracted by U.S. Government agencies; and,</P>
                <P>(2) Designated contractors shall be accorded the same rights established for U.S. citizens employed by the U.S. Government in Panama pertaining to Panamanian immigration requirements, relief from the payment of certain Panamanian taxes and duties, and the use of certain facilities located on U.S. military installations in Panama.</P>
                <P>(c) The provisions of Article XI shall be similarly applied to the subcontractors and to the employees of the contractors and subcontractors and their dependents who are nationals or residents of the United States. These employees and dependents shall not be subject to the Panamanian Social Security System.</P>
                <P>(d) Upon withdrawal of the designation of a contractor, the Commission shall notify the authorities of the Republic of Panama.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.225-73</SECTNO>
              <SUBJECT>Responsibility for Observance of Laws, Orders, and Regulations.</SUBJECT>
              <P>As prescribed in 3525.801-76(d), insert the following clause:</P>
              <EXTRACT>

                <HD SOURCE="HD1">Responsibility for Observance of Laws, Orders, and Regulations (Jan <E T="01">1990)</E>
                </HD>
                <P>The Contractor shall be responsible for complying with all applicable laws, regulations, standards and requirements, including traffic and vehicular laws and regulations, prescribed by the Republic of Panama for contractors performing work for the Panama Canal Commission (hereinafter referred to as the Commission). The Contractor shall similarly be responsible for complying with all laws, Executive Orders, and United States Government rules and regulations which the Commission, as an agency of the United States Government performing work in the Republic of Panama, is required to follow. The areas of legal competence have been agreed to between both countries pursuant to and in accordance with the Panama Canal Treaty of 1977, including such executive agreements and implementing legislation as may be in effect. Failure of the Contractor to familiarize himself with all laws, orders, rules, regulations or standards promulgated by either country, which are or may become applicable to the work under this contract, shall not constitute a basis for adjustments under the contract.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.227-70</SECTNO>
              <SUBJECT>Government Rights.</SUBJECT>
              <P>As prescribed in 3527.304-3(b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Government Rights (Jan <E T="01">1990)</E>
                </HD>

                <P>The Contractor may retain the entire right, title, and interest, throughout the world, to all drawings, designs, specifications, notes, and other works developed in the performance of this contract, provided that the Government shall have a nonexclusive, nontransferable, irrevocable, paid-up license to have and to use same on any other Government design or construction, and provided that the Contractor shall execute or have executed, upon request, and shall promptly deliver to the Federal agency, all instruments necessary to establish or to confirm said license.<PRTPAGE P="158"/>
                </P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.228-70</SECTNO>
              <SUBJECT>Bid Guarantee Amount.</SUBJECT>
              <P>As prescribed in 3528.101-3(a), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Bid Guarantee Amount (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) The amount of the bid guarantee required by clause 52.228-1, Bid Guarantee, shall be 20 percent of the total amount of the bid, excluding options and additives if any, or $3,000,000, whichever is less.</P>
                <P>(b) If the bidder elects to furnish the guarantee in the form of a bid bond, the bond shall be submitted on Standard Form 24. Corporations executing the bond as sureties must be among those appearing on the current U.S. Treasury Department Circular 570, entitled “Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies”, and must be acting within the limitations set forth therein. If the contract work is to be performed in Panama, corporations that appear on the Panama Canal Commission's list of locally acceptable sureties, and that act within the limitations set forth therein, may be used in lieu of those appearing on Circular 570.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.228-71</SECTNO>
              <SUBJECT>Bonds and Insurance.</SUBJECT>
              <P>As prescribed in 3528.102-3, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Bonds and Insurance (Jan <E T="01">1990)</E>
                </HD>
                <P>The bidder who is awarded the contract shall be required to furnish performance and payment bonds, certificates of Workman's Compensation, if required, and public liability and automobile insurance as stipulated in the General Conditions. The payment by the Commission of the bond premiums to the Contractor shall not be made as increments of the individual progress payments and shall not be in addition to the contract price.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.228-72</SECTNO>
              <SUBJECT>Bonds.</SUBJECT>
              <P>As prescribed in 3528.102-3, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Bonds (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) Corporations executing the bond as sureties must be among those appearing either on the Panama Canal Commission's list of locally acceptable sureties or on the U.S. Treasury Department's Circular 570, and must be acting within the limitations set forth therein.</P>
                <P>(b) <E T="03">Payment Bond:</E> If the contract exceeds $2,000, the Contractor shall furnish a payment bond with good and sufficient surety or sureties acceptable to the Commission for the protection of persons furnishing material or labor in connection with the performance of the work under this contract on Standard Form 25-A. The penal sum of such payment bond shall be as follows: (1) When the contract price is $1,000,000 or less, 50 percent of the contract price; (2) when the contract price is in excess of $1,000,000, but no more than $5,000,000, 40 percent of the contract price; (3) or $2,500,000 when the contract price is more than $5,000,000.</P>
                <P>(c) <E T="03">Performance Bond:</E> If the contract exceeds $2,000, the Contractor shall furnish a performance bond with good and sufficient surety or sureties acceptable to the Commission in connection with the performance of the work under this agreement on Standard Form 25. The penal sum of such performance bond shall be 100 percent of the contract price.</P>
                <P>(d) The bonds herein shall not be dated prior to the date of the contract and shall be furnished by the Contractor to the Commission not later than 10 calendar days after award.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.228-73</SECTNO>
              <SUBJECT>Non-U.S. Workers’ Compensation Insurance.</SUBJECT>
              <P>As prescribed in 3528.309(a), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Non-U.S. Workers’ Compensation Insurance (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) Pursuant to a waiver granted by the Secretary of Labor, the provisions of the Defense Base Act (see clause 52.228-3) are not applicable to any public-work contract awarded by the Panama Canal Commission in the Panama Canal area with respect to non-U.S. citizen employees of Commission contractors. The waiver does not apply, however, to such employees who are:</P>
                <P>(1) Hired in the United States by any contractor; or</P>
                <P>(2) Residents of the United States.</P>

                <P>(b) The waiver was granted with the proviso that non-U.S. citizen employees exempted from the provisions of the Defense Base Act by virtue of the waiver will be provided workers’ compensation benefits prescribed in the Panamanian Social Security System. Accordingly, the Contractor shall provide workmen's insurance coverage (Seguros de Riesgos Profesionales) as provided by the Panamanian Social Security System in accordance with Cabinet Decree No. 68 of March 31, 1970, for all non-U.S. citizen employees that are not covered by clause 52.228-3 of this contract. The Seguro de Riesgos Profesionales coverage shall be provided before the Contractor commences performance and shall be maintained until performance is completed.<PRTPAGE P="159"/>
                </P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.228-74</SECTNO>
              <SUBJECT>Special Panama Insurance.</SUBJECT>
              <P>As prescribed in 3528.370, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Special Panama Insurance (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) “Designated contractors” shall, upon initiation of work or construction activities, obtain appropriate insurance to cover civil liabilities in the Republic of Panama that may arise as a result of acts or omissions done in the performance of official duty by their employees. The insurance coverage shall include coverage for the tortious conduct of their employees. Such insurance may be obtained from insurance companies licensed to engage in such business within the Republic of Panama.</P>
                <P>(b) The Contractor shall include this clause in all subcontracts.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.228-75</SECTNO>
              <SUBJECT>Proposal Guarantee.</SUBJECT>
              <P>As prescribed in 3528.101-3 (a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Proposal Guarantee (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) Failure to furnish a guarantee in the proper form and amount, by the time set for the receipt of offers, may be cause for rejection of the proposal.</P>
                <P>(b) The offeror shall furnish a guarantee in the form of a firm commitment, such as a bid bond, postal money order, certified check, cashier's check, irrevocable letter of credit, or, under Treasury Department regulations, certain bonds or notes of the United States. The amount of this guarantee shall be 20 percent of the total amount of the proposal price, excluding options and additives if any, or $3,000,000, whichever is less. The Contracting Officer will return guarantees, other than bid bonds, (1) to unsuccessful offerors as soon as practicable after the completion of the evaluation process, and (2) to the successful offeror upon execution of contractual documents and bonds (including any necessary coinsurance or reinsurance agreements), as required by the proposal as accepted.</P>
                <P>(c) If the successful offeror, upon acceptance of its bid by the Government within the period specified for acceptance, fails to execute all contractual documents or give a bond(s) as required by the solicitation within the time specified, the Contracting Officer may terminate the contract for default.</P>
                <P>(d) Unless otherwise specified in the proposal, the offeror will (1) allow 60 days for acceptance of its proposal, and (2) give bond within 10 days after receipt of the forms by the offeror.</P>
                <P>(e) In the event the contract is terminated for default, the Contractor is liable for any cost of acquiring the work that exceeds the amount of its proposal, and the proposal guarantee is available to offset the difference.</P>
                <P>(f) Regarding paragraph (b) of this clause, if a bid bond is furnished, it must be submitted on Standard Form 24. Corporations executing the bond as sureties must be among those appearing on the U.S. Treasury Department's Circular 570, entitled “Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies”, and must be acting within the limitations set forth therein. If the contract work is to be performed in Panama, corporations that appear on the Panama Canal Commission's list of locally acceptable sureties, and that act within the limitations set forth therein, may be used in lieu of those appearing on Circular 570.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.228-76</SECTNO>
              <SUBJECT>Performance Bond.</SUBJECT>
              <P>As prescribed in 3528.103-70(a), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Performance Bond (Jan <E T="01">1990)</E>
                </HD>

                <P>(a) The Contractor shall furnish a performance bond with good and sufficient surety or sureties in connection with the work under this contract on Standard Form 25, which requires that the surety or sureties must be among those appearing on the current U.S. Treasury Department Circular 570 (published in the <E T="04">Federal Register</E>), and any amendments thereto, and must be acting within the limitations set forth therein. If the contract work is to be performed in Panama, corporations that appear on the Panama Canal Commission's list of locally acceptable sureties, and that act within the limitations set forth therein, may be used in lieu of those appearing on Circular 570. The bond is to be completed in accordance with the instructions on the reverse side of Standard Form 25.</P>
                <P>(b) The penal sum of such performance bond shall be 100 percent of the contract price. The bond must not be dated prior to the date of the contract and shall be furnished by the Contractor to the Contracting Officer not later than 30 calendar days after the date of receipt by the Contractor of notice of award of the contract. As used in Standard Form 25, the term “Government” shall mean the “Panama Canal Commission”.</P>

                <P>(c) Under the terms of Standard Form 25 and this contract, the penal obligation specified in paragraph (b) of this clause shall be in <PRTPAGE P="160"/>effect during the life of the contract and during all warranty periods stipulated in the contract.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.228-77</SECTNO>
              <SUBJECT>Performance and Payment Bonds.</SUBJECT>
              <P>As prescribed in 3528.103-70 (a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Performance and Payment Bonds (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) <E T="03">General.</E> (1) The bonds required by paragraphs (b) and (c) of this clause are to be completed in accordance with the instructions on the reverse side of the respective bond forms. Corporations executing the bonds as sureties must be among those appearing on the current U.S. Treasury Department Circular 570 (published in the <E T="04">Federal Register</E>), and any amendments thereto, and must be acting within the limitations set forth therein. If the contract work is to be performed in Panama, corporations that appear on the Panama Canal Commission's list of locally acceptable sureties, and that act within the limitations set forth therein, may be used in lieu of those appearing on Circular 570.</P>
                <P>(2) The bonds must not be dated prior to the date of the contract and shall be furnished by the Contractor to the Contracting Officer not later than 30 calendar days after the date of receipt by the Contractor of notice of award of the contract.</P>
                <P>(b) <E T="03">Performance Bond.</E> The Contractor shall furnish a performance bond on Standard Form 25 in connection with the performance of the work under this contract. The penal sum of such bond shall be 100 percent of the contract price.</P>
                <P>(c) <E T="03">Payment Bond.</E> The Contractor shall furnish a payment bond on Standard Form 1416 for the protection of persons furnishing material and/or labor in the prosecution of the contract. The penal sum of such bond shall be as follows: (1) 50 percent of the contract price if such price is not more than $1,000,000; (2) 40 percent of the contract price if such price is more than $1,000,000 but not more than $5,000,000; or (3) $2,500,000 if the contract price is more than $5,000,000.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.231-70</SECTNO>
              <SUBJECT>Travel Costs.</SUBJECT>
              <P>As prescribed in 3531.205-46(b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Travel Costs (Jan <E T="01">1990)</E>
                </HD>
                <P>Costs incurred by the Contractor for travel and per diem in the performance of this contract that are authorized elsewhere in this contract shall be reimbursed to the Contractor in accordance with the Federal Travel Regulations, prescribed by the General Services Administration, in effect on the dates of performance of this contract.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.232-70</SECTNO>
              <SUBJECT>Contract Payments.</SUBJECT>
              <P>As prescribed in 3532.111(a)7, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Contract Payments (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) Contract payments, unless otherwise specified, will be made in United States currency, by check drawn on a local branch of a United States bank.</P>
                <P>(b) When the Contracting Officer determines that the value of materials delivered to the work site may be taken into account in preparing the progress payment estimate, the Contractor shall:</P>
                <P>(1) Compile the initial inventory list which shall be complete as regards to descriptions, quantities, nomenclatures, and prices, and shall be fully supported by certified invoices or other documentary evidence acceptable to the Contracting Officer. The list must be revised each month to show additions to the inventory, if any (supported by additional invoices), and deletions of material used during the month.</P>
                <P>(2) Submit monthly, subsequent lists for the material previously covered by certified invoices showing the exact status of remaining material based on a physical inventory.</P>
                <P>(3) Furnish inventory lists in duplicate at least five days prior to the date for submission of progress estimate for monthly payment.</P>
                <P>(c) In approving payments for material inventories, the Contracting Officer will authorize payment of 75 percent of the cost of material as part of the monthly payments, provided, however, that:</P>
                <P>(1) Any line item with a total value of less than $100 will be deleted; and</P>
                <P>(2) The total value of the inventory, exclusive of deleted line items, exceeds $1,000.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.232-71</SECTNO>
              <SUBJECT>Availability of Funds.</SUBJECT>
              <P>As prescribed in 3532.705-1, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Availability of Funds (Jan <E T="01">1990)</E>
                </HD>

                <P>The authorization of performance of work under this contract during the initial contract period and any extension period(s) is contingent upon the availability of funds to procure this service. If the contract is awarded or extended, the Panama Canal Commission's obligation beyond the end of the fiscal year (September 30) in which the award or extension is made is contingent upon the availability of funds from which payment for the contract services can be made. No legal liability on the part of the Panama Canal <PRTPAGE P="161"/>Commission for payment of any money beyond the end of each fiscal year (September 30) shall arise unless or until funds are made available to the Contracting Officer for performance and written notice of such availability is given to the Contractor.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.232-72</SECTNO>
              <SUBJECT>Presentation of Statement of Release From Claims.</SUBJECT>
              <P>As prescribed in 3532.806(a), insert the following clause:</P>
              <EXTRACT>

                <HD SOURCE="HD1">Presentation of Statement of Release From Claims (Jan <E T="01">1990)</E>
                </HD>
                <P>As a condition for final payment, the Contractor shall present a release of all claims against the Government arising by virtue of this contract. The release shall be applicable to all claims except those that the Contractor has specifically excepted in stated amounts from the operation of the release. A release may also be required of the assignee if the Contractor's claim to amounts payable under this contract has been assigned under the Assignment of Claims Act of 1940 (31 U.S.C. 203 and 41 U.S.C. 15). The release is due within 14 days of final acceptance.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.232-73</SECTNO>
              <SUBJECT>Invoices.</SUBJECT>
              <P>As prescribed in 3532.111(a)(8), insert a clause substantially as follows:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Invoices (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) Invoices shall be submitted in an original and two copies to the office designated elsewhere in this contract.</P>
                <P>(b) To constitute a proper invoice for supply or service (other than architect-engineer service) contracts, the invoice must include the items listed in paragraph (a)(4), subdivisions (i) through (viii) of clause 52.232-25, Prompt Payment. The invoice must be accompanied by a copy of the packing list, showing weights and measurements (gross and net) and contents of each package, if applicable. If items are mailed, the insurance parcel post receipt or copy thereof must accompany the invoice.</P>
                <P>(c) To constitute a proper invoice for construction contracts, the invoice must include the items listed in paragraph (a)(2), subdivisions (i) through (ix) of clause 52.232-27, Prompt Payment for Construction Contracts.</P>
                <P>(d) To constitute a proper invoice for architect-engineer services, the invoice must include the items listed in paragraph (a)(3), subdivisions (i) through (viii) of clause 52.232-26, Prompt Payment for Fixed-Price Architect-Engineer Contracts.</P>
                <P>(e) If this contract requires a written release from the Contractor with respect to claims, the release must accompany the invoice.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-70</SECTNO>
              <SUBJECT>Mailing of Correspondence and Bids.</SUBJECT>
              <P>As prescribed in 3536.371(a)(6), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Mailing of Correspondence and Bids (Jan <E T="01">1990)</E>
                </HD>

                <P>(a) Prospective bidders may submit inquiries concerning the specifications by writing the following:
                </P>
                <FP SOURCE="FP-1">(For local bidders)</FP>
                <FP SOURCE="FP-1">Specifications and Estimates Branch</FP>
                <FP SOURCE="FP-1">Engineering Division</FP>
                <FP SOURCE="FP-1">Engineering and Construction Bureau</FP>
                <FP SOURCE="FP-1">Balboa, Republic of Panama</FP>
                
                <FP SOURCE="FP-1">(For other bidders)</FP>
                <FP SOURCE="FP-1">Specifications and Estimates Branch</FP>
                <FP SOURCE="FP-1">Engineering Division</FP>
                <FP SOURCE="FP-1">Engineering and Construction Bureau</FP>
                <FP SOURCE="FP-1">APO Miami 34011-5000</FP>
                

                <P>(b) Bids to be mailed shall be addressed as follows:
                </P>
                <FP SOURCE="FP-1">(For local bidders)</FP>
                <FP SOURCE="FP-1">Contracting Officer</FP>
                <FP SOURCE="FP-1">Engineering and Construction Bureau</FP>
                <FP SOURCE="FP-1">Panama Canal Commission</FP>
                <FP SOURCE="FP-1">Balboa, Republic of Panama</FP>
                
                <FP SOURCE="FP-1">(For other bidders)</FP>
                <FP SOURCE="FP-1">Contracting Officer</FP>
                <FP SOURCE="FP-1">Engineering and Construction Bureau</FP>
                <FP SOURCE="FP-1">Panama Canal Commission</FP>
                <FP SOURCE="FP-1">APO Miami 34011-5000</FP>
                <HD SOURCE="HD3">(End of provision)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-71</SECTNO>
              <SUBJECT>Additive Items.</SUBJECT>
              <P>As prescribed in 3536.371(a)(7), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Additive Items (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) The low bidder for purposes of award shall be the conforming responsive bidder offering the lowest total price for the base bid item plus the largest number of additive bid items that can be awarded in the numerical order of priority listed in the schedule within the funds determined by the Contracting Officer to be available on the date of bid opening.</P>

                <P>(b) For example, when the amount of available funds is $100,000, and a bidder's base bid and bid for successive additives are $85,000, $10,000, $8,000, $6,000, and $4,000, respectively, the total amount of this bid for purposes of award would be $95,000 for the base bid plus the first additive, with the second, third and forth additives being omitted because the second additive ($8,000) would cause the total bid to exceed $100,000. If, for more than one <PRTPAGE P="162"/>bidder, the lowest total price for the base bid item plus the largest number of additive bid items that can be awarded are equal, then the low bidder for purposes of award shall be the one submitting the lowest price for the base bid item.</P>
                <P>(c) After the low bidder has been determined, the Contracting Officer shall be free to award the contract for the base bid item and any quantity of the additive bid items, but only in the numerical order of priority listed in the schedule, and provided that the total price is within the amount of funds available on the date of award and that the award does not exceed the price offered by any other conforming responsive bidder for the same bid items.</P>
                <P>(d) The Contracting Officer may reject a bid as nonresponsive if it is materially unbalanced as to prices for any of the different bid items. A bid is unbalanced when it is based on prices significantly less than cost for some work and prices which are significantly overstated for other work.</P>
                <HD SOURCE="HD3">(End of provision)</HD>
                <HD SOURCE="HD2">Alternate I (Jan <E T="01">1990)</E>
                </HD>
                <P>If the additives may be awarded with the base bid item in any combination, substitute the following text in place of the basic text:</P>
                <P>(a) The low bidder for purposes of award shall be the conforming responsive bidder offering the lowest total price for the base bid item plus, in the numerical order of priority listed in the schedule, the largest number of additive bid items that can be awarded within the funds determined by the Contracting Officer to be available on the date of bid opening.</P>
                <P>(b) If, for all bidders, inclusion of the next additive bid item in the listed order of priority would make the award exceed such available funds, it shall be omitted and the next subsequent additive bid item or items shall be included if the prices on one or more bids allow award thereon within the funds available. For example, when the amount of available funds is $100,000, and a bidder's base bid and bid for successive additives are $85,000, $10,000, $8,000, $6,000, and $4,000, respectively, the total amount of this bid item for purposes of award would be $99,000 for the base bid plus the first ($10,000) and fourth ($4,000) additives. All bids shall be evaluated and the low bidder determined on the basis of the same additive bid items, as above provided. If, for more than one bidder, the lowest total price for the base bid item plus the largest number of additive bid items that can be awarded are equal, then the low bidder for purposes of award shall be the one submitting the lowest price for the base bid item.</P>
                <P>(c) After the low bidder has been determined, the Contracting Officer shall be free to award the contract for the base bid item and any quantity and combination of the additive bid items regardless of their numerical order of priority listed in the schedule, provided that the total price is within the amount of funds available on the date of award and that the award does not exceed the price offered by any other conforming responsive bidder for the same bid items.</P>
                <P>(d) The Contracting Officer may reject a bid as nonresponsive if it is materially unbalanced as to prices for any of the different bid items. A bid is unbalanced when it is based on prices significantly less than cost for some work and prices which are significantly overstated for other work. </P>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-72</SECTNO>
              <SUBJECT>Cost Limitation.</SUBJECT>
              <P>As prescribed in 3536.371(a)(9), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Cost Limitation (Jan <E T="01">1990)</E>
                </HD>
                <P>A bid which does not contain separate bid prices for the items identified as subject to a cost limitation may be considered nonresponsive. By signing its bid, the bidder certifies that each price bid on items subject to a cost limitation includes an appropriate apportionment of all applicable estimated costs, direct and indirect, as well as overhead and profit. Bids may be rejected which (1) have been materially unbalanced for the purpose of bringing affected items within cost limitations, or (2) exceed the cost limitations unless such limitations have been waived by the Commission's Procurement Executive prior to award.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-73</SECTNO>
              <SUBJECT>Scope of Work.</SUBJECT>
              <P>As prescribed in 3536.570(k), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Scope of Work (Jan <E T="01">1990)</E>
                </HD>
                <P>The Contractor shall furnish all plant, materials, equipment, supplies, labor and transportation, including, fuel, power, water (except any materials, equipment, utility or service, if any, specified herein to be furnished by the Commission), as required to accomplish all work under the contract, in strict accordance with the specifications, schedules, and drawings, all of which are made a part hereof, and including such detail drawings as may be furnished by the Contracting Officer from time to time during the prosecution of the work in explanation of said drawings.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-74</SECTNO>
              <SUBJECT>Work Sites, Yards, Shops, and Offices.</SUBJECT>
              <P>As prescribed in 3536.570(l), insert the following clause:</P>
              <EXTRACT>
                <PRTPAGE P="163"/>
                <HD SOURCE="HD1">Work Sites, Yards, Shows, and Offices (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) The term “work site” will embrace all areas wherein operations are conducted by the Contractor in connection with the contract, including Commission work areas, plant, shops, yards, offices, camps and other facilities. The Contractor may be permitted to use areas within the Canal Operating Area for storage-of-work purposes on a temporary basis.</P>
                <P>(b) Prior to commencement of work, the Contractor shall, upon request, submit for the approval of the Contracting Officer, prints in quadruplicate, showing the locations of its major plant, offices, buildings, shops, storage yards, and other construction appurtenances which it proposes to construct. The Contractor shall remove any structure which it may construct in Canal Operating Areas, and restore the work site to its original condition after completion of the work.</P>
                <P>(c) If, at any time during the progress of the work, areas which have been allocated to the Contractor are not being used by the Contractor or are not essential to the future execution of the work, as determined by the Contracting Officer, the Contractor shall, when so directed, promptly clean up and vacate such areas at no expense to the Commission. The Contractor shall keep the buildings and grounds in use by the contractor at the work site in an orderly and sanitary condition, subject to the approval of the Contracting Officer.</P>
                <P>(d) Only equipment and materials required or used in connection with the work under the contract may be stored in Canal Operating Areas. Upon completion of the contract, and before final payment is made, the Contractor shall remove all equipment and materials from such areas.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-75</SECTNO>
              <SUBJECT>Work Time Limitations.</SUBJECT>
              <P>As prescribed in 3536.570(m), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Work Time Limitations (Jan <E T="01">1990)</E>
                </HD>
                <P>No work shall be done on Sundays or on days treated as a holiday for employees of United States Government agencies in the Republic of Panama, unless authorized or directed by the Contracting Officer. Requests by the Contractor to work on such days must be made in writing at least three days in advance.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-76</SECTNO>
              <SUBJECT>Accident Prevention.</SUBJECT>
              <P>As prescribed in 3536.570(n), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Accident Prevention (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) In performing this contract, the Contractor shall provide for protecting the lives and health of employees and other persons; preventing damage to property, materials, supplies and equipment; and avoiding work interruptions. For these purposes, the Contractor shall—</P>
                <P>(1) Provide appropriate safety barricades, signs, and signal lights;</P>
                <P>(2) Comply with the standards issued by the Secretary of Labor at 29 CFR part 1926 and 29 CFR part 1910; and</P>
                <P>(3) Ensure that any additional measures the Contracting Officer determines to be reasonably necessary for this purpose are taken.</P>
                <P>(b) The Contractor shall maintain an accurate record of exposure data on all accidents incident to work performed under this contract resulting in death, traumatic injury, occupational disease, or damage to property, materials, supplies, or equipment. The Contractor shall report this data in the manner prescribed by the Contracting Officer.</P>
                <P>(c) The Contracting Officer shall notify the Contractor of any noncompliance with these requirements and of the corrective action required. This notice, when delivered to the Contractor or the Contractor's representative at the site of the work, shall be deemed sufficient notice of the noncompliance and corrective action required. After receiving the notice, the Contractor shall immediately take corrective action. If the Contractor fails or refuses to take corrective action promptly, the Contracting Officer may issue an order stopping all or part of the work until satisfactory corrective action has been taken. The Contractor shall not base any claim or request for equitable adjustment for additional time or money on any stop order issued under these circumstances.</P>
                <P>(d) The Contractor shall call to the attention of the Contracting Officer or his representative any unsafe condition which is not within the power of the Contractor to correct but which could be corrected by others.</P>
                <P>(e) The Contractor shall, when performing work of an electrical nature, or when working in close proximity to electrical equipment or circuits, observe the following:</P>
                <P>(1) Be responsible for determining that the facility on which his men are to work is de-energized, isolated, and identified with accepted tag out/lock out procedures. The Commission will de-energize or isolate the cable, conductor, bus, circuit breaker, or line on which the Contractor desires to work. The Commission will also re-energize the cable, conductor, bus, circuit breaker, or line upon which the Contractor has completed work and which he certifies is ready for service.</P>

                <P>(2) When performing work, such as painting, roofing or modifying buildings, in close <PRTPAGE P="164"/>proximity to electric wires, work shall be scheduled in such a manner that these wires shall be de-energized during the period men are working around them. Arrangements shall be made with the Contracting Officer's representative for de-energizing such service wires and, unless otherwise specified, work requests shall be furnished by the Contractor to the Commission's Electrical Division to cover such work.</P>
                <P>(3) Painting, alterations, and additions to Commission facilities frequently require work to be performed in close proximity to electrical equipment and circuits within buildings. When such work, in the opinion of the Contracting Officer, requires the de-energization of circuits, arrangement for de-energizing services will be made by the Contracting Officer with the agency involved.</P>
                <P>(4) De-energization of circuits required in paragraphs (e)(2) and (3) of this clause shall be scheduled in such a manner that prolonged service interruptions shall be avoided.</P>
                <P>(f) In addition to the above, the Contractor shall:</P>
                <P>(1) Submit, within 30 calendar days after date of award, a written outline of his proposed safety program for the contract. The safety program shall include frequent and appropriate safety training sessions for employees as a regular and integral part of the contract activities.</P>
                <P>(2) Submit for approval a list of the personal protective equipment, by type and manufacturer, to be used by employees in hazardous occupations.</P>
                <P>(3) Confer with representatives of the Contracting Officer to discuss and develop mutual understandings relative to administration of the overall safety program.</P>
                <P>(g) The Contractor shall be responsible for its subcontractors’ compliance with this clause.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
              <CITA>[55 FR 7664, Mar. 2, 1990; 55 FR 38331, Sept. 18, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-77</SECTNO>
              <SUBJECT>Working in Confined Spaces.</SUBJECT>
              <P>As prescribed in 3536.570(o), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Working in Confined Spaces (Jan <E T="01">1990)</E>
                </HD>
                <P>The Contractor shall comply with the Commission's policy regarding work to be performed in confined or enclosed spaces. This policy is set forth in a pamphlet entitled “Panama Canal Commission Confined Spaces Policy”, which will be made available to the Contractor, or a prospective contractor, upon request to the Contracting Officer or his representative.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-78</SECTNO>
              <SUBJECT>Safety Sign.</SUBJECT>
              <P>As prescribed in 3536.570(p), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Safety Sign (Jan <E T="01">1990)</E>
                </HD>
                <P>The Contractor shall construct a safety sign at the work site at a location directed by the Contracting Officer. The sign shall be 6 feet by 4 feet in size and shall conform to the requirements of the sketch attached at the end of these General Conditions. The sign shall be erected as soon as possible, but not later than 10 days after work is initiated at the work site. No separate payment will be made for erecting and maintaining the safety sign.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-79</SECTNO>
              <SUBJECT>Protection of Material and Work.</SUBJECT>
              <P>As prescribed in 3536.570(q), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Protection of Material and Work (Jan <E T="01">1990)</E>
                </HD>
                <P>The Contractor shall protect and preserve all material, supplies and equipment of every description (including property which may be furnished or owned by the Commission) and all work performed. All reasonable requests of the Contracting Officer to enclose or specially protect such property shall be complied with. If, as determined by the Contracting Officer, material, equipment, supplies, and work performed are not adequately protected by the Contractor, such property may be protected by the Commission, and the cost thereof may be charged to the Contractor or deducted from any payments due the Contractor.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-80</SECTNO>
              <SUBJECT>Toilet Facilities.</SUBJECT>
              <P>As prescribed in 3536.570(r), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Toilet Facilities (Jan <E T="01">1990)</E>
                </HD>

                <P>Unless otherwise noted, the Contractor shall provide and maintain adequate toilet facilities at the work site for the use of all personnel engaged in the work under the contract. The number, types and locations of such toilet facilities shall be approved by the Contracting Officer. These facilities, where connection to the sanitary sewer system is possible, will be connected and disconnected to the sewer system by the Commission at the expense of the Contractor. The toilet facilities shall be maintained by the Contractor in a clean and sanitary condition. <PRTPAGE P="165"/>Upon completion of the work, all toilet facilities shall be removed by the Contractor.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-81</SECTNO>
              <SUBJECT>Drinking Water.</SUBJECT>
              <P>As prescribed in 3536.570(s), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Drinking Water (Jan <E T="01">1990)</E>
                </HD>
                <P>Unless otherwise noted, the Contractor shall provide suitable drinking water and sanitary dispensing facilities for the Contractor's employees.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-82</SECTNO>
              <SUBJECT>Contract Bid Breakdown.</SUBJECT>
              <P>As prescribed in 3536.570(t), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Contract Bid Breakdown (Jan <E T="01">1990)</E>
                </HD>
                <P>The Contractor shall, within 10 days after receipt of the Notice to Proceed, or on receipt of request, submit for approval a breakdown of its bid in a form to be outlined by the Contracting Officer. Supplementary bid breakdowns of all or part of the bid shall be furnished if requested by the Contracting Officer. Payments to the Contractor shall be based upon the information presented in the approved bid breakdown.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-83</SECTNO>
              <SUBJECT>Descriptive Data and Correspondence.</SUBJECT>
              <P>As prescribed in 3536.570(u), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Descriptive Data and Correspondence (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) All catalogs, operating instructions, descriptive literature, references, specifications, drawings and notes relevant to the equipment furnished under the specifications, and correspondence shall be in the English language. All drawings shall be prepared in accordance with American Standard Drafting Room Practice as approved by the American National Standard Institute (ANSI) standards and in accordance with the following:</P>
                <P>(1) All dimensions shall be given in feet and inches.</P>
                <P>(2) All weights shall be avoirdupois scales.</P>
                <P>(3) All volume measurements shall be in cubic feet, cubic inches or U.S. gallons (231 cu. in/gal).</P>
                <P>(4) All heat quantities shall be in British thermal units (Btu's).</P>
                <P>(5) All instruments shall read in units of the English system, except gallons shall be U.S. gallons as noted in paragraph (a)(3) of this clause.</P>
                <P>(b) When required by the various sections of these specifications or when requested by the Contracting Officer, seven (7) copies (unless otherwise specified) of the following items shall be submitted by the Contractor to the Contracting Officer for approval.</P>
                <P>(1) <E T="03">Material Lists:</E> Before any materials, fixtures or equipment are purchased, the Contractor shall submit a complete list of materials, fixtures and equipment to be incorporated in the work, together with the names and addresses of the manufacturers and their catalog numbers and trade names. A separate complete list shall be furnished for the equipment called for under each section of the specifications. No consideration will be given to partial lists submitted from time to time.</P>
                <P>(2) <E T="03">Descriptive Data:</E> In order to establish quality or suitability of materials, fixtures and equipment, the Contractor shall furnish detailed information and descriptive data for the various items. Approval of items will be based on manufacturer's published ratings. Any items which are not in accordance with the specifications will be rejected. The product of any reputable manufacturer regularly engaged in the commercial production of specified equipment will not be excluded on the basis of minor differences, provided all essential requirements of this specification relative to materials, capacity, and performance are met.</P>
                <P>(3) <E T="03">Samples:</E> (i) The Contractor shall submit all samples within a reasonable time before use to permit inspection and testing. Samples of materials subject to laboratory tests require, generally, a minimum of 20 days for tests after receipt of sample by the Contracting Officer. However, considerably more time may be required depending on the nature of the tests and the ability of the laboratory to take care of current testing requirements.</P>
                <P>(ii) Samples of the sizes and numbers required by the Contracting Officer or specified in the contract shall be submitted (except when this requirement is waived by the Contracting Officer) with label on each, giving contract number, specification paragraph, name and materials, trade name, name of manufacturer, place of origin, name and location of building on which to be used, and name of Contractor submitting same.</P>
                <P>(iii) Samples shall be so packed as to ensure delivery at destination in good condition and with all transportation charges prepaid by sender.</P>

                <P>(iv) Samples of materials not subject to destructive tests, when approved, will be kept on file in the office of the Contracting Officer until the completion of the work, except samples of hardware or other items approved by the Contracting Officer, which may be suitably marked for identification and installed in the work. If the Contractor desires an approved sample for the Contractor's own <PRTPAGE P="166"/>file or for a manufacturer, the Contractor shall submit sufficient additional samples to permit the desired distribution. Samples approved or rejected will be returned to the Contractor only at the Contractor's request and expense.</P>
                <P>(v) Samples selected will be tested in accordance with the requirements of the applicable material specifications. If a sample fails to meet specification requirements, the cost of testing shall be at the expense of the Contractor. Failure of samples to pass specified requirements will be sufficient cause for refusal to consider for this work any further samples from the manufacturer whose materials have failed to pass the required tests.</P>
                <P>(c) <E T="03">Submittals:</E> Each submittal shall be accompanied by the required number of Panama Canal Form 3062, Submittal Data For Approval, fully executed and certified by the Contractor. When possible, a single transmittal shall be used for all work of a section of the specifications, but in no instance shall a transmittal include work of more than one section. Each copy of each item submitted for approval shall also be properly identified as to the subject matter indicated thereon, the item of equipment or material to which it pertains, and the contract number under which it is submitted. Each point of difference between the proposed equipment or material and the specified equipment or material shall be clearly indicated on the submittal. The submittals shall be complete and shall be checked by both the materials or equipment supplier and the Contractor, and shall contain all required and necessary detailed information. Fabrication of the equipment and construction where involved shall not start until the submittals have been approved.</P>
                <P>(d) If approved by the Contracting Officer, each copy of the submittal will be identified as having received such approval by being stamped either “Approved” or “Approved as Noted”, and one set will be returned to the Contractor. Such approved submittals need not be resubmitted. If, however, the set returned to the Contractor is stamped “Disapproved”, such submittal shall be resubmitted as expeditiously as possible. If the Contractor desires to have more than one copy returned for the Contractor's use, the Contractor must increase the number of copies submitted accordingly and must so indicate on the transmittal form.</P>
                <P>(e) The approval of submittals by the Contracting Officer shall not be construed as a complete check, but will indicate only that, in general, the materials, equipment, system, arrangement, detailing and method of construction are satisfactory. Approval will not relieve the Contractor of the responsibility for any error or omission which may exist, and the Contractor shall be responsible for the dimensions and design of adequate connections, details, satisfactory construction, installation and operation of all work in accordance with the contract provisions. Approval shall be subject to final, in-place inspection of the work.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-84</SECTNO>
              <SUBJECT>Instruction Books.</SUBJECT>
              <P>As prescribed in 3536.570(u), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Instruction Books (Jan <E T="01">1990)</E>
                </HD>
                <P>The Contractor shall deliver to the Contracting Officer nine (9) copies (unless otherwise specified) of all instruction books as called for under the various sections of the Technical Conditions. The instruction books shall be submitted and approved before work can be started on installation of the equipment to which they pertain. Each copy of the instruction books shall provide legible, complete and clear instructions, descriptions and data for installation, operation, maintenance and repair of the equipment as well as replacement parts lists. Each copy of an instruction book shall be bound in separate durable covers. Method of binding shall be post type or equivalent to permit insertion of replacement pages. Ring or spiral type loose leaf binders are not acceptable. Each copy shall be properly and indelibly identified with the name of the project, the contract number, and the name and location of the equipment to which it pertains.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-85</SECTNO>
              <SUBJECT>Record Drawings.</SUBJECT>
              <P>As prescribed in 3536.570(u), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Record Drawings (Jan <E T="01">1990)</E>
                </HD>

                <P>The Contractor shall, during the progress of the work, keep a careful and current record, on a separate set of contract drawings, of all changes and corrections from the layouts shown on the drawings. These drawings shall be available for inspection at all times at the work site indicated by the drawings. If the Contracting Officer determines that the record drawings are seriously out of date, the Contracting Officer may require the Contractor to cease physical work on the portion of the work covered by the drawings until the drawings are brought up to date. Any costs of delays resulting from such actions by the Contracting Officer shall be borne by the Contractor. Upon completion, the Contractor shall revise one set of prints of contract drawings, furnished by the Contracting Officer, showing the work as actually constructed. These drawings shall be delivered to the Contracting Officer within 14 calendar days after receipt of the “Acceptance of Work” letter. All revisions made to <PRTPAGE P="167"/>the contract drawings shall be shown so that they stand out against the unchanged items in the drawing.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-86</SECTNO>
              <SUBJECT>Restricted Areas.</SUBJECT>
              <P>As prescribed in 3536.570(v), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Restricted Areas (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) If any of the work is located within a restricted area (such as locks areas, power stations, water purification plants, pump stations, and industrial areas), installation clearances, at no cost to the Contractor, will be required for all employees who must work in the restricted area. The Contractor shall submit to the Contracting Officer a listing of all employees to be cleared. The listing should be submitted at least 15 days before the anticipated starting date and should include the full name and cedula or identification card number of each employee and must be in alphabetical order.</P>
                <P>(b) Employees of the Contractor must carry their cedulas or identification cards at all times and produce them upon request of authorized personnel. The Contractor shall ensure that the Contractor's employees remain in the immediate area of work and do not wander indiscriminately about the restricted areas.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.236-87</SECTNO>
              <SUBJECT>Surplus Space.</SUBJECT>
              <P>As prescribed in 3536.570(y), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Surplus Space (Jan <E T="01">1990)</E>
                </HD>
                <P>Surplus space in Commission buildings, facilities, or land areas may be rented by Commission contractors, or by subcontractors through and in the name of a Commission contractor, for use in support of contract performance upon a written request by the Contractor to the Contracting Officer. The request shall include specific information regarding the location desired, the number of square feet required, and the type of activities to be conducted. If the request is accepted, the space assignment will be administered under the terms of a “Letter of Authorization” (LOA). Failure by the Contractor to comply with any of the terms of the LOA, or to completely remove itself from the rented space after the Contracting Officer has advised the Contractor that the LOA is terminated, shall be construed as a violation of this contract clause and shall entitle the Contracting Officer to take whatever action is appropriate under the contract, including termination for default and the withholding of final payment.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.243-70</SECTNO>
              <SUBJECT>Modification Proposals—Price Breakdown.</SUBJECT>
              <P>As prescribed in 3543.205 insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Modification Proposals—Price Breakdown (Jan <E T="01">1990)</E>
                </HD>
                <P>The Contractor shall furnish an itemized price breakdown, as required by the Contracting Officer, with the Contractor's proposal in connection with a contract modification. Unless otherwise directed, the breakdown shall be in sufficient detail to permit an analysis of all material, labor, equipment, subcontract and overhead costs as well as profit, and shall cover all work involved to accomplish the modification, whether deleted, added or changed. Any amount claimed for subcontracts shall be supported by a similar price breakdown. In addition, if the proposal includes a time extension, a justification therefore shall also be furnished. The proposal, together with the price breakdown and time extension justification, shall be furnished by such date as may be specified by the Contracting Officer.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.244-70</SECTNO>
              <SUBJECT>Subcontractors.</SUBJECT>
              <P>As prescribed in 3536.570(x), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Subcontractors (Jan <E T="01">1990)</E>
                </HD>

                <P>If subcontracts have been awarded for work under this contract, the Contractor shall submit to the Contracting Officer, within 30 calendar days after the date of award, a statement on the Commission's standard “Subcontractors” form setting forth the name and address of the subcontractor, a summary description of the work subcontracted and a description of subcontractor's previous experience in related work. If, at any time, the Contracting Officer determines that any subcontractor's performance is unsatisfactory, the Contracting Officer will notify the contractor accordingly, and steps will be taken immediately for cancellation of such subcontract. Subletting by subcontractors shall be subject to the same regulations. Nothing contained in this contract shall create any contractual relation between the subcontractor and the Commission. Subcontractors and their employees shall be considered to be employees of the Contractor.<PRTPAGE P="168"/>
                </P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3552.247-70</SECTNO>
              <SUBJECT>Evaluation of Delivery Terms in Contract Awards.</SUBJECT>
              <P>As prescribed in 3547.370, insert the following provision:</P>
              <EXTRACT>

                <HD SOURCE="HD1">Evaluation of Delivery Terms in Contract Awards (Jan <E T="01">1990)</E>
                </HD>
                <P>(a) When competing offers are received which specify the two different allowable terms of delivery, the offers will be evaluated at the actual or constructive landed cost in the Republic of Panama in accordance with the procedures stated below. In this connection, and for evaluation purposes only, the point of delivery will be the Port of Balboa, Panama or the Port of Cristobal, Panama for all offerors. Therefore, offerors quoting on an f.o.b. destination New Orleans basis shall furnish the total cubic measurement for each item being offered in order to apply the following procedures:</P>
                <P>(1) <E T="03">F.o.b. Destination New Orleans:</E> Offers quoting delivery in the United States are required on an f.o.b. destination New Orleans, Louisiana basis since transportation from New Orleans will be by a vessel, operating pursuant to a U.S. Government contract, which will discharge at the Port of Balboa. In order to compare these offers with offers quoting c.i.f. destination Panama, the following factors will be applied:</P>
                <P>(i) Ocean freight, New Orleans to Balboa $<E T="72">____</E>
                  <E T="03">(Contracting Officer insert appropriate amount)</E> per measurement ton of 40 cubic feet (MTON). This rate includes stevedoring and handling fees.</P>
                <P>(ii) A self-insured loss factor of one percent of the dollar value of the offer price.</P>

                <P>(iii) If the delivery port specified in the Commission solicitation is Cristobal, transportation from Balboa to Cristobal will be calculated at the rate of $<E T="72">____</E>
                  <E T="03">(Contracting Officer insert appropriate amount)</E> per MTON.</P>
                <P>(2) <E T="03">C.i.f. Destination Panama:</E> Foreign offerors proposing to ship from foreign countries, U.S. offerors preferring to ship directly to Panama, and Panamanian offerors proposing to ship from stock within the Republic of Panama, are required to ship on a c.i.f. Balboa, Panama or Cristobal, Panama basis, as applicable.</P>
                <P>(b) Failure to furnish the total cubic measurements of the individual items could result in the rejection of the offer. Moreover, if actual total cubic measurements vary from the information furnished and the award was made to the Contractor on the constructive cost based on the erroneous information, the Contractor will be charged for the difference between the actual cost and the price of the next low responsive offeror.</P>
                <HD SOURCE="HD3">(End of provision) </HD>
              </EXTRACT>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3553</EAR>
          <HD SOURCE="HED">PART 3553—FORMS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3553.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3553.1—General</HD>
              <SECTNO>3553.107</SECTNO>
              <SUBJECT>Obtaining forms.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3553.2—Prescription of Forms</HD>
              <SECTNO>3553.200</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>3553.213</SECTNO>
              <SUBJECT>Small purchase and other simplified purchase procedures (Forms 1010, 1820, 1821, 1822, 2008, 3083, 3163, 3163-MTD, 7071, 7074).</SUBJECT>
              <SECTNO>3553.215</SECTNO>
              <SUBJECT>Contracting by negotiation (Form 6122).</SUBJECT>
              <SECTNO>3553.236</SECTNO>
              <SUBJECT>Construction and architect-engineer contracts (Form 3062).</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3553.3—Illustration of Forms</HD>
              <SECTNO>3553.300</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7673, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3553.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part prescribes Panama Canal Commission forms to be used in various acquisitions and other information pertaining to the forms.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3553.1—General</HD>
            <SECTION>
              <SECTNO>3553.107</SECTNO>
              <SUBJECT>Obtaining forms.</SUBJECT>
              <P>Commission forms may be obtained from the cognizant Commission contracting office or by written request as indicated below:</P>
              <P>(a) For all forms prescribed at 3553.213, write to: Panama Canal Commission, Logistical Support Division, APO Miami 34011-5000;</P>
              <P>(b) For the forms prescribed at 3553.215 and 3553.236, write to: Panama Canal Commission, Construction Division, APO Miami 34011-5000.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3553.2—Prescription of Forms</HD>
            <SECTION>
              <SECTNO>3553.200</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>

              <P>This subpart prescribes Commission forms for use in the acquisition of supplies and services, including construction. The subpart is arranged by subject matter in the same order as, and is <PRTPAGE P="169"/>keyed to, the parts of the PAR in which the form usage requirements are addressed.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3553.213</SECTNO>
              <SUBJECT>Small purchase and other simplified purchase procedures (Forms 1010, 1820, 1821, 1822, 2008, 3083, 3163, 3163-MTD, 7071, 7074).</SUBJECT>
              <P>The following forms are prescribed as stated below for use in small purchases, orders under existing contracts or agreements, and orders from required sources of supplies and services:</P>
              <P>(a) <E T="03">Panama Canal Form No. 1010, Purchase Order.</E> This form may be used by the Inventory Management Branch in lieu of Optional Forms 347 and 348 for the purposes specified in 3513.505-2(a).</P>
              <P>(b) <E T="03">Panama Canal Form No. 1820, Purchase Order.</E> This form may be used by the Purchasing and Contract Branch in lieu of Optional Form 347 for the purposes specified in 3513.505-2(b).</P>
              <P>(c) <E T="03">Panama Canal Form No. 1821, Purchase Requisition.</E> This is a 6-sheet snap-out form. The first, fifth, and sixth sheets are entitled “Purchase Requisition” (the second, third and fourth sheets are explained in following paragraph (d)). The purchase requisition is an internal document that is prescribed for use only by Commission activities to request purchasing action by the Purchasing and Contracts Branch (see 3513.505-70).</P>
              <P>(d) <E T="03">Panama Canal Form No. 1821, Request for Quotation.</E> This is a 6-sheet snap-out form. The second, third and fourth sheets are entitled “Request for Quotation” (the first, fifth, and sixth sheets are explained in paragraph (c) of this section). As specified at 3513.107(a)(4)(i), this form may be used by the Purchasing and Contracts Branch in lieu of Standard Form 18 for the solicitation of nonstock items and services.</P>
              <P>(e) <E T="03">Panama Canal Form No. 1822, Request For Quotation Continuation.</E> As specified at 3513.107(a)(4)(ii), this form may be used with Panama Canal Form No. 1821 when additional space is needed.</P>
              <P>(f) <E T="03">Panama Canal Form No. 2008, This Is A Request For Prices; It Is Not An Order.</E> As specified at 3513.107(a)(4)(iii), this form may be used by the Inventory Management Branch in lieu of Standard Form 18 for the solicitation of standard stock items.</P>
              <P>(g) <E T="03">Panama Canal Form No. 3083, Purchase Order Continuation.</E> As specified at 3513.505-2(c), this form may be used with Panama Canal Form No. 1820, in lieu of Optional Form 348, when additional space is needed.</P>
              <P>(h) <E T="03">Panama Canal Form No. 3163, Division Purchase Order.</E> As specified at 3513.505-2(d), this form may be used by all activities having contracting authority in lieu of Optional Form 347 for the decentralized procurement of supplies and services.</P>
              <P>(i) <E T="03">Panama Canal Form No. 3163-MTD, Division Purchase Order.</E> As specified at 3513.505-2(e), this form may be used by the Motor Transportation Division and the New Orleans Branch, Logistical Support Division in lieu of Optional Form 347 for purchases of nonstandard stock automotive repair parts that do not exceed dollar amounts established by the General Services Director.</P>
              <P>(j) <E T="03">Panama Canal Commission Form 7071, General Contract Clauses and Provisions, Small Purchases.</E> As specified at 3513.107(a)(4)(iv), this form shall be forwarded to prospective suppliers together with either Panama Canal Form No. 1821 or Panama Canal Form No. 2008, as applicable.</P>
              <P>(k) <E T="03">Panama Canal Commission Form 7074, Information Sheet.</E> As specified at 3513.107(a)(4)(iv), this form shall be forwarded to prospective suppliers together with either Panama Canal Form No. 1821 or Panama Canal Form No. 2008, as applicable.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3553.215</SECTNO>
              <SUBJECT>Contracting by negotiation (Form 6122).</SUBJECT>
              <P>As specified at 3515.804-6, <E T="03">Panama Canal Form No. 6122, Cost Breakdown,</E> may be used by the contracting officer to require contractors to submit information for cost or price analysis in connection with requests for proposals or modifications not exceeding $25,000.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3553.236</SECTNO>
              <SUBJECT>Construction and architect-engineer contracts (Form 3062).</SUBJECT>
              <P>As specified at 3536.571, <E T="03">Panama Canal Form 3062, Submittal Data For Approval,</E> shall be used by contractors as a transmittal document when data is to be submitted for the contracting officer's approval pursuant to FAR clause <PRTPAGE P="170"/>52.236-5 or clause 3552.236-83 of this regulation.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3553.3—Illustration of Forms</HD>
            <SECTION>
              <SECTNO>3553.300</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>PAR forms are not illustrated in the PAR. Persons wishing to obtain copies of Commission forms prescribed in the PAR may do so in accordance with 3553.107.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="171"/>
        <HD SOURCE="HED">SUBCHAPTER I—AGENCY SUPPLEMENTARY REGULATIONS</HD>
        <PART>
          <EAR>Pt. 3570</EAR>
          <HD SOURCE="HED">PART 3570—ACQUISITION OF PANAMANIAN SUPPLIES AND SERVICES</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>3570.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3570.1—Panamanian Preference</HD>
              <SECTNO>3570.101</SECTNO>
              <SUBJECT>Determination and definitions.</SUBJECT>
              <SECTNO>3570.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>55 FR 7674, Mar. 2, 1990, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>3570.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part provides guidance on implementation of Article IX of the Agreement in Implementation of Article III of the Panama Canal Treaty of 1977 as it relates to the preferential acquisition of supplies and services obtainable in the Republic of Panama. (The pertinent Article IX language is set forth at 3525.801-74.)</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3570.1—Panamanian Preference</HD>
            <SECTION>
              <SECTNO>3570.101</SECTNO>
              <SUBJECT>Determination and definitions.</SUBJECT>
              <P>(a) It has been determined by the Administrator of the Panama Canal Commission that the acquisition of supplies and services obtainable in the Republic of Panama is required under the conditions contemplated by Article IX.</P>
              <P>(b) For the purposes of this determination, the following words and terms, as used in Article IX and this part 3570, shall have the meanings stated below:</P>
              <P>
                <E T="03">Comparable in quality and price</E> means the supplies or services (1) must conform to the purchase description, specifications, or statement of work that sets forth the Commission's requirements; and (2) can be acquired at a price equal to or lower than the price for similarly conforming supplies or services obtainable from sources outside the Republic of Panama.</P>
              <P>
                <E T="03">Goods</E> means manufactured or unmanufactured articles, materials and supplies.</P>
              <P>
                <E T="03">Obtainable in the Republic of Panama</E> means the supplies or services can be obtained from sources in the Republic of Panama.</P>
              <P>
                <E T="03">Panamanian origin</E> means goods that are grown, mined, or produced in the Republic of Panama; or in the case of goods which consist in whole or in part of materials from another country, have been substantially transformed by processes performed in the Republic of Panama into new and different articles of commerce with a name, character, or use distinct from that of the article or articles from which they were so transformed.</P>
              <P>
                <E T="03">Supplies,</E> pursuant to the definition in FAR 2.101, means “all property except land or interest in land.” Accordingly, the term includes construction.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3570.102</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) When supplies or services can be obtained from sources both within and without the Republic of Panama, and the following conditions exist, preference shall be afforded to those sources within Panama to the maximum extent possible:</P>
              <P>(1) The supplies or services can be provided at the time they are required;</P>
              <P>(2) The supplies or services are comparable in quality and price to those that can be obtained from sources outside Panama; and</P>
              <P>(3) The sources in Panama:</P>
              <P>(i) Are determined to be responsible prospective contractors pursuant to FAR subpart 9.1, and</P>
              <P>(ii) Can comply in all material respects with the terms and conditions of the acquisition document.</P>

              <P>(b) In the comparison of prices with respect to subparagraph (a)(2) of this section, there shall be taken into account the cost of transport to the Republic of Panama, including freight, insurance, and handling. The cost of insurance shall be calculated at one percent (1%) of the value of the supplies, or any supplies incidental to services, in the event the contract does not require insurance.<PRTPAGE P="172"/>
              </P>
              <P>(c) When choosing between goods from sources within Panama that are otherwise equal, preference shall be given to those goods having a larger percentage of components of Panamanian origin.</P>
              <P>(d) When conducting an acquisition of supplies or services for which the estimated cost is not expected to exceed the small purchase limitation in FAR part 13, participation may be limited to sources in Panama unless the contracting officer determines that there is no reasonable expectation of obtaining quotations from two or more such sources that:</P>
              <P>(1) Will be responsive to the required delivery time, and</P>
              <P>(2) Will be comparable in quality and price to supplies or services from sources outside Panama.</P>
              <P>(e)(1) In order to conduct an acquisition of supplies or services above the small purchase limitation and limit participation in the acquisition to sources in Panama, the contracting officer shall:</P>
              <P>(i) Prepare and submit a class or an individual determination and findings to the Procurement Executive, and</P>
              <P>(ii) Obtain that official's written approval of such determination and findings.</P>
              <P>(2) The determination and findings must clearly document that:</P>
              <P>(i) An acquisition limited to such sources would result in obtaining supplies or services at the time they are required that would be comparable in quality and price to those obtainable from sources outside Panama, or</P>
              <P>(ii) An acquisition from sources outside Panama would be impracticable because of the nature of the acquisition (e.g., a requirements type contract where deliveries must be made within a very short time span by trucks or pipeline from stockpiles or storage facilities located in Panama).</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 44 (10-1-00 Edition)</LRH>
      <RRH>Federal Emergency Management Agency</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="173"/>
          <HD SOURCE="HED">CHAPTER 44—FEDERAL EMERGENCY MANAGEMENT AGENCY</HD>
          <P>(Parts 4400 to 4499)</P>
        </TOCHD>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        </SUBCHAP>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>4401</PT>
          <SUBJECT>Federal Emergency Management Agency (FEMA) Acquisition Regulation System</SUBJECT>
          <PG>175</PG>
          <PT>4402</PT>
          <SUBJECT>Definition of words and terms</SUBJECT>
          <PG>178</PG>
          <PT>4403</PT>
          <SUBJECT>Improper business practices and personal conflicts of interest</SUBJECT>
          <PG>178</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>4405</PT>
          <SUBJECT>Publicizing contract actions</SUBJECT>
          <PG>180</PG>
          <PT>4406</PT>
          <SUBJECT>Competition requirements</SUBJECT>
          <PG>180</PG>
          <PT>4408</PT>
          <SUBJECT>Required sources of supplies and services</SUBJECT>
          <PG>180</PG>
          <PT>4409</PT>
          <SUBJECT>Contractor qualifications</SUBJECT>
          <PG>181</PG>
          <PT>4412</PT>
          <SUBJECT>Contract delivery or performance</SUBJECT>
          <PG>181</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>4414</PT>
          <SUBJECT>Sealed bidding</SUBJECT>
          <PG>183</PG>
          <PT>4415</PT>
          <SUBJECT>Contracting by negotiation</SUBJECT>
          <PG>183</PG>
          <PT>4416</PT>
          <SUBJECT>Types of contracts</SUBJECT>
          <PG>185</PG>
          <PT>4417</PT>
          <SUBJECT>Special contracting methods</SUBJECT>
          <PG>187</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>4419</PT>
          <SUBJECT>Small business and small disadvantaged business concerns</SUBJECT>
          <PG>188</PG>
          <PT>4424</PT>
          <SUBJECT>Protection of privacy and freedom of information</SUBJECT>
          <PG>188</PG>
          <PT>4426</PT>
          <SUBJECT>Other socioeconomic programs</SUBJECT>
          <PG>188</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>4429</PT>
          <SUBJECT>Taxes</SUBJECT>
          <PG>189</PG>
          <PT>4432</PT>
          <SUBJECT>Contract financing</SUBJECT>
          <PG>189<PRTPAGE P="174"/>
          </PG>
          <PT>4433</PT>
          <SUBJECT>Protests, disputes and appeals</SUBJECT>
          <PG>189</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>4435</PT>
          <SUBJECT>Research and development contracting</SUBJECT>
          <PG>190</PG>
          <PT>4436</PT>
          <SUBJECT>Construction and architect-engineer contracts</SUBJECT>
          <PG>190</PG>
          <PT>4450</PT>
          <SUBJECT>Extraordinary contractual actions</SUBJECT>
          <PG>190</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER H—CLAUSES AND FORMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>4452</PT>
          <SUBJECT>Solicitation provisions and contract clauses</SUBJECT>
          <PG>192</PG>
        </CHAPTI>
      </TOC>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="175"/>
        <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        <PART>
          <EAR>Pt. 4401</EAR>
          <HD SOURCE="HED">PART 4401—FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) ACQUISITION REGULATION SYSTEM</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>4401.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4401.1—Purpose, Authority, Issuance</HD>
              <SECTNO>4401.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <SECTNO>4401.103</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>4401.104</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
              <SECTNO>4401.104-1</SECTNO>
              <SUBJECT>Publication and code arrangement.</SUBJECT>
              <SECTNO>4401.104-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4401.3—Agency Acquisition Regulations</HD>
              <SECTNO>4401.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>4401.303</SECTNO>
              <SUBJECT>Codification and public participation.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4401.4—Deviations From the FAR</HD>
              <SECTNO>4401.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>
              <SECTNO>4401.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
              <SECTNO>4401.405</SECTNO>
              <SUBJECT>Deviations pertaining to treaties and executive agreements.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4401.6—Contracting Authority and Responsibilities</HD>
              <SECTNO>4401.600-70</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>4401.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>4401.603</SECTNO>
              <SUBJECT>Selection, appointment, and termination of appointment.</SUBJECT>
              <SECTNO>4401.603-2</SECTNO>
              <SUBJECT>Selection.</SUBJECT>
              <SECTNO>4401.603-3</SECTNO>
              <SUBJECT>Appointment.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4401.7—Determinations and Findings</HD>
              <SECTNO>4401.707-70</SECTNO>
              <SUBJECT>Signature authority.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4401.70—Procurement Contracts Versus Assistance Instruments</HD>
              <SECTNO>4401.7000</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>4401.7001</SECTNO>
              <SUBJECT>Procurement contracts.</SUBJECT>
              <SECTNO>4401.7001-1</SECTNO>
              <SUBJECT>Situations for use.</SUBJECT>
              <SECTNO>4401.7001-2</SECTNO>
              <SUBJECT>Examples.</SUBJECT>
              <SECTNO>4401.7002</SECTNO>
              <SUBJECT>Assistance.</SUBJECT>
              <SECTNO>4401.7002-1</SECTNO>
              <SUBJECT>Grants.</SUBJECT>
              <SECTNO>4401.7002-2</SECTNO>
              <SUBJECT>Cooperative agreements.</SUBJECT>
              <SECTNO>4401.7002-3</SECTNO>
              <SUBJECT>Examples of unsubstantial involvement.</SUBJECT>
              <SECTNO>4401.7002-4</SECTNO>
              <SUBJECT>Examples of substantial involvement.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 31316, Aug. 1, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>4401.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part sets forth policies and procedures concerning the Federal Emergency Management Agency Acquisition Regulation (FEMAAR) System.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4401.1—Purpose, Authority, Issuance</HD>
            <SECTION>
              <SECTNO>4401.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <P>FEMAAR is a supplement to the Federal Acquisition Regulation (FAR) and is established for the codification and publication of uniform policies and procedures for acquisitions by FEMA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.103</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>This regulation applies to all acquisitions within FEMA, but not to placement or administration of cooperative agreements or grants.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.104</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4401.104-1</SECTNO>
              <SUBJECT>Publication and code arrangement.</SUBJECT>

              <P>(a) The FEMAAR is published in (1) the daily issue of the <E T="04">Federal Register</E> and (2) cumulated form in the Code of Federal Regulations (CFR).</P>
              <P>(b) The FEMAAR is issued as chapter 44 of title 48, CFR.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.104-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
              <P>Copies of the FEMAAR in <E T="04">Federal Register</E> and CFR form may be purchased from the Superintendent of Documents, Government Printing Office, Washington, DC 20402. Agency offices may request copies of the FEMAAR from the Policy and Evaluation Division, Office of Acquisition Management.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4401.3—Agency Acquisition Regulations</HD>
            <SECTION>
              <SECTNO>4401.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>

              <P>Policies, procedures, and guidance of an internal nature may be issued <PRTPAGE P="176"/>through internal FEMA issuances such as manuals, standard operating procedures, directives or instructions.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.303</SECTNO>
              <SUBJECT>Codification and public participation.</SUBJECT>
              <P>If subject matter in FAR requires no implementation, the FEMAAR will not contain a corresponding part, subpart, section, or subsection number. FAR subject matter governs.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4401.4—Deviations From the FAR</HD>
            <SECTION>
              <SECTNO>4401.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>
              <P>The Director, Office of Acquisition Management, must authorize individual deviations in advance. Requests for authorization must:</P>
              <P>(a) Cite the specific parts of the FAR or FEMAAR from which it is desired to deviate;</P>
              <P>(b) Describe the deviation fully;</P>
              <P>(c) Indicate the circumstances which require the deviation;</P>
              <P>(d) Give reasons supporting the action requested; and</P>
              <P>(e) Give reasons why the action is in the best interest of the Government.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
              <P>The Director, Office of Acquisition Management, must authorize class deviations in advance.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.405</SECTNO>
              <SUBJECT>Deviations pertaining to treaties and executive agreements.</SUBJECT>
              <P>The Director, Office of Acquisition Management, is the central control point for all deviations including those pertaining to treaties and executive agreements.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4401.6—Contracting Authority and Responsibilities</HD>
            <SECTION>
              <SECTNO>4401.600-70</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart deals with the placement of contracting authority and responsibility within the agency, the selection and designation of contracting officers, and the authority of contracting officers.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The Director, Office of Acquisition Management, is designated the head of contracting activities and FEMA's procurement executive. The Director, Office of Acquisition Management, shall establish policy throughout the agency; monitor the overall effectiveness and efficiency of the agency's contracting offices; establish controls to assure compliance with laws, regulations, and procedures; and delegate contracting officer authority. The Director, Office of Acquisition Management, shall exercise the authority delegated under 44 CFR 2.67 FEMA Organization, Functions and Delegations.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.603</SECTNO>
              <SUBJECT>Selection, appointment, and termination of appointment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4401.603-2</SECTNO>
              <SUBJECT>Selection.</SUBJECT>
              <P>In the areas of experience, training, and education, the following shall be required unless contracting authority is limited to a simplified purchase procedures. Waiver of any of these criteria shall be in writing:</P>
              <P>(a) An individual contracting officer or an individual appointed to a position having contracting officer authority shall have a minimum of two years experience performing contracting, procurement, or purchasing functions in a Government or commercial contracting office. Additionally, where a contracting officer will work in a specialized field, experience in the field shall be a criterion for the appointment.</P>
              <P>(b) An individual contracting officer or an individual appointed to a position having contracting officer authority shall have the equivalent of a bachelor's degree from an accedited college or institution with major studies in business administration, law, accounting, or related fields. The appointing official may waive this requirement when a candidate is otherwise qualified by virtue of extensive contract-related experience and training, business acumen, judgment, character, reputation, and ethics.</P>

              <P>(c) An individual contracting officer or an individual appointed to a position having contracting authority shall have successfully completed training courses in both Government basic procurement and Government contract administration, each of not less than 80 class hours. Incumbents not meeting <PRTPAGE P="177"/>the special training requirements shall be given 24 months to meet the minimum qualification standards.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.603-3</SECTNO>
              <SUBJECT>Appointment.</SUBJECT>
              <P>Except for disaster-related activities and unusual circumstances as determined by the head of the contracting activity, it is policy to delegate contracting officer authority to individuals rather than to positions. The head of the contracting activity is the appointing authority. Except where the delegation of authority specifically includes the authority for further redelegation, no other delegations or redelegations may be made. Delegations of contracting officer authority shall include a clear statement of such authority and its responsibilities and limitations.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4401.7—Determinations and Findings</HD>
            <SECTION>
              <SECTNO>4401.707-70</SECTNO>
              <SUBJECT>Signature authority.</SUBJECT>
              <P>The head of the contracting activity shall sign all class Determination and Findings (D &amp; F's) not otherwise reserved to the agency head.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4401.70—Procurement Contracts Versus Assistance Instruments</HD>
            <SECTION>
              <SECTNO>4401.7000</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart describes the situations appropriate for the use of procurement contracts, grants, or cooperative agreements and provides examples of each.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.7001</SECTNO>
              <SUBJECT>Procurement contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4401.7000-1</SECTNO>
              <SUBJECT>Situations for use.</SUBJECT>
              <P>Procurement contracts are to be used whenever the principal purpose of the instrument is acquisition by purchase, lease, or barter of property or services for the direct benefit or use of the Federal Government.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.7001-2</SECTNO>
              <SUBJECT>Examples.</SUBJECT>
              <P>Procurement contracts normally will be used when the principal purpose of the relationship is:</P>
              <P>(a) Evaluation (including research if an evaluation character) of the performance of Government program, projects, or grantee activity initiated by FEMA.</P>
              <P>(b) Projects funded by administrative funds.</P>
              <P>(c) Technical assistance rendered on behalf of the Government to any third party including those receiving grants or cooperative agreements.</P>
              <P>(d) Surveys, studies, and research which provide specific information desired by the Government for its direct activities or for dissemination to the public.</P>
              <P>(e) Consulting or professional services of all kinds if provided to the Government or, on behalf of the Government, to any third party.</P>
              <P>(f) Planning for Government use.</P>
              <P>(g) Conferences conducted in behalf of the Government.</P>
              <P>(h) Production of publications or audiovisual materials required primarily for the conduct of the direct operations of the Government.</P>
              <P>(i) Design or development of items for Government use or pursuant to agency definition or specifications.</P>
              <P>(j) Generation of management information or other data for Government use.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.7002</SECTNO>
              <SUBJECT>Assistance.</SUBJECT>
              <P>Assistance may take the form of either grants or cooperative agreements and include:</P>
              <P>(a) General financial assistance (stimulation or support) to eligible recipients under specific legislation authorizing such assistance.</P>
              <P>(b) Financial assistance (stimulation or support) to a specific program activity eligible for such assistance under specific legislation authorizing such assistance.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.7002-1</SECTNO>
              <SUBJECT>Grants.</SUBJECT>
              <P>Grants are to be used whenever the principal purpose of the relationship is to transfer money, property, services, or anything else of value to a recipient to accomplish a public purpose. The support or stimulation to be accomplished by this transfer must be authorized by Federal statute and substantial involvement is not anticipated.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="178"/>
              <SECTNO>4401.7002-2</SECTNO>
              <SUBJECT>Cooperative agreements.</SUBJECT>
              <P>Cooperative agreements are to be used whenever the principal purpose of the relationship is the transfer of money, property, service, or anything else of value to recipients to accomplish a public purpose. The support or stimulation to be accomplished by this transfer must be authorized by Federal statute and substantial involvement is anticipated.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.7002-3</SECTNO>
              <SUBJECT>Examples of unsubstantial involvement.</SUBJECT>
              <P>Involvement is not substantial and a grant is the proper instrument when the following types of involvement are planned:</P>
              <P>(a) Approval of recipient plans prior to award.</P>
              <P>(b) Normal Federal stewardship such as site visits, performance reporting, financial reporting, and audits to ensure that objectives, terms, and conditions of the grants are met.</P>
              <P>(c) Unanticipated involvement to correct deficiencies in project or financial performance from the terms of the grants.</P>
              <P>(d) General statutory requirements understood in advance of the award such as civil rights, environmental protection, and provision for the handicapped.</P>
              <P>(e) Review of performance after completion.</P>
              <P>(f) General administrative requirements, such as those included in OMB Circulars A-21, A-95, A-110, and A-102.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4401.7002-4</SECTNO>
              <SUBJECT>Examples of substantial involvement.</SUBJECT>
              <P>Involvement is substantial and a cooperative agreement is the proper instrument when the following types of involvement are planned:</P>
              <P>(a) Agency review and approval of one stage before work can begin on a subsequent stage during the period covered by the cooperative agreement.</P>
              <P>(b) Agency and recipient collaboration or joint participation in the performance of the assisted activities.</P>
              <P>(c) Highly prescriptive agency requirements prior to award limiting recipient discretion with respect to scope of services offered, organizational structure, staffing, mode of operation and other management processes, coupled with close agency monitoring or operational involvement during performance over and above the normal exercise of Federal stewardship responsibilities to ensure compliance with these requirements.</P>
              <P>(d) General administrative requirements beyond those included in OMB Circulars A-102 and A-110.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4402</EAR>
          <HD SOURCE="HED">PART 4402—DEFINITION OF WORDS AND TERMS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4402.1—Definitions</HD>
            <SECTION>
              <SECTNO>4402.100</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Agency</E> means the Federal Emergency Management Agency (FEMA).</P>
              <P>
                <E T="03">Director</E> means the Director of the Federal Emergency Management Agency.</P>
              <P>
                <E T="03">Interagency agreement</E> means an agreement between two or more agencies, bureaus, or departments of the Federal Government by which supplies, services, or property are provided to, or obtained from, one or more agencies, bureaus, or departments of the Federal Government. Funds are transferred between the parties as consideration for the supplies, services, or property.</P>
              <P>
                <E T="03">Memorandum of Understanding</E> means an agreement between two or more agencies, bureaus, or departments of the Federal Government or other entity. Funds are not transferred between the parties.</P>
              <P>
                <E T="03">Program office</E> means any office which generates requests for procurement actions.</P>
              <P>
                <E T="03">Project officer</E> means the program office representative cognizant over the technical aspects of a given procurement action.</P>
              <CITA>[50 FR 31318, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4403</EAR>
          <HD SOURCE="HED">PART 4403—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4403.1—Safeguards</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>4403.101-2</SECTNO>

              <SUBJECT>Solicitation and acceptance of gratuities by Government personnel.<PRTPAGE P="179"/>
              </SUBJECT>
              <SECTNO>4403.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>
              <SECTNO>4403.103</SECTNO>
              <SUBJECT>Independent pricing.</SUBJECT>
              <SECTNO>4403.103-2</SECTNO>
              <SUBJECT>Evaluating the certification.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4403.2—Contractor Gratuities to Government Personnel</HD>
              <SECTNO>4403.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the Gratuities clause.</SUBJECT>
              <SECTNO>4403.204</SECTNO>
              <SUBJECT>Treatment of violations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4403.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
              <SECTNO>4403.602</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 31319, Aug. 1, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4403.1—Safeguards</HD>
            <SECTION>
              <SECTNO>4403.101-2</SECTNO>
              <SUBJECT>Solicitation and acceptance of gratuities by Government personnel.</SUBJECT>
              <P>Exceptions to the prohibition against soliciting or accepting gratuities are explained in 44 CFR part 3, subpart B.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4403.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>
              <P>FEMA “Standards and Conduct” are published in 44 CFR part 3. They include requirements for financial disclosure.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4403.103</SECTNO>
              <SUBJECT>Independent pricing.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4403.103-2</SECTNO>
              <SUBJECT>Evaluating the certification.</SUBJECT>
              <P>The Director, Office of Acquisition Management, is authorized to make the determination described in FAR 3.103-2(b)(2).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4403.2—Contractor Gratuities to Government Personnel</HD>
            <SECTION>
              <SECTNO>4403.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the Gratuities clause.</SUBJECT>
              <P>Suspected violations shall be reported in the FEMA Office of the Inspector General. A report shall include all facts and circumstances relevant to the case.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4403.204</SECTNO>
              <SUBJECT>Treatment of violations.</SUBJECT>
              <P>Following review and any necessary investigation, the Inspector General shall make recommendations to the Director or a designee. If action is to be taken against a contractor, the contractor shall be given the opportunity for a hearing in accordance with FAR 3.204(b).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4403.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
            <SECTION>
              <SECTNO>4403.602</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>The Director, Office of Acquisition Management, may authorize an exception to the policy in FAR 3.601, based on facts and circumstances provided by the program office.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="180"/>
        <HD SOURCE="HED">SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING</HD>
        <PART>
          <EAR>Pt. 4405</EAR>
          <HD SOURCE="HED">PART 4405—PUBLICIZING CONTRACT ACTIONS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>4405.001</SECTNO>
            <SUBJECT>Policy.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4405.2—Synopsis of Proposed Contracts</HD>
              <SECTNO>4405.206</SECTNO>
              <SUBJECT>Synopsis of subcontract opportunities.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4405.5—Paid Advertisements</HD>
              <SECTNO>4405.502</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganizational Plan No. 3 of 1978.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 31319, Aug. 1, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>4405.001</SECTNO>
            <SUBJECT>Policy.</SUBJECT>
            <P>The agency shall continually search for and develop information on sources (including small businesses owned and controlled by one or more socially or economically disadvantaged individuals) competent to provide supplies or services. Advance publicity, including use of the Commerce Business Daily to the fullest extent practicable, shall be used for this purpose. The search should include a review of data or brochures furnished by sources seeking to do business with the agency. It also should include program personnel, small business specialists, and contracting officers to obtain information and recommendations with respect to potential sources and to consider seeking other sources by publication of proposed procurements.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4405.2—Synopsis of Proposed Contracts</HD>
            <SECTION>
              <SECTNO>4405.206</SECTNO>
              <SUBJECT>Synopsis of subcontract opportunities.</SUBJECT>
              <P>Unless it is not in the Government's interest, the contracting officer shall make the solicitation source list available to firms requesting it for subcontracting opportunities on contracts exceeding the small purchase threshold.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4405.5—Paid Advertisements</HD>
            <SECTION>
              <SECTNO>4405.502</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <P>In accordance with 44 CFR 2.72(a) authority to approve publication of paid advertisement in newspapers has been delegated to the Director, Office of Administrative Support.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4406</EAR>
          <HD SOURCE="HED">PART 4406—COMPETITION REQUIREMENTS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4406.5—Competition Advocate</HD>
            <SECTION>
              <SECTNO>4406.501</SECTNO>
              <SUBJECT>Requirement.</SUBJECT>
              <P>The Chief, Policy and Planning Division, Office of Acquisition Management is designated FEMA's Competition Advocate.</P>
              <CITA>[50 FR 31319, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4408</EAR>
          <HD SOURCE="HED">PART 4408—REQUIRED SOURCES OF SUPPLIES AND SERVICES</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4408.8—Acquisition of Printing and Related Supplies</HD>
            <SECTION>
              <SECTNO>4408.802</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>Contracting officers shall obtain approval from the Director, Office of Administrative Support, FEMA's central printing authority before contracting for printing.</P>
              <CITA>[50 FR 31319, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="181"/>
          <EAR>Pt. 4409</EAR>
          <HD SOURCE="HED">PART 4409—CONTRACTOR QUALIFICATIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4409.4—Debarment, Suspension, and Ineligibility</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>4409.404</SECTNO>
              <SUBJECT>Consolidated list of debarred, suspended, and ineligible contractors.</SUBJECT>
              <SECTNO>4409.406</SECTNO>
              <SUBJECT>Debarment.</SUBJECT>
              <SECTNO>4409.406-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>4409.406-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>4409.407</SECTNO>
              <SUBJECT>Suspension.</SUBJECT>
              <SECTNO>4409.407-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>4409.407-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 31319, Aug. 1, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4409.4—Debarment, Suspension, and Ineligibility</HD>
            <SECTION>
              <SECTNO>4409.404</SECTNO>
              <SUBJECT>Consolidated list of debarred, suspended, and ineligible contractors.</SUBJECT>
              <P>The Director, Office of Acquisition Management, will notify GSA, maintain records, establish procedures, and direct inquiries as required by FAR 9.404(c).</P>
            </SECTION>
            <SECTION>
              <SECTNO>4409.406</SECTNO>
              <SUBJECT>Debarment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4409.406-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The Chief of Staff shall be the debarring official.</P>
              <CITA>[50 FR 31319, Aug. 1, 1985, as amended at 55 FR 28207, July 10, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4409.406-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) Determination to debar or take other action concerning a firm or individual for a cause listed in FAR 9.406-2 shall be made by the Chief of Staff. Whenever cause for debarment becomes known to any contracting officer, the matter shall be submitted, with recommendations of the Director, Office of Acquisition Management, via the Office of General Counsel, to the Chief of Staff for appropriate action. The documented file of the case will be included in the submission.</P>
              <P>(b) If the Chief of Staff concurs in the proposed debarment, a notice of proposal to debar shall be issued by the Chief of Staff or designee.</P>
              <P>(c) The Chief of Staff or designee shall conduct any hearings requested in connection with debarment proceedings. The firm or individual shall have the opportunity to appear with witnesses and counsel to present facts or circumstances showing cause why such firm or individual should not be debarred. If the firm or individual elects not to appear, or if the firm or individual does not respond within 30 days from receipt of the written notice, the reviewing authority will make the decision based on the facts on record and such additional evidence as may be furnished by the parties involved. After consideration of the facts, the reviewing authority shall notify the firm or individual of the final decision.</P>
              <P>(d) Appeals may be taken within 30 days after receipt by the firm or individual of a decision to debar. Appeals shall be filed with the Director, FEMA, who shall make a decision based on the record. The Director's decision shall be final.</P>
              <CITA>[50 FR 31319, Aug. 1, 1985, as amended at 55 FR 28207, July 10, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4409.407</SECTNO>
              <SUBJECT>Suspension.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4409.407-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The Chief of Staff shall be the suspending official.</P>
              <CITA>[50 FR 31319, Aug. 1, 1985, as amended at 55 FR 28207, July 10, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4409.407-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) Any contracting officer may recommend suspension of bidders. These recommendations shall be accompanied by the documented file in the case and be submitted through the Director, Office of Acquisition Management, via the Office of General Counsel, to the Chief of Staff. The Chief of Staff shall issue the notice of suspension.</P>
              <P>(b) The Director, Office of Acquisition Management, shall develop and maintain suspension procedures.</P>
              <CITA>[50 FR 31319, Aug. 1, 1985, as amended at 55 FR 28207, July 10, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4412</EAR>
          <HD SOURCE="HED">PART 4412—CONTRACT DELIVERY OR PERFORMANCE</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <PRTPAGE P="182"/>
            <HD SOURCE="HED">Subpart 4412.3—Priorities, Allocations, and Allotments</HD>
            <SECTION>
              <SECTNO>4412.303</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>Rejected rated orders or ACM orders shall be sent to the Department of Commerce through the head of the contracting activity.</P>
              <CITA>[50 FR 31320, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="183"/>
        <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        <PART>
          <EAR>Pt. 4414</EAR>
          <HD SOURCE="HED">PART 4414—SEALED BIDDING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4414.4—Opening of Bids and Award of Contract</HD>
              <SECTNO>4414.401</SECTNO>
              <SUBJECT>Receipt and safeguarding of bids.</SUBJECT>
              <SECTNO>4414.402</SECTNO>
              <SUBJECT>Opening of bids.</SUBJECT>
              <SECTNO>4414.406</SECTNO>
              <SUBJECT>Mistakes in bids.</SUBJECT>
              <SECTNO>4414.406-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 31320, Aug. 1, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4414.4—Opening of Bids and Award of Contract</HD>
            <SECTION>
              <SECTNO>4414.401</SECTNO>
              <SUBJECT>Receipt and safeguarding of bids.</SUBJECT>
              <P>(a) Envelopes or other outer coverings containing identified bids shall be stamped or otherwise marked to show the office of receipt, the time of day received, and the date. The individual receiving the bids shall then initial under the marking.</P>
              <P>(b) A copy of the envelope or other covering bearing the documentation of a bid that was opened by mistake shall be retained in the file.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4414.402</SECTNO>
              <SUBJECT>Opening of bids.</SUBJECT>
              <P>The contracting officer, or duly authorized representative, shall be designated as the bid opening officer.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4414.406</SECTNO>
              <SUBJECT>Mistakes in bids.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4414.406-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
              <P>The Director, Office of Acquisition Management, is delegated the authority to make the determinations concerning mistakes in bid other than obvious clerical errors discovered prior to award. Each such determination shall be approved by the Office of General Counsel prior to notification of the bidder.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4415</EAR>
          <HD SOURCE="HED">PART 4415—CONTRACTING BY NEGOTIATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4415.4—Solicitation and Receipt of Proposals and Quotations</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>4415.413</SECTNO>
              <SUBJECT>Disclosure and use of information before award.</SUBJECT>
              <SECTNO>4415.413-2</SECTNO>
              <SUBJECT>Alternate II.</SUBJECT>
              <SECTNO>4415.413-70</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>4415.413-71</SECTNO>
              <SUBJECT>Release of information during the solicitation phase.</SUBJECT>
              <SECTNO>4415.413-72</SECTNO>
              <SUBJECT>Disposition of unsuccessful proposals.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4415.5—Unsolicited Proposals</HD>
              <SECTNO>4415.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>4415.505-1</SECTNO>
              <SUBJECT>Content of unsolicited proposals.</SUBJECT>
              <SECTNO>4415.505-2</SECTNO>
              <SUBJECT>Unsolicited renewal proposals.</SUBJECT>
              <SECTNO>4415.506</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
              <SECTNO>4415.506-1</SECTNO>
              <SUBJECT>Receipt and initial review.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4415.6—Source Selection</HD>
              <SECTNO>4415.612</SECTNO>
              <SUBJECT>Formal source selection.</SUBJECT>
              <SECTNO>4415.612-70</SECTNO>
              <SUBJECT>Scope.</SUBJECT>
              <SECTNO>4415.612-71</SECTNO>
              <SUBJECT>Key participants.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4415.8—Price Negotiation</HD>
              <SECTNO>4415.803</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4415.10—Preaward, Award and Postaward Notifications, Protests, and Mistakes</HD>
              <SECTNO>4415.1003</SECTNO>
              <SUBJECT>Debriefing of unsuccessful offerors.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 31320, Aug. 1, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4415.4—Solicitation and Receipt of Proposals and Quotations</HD>
            <SECTION>
              <SECTNO>4415.413</SECTNO>
              <SUBJECT>Disclosure and use of information before award.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4415.413-2</SECTNO>
              <SUBJECT>Alternate II.</SUBJECT>
              <P>These alternate FAR procedures may be used if approved in writing by the head of the contracting activity.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="184"/>
              <SECTNO>4415.413-70</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>It is FEMA policy to use information contained in proposals only for evaluation purposes unless information (a) is generally available to the public, (b) is already the property of the Government, (c) is already available to the Government with unrestricted use rights, or (d) is or has been made available to the Government without restriction.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4415.413-71</SECTNO>
              <SUBJECT>Release of information during the solicitation phase.</SUBJECT>
              <P>No information shall be released during the solicitation phase, except as follows: Each solicitation for a negotiated acquisition shall name an individual in the contracting office to respond to inquiries concerning the solicitation and evaluation of proposals resulting from the solicitation. All questions whether of a procedural or substantive nature shall be directed to that individual. No one else shall exchange comments with offerors or potential offerors. Questions requiring clarification of substantive portions of the solicitation shall be answered by amendment of the solicitation. A copy of the amendment shall be sent to each recipient of the solicitation.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4415.413-72</SECTNO>
              <SUBJECT>Disposition of unsuccessful proposals.</SUBJECT>
              <P>Unsuccessful proposals shall be disposed of as follows:</P>
              <P>(a) All but one copy of each unsuccessful proposal shall be destroyed as soon as practicable after contract award. The one remaining copy of each shall be retained in the official contract file.</P>
              <P>(b) Unsuccessful proposals shall not be used for purposes other than internal reference unless (1) written permission has been obtained from the offeror or (2) the proposal expressly states that unrestricted use is given to the Government regardless of its success in the competition.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4415.5—Unsolicited Proposals</HD>
            <SECTION>
              <SECTNO>4415.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart sets forth procedures for controlling the receipt, evaluation, and timely disposition of unsolicited proposals.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4415.505-1</SECTNO>
              <SUBJECT>Content of unsolicited proposals.</SUBJECT>
              <P>FEMA's Appropriation Act (Public Law 100—404, Section 407) requires the contractor to cost share if a research contract results from an unsolicited proposal. This requirement may be waived only when it would not be equitable for the Government to require cost sharing. To waive, (a) the offeror must certify in writing to the contracting officer that it has no commercial, production, educational, or service activities on which to use the results of the research and that it has no means of recovering any cost on such projects; and (b) the contracting officer must make a written determination that there is no measurable gain to the performing organization and no mutuality of interest. This determination shall be placed in the contract file. (See 4416.303.)</P>
              <CITA>[50 FR 31320, Aug. 1, 1985, as amended at 55 FR 28207, July 10, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4415.505-2</SECTNO>
              <SUBJECT>Unsolicited renewal proposals.</SUBJECT>
              <P>Renewal proposals, i.e., those for the extension or augmentation of current contracts, are subject to the same FAR and FEMA regulations, including the requirements of the Competition in Contracting Act, as are proposals for new contracts.</P>
              <CITA>[55 FR 28207, July 10, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4415.506</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
              <P>(a) The Office of Acquisition Management is the point of contact for the receipt, acknowledgment, and handling of unsolicited proposals. Unsolicited proposals and requests for additional information regarding their preparation shall be submitted to: Federal Emergency Management Agency, Office of Acquisition Management, Policy &amp; Evaluation Division, 500 C Street SW, room 726, Washington, DC 20472.</P>

              <P>(b) Unsolicited proposals submitted to FEMA program, regional or field offices, or misdirected proposals, shall be immediately fowarded by recipients to the Headquarters Office of Acquisition Management.<PRTPAGE P="185"/>
              </P>
              <P>(c) Unsolicited proposals shall be submitted in an original and five copies at least six months in advance of the date the offeror desires to begin work so that there will be enough time to evaluate the proposal and negotiate a contract.</P>
              <CITA>[50 FR 31320, Aug. 1, 1985, as amended at 55 FR 28207, July 10, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4415.506-1</SECTNO>
              <SUBJECT>Receipt and initial review.</SUBJECT>
              <P>(a) The Office of Acquisition Management shall acknowledge an unsolicited proposal. Simultaneously, copies of the proposal shall be sent to the appropriate program offices for evaluation.</P>
              <P>(b) <E T="03">Information Requirements.</E> The Office of Acquisition Management shall keep records of unsolicited proposals received and shall provide prompt status information to requestors. The records shall include, as a minimum, the number of unsolicited proposals received, funded, and rejected during the fiscal year, the identity of the proposers and the office to which each was referred. These numbers shall be broken out by source (large business, small business, university, or nonprofit institutions).</P>
              <CITA>[50 FR 31320, Aug. 1, 1985, as amended at 55 FR 28207, July 10, 1990]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4415.6—Source Selection</HD>
            <SOURCE>
              <HD SOURCE="HED">Source:</HD>
              <P>55 FR 28207, July 10, 1990, unless otherwise noted.</P>
            </SOURCE>
            <SECTION>
              <SECTNO>4415.612</SECTNO>
              <SUBJECT>Formal source selection.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4415.612-70</SECTNO>
              <SUBJECT>Scope.</SUBJECT>
              <P>(a) Formal source selection procedures shall apply to competitively negotiated acquisition when the estimated cost exceeds $25,000.</P>
              <P>(b) Formal source selection procedures do not apply to the acquisition of Architect-Engineer Services, acquisition from other Government agencies (including State and local), or any other acquisition which is specifically exempted by the Director.</P>
            </SECTION>
            <SECTION>
              <SECTNO>4415.612-71</SECTNO>
              <SUBJECT>Key participants.</SUBJECT>
              <P>(a) A proposal evaluation team shall be formed to conduct the technical evaluation of proposals. For acquisitions estimated to cost $10 million or less, the team shall be called the Technical Evaluation Panel (TEP) and shall consist of at least three (3) voting members. For acquisitions in excess of $10 milion, or those whose estimated cost does not exceed $10 million, but the selected source is likely to receive funding for future phase(s) of the same project, and the aggregate amount of such funding (including the current acquisition) is estimated to exceed $10 million, the team shall be called the Source Evaluation Board (SEB) and shall consist of at least five (5) voting members.</P>
              <P>(b) The Source Selection Official or the Contracting Officer, depending upon the dollar amount of the proposed award and any anticipated additions to it, shall select a source for contract award. For acquisitions estimated to exceed $10 million, the program head, i.e., Associate Director/Administrator, of the acquiring office shall be the Source Selection Official. For acquisitions estimated to cost $10 million or less, the Contracting Officer shall be the Source Selection Official.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4415.8—Price Negotiation</HD>
            <SECTION>
              <SECTNO>4415.803</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>When all efforts to get a contractor to agree to a reasonable price or fee have failed, the contracting officer shall refer the matter to the head of the contracting activity.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4415.10—Preaward, Award and Postaward Notifications, Protests, and Mistakes</HD>
            <SECTION>
              <SECTNO>4415.1003</SECTNO>
              <SUBJECT>Debriefing of unsuccessful offerors.</SUBJECT>
              <P>Any unsuccessful offeror may write for a debriefing within two months after contract award. The contracting officer shall provide the debriefing.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4416</EAR>
          <HD SOURCE="HED">PART 4416—TYPES OF CONTRACTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4416.3—Cost-Reimbursement Contracts</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>4416.303</SECTNO>
              <SUBJECT>Cost-sharing contracts.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <PRTPAGE P="186"/>
              <HD SOURCE="HED">Subpart 4416.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
              <SECTNO>4416.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
              <SECTNO>4416.603-3</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 31321, Aug. 1, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4416.3—Cost-Reimbursement Contracts</HD>
            <SECTION>
              <SECTNO>4416.303</SECTNO>
              <SUBJECT>Cost-sharing contracts.</SUBJECT>
              <P>(a) This subsection sets forth basis guidelines governing cost-sharing contract.</P>
              <P>(b)(1) Cost sharing with non-Federal organizations shall be encouraged in contracts for basic or applied research in which both parties have considerable interest.</P>
              <P>(2) Contracting officers shall assure themselves of the following in determining contract type:</P>
              <P>(i) The research effort has more than minor relevance to the non-Federal activities of the performing organization and is not primarily a service to the Government.</P>
              <P>(ii) The performing organization has adequate non-Federal sources of funds from which to make a cash contribution.</P>
              <P>(iii) The performing organization is engaged primarily in production or other service activities, as opposed to research and development, and is in a favorable position to make a cost contribution.</P>
              <P>(iv) The principal purpose of the contract is research.</P>
              <P>(v) Payment of the full cost of the project is not necessarily in order to obtain the services of the particular organization.</P>
              <P>(3) FEMA's Appropriation Act requires cost sharing by the contractor under research contracts resulting from unsolicited proposals. See 4415.505-1.</P>
              <P>(c) Guidelines for determining the amount of cost sharing.</P>
              <P>(1) For educational institutions and other not-for-profit or non-profit organizations, cost sharing may vary from 1 to 50 percent of the costs of the project. In some cases it may be appropriate for educational institutions to provide a higher degree of cost sharing, such as when the cost of the research consists primarily of the academic-year salary of faculty members, or when the equipment acquired by the institution for the project will be of significant value to the institution in its educational activities.</P>
              <P>(2) The amount of cost participation by commercial or industrial organizations may vary from 1 percent or less to more than 50 percent of total project cost, depending upon the extent to which the research effort is likely to enhance the performing organization's capability, expertise, or competitive position, and the value of such enhancement to the performing organization. Recognize, however, that organizations predominately engaged in research and development with little other activity may not be able to derive a monetary benefit from the research under Federal agreements.</P>
              <P>(3) A fee will usually not be paid to the performing organization if the organization is to contribute to the cost of the research effort, but the amount of cost sharing may be reduced to reflect the fact that the organization is foregoing normal fees on the research. However, if the research is expected to be of major value to the performing organization and if cost sharing is not required by statute, it may be appropriate for the performer to make a contribution in the form of a reduced fee rather than sharing the costs of the project.</P>
              <P>(4) Each cost-sharing contract negotiated shall contain the clause in 4452.216-70.</P>
              <CITA>[50 FR 31321, Aug. 1, 1985, as amended at 55 FR 28208, July 10, 1990]</CITA>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4416.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
            <SECTION>
              <SECTNO>4416.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>4416.603-3</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <P>A letter contract may be used only if the head of the contracting activity executes a determination and finding that no other contract type is suitable.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="187"/>
          <EAR>Pt. 4417</EAR>
          <HD SOURCE="HED">PART 4417—SPECIAL CONTRACTING METHODS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4417.70—General</HD>
            <SECTION>
              <SECTNO>4417.7001</SECTNO>
              <SUBJECT>Preference for local contractors.</SUBJECT>
              <P>(a) This subsection establishes policies relating to local contractor preference to receive contract awards resulting from competitive solicitations under a Presidentially declared major disaster or emergency operation.</P>

              <P>(b) The geographic areas to which local contractor preference shall apply are those affected by the Presidentially declared disaster and designated in the <E T="04">Federal Register</E> by the Associate Director, State and Local Programs and Support, or his designee. Geographical areas shall be identified by county or other political subdivision.</P>
              <P>(c) Pursuant to the provisions of Pub. L. 93-288, the provisions set forth in 4452.217-70 shall be included in each competitive solicitation for disaster relief response.</P>
              <P>(d) If the contracting officer determines it to be in the best interest of the Government, the provision set forth in 4452.217-70 need not be included in solicitations. Such determination shall be documented in the contract file with a findings and determination signed by the contracting officer and approved by the head of the contracting activity.</P>
              <P>(e) If the contracting officer makes the determination of paragraph (d) of this section, local participation may be encouraged by:</P>
              <P>(1) Setting the procurement aside for labor surplus area if the disaster area has been established as a labor surplus area;</P>
              <P>(2) Advertising only in the local disaster area; and/or</P>
              <P>(3) Dividing large requirements into several smaller requirements.</P>
              <CITA>[50 FR 31322, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="188"/>
        <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        <PART>
          <EAR>Pt. 4419</EAR>
          <HD SOURCE="HED">PART 4419—SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4419.2—Policies</HD>
            <SECTION>
              <SECTNO>4419.201</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <P>(a) The Director, Office of Personnel and Equal Opportunity, is also the Director, Office of Small and Disadvantaged Business Utilization.</P>
              <P>(b) The Chief, Policy and Evaluation Division, Office of Acquisition Management, is the small business technical advisor.</P>
              <P>(c) Each contracting officer is a small and disadvantaged business utilization specialist.</P>
              <CITA>[50 FR 31322, Aug. 1, 1985, as amended at 55 FR 28208, July 10, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4424</EAR>
          <HD SOURCE="HED">PART 4424—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4424.2—Freedom of Information Act</HD>
            <SECTION>
              <SECTNO>4424.202</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>FEMA's Freedom of Information Act policy is codified at 44 CFR part 5.</P>
              <CITA>[50 FR 31322, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4426</EAR>
          <HD SOURCE="HED">PART 4426—OTHER SOCIOECONOMIC PROGRAMS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>4426.101</SECTNO>
            <SUBJECT>General policy.</SUBJECT>
            <SECTNO>4426.102</SECTNO>
            <SUBJECT>Accessibility of meetings, conferences and seminars to persons with disabilities.</SUBJECT>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SECTION>
            <SECTNO>4426.101</SECTNO>
            <SUBJECT>General policy.</SUBJECT>
            <P>Section 504 of the Rehabilitation Act of 1973, as amended, prohibits Federal agencies from discriminating against qualified persons on the grounds of disability. The law not only applies to internal employment practices but extends to agency interaction with members of the public who participate in FEMA programs. (FEMA's implementation of section 504 of this Act is codified at 44 CFR part 16.)</P>
            <CITA>[55 FR 28208, July 10, 1990]</CITA>
          </SECTION>
          <SECTION>
            <SECTNO>4426.102</SECTNO>
            <SUBJECT>Accessibility of meetings, conferences and seminars to persons with disabilities.</SUBJECT>
            <P>It is FEMA's policy to extend the provisions of the Rehabilitation Act of 1973, as amended, to vendors who interact with the public while under contract to FEMA. Therefore, FEMA Clause 4452.226-01, Accessibility of Meetings, Conferences, and Seminars to Persons with Disabilities, shall be included in FEMA contracts over $25,000 when in the performance of such contract the contractor will plan meetings, seminars and conferences which may be attended by persons with disabilities.</P>
            <CITA>[55 FR 28208, July 10, 1990]</CITA>
          </SECTION>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="189"/>
        <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        <PART>
          <EAR>Pt. 4429</EAR>
          <HD SOURCE="HED">PART 4429—TAXES</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4429.1—General</HD>
            <SECTION>
              <SECTNO>4429.101</SECTNO>
              <SUBJECT>Resolving tax problems.</SUBJECT>
              <P>(a) The Office of General Counsel is responsible, with FEMA, for handling all tax problems. It also is responsible for asking the Department of Justice for representation of intervention in proceedings concerning taxes.</P>
              <P>(b) The contracting officer shall request, in writing, the assistance of the Office of General Counsel in resolving a tax problem. The request shall detail the problem and include supporting information. The Office of General Counsel shall inform the contracting officer of the disposition of the tax problem and the contracting officer will tell the contractor.</P>
              <CITA>[50 FR 31322, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4432</EAR>
          <HD SOURCE="HED">PART 4432—CONTRACT FINANCING</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4432.4—Advance Payments</HD>
            <SECTION>
              <SECTNO>4432.402</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The head of the contracting activity has responsibility and authority to make findings and determinations and to approve or disapprove contract terms.</P>
              <CITA>[50 FR 31322, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4433</EAR>
          <HD SOURCE="HED">PART 4433—PROTESTS, DISPUTES AND APPEALS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4433.103—Protests to the Agency</HD>
            <SECTION>
              <SECTNO>4433.103</SECTNO>
              <SUBJECT>Protests to the agency.</SUBJECT>
              <P>(a) Protests should be filed on a timely basis to the Contracting Officer specified in the solicitation or contract. Protests are considered timely if, when based on alleged improprieties in a solicitation which are apparent prior to the bid/proposal closing time, they are filed not later than the closing date, and in other cases they are filed within 10 working days after the basis of the protest is known or should have been known whichever is earlier.</P>
              <P>(b) If a protest is received prior to award, the Contracting Officer shall notify all offerors within one full working day after consultation with the Office of General Counsel (OGC). An award will not be made unless a written determination is approved by the Head of the Contracting Activity in accordance with the criteria set forth in FAR 33.103.</P>
              <P>(c) If a protest is received after award, the Contracting Officer shall give careful consideration to suspending contract performance if it appears likely that the award may be invalidated and the Government's interest will not be harmed by a delay in the receipt of goods or services. The Contracting Officer's determination to suspend performance should be made in writing and approved by the Head of the Contracting Activity after consultation with OGC. If the decision is to proceed with contract award or continue with contract performance, the Contracting Officer shall include the written findings in the file and shall give written notice of the decision to the protestor and other interested parties.</P>
              <P>(d) The Contracting Officer/Contract Specialist shall prepare the final decision for approval by the Head of the Contracting Activity. The protestor shall be notified of the final decision regarding its protest within 30 working days after receipt of the protest.</P>
              <CITA>[55 FR 28208, July 10, 1990]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="190"/>
        <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        <PART>
          <EAR>Pt. 4435</EAR>
          <HD SOURCE="HED">PART 4435—RESEARCH AND DEVELOPMENT CONTRACTING</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SECTION>
            <SECTNO>4435.003</SECTNO>
            <SUBJECT>Policy.</SUBJECT>
            <P>Cost-sharing policy for research and development contracts is stated in 4415.502-70.</P>
            <CITA>[50 FR 31322, Aug. 1, 1985]</CITA>
          </SECTION>
        </PART>
        <PART>
          <EAR>Pt. 4436</EAR>
          <HD SOURCE="HED">PART 4436—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4436.6—Architect-Engineer Services</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>4436.602-2</SECTNO>
              <SUBJECT>Evaluation boards.</SUBJECT>
              <SECTNO>4436.602-4</SECTNO>
              <SUBJECT>Selection authority.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4436.6—Architect-Engineer Services</HD>
            <SECTION>
              <SECTNO>4436.602-2</SECTNO>
              <SUBJECT>Evaluation boards.</SUBJECT>
              <P>(a) Each architect-engineer evaluation board, permanent or ad hoc, shall have at least five voting members and one alternate. These will be Federal employees. A majority of the voting members will be from the program office.</P>
              <P>(b) During the selection process, a board member or advisor may have, or appear to have, a conflict of interest regarding a firm in the competition. Immediately upon becoming aware of a potential conflict or an appearance of a conflict, the member or advisor shall notify the board chairperson who shall, in turn, inform the Office of General Counsel. The Office of General Counsel shall make a final determination on the conflict issue.</P>
              <P>(c) The evaluation board is to be insulated from outside pressures. Information concerning board deliberations shall be divulged only to persons having a need-to-know.</P>
              <CITA>[50 FR 31322, Aug. 1, 1985]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4436.602-4</SECTNO>
              <SUBJECT>Selection authority.</SUBJECT>
              <P>(a) Heads of program offices which may require architect-engineer services are designated as selection authorities for acquisition of architect-engineer services.</P>
              <P>(b) A determination shall be sent to the contracting officer listing the selected firms in order of preference.</P>
              <CITA>[50 FR 31322, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 4450</EAR>
          <HD SOURCE="HED">PART 4450—EXTRAORDINARY CONTRACTUAL ACTIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4450.2—Delegation of and Limitations on Exercise of Authority</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>4440.201</SECTNO>
              <SUBJECT>Delegation of authority.</SUBJECT>
              <SECTNO>4450.202</SECTNO>
              <SUBJECT>Contract adjustment boards.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>50 U.S.C. 1431-1435; E.O. 10789; E.O. 12148.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4450.2—Delegation of and Limitations on Exercise of Authority</HD>
            <SECTION>
              <SECTNO>4450.201</SECTNO>
              <SUBJECT>Delegation of authority.</SUBJECT>
              <P>All authority granted by 48 CFR 50.101 may be exercised by the Director of the Federal Emergency Management Agency. Such authority to approve, authorize, and direct appropriate action under this Part and to make all appropriate determinations and findings which do not obligate the United States in excess of $50,000 are delegated to the Director, Office of Acquisition Management. Such authority to approve, and direct appropriate action under this Part and to make all appropriate determinations and findings which may obligate the United States in excess of $50,000 are delegated to the FEMA Contract Adjustment Board. The limitations contained in 48 CFR 50.201 and 50.202 apply.</P>
              <CITA>[50 FR 31322, Aug. 1, 1985]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4450.202</SECTNO>
              <SUBJECT>Contract adjustment boards.</SUBJECT>

              <P>As cases arise under the Act, the Director of FEMA may appoint, as needed, a FEMA Contract Adjustment Board consisting of one senior staff <PRTPAGE P="191"/>member, not otherwise involved with the action under consideration, from each of the following offices:</P>
              <P>(a) Acquisition Management, who shall act as Chairperson</P>
              <P>(b) General Counsel</P>
              <P>(c) Comptroller.</P>
              <CITA>[50 FR 31322, Aug. 1, 1985]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="192"/>
        <HD SOURCE="HED">SUBCHAPTER H—CLAUSES AND FORMS</HD>
        <PART>
          <EAR>Pt. 4452</EAR>
          <HD SOURCE="HED">PART 4452—SOLICITATION PROVISIONS AND CONTRACT CLAUSES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 4452.2—Texts of Provisions and Clauses</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>4452.216-70</SECTNO>
              <SUBJECT>Consideration and payment (Cost-Sharing).</SUBJECT>
              <SECTNO>4452.217-70</SECTNO>
              <SUBJECT>Preference for local contractors in Presidentially declared major disasters or emergencies.</SUBJECT>
              <SECTNO>4452.226-1</SECTNO>
              <SUBJECT>Accessibility of meetings, conferences and seminars to persons with disabilities.</SUBJECT>
              <SECTNO>4452.227-70</SECTNO>
              <SUBJECT>Reproduction of reports.</SUBJECT>
              <SECTNO>4452.227-71</SECTNO>
              <SUBJECT>Coordination of Federal reporting requirements.</SUBJECT>
              <SECTNO>4452.227-72</SECTNO>
              <SUBJECT>Publication.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 486(c); Reorganization Plan No. 3 of 1978.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>50 FR 31323, Aug. 1, 1985, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 4452.2—Texts of Provisions and Clauses</HD>
            <SECTION>
              <SECTNO>4452.216-70</SECTNO>
              <SUBJECT>Consideration and payment (Cost-Sharing).</SUBJECT>
              <P>As prescribed in 4416.303, include the following clause in research and development contracts with non-Federal organizations:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Consideration and Payment (Cost-Sharing) (Mar <E T="01">1989)</E>
                </HD>

                <P>(a) The estimated cost for the performance of this contract is $<E T="72">____</E>. The contractor agrees to bear without reimbursement by the Government <E T="72">__</E>% of the cost for performance hereunder. Such cost sharing shall be effected as set forth in paragraph (b) of this clause.</P>

                <P>(b) Public vouchers or invoice shall be submitted in an original and five (5) copies and shall show the total cost incurred for the period for which the voucher or invoice is submitted, the cumulative total of costs incurred through the billing period, and the percentage of costs to be reimbursed by the Government. However, the Government is not obligated to reimburse the contractor for the Government's share of the costs in excess of <E T="72">____</E>% of such amount. The Government shall not be obligated to reimburse the contractor for the Government's share of the costs in excess of $<E T="72">____</E> nor is the contractor obligated by this contract to expend his own funds in excess of $<E T="72">____</E>.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
              <CITA>[55 FR 28208, July 10, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4452.217-70</SECTNO>
              <SUBJECT>Preference for local contractors in Presidentially declared major disasters or emergencies.</SUBJECT>
              <P>Pursuant to the provisions of Pub. L. 93-288 and 4415.105-71, the following provisions shall be included in each competitive solicitation for on-site disaster relief response:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Preference for Local Contractors (Apr <E T="01">1984)</E>
                </HD>
                <P>In awarding any contract pursuant to this solicitation, the Government shall give preference to local organizations, firms, and individuals residing or doing business primarily in the geographic area identified as the disaster area.</P>
                <P>The contracting officer reserves the right to request offerors to furnish documentation to demonstrate eligibility for local contractor preference. To be eligible, the offeror shall have been residing (in the case of individuals) or doing the major portion of its business (in the case of business entities) in the disaster area.</P>
                <P>An offeror for which eligibility is established (local offeror) shall be permitted to meet the lowest price received from an otherwise eligible non-local offeror, provided that the proposed price from the local offeror does not exceed 130 percent of the price of the non-local offeror. The lowest priced local offeror within 130 percent of the lowest non-local offeror shall have the first chance to meet the non-local price. If the local offeror meets the lowest non-local price and is determined to be responsible, award shall be made. If the non-local offer is not met, the next lowest local offeror within 130 percent shall have the chance to meet the lowest non-local price. This process shall continue until award is made to a local offeror within the 130 percent requirement or the supply of local offerors is exhausted and award made to the lowest non-local offeror.</P>
                <HD SOURCE="HD3">(End of clause) </HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>4452.226-1</SECTNO>
              <SUBJECT>Accessibility of meetings, conferences and seminars to persons with disabilities.</SUBJECT>
              <P>Include the following clause in contracts under which the contractor will plan meetings, conferences and seminars which may be attended by persons with disabilities.</P>
              <EXTRACT>
                <PRTPAGE P="193"/>

                <HD SOURCE="HD1">Accessibility of Meetings, Conferences, and Seminars to Persons With Disabilities (Jan <E T="01">1989)</E>
                </HD>
                <P>The Contractor agrees as follows:</P>
                <P>(a) <E T="03">Planning.</E> The Contractor will develop a plan to assure that any meeting, conference, or seminar held pursuant to this contract will meet or exceed the minimum accessibility standards set forth below. This plan shall include a provision for ascertaining the number and types of disabled individuals planning to attend the meeting, conference, or seminar. The plan shall be submitted to the Contracting Officer for approval prior to initiating action. A consolidated or master plan for contracts requiring numerous meetings, conferences, or seminars may be submitted in lieu of separate plans.</P>
                <P>(b) <E T="03">Facilities.</E> Any facility to be utilized for meetings, conferences, or seminars in performance of this contract shall be accessible to persons with disabilities. The Contractor shall determine, by an on-site inspection if necessary, that the following minimum accessibility requirements are met, or suitable modifications are made to meet these requirements, before the meeting:</P>
                <P>(1) <E T="03">Parking.</E> (i) Where parking is available on or adjacent to the site one 12′ wide space must be set aside for the car of each mobility impaired attendee. The space need not be permanently striped but may be temporarily marked by signs, ropes, or other means satisfactory to carry out this provision.</P>
                <P>(ii) Where parking is not available on or adjacent to the site, valet parking or other alternative means must be available to assist disabled attendees. Alternate means must be satisfactory in the judgment of the Contracting Officer.</P>
                <P>(2) <E T="03">Entrances.</E> (i) “Entrances” shall include at least one accessible entrance from the street/sidewalk level, and at least one accessible entrance from any available parking facility.</P>

                <P>(ii) The entrance shall be level or accessible by ramp with an incline that allows independent negotiation by a person in a wheelchair. In general, the slope of the incline shall be no more than 1<E T="61">″</E> rise per foot of ramp length (1:12).</P>
                <P>(iii) Entrance doorways shall be at least 30<E T="61">″</E> in clear width and capable of operation by persons with disabilities. Revolving doors, regardless of foldback capability, will not meet this requirement.</P>
                <P>(3) <E T="03">Meeting Rooms.</E> (i) Meeting room access from the main entrance area must be level or at an independently negotiable incline (approximately 1:12) and/or served by elevators from the main entrance level. All elevators shall be capable of accommodating a wheelchair 29<E T="61">″</E> wide by 45<E T="61">″</E> long.</P>

                <P>(ii) Meeting rooms shall be on one level or, if on different levels, capable of being reached by elevators or by ramps that can be independently negotiated by a person in a wheelchair. Doorways to all meeting rooms shall be at least 30<E T="61">″</E> in clear width.</P>
                <P>(iii) The interior of the meeting room shall be on one level or ramped so as to be independently negotiable for a person in a wheelchair.</P>
                <P>(iv) Stages, speaker platforms, etc. which are to be used by persons in wheelchairs must be accessible by ramps or lifts. When used, the ramps may not necessarily be independently negotiable if space does not permit. However, any slope over 1:12 must be approved by the Contracting Officer. Each case is to be judged on its own merits.</P>
                <P>(v) If a meeting room with fixed seating is utilized, seating arrangements for persons in wheelchairs shall be made so that these persons are incorporated into the group rather than isolated on the perimeter of the group.</P>
                <P>(4) <E T="03">Restrooms.</E> (i) Restrooms shall have level access, signs indicating accessibility, and doorways at least 30<E T="61">″</E> in clear width.</P>

                <P>(ii) Sufficient turning space within restrooms shall be provided for independent use by a person in a wheelchair 29<E T="61">″</E> wide by 45<E T="61">″</E> long. A space 60<E T="61">″</E> by 60<E T="61">″</E> or 63<E T="61">″</E> by 56<E T="61">″</E> of unobstructed floor space as measured 12<E T="61">″</E> above the floor is acceptable by standard; other layout will be accepted if it can be demonstrated that they are usable as indicated.</P>

                <P>(iii) There will be a restroom for each sex or a unisex restroom with at least one toilet stall capable of accommodating a wheelchair 29<E T="61">″</E> wide by 45<E T="61">″</E> long (by standard, the minimum is 3<E T="61">′</E>−0<E T="61">″</E> by 43<E T="61">′</E>−83<E T="61">″</E>), with outswinging door or private curtains. Wall mounted grab bars are required.</P>
                <P>(iv) When separate restrooms have been set up for mobility impaired persons, they shall be located adjacent to the regular restrooms and shall be fully accessible.</P>
                <P>(5) <E T="03">Eating Facilities.</E> (i) Eating facilities in the meeting facility must be accessible under the same general guidelines as are applied to meeting rooms.</P>
                <P>(ii) If the eating facility is a cafeteria, the food service area (cafeteria line) must allow sufficient room for independent wheelchair movement and accessibility to food for persons in wheelchairs, and cafeteria staff shall be available to assist disabled persons.</P>
                <P>(6) <E T="03">Overnight Facilities.</E> If overnight accommodations are required:</P>
                <P>(i) Sufficient accessible guest rooms to accommodate each attendee who is disabled shall be located in the facility where the meeting, conference, or seminar is held, or in a facility housing the attendees which is conveniently located hereby, whichever is satisfactory to the Contracting Officer.</P>

                <P>(ii) Overnight facilities shall provide for the same minimum accessibility requirements as the facility utilized for guest room access from the main entrance area shall be level, ramped at an independently negotiable <PRTPAGE P="194"/>incline (1:12), and/or served by elevators capable of accommodating a wheelchair 29<E T="61">″</E> wide by 45<E T="61">″</E> long.</P>

                <P>(iii) Doorways to guest rooms, including the doorway to the bathroom, shall be at least 30<E T="61">″</E> in clear width.</P>
                <P>(iv) Bathrooms shall have wall mounted grab bars at the tub and water closet.</P>
                <P>(v) Guest rooms for persons with a disability shall be provided at the same rate as a guest room for other attendees.</P>
                <P>(7) <E T="03">Water Fountains.</E> Water fountains shall be accessible to disabled persons, or have cup dispensers for use by persons in wheelchairs.</P>
                <P>(c) Provisions of Services for Sensory Impaired Attendees.</P>
                <P>(1) The Contractor, in planning the meeting, conference, or seminar shall include in all announcements and other materials pertaining to the meeting, conference, or seminar a notice indicating that services will be made available to sensory impaired persons attending the meeting, if requested within five (5) days of the date of the meeting, conference, or seminar. The announcement(s) and other material(s) shall indicate that sensory impaired persons may contact a specific person(s), at a specific address and phone number(s), to make their service requirements known. The phone number(s) shall include a teletype number for the hearing impaired.</P>
                <P>(2) The Contractor shall provide, at no cost to the individual, those services required by persons with sensory impairments to insure their complete participation in the meeting, conference, or seminar.</P>
                <P>(3) As a minimum, when requested in advance, the Contractor shall provide the following services:</P>
                <P>(i) For hearing impaired persons, qualified interpreters. Provisions will also be made for volume controlled phone lines and, if necessary, transportation to local teletype equipment to enable hearing impaired individuals to receive and send meeting related calls. If local teletype equipment is not available, the Contractor shall provide on-site teletype equipment. Also, the meeting rooms will be adequately illuminated so signing by interpreters can be easily seen.</P>
                <P>(ii) For vision impaired persons, readers and/or cassette materials, as necessary, to enable full participation. Also, meeting rooms will be adequately illuminated.</P>
                <P>(iii) Agenda and other conference material(s) shall be translated into a usable form for the visually and hearing impaired. Readers, braille translations, and/or tape recordings are all acceptable. These materials shall be available to sensory impaired individuals upon their arrival.</P>

                <P>(4) The Contractor is responsible for making every effort to ascertain the number of sensory impaired individuals who plan to attend the meeting, conference, or seminar. However, if it can be determined that there will be no sensory impaired person (deaf and/or blind) in attendance, the provision of those services under paragraph (c) for the non-represented group, or groups, is not required.
                </P>
                <FP>(Approved by the Office of Management and Budget under control number 3067-0213)</FP>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
              <CITA>[55 FR 28208, July 10, 1990]</CITA>
            </SECTION>
            <SECTION>
              <SECTNO>4452.227-70</SECTNO>
              <SUBJECT>Reproduction of reports.</SUBJECT>
              <P>Include the following clause in the contract when the product is a report, data or other written material.</P>
              <EXTRACT>
                <HD SOURCE="HD1">Reproduction of Reports (Apr <E T="01">1984)</E>
                </HD>
                <P>Reproduction of reports, data, or other written material, if required herein, is authorized provided that the material produced does not exceed 5,000 production units of any page and that items consisting of multiple pages do not exceed 25,000 production units in aggregate. The aggregate number of production units is to be determined by multiplying pages times copies. A production unit is one sheet, size 8<FR>1/2</FR>×11 inches or less, printed on one side only, and in one color. All copy preparation to produce camera-ready copy for reproduction must be set by methods other than hot metal typesetting. The reports should be produced by methods employing stencils, masters, and plates which are to be used on single-unit duplicating equipment no larger than 11 by 17 inches with a maximum image of 10<FR>3/4</FR> by 14<FR>1/4</FR> inches and are prepared by methods or devices that do not utilize reusable contact negatives and/or positives prepared with a camera requiring a darkroom. All reproducibles (camera-ready copies for reproduction by photo offset methods) shall become the property of the Government and shall be delivered to the Government with the report, data, or other written material.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>4452.227-71</SECTNO>
              <SUBJECT>Coordination of Federal reporting requirements.</SUBJECT>
              <P>The following clause shall be included in contracts when appropriate:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Coordination of Federal Reporting Services (Apr <E T="01">1984)</E>
                </HD>

                <P>In the event that it is a contractual requirement to collect information from 10 or more public respondents, the provisions of 44 U.S.C. chapter 35 (Coordination of Federal Reporting Requirements), shall apply to this contract. The contractor shall obtain <PRTPAGE P="195"/>through the project Officer the required office of Management and Budget clearance before making public contacts for the collection of data or expending any funds for such collection. The authority to proceed with the collection of data from public respondents and the expenditure of funds therefore shall be in writing signed by the Contracting Officer.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>4452.227-72</SECTNO>
              <SUBJECT>Publication.</SUBJECT>
              <P>The following clause shall be used in all contracts under which it is anticipated that a report will be a product.</P>
              <EXTRACT>
                <HD SOURCE="HD1">Publication (Apr <E T="01">1984)</E>
                </HD>
                <P>(a) Definition. For the purpose of this clause “publication” includes (1) any document containing information intended for public consumption or (2) the act of, or any act which may result in, disclosing information to the public.</P>
                <P>(b) General. The results of the research and development and studies conducted under this contract are to be made available to the public through dedication, assignment to the Government, or other such means as the Director of the Federal Emergency Management Agency shall determine.</P>
                <P>(c) Reports furnished the Government. All intermediate and final reports of the research and development and studies conducted hereunder shall indicate on the cover or other initial page that the research and development and studies forming the basis for the report were conducted pursuant to a contract with the Federal Emergency Management Agency. Such reports are official Government property and may not be published or reproduced (in toto, in verbatim excerpt, or in a form approximating either of these) as an unofficial paper or article. The contractor or technical personnel (each employee or consultant working under the administrative direction of the contractor or any subcontractor hereunder) may publish such reports in whole or in part in a non-Government publication only in accordance with this paragraph (c) and paragraph (e)(1) of this clause.</P>
                <P>(d) Publication by Government. The Government shall have full right to publish all information, data, and findings developed as a result of the research and development and studies conducted hereunder.</P>
                <P>(e) Publication by contractor on technical personnel.</P>
                <P>(1) Publication in whole or in part of contractor's reports furnished the Government. Unless such reports have been placed in the public domain by Government publication, the contractor or technical personnel (each employee or consultant working under the administrative direction of the contractor or any subcontractor hereunder) may publish a report furnished the Government, in toto or in verbatim excerpt, but consistent with paragraph (c) of this clause may not secure copyright therein, subject to the following conditions and the conditions in paragraph (e)(4) and paragraph (f).</P>
                <P>(i) During the first six months after submission of the full final report, if written permission to publish is obtained from the contracting officer.</P>
                <P>(ii) After six months following submission of the full report, and if paragraph (e)(3) is inapplicable, if a foreword or footnote in the non-Government publication indicates the source of the verbatim material.</P>
                <P>(2) Publication, except vebatim excerpts, concerning or based in whole or in part on results of research and development and studies hereunder. The contractor or technical personnel may issue a publication concerning or based in whole or in part on the results of the research and development and studies conducted under this contract and may secure copyright therein, but in so publishing is not authorized thereby to inhibit the unrestricted right of the Director of the Federal Emergency Management Agency to disclose or publish, in such manner as he may deem to be in the public interest, the results of such research and development and studies to the following conditions and the requirement in paragraph (e)(4):</P>
                <P>(i) During the first six months after submission of the full final report, and if paragraph (e)(3) is inapplicable, if written waiver of the waiting period is obtained from the contracting officer.</P>

                <P>(ii) After six months following submission of the full final report, and if paragraph (e)(3) is inapplicable, subject to Government exercise of an option that the publication contain a foreword or initial footnote substantially as follows:
                </P>
                <FP>The (research) (development) (studies) forming (part of) the basis for this publication were conducted pursuant to a contract with the Federal Emergency Management Agency. The substance of such (research) (development) (studies) is dedicated to the public. The author and publisher are solely responsible for the accuracy of statements or interpretations contained therein.</FP>
                

                <P>(3) General conditions if FEMA determines that contractor's final report contains patentable subject matter developed in contract performance. If the contracting officer determines that the contractor's full final report contains patentable subject matter developed in the performance of this contract and so notifies the contractor in writing prior to six months from date of submission of such report, no publication of verbatim excerpts from contractor's reports or publication concerning or based in whole or in part on the results of the research and development and <PRTPAGE P="196"/>studies hereunder shall be made without the written consent of the contracting officer.</P>
                <P>(4) Copies of contractor and technical personnel publications to be furnished the Government. The contractor or technical personnel will furnish the contracting officer six copies of any publications which are based in whole or in part on the results of the research and development and studies conducted under this contract.</P>
                <P>(f) Administratively confidential information. The contractor shall not publish or otherwise disclose, except to the Government and except matters of public record any information or data obtained hereunder from private individuals, organizations, or public agencies in a publication whereby the information or data furnished by any particular person or establishment can be identified, except with the consent of such person or establishment.</P>
                <P>(g) Inclusion of provisions in contractor's agreements. The contractor shall include provisions appropriate to effectuate the purposes of this clause in all contracts of employment with persons who perform any part of the research or development or study under this contract and in any consultant's agreements or subcontracts involving research or development or study thereunder.</P>
                <HD SOURCE="HD3">(End of clause)</HD>
              </EXTRACT>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 51 (10-1-00 Edition)</LRH>
      <RRH>Department of the Army</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="197"/>
          <HD SOURCE="HED">CHAPTER 51—DEPARTMENT OF THE ARMY ACQUISITION REGULATIONS</HD>
          <P>(Parts 5100 to 5199)</P>
        </TOCHD>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>5108</PT>
          <SUBJECT>Required sources of supplies and services</SUBJECT>
          <PG>199</PG>
          <PT>5119</PT>
          <SUBJECT>Small business and small disadvantaged business concerns</SUBJECT>
          <PG>199</PG>
          <PT>5145</PT>
          <SUBJECT>Government property</SUBJECT>
          <PG>201</PG>
          <PT>5152</PT>
          <SUBJECT>Solicitations provisions and contract clauses</SUBJECT>
          <PG>202</PG>
        </CHAPTI>
      </TOC>
      <PART>
        <PRTPAGE P="199"/>
        <EAR>Pt. 5108</EAR>
        <HD SOURCE="HED">PART 5108—REQUIRED SOURCES OF SUPPLIES AND SERVICES</HD>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>5 U.S.C. 301, 10 U.S.C. 2202, DOD Directive 5000.35 and DOD FAR Supplement 201.301.</P>
        </AUTH>
        <SECTION>
          <SECTNO>5108.070</SECTNO>
          <SUBJECT>Definitions.</SUBJECT>
          <P>As used in this section:</P>
          <P>
            <E T="03">Memorandum of Understanding Planned Producer</E> means an industrial firm which has indicated its willingness to produce specified military items in a declared national emergency by completing a Memorandum of Understanding with an accompanying Industrial Preparedness Program Production Capacity Survey (DD Form 1519 TEST). The firm is eligible to be solicited for all buys of the item(s) over $25,000 excluding acquisitions for which competition is restricted to the Restricted Specified Base or Limited Fee Planned Producers in accordance with an approved Justification and Approval.</P>
          <P>
            <E T="03">Limited Fee Planned Producer</E> means an industrial firm which is contractually bound by inclusion of AFARS 5152.208-9001 in their contract to maintain production capacity for a negotiated length of time, to conduct subcontractor planning, and to produce specified military items in the event of a declared national emergency or in the event of a declared national emergency or contingencies short of a declared national emergency. The firm is eligible to be solicited for all buys of the item(s) over $25,000 except acquisitions for which competition is restricted to the Restricted Specified Base in accordance with an approved Justification and Approval.</P>
          <P>
            <E T="03">Restricted Specified Base Planned Producer</E> means an industrial firm which is contractually bound to maintain production capacity for a negotiated length of time, to conduct subcontractor planning, and to produce specified military items in the event of a declared national emergency, or contingencies short of a declared national emergency. The firm is eligible to be solicited for all buys of the item(s) over $25,000.</P>
          <P>(g)(1)(i) Solicitation of Memorandum of Understanding Planned Producers in all acquisitions over $25,000 which are for items for which they have been designated as a Memorandum of Understanding Planned Producer except those restricted to the Restricted Specified Base Planned Producers or Limited Fee Planned Producers in accordance with an approved Justification and Approval.</P>
          <P>(ii) Solicitation of Limited Fee Planned Producers in all acquisitions over $25,000 which are for items for which they have been designated as a Limited Fee Planned Producer, except those restricted to the Restricted Specified Base.</P>
          <P>(iii) Solicitation of Restricted Specified Base Planned Producers in all acquisitions over $25,000 which are for items for which they have been designated as a Restricted Specified Base Planned Producer.</P>
          <P>(g)(4) The clause at 5152.208-9001 is to be used for all contracted planning efforts.</P>
          <CITA>[54 FR 38682, Sept. 20, 1989]</CITA>
        </SECTION>
      </PART>
      <PART>
        <EAR>Pt. 5119</EAR>
        <HD SOURCE="HED">PART 5119—SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS</HD>
        <CONTENTS>
          <SUBPART>
            <HD SOURCE="HED">Subpart 5119.10—Small Business Competitiveness Demonstration Program</HD>
            <SECHD>Sec.</SECHD>
            <SECTNO>5119.1001</SECTNO>
            <SUBJECT>General.</SUBJECT>
            <SECTNO>5119.1002</SECTNO>
            <SUBJECT>Definitions.</SUBJECT>
            <SECTNO>5119.1003</SECTNO>
            <SUBJECT>Purpose.</SUBJECT>
            <SECTNO>5119.1004</SECTNO>
            <SUBJECT>Participating agencies.</SUBJECT>
            <SECTNO>5119.1005</SECTNO>
            <SUBJECT>Applicability.</SUBJECT>
            <SECTNO>5119.1070</SECTNO>
            <SUBJECT>Procedures.</SUBJECT>
            <SECTNO>5119.1070-2</SECTNO>
            <SUBJECT>Emerging small business set-aside.</SUBJECT>
            <SECTNO>5119.1070-3</SECTNO>
            <SUBJECT>Identification and reporting.</SUBJECT>
            <SECTNO>5119.1071</SECTNO>
            <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
          </SUBPART>
        </CONTENTS>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>5 U.S.C. 301, 10 U.S.C. 2202, DOD Directive 5000.35, FAR 1.301 and DOD FAR Supplement 201.301.</P>
        </AUTH>
        <SOURCE>
          <HD SOURCE="HED">Source:</HD>
          <P>54 FR 15410, Apr. 18, 1989, unless otherwise noted.</P>
        </SOURCE>
        <SUBPART>
          <HD SOURCE="HED">Subpart 5119.10—Small Business Competitiveness Demonstration Program</HD>
          <SECTION>
            <SECTNO>5119.1001</SECTNO>
            <SUBJECT>General.</SUBJECT>

            <P>This subpart implements Pub. L. 100-656, section 722, “Expanding Small Business Participation in Dredging” <PRTPAGE P="200"/>(the Dredging Program). The Program will be conducted through 30 September 1992.</P>
          </SECTION>
          <SECTION>
            <SECTNO>5119.1002</SECTNO>
            <SUBJECT>Definitions.</SUBJECT>
            <P>(S-90) “Emerging Small Business Reserve Amount” (ESBRA) means the dollar threshold for contracting opportunities in dredging, below which competition shall be conducted exclusively among emerging small business concerns. This amount is set forth in 5119.1070-2(a)(S-90).</P>
          </SECTION>
          <SECTION>
            <SECTNO>5119.1003</SECTNO>
            <SUBJECT>Purpose.</SUBJECT>
            <P>(c)(S-90) The purpose of the Dredging Program is to—</P>
            <P>(i) Expand small business and emerging small businesses (ESB) participation in contracting opportunities for dredging through restricted competition.</P>
            <P>(ii) Demonstrate the existence of a sufficient number of small businesses and ESBs which meet the current size standard for Standard Industrial Code (SIC) Code 1629 (Dredging and Surface Cleanup Activities) as an indicator of the adequacy of the current size standard.</P>
          </SECTION>
          <SECTION>
            <SECTNO>5119.1004</SECTNO>
            <SUBJECT>Participating agencies.</SUBJECT>
            <P>Participation in this Dredging Program is limited to the Department of the Army, Corps of Engineers.</P>
          </SECTION>
          <SECTION>
            <SECTNO>5119.1005</SECTNO>
            <SUBJECT>Applicability.</SUBJECT>
            <P>(S-90) The program shall apply to solicitations issued by the Department of the Army Corps of Engineers buying activities for the procurement of dredging under SIC 1629 (Dredging and Surface Cleanup Activities), limited to Federal Procurement Data Systems (FPDS) codes Y216 and Z216. This includes both maintenance dredging and new start (new work) construction dredging. Dredging to be performed by Government forces utilizing the Federally owned fleet pursuant to 33 U.S.C. 622 is not subject to the program.</P>
          </SECTION>
          <SECTION>
            <SECTNO>5119.1070</SECTNO>
            <SUBJECT>Procedures.</SUBJECT>
          </SECTION>
          <SECTION>
            <SECTNO>5119.1070-2</SECTNO>
            <SUBJECT>Emerging small business set-aside.</SUBJECT>
            <P>(a)(S-90) Solicitations for dredging shall be set-aside for exclusive competition among ESBs when the estimated award value is equal to or less than the emerging small business reserve amount (ESBRA) of $600,000. (Except that dredging acquisitions shall continue to be considered for placement under the 8(a) program (see FAR subpart 19.8) and for small disadvantaged business set-asides (see DFARS 219.502-72)). The ESBRA applies only to new awards. Modifications or follow-on awards to contracts having an initial award value in excess of the ESBRA are not subject to this requirement. The set-aside requirements in DFARS 219.1070-2 (a) and (b) for designated industry groups acquisitions valued at $25,000 or less shall be complied with for all dredging program set-asides.</P>
            <P>(S-90) The contracting office shall include the applicable SIC Code and dollar size standard in the synopsis of proposed procurement as published in the Commerce Business Daily (CBD), in the presolicitation notice (construction contract) SF 1417 when issued, and in the solicitation documents.</P>
            <P>(S-91) The contracting officer shall consider use of the following initiatives to increase participation by small businesses and emerging small businesses:</P>
            <P>(1) Specifying of contract requirements and contractual terms and conditions which are conducive to competition among small business and emerging small business concerns, consistent with the mission or program requirements of the Department of the Army, Corp of Engineers.</P>
            <P>(2) Encouraging joint ventures, teaming agreements, and similar arrangements consistent with the Small Business Act (15 U.S.C. 637(d)) for the purpose of including small business concerns in contracting opportunities. However, no such joint venture shall exceed the applicable size standard.</P>
            <P>(3) Making maximum use of subcontracting through plans negotiated and enforced pursuant to section 8(d) of the Small Business Act. Goals may be specified in solicitations stating minimum percentages of subcontracting.</P>
          </SECTION>
          <SECTION>
            <SECTNO>5119.1070-3</SECTNO>
            <SUBJECT>Identification and reporting.</SUBJECT>

            <P>(b) Reporting shall be done in accordance with DFARS 204.6 designated industry group requirements. Block <PRTPAGE P="201"/>B12A, DD Form 350, shall contain either the FPDS Code Y216 or Z216, as applicable, per 5119.1005 (S-90).</P>
          </SECTION>
          <SECTION>
            <SECTNO>5119.1071</SECTNO>
            <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
            <P>(a) DFARS provision 252.219-7012 shall be inserted in all solicitations issued under the Small Business Dredging Program (SIC 1629, limited to FPDS Service Codes Y216/Z216).</P>
            <P>(b) DFARS clause 252.219-7013 shall be inserted in all solicitations and contracts set-aside for emerging small businesses in accordance with 5119.1070-2(a) (S-90).</P>
          </SECTION>
        </SUBPART>
      </PART>
      <PART>
        <EAR>Pt. 5145</EAR>
        <HD SOURCE="HED">PART 5145—GOVERNMENT PROPERTY</HD>
        <CONTENTS>
          <SECTNO>5145.301</SECTNO>
          <SUBJECT>Definitions.</SUBJECT>
          <SECTNO>5145.302-3</SECTNO>
          <SUBJECT>Other contracts.</SUBJECT>
          <SECTNO>5145.303</SECTNO>
          <SUBJECT>Providing material.</SUBJECT>
        </CONTENTS>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>5 U.S.C. 301, 10 U.S.C. 2202, DoD Directive 5000.35, and DoD FAR Supplement 201.301.</P>
        </AUTH>
        <SOURCE>
          <HD SOURCE="HED">Source:</HD>
          <P>54 FR 39538, Sept. 27, 1989, unless otherwise noted.</P>
        </SOURCE>
        <SECTION>
          <SECTNO>5145.301</SECTNO>
          <SUBJECT>Definitions.</SUBJECT>
          <P>
            <E T="03">Other Government Property</E> means all property, other than Special Use Property as defined below, which may be offered to a contractor for use in performance of installation support services contracts.</P>
          <P>
            <E T="03">Special Use Property</E> means property that is (a) “agency peculiar property”, (b) necessary for mobilization requirements; or (c) property for which it has been determined that title should remain with the Government.</P>
        </SECTION>
        <SECTION>
          <SECTNO>5145.302-3</SECTNO>
          <SUBJECT>Other contracts.</SUBJECT>
          <P>(S-90)(1) When it is determined that contractor use of existing Government facilities, other than special use property, in the performance of installation support services contracts, is in the best interest of the Government, the Government facilities will be offered to a contractor for use in the performance of the Government contract. Facilities provided to a contractor under this authority will not be replaced by the Government when they can no longer be used by the contractor. Nevertheless, it will be the contractor's responsibility to continue performance in accordance with the terms of the contract.</P>
          <P>(2)(i) New facilities shall not be purchased in order to provide them to contractors. Prior to offering existing facilities under this authority, a contracting officer shall make a written determination, based on the detailed justification provided by the approving officials and program/project manager, that such use is in the best interest of the Government. The written determination shall be kept in the contract file.</P>
          <P>(ii) Existing facilities offered for contractor use will be offered to all bidders/offerors for their consideration in the preparation of their bids and offers. Bidders/offerors may choose to use any or all of the facilities offered.</P>
          <P>(3) When it is determined that contractor use of special use property in the performance of installation support services contracts is in the best interest of the Government, such property will be provided. It will be accounted for and managed under the appropriate Government property clause. For example, FAR 52.245-2 for fixed-price contracts or FAR 52.245-5 for cost-reimbursement contracts and any appropriate provision from FAR 52.245-11, Facilities Use Clause.</P>
          <P>(S-91) Required Government property clauses for other than facilities contracts.</P>
          <P>(1) In addition to the clauses at FAR 52.245-2 and 52.245-19, the Contracting Officer shall insert the clause at 5152.245-9000, Government Property for Installation Support Services (Fixed-Price Contracts), in solicitations and contracts when a fixed-price contract is contemplated and Government property will be provided without being replaced by the Government.</P>
          <P>(2) The Contracting Officer shall insert the clause at 5152.245-9001, Government Property for Installation Support Services (Cost-Reimbursement Contracts), in solicitations and contracts when a cost-reimbursement type contract is contemplated and the Government property will be provided without being replaced by the Government.</P>
        </SECTION>
        <SECTION>
          <PRTPAGE P="202"/>
          <SECTNO>5145.303</SECTNO>
          <SUBJECT>Providing material.</SUBJECT>
          <P>(S-90) Existing Government material on hand or being used prior to conversion to contractor performance of commercial activities may be offered to contractors if it is determined to be in the best interest of the Government per FAR 45.303-1. If the material is to be provided without replacement by the Government, the solicitation must state that it will not be replaced. If it is determined that the Government will be responsible for replacement of any of the material, those items must be listed on a separate Technical Exhibit and the solicitation state that replacement will be by the Government. These items will be governed by the appropriate Government Property clause in the contract in accordance with FAR 52.245-2 for fixed-price and FAR 52.245-5 for cost-reimbursement type contracts.</P>
        </SECTION>
      </PART>
      <PART>
        <EAR>Pt. 5152</EAR>
        <HD SOURCE="HED">PART 5152—SOLICITATIONS PROVISIONS AND CONTRACT CLAUSES</HD>
        <CONTENTS>
          <SECTNO>5152.208-9001</SECTNO>
          <SUBJECT>Industrial preparedness planning.</SUBJECT>
          <SECTNO>5152.245-9000</SECTNO>
          <SUBJECT>Government property for installation support services (fixed-price contracts).</SUBJECT>
          <SECTNO>5152.245-9001</SECTNO>
          <SUBJECT>Government property for installation support services (cost-reimbursement contracts).</SUBJECT>
        </CONTENTS>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>5 U.S.C. 301, 10 U.S.C. 2202, DOD Directive 5000.35, and DOD FAR Supplement 201.301.</P>
        </AUTH>
        <SECTION>
          <SECTNO>5152.208-9001</SECTNO>
          <SUBJECT>Industrial preparedness planning.</SUBJECT>
          <P>As prescribed at 5108-070(g)(4) insert the following clause in full text in contracts where the contractor is designated a Limited Fee Planned Producer.</P>
          <EXTRACT>
            <HD SOURCE="HD1">Industrial Preparedness Planning (XXX <E T="01">1989)</E>
              <E T="04">(DEV)</E>
            </HD>
            <P>(a) The Government designates the contractor a Limited Fee Planned Producer (LFPP) for the item(s) listed in paragraph (e) of this clause. As an LFPP for the listed items, the contractor will be solicited for all acquisitions over $25,000 which are for the item(s), excluding those for which competition is restricted to the Restricted Specified Base pursuant to an approved Justification and Approval. The Government reserves the right to obtain the item(s) listed from sources other than the commercial marketplace, i.e. by assigning workload to a government-owned facility.</P>
            <P>(b) The Contractor agrees to:</P>
            <P>(i) Update the Production Capacity Survey DD Form 1519 TEST for each item biennially;</P>
            <P>(ii) Accomplish subcontractor planning as required in paragraph (f) of this clause;</P>
            <P>(iii) Permit Government personnel access to records, manufacturing process data, plants and facilities in order to verify data on the Production Capacity Survey DD Form 1519 TEST.</P>
            <P>(iv) Maintain the surge/mobilization capacity set forth in the Production Planning Schedules during active production of the item and for a period of (negotiated number) years after physical completion of this production contract.</P>

            <P>(c) The Contractor is aware of the Government's dependence upon the Production Planning Schedules as a basis to take appropriate measures to ensure the adequacy of the United States Industrial Base. The Contractor also recognizes the Government's intention to convert Production Planning Schedule to contracts on a selective basis, as may be required to minimize materiel shortages during mobilization or to meet contingencies short of a declared national emergency. The Contractor agrees to accept contracts for the item(s) in accordance with the Production Planning Schedules. In the event mobilization or contingencies short of a declared national emergency occur after active production has ceased, and the allocated capacity is in use for the production of other item(s), the Contractor agrees to immediately discontinue production of such other item(s) if necessary to meet production schedules for the planned item(s). The Contractor further recognizes that it is the Government's intention to require that planned subcontractor support will be similarly converted to production subcontracts. Production delivery obligations under this clause are governed by Title I of the Defense Production Act of 1950, as amended (50 U.S.C. app. 2061, <E T="03">et seq</E>.) (Defense Production Act) and as applicable are within the purview of the Defense Priorities and Allocation System.</P>
            <P>(d) For the listed item(s), the Contractor certifies by signing this contract that the plant capacity required to support the mobilization quantity listed on the Production Capacity Survey DD Form 1519 TEST will be dedicated exclusively for the production of that item at mobilization. Furthermore, the Contractor certifies that this capacity is not shared by any other mobilization production requirements.</P>
            <P>(e) This clause covers the item(s) listed below:<PRTPAGE P="203"/>
            </P>
            <GPOTABLE CDEF="s50,r50" COLS="2" OPTS="L2,i1">
              <BOXHD>
                <CHED H="1">Item schedule No.</CHED>
                <CHED H="1">Item nomenclature (sample)</CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">M11111</ENT>
                <ENT>Fuze, Rocket MK987.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">M22222</ENT>
                <ENT>Machine Gun, MK35.</ENT>
              </ROW>
            </GPOTABLE>
            <P>(f) Subcontractors, suppliers and vendors provide many of the components of military end items. The lack of critical components could be one of the major limitations of the United States’ ability to support its Armed Forces warfighting capabilities. Therefore, the Government designated critical components and/or subassemblies in Block #27 of the attached Production Capacity Survey (DD Form 1519 TEST) are those for which the Contractor will conduct vertical planning if not produced in-house. Additional critical components and/or subassemblies may be identified by the Contractor in block #21 of the attached Production Capacity Survey (DD Form 1519 TEST). Foreign producers (other than Canada) will not be considered as a source of supply for critical components. Mandatory vertical (subcontractor) planning will be accomplished by the ASPPO and the Contractor for all critical components identified on the Production Capacity Survey, (DD Form 1519 TEST), by using a sub-tier Production Capacity Survey (DD Form 1519 TEST). The Contractor agrees to coordinate completion of the DD Form 1519 TEST and finalize prime and subcontractor planning with the Armed Services Production Planning Officer (ASPPO) having cognizance over the prime contractor's facility.</P>
            <P>(g) After completion of active production of the item(s), the Government will annually, or as changes occur but not more than annually, furnish the Contractor updated technical data for the item. The Contractor agrees to review the technical data and to report to the Government within 60 days of receipt of the data, the impact of technical changes, if any, to the current Production Planning Schedules at no additional cost to the Government.</P>
            <P>(h) Retention by the Contractor of the surge/mobilization capacity set forth in the Production Planning Schedules after completion of active production of the planned item(s) will not necessarily require that the Contractor maintain such capacity in idle status. Contractor utilization of capacity allocated for planned production for production of other non-planned items is consistent with the intent of any postproduction provisions of this contract, provided no degradation of surge/mobility capacity occurs as a result, and provided that the approval of the Contracting Officer with property cognizance is obtained for the use of any Government-owned property.</P>
          </EXTRACT>
          <CITA>[54 FR 38683, Sept. 20, 1989]</CITA>
        </SECTION>
        <SECTION>
          <SECTNO>5152.245-9000</SECTNO>
          <SUBJECT>Government property for installation support services (fixed-price contracts).</SUBJECT>
          <P>As prescribed in 5145.302-3(91), insert the following:</P>
          <EXTRACT>

            <HD SOURCE="HD1">Government Property for Installation Support Services (Fixed-Price Contracts) (Oct <E T="01">1989) (</E>
              <E T="04">DEV)</E>
            </HD>
            <P>The Government property listed at Technical Exhibit <E T="72">__</E> is provided “as is” to the contractor for use in the performance of this contract. This property may be used by the Contractor until the Contractor no longer desires to use it for contract performance or the Contracting Officer withdraws it from use under this contract in accordance with FAR 52.245-2(b). The Contractor will comply with instructions from the Contracting Officer relative to disposition of the property. No equitable adjustment or other claim will be payable to the Contractor based upon the condition or availability of the property, except as provided in FAR 52.245-19. The Contractor remains responsible for performance of the required services under this contract regardless of the length of time which the property provided hereunder remains operational. Property provided by or obtained by the Contractor under this contract remains Contractor property. Except as provided herein, the property listed at Technical Exhibit <E T="72">__</E> will be governed by FAR 52.245-2, Government Property (Fixed-Price Contracts), and FAR 52.245-19, Government Property Furnished “as is”.</P>
            <HD SOURCE="HD3">(End of clause)</HD>
          </EXTRACT>
          <CITA>[54 FR 39539, Sept. 27, 1989]</CITA>
        </SECTION>
        <SECTION>
          <SECTNO>5152.245-9001</SECTNO>
          <SUBJECT>Government property for installation support services (cost-reimbursement contracts).</SUBJECT>
          <P>As prescribed in 5145.302-3(S-91), insert the following clause:</P>
          <EXTRACT>

            <HD SOURCE="HD1">Government Property for Installation Support Services (Cost-Reimbursement Contracts) (Oct <E T="01">1989) (DEV)</E>
            </HD>
            <P>(a) <E T="03">Government-furnished property.</E> The Government property listed at Technical Exhibit <E T="72">__</E> is provided to the contractor for use in the performance of this contract for installation support services. This property will be used, maintained and administered by the Contractor until it is no longer required by the Contractor. Cessation of such use of the property, and subsequent turn-in, must be approved by the Contracting Officer. The <PRTPAGE P="204"/>Contracting Officer will provide the Contractor with appropriate disposition instructions. The Contractor will continue to perform following such disposition with Contractor-owned property. No equitable adjustment or claim will be payable resulting from turn-in or unsuitability for intended use of this property. No change to this contract is indicated by approval of turn-in of the property. No delay claim or performance delay will be allowed based on unsuitability of property or turn-in. The Contractor's proposal includes an estimate of the costs for providing its own property for the period following turn-in of Government property.</P>
            <P>(b) <E T="03">Changes in Government-furnished property.</E> The Contracting Officer may, by written notice, decrease the Government-furnished property or substitute other property for the property being used by the contractor. In the case of this withdrawal of property by the Contracting Officer, an equitable adjustment may be appropriate. Nevertheless, even in the case of such withdrawal, the Contractor is obligated to continue performance under this contract.</P>
            <P>(c) <E T="03">Title in Government Property.</E> (1) Title to the Property shall remain in the Government. Title to parts replaced by the Contractor in carrying out its normal maintenance obligations under paragraph (g) of this clause shall pass to and vest in the Government upon completion of their installation in the property.</P>
            <P>(2) Title to the property shall not be affected by their incorporation into or attachment to any property not owned by the Government, nor shall any item of the property become a fixture or lose its identity as personal property by being attached to any real property. The Contractor shall keep the property free and clear of all liens and encumbrances and, except as otherwise authorized by this contract or by the Contracting Officer, shall not remove or otherwise part with possession of, or permit the use by others of any of the property.</P>
            <P>(3) The Contractor may, with the written approval of the Contracting Officer, install, arrange, or rearrange, on Government furnished premises, readily removable machinery, equipment and other items belonging to the Contractor. Title to any such item shall remain in the Contractor even though it may be attached to real property owned by the Government, unless the Contracting Officer determines that it is so permanently attached that removal would cause substantial injury to Government property.</P>
            <P>(4) The Contractor shall not construct or install, at its own expense, any fixed improvement or structural alterations in Government buildings or other real property without advance written approval of the Contracting Officer. Fixed improvement or structural alterations as used herein, means any alteration or improvement in the nature of the building or other real property that, after completion, cannot be removed without substantial loss of value or damage to the premises. The term does not include foundations for production equipment.</P>
            <P>(d) <E T="03">Location of the property.</E> The Contractor may use the property only at the installation location(s) specified in the schedule. Written approval of the Contracting Officer is required prior to moving the property to any other location. In granting this approval, the Contracting Officer may prescribe such terms and conditions as may be deemed necessary for protecting the Government's interest in the property involved. Those terms and conditions shall take precedence over any conflicting provisions of this contract.</P>
            <P>(e) <E T="03">Notice of use of the property.</E> The Contractor shall notify the Contracting Officer in writing whenever any item of the property is no longer needed or usable for performing under this contract. The contracting officer will then make a decision as to disposition if agreement is reached with the Contractor that the property is no longer usable or suitable for its intended use.</P>
            <P>(f) <E T="03">Property Control.</E> The Contractor shall maintain property control procedures and records, and a system of identification of the property, in accordance with the provisions of FAR subpart 45.5 in effect on the date of this contract.</P>
            <P>(g) <E T="03">Maintenance.</E> (1) Except as otherwise provided in the Schedule, the Contractor shall protect, preserve, maintain (including normal parts replacement), and repair the property in accordance with sound industrial practice.</P>
            <P>(2) No later than 45 days after the execution of this contract, the Contractor shall submit to the Contracting Officer a written proposed maintenance program, including a maintenance records system, in sufficient detail to show the adequacy of the proposed program. If the Contracting Officer agrees to the proposed program, it shall become the normal maintenance obligation of the Contractor. The Contractor's performance according to the approved program shall satisfy the Contractor's obligations under paragraphs (g) (1) and (5) of this clause.</P>
            <P>(3) The Contracting Officer may at any time direct the Contractor in writing to reduce the work required by the normal maintenance program. If such order reduces the cost of performing the maintenance, an appropriate equitable adjustment may be made.</P>

            <P>(4) The Contractor shall perform any maintenance work directed by the Contracting Officer in writing. Work in excess of the maintenance required under paragraphs (g)(1) through (g)(3) of this clause shall be at Government expense. The Contractor shall notify the Contracting Officer in writing when sound industrial practice requires <PRTPAGE P="205"/>maintenance in excess of the normal maintenance program. The Contracting Officer shall then make a determination whether to repair the facilities or whether the Contractor should provide contractor property while continuing to perform.</P>
            <P>(5) The Contractor shall keep records of all work done on the property and shall give the Government reasonable opportunity to inspect such records. When property is disposed of under this contract, the Contractor shall deliver the related records to the Government, or, if directed by the Contracting Officer, to third persons.</P>
            <P>(6) The Contractor's obligation under this clause for each item of property shall continue until the item is removed, abandoned, or disposed of in accordance with Contracting Officer's instructions.</P>
            <P>(h) <E T="03">Access.</E> The Government and any persons designated by it shall, at all reasonable times have access to the premises where any of the property is located.</P>
            <P>(i) <E T="03">Indemnification of the Government.</E> The Contractor shall indemnify the Government and hold it harmless against claims for injury to persons or damage to property of the Contractor or others arising from the Contractor's possession or use of the property under this contract. Nevertheless, this provision applies only to injury arising out of use of property provided under this clause.</P>
            <P>(j) <E T="03">Representation and warranties.</E> (1) The Government makes no warranty, express or implied, regarding the condition or fitness for use of any property. To the extent practical, the Contractor shall be allowed to inspect all the property to be furnished by the Government.</P>
            <P>(2) If, however, the Contractor receives property in a condition not suitable for the intended use, the Contractor shall, within 30 days after receipt and installation thereof, so notify the Contracting Officer, detailing the facts, and, as directed by the Contracting Officer, and at Government expense, either return such item or otherwise dispose of it or effect repairs or modifications. If the determination is made by the Contracting Officer to require turn-in rather than repair of the property, then the Contractor will continue to perform the contract by using its own property, for which reimbursement will be made in accordance with applicable cost principles.</P>
            <P>(k) <E T="03">Limited risk of loss.</E> (1) The Contractor shall not be liable for loss or destruction of, or damage to, the Government property provided under this contract or for expenses incidental to such loss, destruction, or damage, except as provided in paragraphs (k) (2) and (3) of this clause.</P>
            <P>(2) The Contractor shall be responsible for loss or destruction of, or damage to, the Government property provided under this contract (including expenses incidental to such loss, destruction, or damage)—</P>
            <P>(i) That results from a risk expressly required to be insured under this contract, but only to the extent of the insurance required to be purchased and maintained or to the extent of insurance actually purchased and maintained, whichever is greater;</P>
            <P>(ii) That results from a risk that is in fact covered by insurance or for which the Contractor is otherwise reimbursed, but only to the extent of such insurance or reimbursement:</P>
            <P>(iii) For which the Contractor is otherwise responsible under the express terms of this contract;</P>
            <P>(iv) That results from willful misconduct or lack of good faith on the part of the Contractor's managerial personnel; or</P>
            <P>(v) That results from a failure on the part of the Contractor, due to willful misconduct or lack of good faith on the part of the Contractor's managerial personnel, to establish and administer a program or system for the control, use, protection, preservation, maintenance, and repair of Government property as required by paragraph (f) of this clause.</P>
            <P>(3)(i) If the Contractor fails to act as provided by paragraph (k)(2)(v) of this clause, after being notified (by certified mail addressed to one of the Contractor's managerial personnel) of the Government's disapproval, withdrawal of approval, or nonacceptance of the system or program, it shall be conclusively presumed that such failure was due to willful misconduct or lack of good faith on the part of the Contractor's managerial personnel.</P>
            <P>(ii) In such event, any loss or destruction of, or damage to, the Government property shall be presumed to have resulted from such failure unless the Contractor can establish by clear and convincing evidence that such loss, destruction, or damage—</P>
            <P>(A) Did not result from the Contractor's failure to maintain an approved program or system; or</P>
            <P>(B) Occurred while an approved program or system was maintained by the Contractor.</P>

            <P>(4) If the Contractor transfers Government property to the possession and control of a subcontractor, the transfer shall not affect the liability of the Contractor for loss or destruction of, or damage to, the property as set forth above. However, the Contractor shall require the subcontractor to assume the risk of, and be responsible for, any loss or destruction of, or damage to, the property while in the subcontractor's possession or control, except to the extent that the subcontract, with the advance approval of the Contracting Officer, relieves the subcontractor from such liability. In the absence of such approval, the subcontract shall contain appropriate provisions requiring the return of all Government property in as good condition as when received, except for reasonable wear and tear or for its use in accordance with the provisions of the prime contract.<PRTPAGE P="206"/>
            </P>
            <P>(5) Upon loss or destruction of, or damage to, Government property provided under this contract, the Contractor shall so notify the Contracting Officer and shall communicate with the loss and salvage organization, if any, designated by the Contracting Officer. With the assistance of any such organization, the Contractor shall take all reasonable action to protect the Government property from further damage, separate the damaged and undamaged Government property, put all the affected Government property in the best possible order, and furnish to the Contracting Officer a statement of—</P>
            <P>(i) The lost, destroyed, or damaged Government property;</P>
            <P>(ii) The time and origin of the loss, destruction, or damage;</P>
            <P>(iii) All known interests in commingled property of which the Government property is a part; and</P>
            <P>(iv) The insurance, if any, covering any part of or interest in such commingled property.</P>
            <P>(6) The Contractor shall repair, renovate, and take such other action with respect to damaged Government property as the Contracting Officer directs. If the Government property is destroyed or damaged beyond practical repair, or is damaged and so commingled or combined with property of others (including the Contractor's) that separation is impractical, the Contractor may, with the approval of and subject to any conditions imposed by the Contracting Officer, sell such property for the account of the Government. Such sales may be made in order to minimize the loss to the Government, to permit the resumption of business, or to accomplish a similar purpose. The Contractor shall be entitled to an equitable adjustment in the contract price for the expenditures made in performing the obligations under this subparagraph (k)(6). However, the Government may directly reimburse the loss and salvage organization for any of their charges. The Contracting Officer shall give due regard to the Contractor's liability under this paragraph (k) when making any such equitable adjustment.</P>
            <P>(7) The Contractor shall not be reimbursed for, and shall not include as an item of overhead, the cost of insurance or of any reserve covering risk of loss or destruction of, or damage to, Government property, except to the extent that the Government may have expressly required the Contractor to carry such insurance under another provision of this contract.</P>
            <P>(8) In the event the Contractor is reimbursed or otherwise compensated for any loss or destruction of, or damage to, Government property, the Contractor shall use the proceeds to repair, renovate, or replace the lost, destroyed, or damaged Government property or shall otherwise credit the proceeds to, or equitably reimburse, the Government, as directed by the Contracting Officer.</P>
            <P>(9) The Contractor shall do nothing to prejudice the Government's rights to recover against third parties for any loss or destruction of, or damage to, Government property. Upon the request of the Contracting Officer, the Contractor shall, at the Government's expense, furnish to the Government all reasonable assistance and cooperation (including the prosecution of suit and the execution of instruments of assignment in favor of the Government) in obtaining recovery. In addition, where a subcontractor has not been relieved from liability for any loss or destruction of, or damage to, Government property, the Contractor shall enforce for the benefit of the Government the liability of the subcontractor for such loss, destruction, or damage.</P>
            <P>(1) <E T="03">Disposition of the facilities.</E> (1) The provisions of this paragraph shall apply to facilities whose use has been terminated by either the Contracting Officer or the Contractor because the property is no longer suitable for intended use, no longer desired, or is withdrawn from use by the Government.</P>
            <P>(2) The Contractor shall dispose of the property provided hereunder in accordance with guidance provided by the Contracting Officer.</P>
            <P>(3) The Contracting Officer shall give disposition instructions within 60 days of agreement that the property should be returned to the Government.</P>
            <P>(4) The Government may remove or otherwise dispose of any facilities for which the Contractor's authority to use has been terminated.</P>
            <P>(5) When Government property is returned to the Government, upon termination of the contract relationship between Government and Contractor or when Government furnished property is replaced by Contractor property, the Contracting Officer may direct repair of Government property necessitated by the change from Government to Contractor property such as removal of fixtures. When Contractor property is removed from Government property at the end of contract performance, the Government property will be restored to its condition prior to installation of Contractor property in accordance with Contracting officer direction.</P>
            <HD SOURCE="HD3">(End of clause)</HD>
          </EXTRACT>
          <CITA>[54 FR 39539, Sept. 27, 1989]</CITA>
        </SECTION>
      </PART>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 52 (10-1-00 Edition)</LRH>
      <RRH>Department of the Navy</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="207"/>
          <HD SOURCE="HED">CHAPTER 52—DEPARTMENT OF THE NAVY ACQUISITION REGULATIONS</HD>
          <P>(Parts 5200 to 5299)</P>
        </TOCHD>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>5215</PT>
          <SUBJECT>Contracting by negotiation</SUBJECT>
          <PG>209</PG>
          <PT>5231</PT>
          <SUBJECT>Contract cost principles and procedures</SUBJECT>
          <PG>211</PG>
          <PT>5242</PT>
          <SUBJECT>Contract administration</SUBJECT>
          <PG>212</PG>
          <PT>5243</PT>
          <RESERVED>[Reserved]</RESERVED>
          <PT>5252</PT>
          <SUBJECT>Solicitation provisions and contract clauses</SUBJECT>
          <PG>213</PG>
        </CHAPTI>
      </TOC>
      <PART>
        <PRTPAGE P="209"/>
        <EAR>Pt. 5215</EAR>
        <HD SOURCE="HED">PART 5215—CONTRACTING BY NEGOTIATION</HD>
        <CONTENTS>
          <SUBPART>
            <HD SOURCE="HED">Subpart 5215.4—Solicitation and Receipt of Proposals and Quotations</HD>
            <SECHD>Sec.</SECHD>
            <SECTNO>5215.402</SECTNO>
            <SUBJECT>General.</SUBJECT>
            <SECTNO>5215.407</SECTNO>
            <SUBJECT>Solicitation provisions.</SUBJECT>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 5215.6—Source Selection</HD>
            <SECTNO>5215.605</SECTNO>
            <SUBJECT>Evaluation factors.</SUBJECT>
            <SECTNO>5215.608</SECTNO>
            <SUBJECT>Proposal evaluation.</SUBJECT>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 5215.8—Price Negotiation</HD>
            <SECTNO>5215.804-3</SECTNO>
            <SUBJECT>Exemptions from or waiver of submission of certified cost or pricing data.</SUBJECT>
          </SUBPART>
        </CONTENTS>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>5 U.S.C. 301, 10 U.S.C. 2202, DOD Directive 5000.35.</P>
        </AUTH>
        <SOURCE>
          <HD SOURCE="HED">Source:</HD>
          <P>53 FR 16280, May 6, 1988, unless otherwise noted.</P>
        </SOURCE>
        <SUBPART>
          <HD SOURCE="HED">Subpart 5215.4—Solicitation and Receipt of Proposals and Quotations</HD>
          <SECTION>
            <SECTNO>5215.402</SECTNO>
            <SUBJECT>General.</SUBJECT>
            <P>(a) Competition is the cornerstone of Navy acquisition policy. As such, the preferred and predominant method of pricing in the Navy is through the use of competition, without the need for cost or pricing data and cost analysis. The Navy has found that not only does competition generate more favorable prices, but significant time and effort can be saved by relying on the forces of competition to establish prices, as opposed to the use of detailed cost analysis. This approach is not only consistent with the Competition in Contracting Act (CICA), but it affords the opportunity for significant efficiencies and reduction of procurement leadtime as a result of minimizing the requirement for cost or pricing data and associated audit reports. As competition is increasingly relied upon and the need for cost or pricing data is reduced, there may be a corresponding requirement for performing a cost realism evaluation for many competitive procurements to guard against unrealistically low prices which can lead to quality deficiencies, late deliveries, performance shortfalls, and cost overruns. In performing cost realism evaluation, only the minimum selected data to perform the cost realism evaluation is to be obtained, as opposed to full cost or pricing data which would be required when it is necessary to perform cost-based negotiations, such as in the case of sole source negotiations.</P>
          </SECTION>
          <SECTION>
            <SECTNO>5215.407</SECTNO>
            <SUBJECT>Solicitation provisions.</SUBJECT>
            <P>(S-90) During acquisition planning, an assessment shall be made as to the likelihood that adequate price competition will exist. If it is anticipated that an award will be based on adequate price competition, the solicitation shall include the provision at 5252.215-9000. If the procurement schedule is critical, this provision with its Alternate I shall be used so that there will be a minimum delay in the event that adequate price competition does not materialize and it is necessary to obtain cost or pricing data. Contracting officers must be judicious in the use of the Alternate I provision, as it may cause offerors to incur certain costs in preparing standby cost or pricing data in anticipation that it may be subsequently requested.</P>
          </SECTION>
        </SUBPART>
        <SUBPART>
          <HD SOURCE="HED">Subpart 5215.6—Source Selection</HD>
          <SECTION>
            <SECTNO>5215.605</SECTNO>
            <SUBJECT>Evaluation factors.</SUBJECT>
            <P>(S-90)(1) When a cost realism evaluation will be performed, the source selection evaluation criteria shall include a notice that the proposed costs may be adjusted, for purposes of evaluation, based upon the results of the cost realism evaluation.</P>

            <P>(2) Technical criteria may include quality standards that are based on either a minimally acceptable approach or a cost/benefit approach. When the quality desired is that necessary to meet minimum needs, proposals should be evaluated for acceptability and award made to the lowest priced, technically acceptable offer. When the quality desired is the highest affordable or that representing the best value, proposals should be evaluated on a cost/benefit basis that would permit an award based on paying appropriate premiums for measured increments of quality. When a cost/benefit approach is used, cost must carry a weight of not less than 40% unless thoroughly justified.<PRTPAGE P="210"/>
            </P>
            <P>(3) Cost realism evaluation. (i) Cost realism evaluation involves a summary level review of the cost portion (excluding profit/fee) of the offerors’ proposals to determine if the overall costs proposed are realistic for the work to be performed. Cost realism evaluation differs from the detailed cost analysis usually undertaken in a noncompetitive procurement to determine the reasonableness of the various cost elements and profit/fee to arrive at a fair and reasonable price. Data submitted only for cost realism evaluation generally will not be certified.</P>
            <P>(ii) The purpose of cost realism evaluation is to:</P>
            <P>(A) Verify the offeror's understanding of the requirements;</P>
            <P>(B) Assess the degree to which the cost/price proposal reflects the approaches and/or risk assessments made in the technical proposal as well as the risk that the offeror will provide the supplies or services for the offered prices/costs; and</P>
            <P>(C) Assess the degree to which the cost included in the cost/price proposal accurately represents the work effort included in the technical proposal.</P>
            <P>(iii) Some examples of data and information that may be obtained to perform cost realism evaluation are:</P>
            <P>(A) Manloading (quantity and mix of labor hours);</P>
            <P>(B) Engineering, labor and overhead rates; and</P>
            <P>(C) Make or buy plans.</P>
            <FP>A price analysis approach where there is adequate price history may also be a suitable and efficient means to evaluate cost realism. The amount of data required will be dependent upon the complexity of the procurement and the data already obtained by the contracting officer (e.g. information on recent Forward Pricing Rate Agreements (FPRAs)).</FP>
            <P>(iv) Cost realism evaluation generally will be performed as a part of the proposal evaluation process (see 5215.605) for all competitive solicitations where a cost reimbursement contract is contemplated. For competitive solicitations contemplating a fixed price, labor hour, or time and material type contract, a cost realism evaluation would be the exception and not the rule, although its use may be appropriate where the proposal evaluation process will encompass both a cost/price evaluation and a technical evaluation. Also, where the contracting officer suspects a “buy-in” (see FAR 3.501) or a misunderstanding of the requirements as a result of reviewing the initial offers, data and information should be obtained and a cost realism evaluation performed.</P>
            <P>(v) When cost realism data are required, the contracting officer shall not request a formal field pricing report but rather, shall request a review of only those specific areas of information necessary to allow the contracting officer to perform a cost realism evaluation. For example, the contracting officer may only need to know the current or FPRA labor and/or overhead rates. In these instances, the request for information from DCAA may be oral or written.</P>
          </SECTION>
          <SECTION>
            <SECTNO>5215.608</SECTNO>
            <SUBJECT>Proposal evaluation.</SUBJECT>
            <P>(a) When a cost realism evaluation will be performed in accordance with 5215.605(S-90), the resulting realistic cost estimate shall be used in the evaluation of cost.</P>
          </SECTION>
        </SUBPART>
        <SUBPART>
          <HD SOURCE="HED">Subpart 5215.8—Price Negotiation</HD>
          <SECTION>
            <SECTNO>5215.804-3</SECTNO>
            <SUBJECT>Exemptions from or waiver of submission of certified cost or pricing data.</SUBJECT>
            <P>(a) <E T="03">General.</E> As explained in 5215.402, cost or pricing data would not normally be obtained because the predominant portion of Navy procurements are awarded on the basis of adequate price competition.</P>
            <P>(b)(1)(iii) Adequate price competition may also exist where price is a secondary factor in the evaluation of proposals, as long as price is a substantial factor. Price, as used herein, means cost plus any fee or profit applicable to the contract price. Thus, in competitive acquisitions where adequate price competition is contemplated, the contracting officer shall not require the submission of cost or pricing data whether certified or not, as defined in FAR 15.801, regardless of the type of contract.</P>

            <P>(b)(3) Examples of contract awards for which prices may be based on adequate price competition and/or to have <PRTPAGE P="211"/>been established by adequate price competition are:</P>
            <P>(i) Contracts for items for which there are a limited number of sources and the prices at which award will be made are within a reasonable amount of each other and compare favorably with independent Government estimates and with prior prices paid;</P>
            <P>(ii) Any contract, including cost-type contracts, when cost is a significant evaluation factor; and</P>
            <P>(iii) Contracts for which there are dual sources.</P>
          </SECTION>
        </SUBPART>
      </PART>
      <PART>
        <EAR>Pt. 5231</EAR>
        <HD SOURCE="HED">PART 5231—CONTRACT COST PRINCIPLES AND PROCEDURES</HD>
        <CONTENTS>
          <SUBPART>
            <HD SOURCE="HED">Subpart 5231.2—Contracts with Commercial Organizations</HD>
            <SECHD>Sec.</SECHD>
            <SECTNO>5231.205</SECTNO>
            <SUBJECT>Selected costs.</SUBJECT>
            <SECTNO>5231.205-90</SECTNO>
            <SUBJECT>Shipbuilding capability preservation agreements.</SUBJECT>
          </SUBPART>
        </CONTENTS>
        <AUTH>
          <HD SOURCE="HED">Authority: </HD>
          <P> 5 U.S.C. 301, 10 U.S.C. 2501, 10 U.S.C. 7315, DoD Directive 5000.35.</P>
        </AUTH>
        <SOURCE>
          <HD SOURCE="HED">Source:</HD>
          <P>62 FR 66827, Dec. 22, 1997, unless otherwise noted.</P>
        </SOURCE>
        <SUBPART>
          <HD SOURCE="HED">Subpart 5231.2—Contracts With Commercial Organizations</HD>
          <SECTION>
            <SECTNO>§ 5231.205</SECTNO>
            <SUBJECT>Selected costs.</SUBJECT>
          </SECTION>
          <SECTION>
            <SECTNO>§ 5231.205-90</SECTNO>
            <SUBJECT>Shipbuilding capability preservation agreements.</SUBJECT>
            <P>(a) <E T="03">Scope and authority.</E> Where it would facilitate the achievement of the policy objectives set forth in 10 U.S.C. 2501(b), the Navy may enter into a shipbuilding capability preservation agreement with a contractor. As authorized by section 1027 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85), such an agreement permits the contractor to claim certain indirect costs attributable to its private sector work as allowable costs on Navy shipbuilding contracts.</P>
            <P>(b) <E T="03">Definition. Incremental indirect cost,</E> as used in this subsection, means an additional indirect cost that results from performing private sector work described in a shipbuilding capability preservation agreement.</P>
            <P>(c) <E T="03">Purpose and guidelines.</E> The purpose of a shipbuilding capability preservation agreement is to broaden and strengthen the shipbuilding industrial base by providing an incentive for a shipbuilder to obtain new private sector work, thereby reducing the Navy's cost of doing business. The Navy will use the following guidelines to evaluate requests for shipbuilding capability preservation agreements:</P>
            <P>(1) The Assistant Secretary of the Navy for Research, Development and Acquisition must make a determination that an agreement would facilitate the achievement of the policy objectives set forth in 10 U.S.C. 2501(b). The primary consideration in making this determination is whether an agreement would promote future growth in the amount of private sector work that a shipbuilder is able to obtain.</P>
            <P>(2) An agreement generally will be considered only for a shipbuilder with little or no private sector work.</P>
            <P>(3) The agreement shall apply to prospective private sector work only, and shall not extend beyond 5 years.</P>
            <P>(4) The agreement must project an overall benefit to the Navy, including net savings. This would be achieved by demonstrating that private sector work will absorb costs that otherwise would be absorbed by the Navy.</P>
            <P>(d) <E T="03">Cost-reimbursement rules.</E> If the Navy enters into a shipbuilding capability preservation agreement with a contractor, the following cost-reimbursement rules apply:</P>
            <P>(1) The agreement shall require the contractor to allocate the following costs to private sector work:</P>
            <P>(i) The direct costs attributable to the private sector work;</P>
            <P>(ii) The incremental indirect costs attributable to the private sector work; and</P>
            <P>(iii) The non-incremental indirect costs to the extent that the revenue attributable to the private sector work exceeds the sum of the costs specified in paragraphs (d)(1)(i) and (d)(1)(ii) of this subsection.</P>

            <P>(2) The agreement shall require that the sum of the costs specified in paragraphs (d)(1)(ii) and (d)(1)(iii) of this subsection not exceed the amount of indirect costs that would have been allocated to the private sector work in accordance with the contractor's established accounting practices.<PRTPAGE P="212"/>
            </P>
            <P>(3) The Navy may agree to modify the amount calculated in accordance with paragraph (d)(1) of this subsection if it determines that a modification is appropriate to the particular situation. In so doing, the Navy may agree to the allocation of a smaller or larger portion of the amount calculated in accordance with paragraph (d)(1) of this subsection, to private sector work.</P>
            <P>(i) Any smaller amount shall not be less than the sum of the costs specified in paragraphs (d)(1)(i) and (d)(1)(ii) of this subsection.</P>
            <P>(ii) Any larger amount shall not exceed the sum of the costs specified in paragraph (d)(1)(i) of this subsection and the amount of indirect costs that would have been allocated to the private sector work in accordance with the contractor's established accounting practices.</P>
            <P>(iii) In determining whether such a modification is appropriate, the Navy will consider factors such as the impact of pre-existing firm-fixed-price Navy contracts on the amount of costs that would be reimbursed by the Navy, the impact of pre-existing private sector work on the cost benefit that would be received by the contractor, and the extent to which allocating a smaller or larger portion of costs to private sector work would provide a sufficient incentive for the contractor to obtain additional private sector work.</P>
            <P>(e) <E T="03">Procedure.</E> A contractor may submit a request for a shipbuilding capability preservation agreement, together with appropriate justification, through the Deputy Assistant Secretary of the Navy for Ships, to the Assistant Secretary of the Navy for Research, Development and Acquisition, who has approval or disapproval authority. The contractor should also provide an informational copy of any such request to the cognizant administrative contracting officer.</P>
          </SECTION>
        </SUBPART>
      </PART>
      <PART>
        <EAR>Pt. 5242</EAR>
        <HD SOURCE="HED">PART 5242—CONTRACT ADMINISTRATION</HD>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>5 U.S.C. 301, 10 U.S.C. 2202, DOD Directive 5000.35</P>
        </AUTH>
        <SUBPART>
          <HD SOURCE="HED">Subpart 5242.90—Refunds Require-ments (Spares and Support Equipment)</HD>
          <SECTION>
            <SECTNO>5242.9000</SECTNO>
            <SUBJECT>Requests for refunds.</SUBJECT>
            <P>(a) <E T="03">Policy.</E> (1) This subpart establishes uniform policy and procedures on requesting refunds for spare parts or items of support equipment. This policy is not intended to diminish the responsibility of Navy contracting personnel to properly price spare parts and items of support equipment. Further, it is not intended to serve as a mechanism for the recovery of excess profits.</P>
            <P>(2) In accordance with the guidance set forth in paragraph (c) of this section, contracting activities shall request a refund whenever the contract price of any spare part or item of support equipment significantly exceeds the item's intrinsic value as defined in the clause at 5252.242-9000. Refunds shall be requested only for the difference between the intrinsic value of the item at the time an agreement on price was reached and the contract price. Refunds will not be requested to recoup the amount of cost decreases that occur over time due to productivity gains (beyond economic quantity considerations) or changes in market conditions.</P>
            <P>(b) <E T="03">Examples.</E> The following are examples of circumstances which may establish a basis for a refund request or pricing adjustment:</P>
            <P>(1) A technical or engineering analysis results in a determination that the intrinsic value is significantly lower than the historical price.</P>
            <P>(2) The price paid for an item bought competitively in similar quantity and circumstances (e.g., urgency, delivery terms) is significantly less than the former sole source price.</P>
            <P>(3) Prices paid to the manufacturer of an item indicate the amount previously charged by the prime contractor for the item significantly exceeded the intrinsic value of the prime contractor's efforts in providing the item.</P>
            <P>(c) <E T="03">Solicitation provisions.</E> The contracting officer shall insert the clause at 5252.242-9000 in solicitations, Basic Ordering Agreements, and contracts (as defined in FAR 2.101) which contain <PRTPAGE P="213"/>or may contain requirements for spare parts or items of support equipment, except those contracts awarded as a result of competitive small purchase procedures and orders under federal supply schedules. If added to existing contracts, the clause will not apply to items or components ordered by the Government prior to the date of incorporation of the clause into the contract. Heads of Contracting Activities (HCAs) are delegated, without power of redelegation, authority to establish monetary thresholds below which refunds will not be requested.</P>
            <CITA>[51 FR 46671, Dec. 24, 1986]</CITA>
          </SECTION>
        </SUBPART>
      </PART>
      <PART>
        <RESERVED>PART 5243[RESERVED]</RESERVED>
      </PART>
      <PART>
        <EAR>Pt. 5252</EAR>
        <HD SOURCE="HED">PART 5252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES</HD>
        <CONTENTS>
          <SUBPART>
            <HD SOURCE="HED">Subpart 5252.2—Texts of Provisions and Clauses</HD>
            <SECTNO>5252.215-9000</SECTNO>
            <SUBJECT>Submission of cost or pricing data.</SUBJECT>
            <SECTNO>5252.242-9000</SECTNO>
            <SUBJECT>Refunds.</SUBJECT>
            <SECTNO>5252.243-9000—5252.243-9001</SECTNO>
            <SUBJECT>[Reserved]</SUBJECT>
          </SUBPART>
        </CONTENTS>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>5 U.S.C. 301, 10 U.S.C. 2405, DOD Directive 5000.35, and DFARS subparts 201.3 and 243.1.</P>
        </AUTH>
        <SOURCE>
          <HD SOURCE="HED">Source:</HD>
          <P>53 FR 16282, May 6, 1988, unless otherwise noted.</P>
        </SOURCE>
        <SUBPART>
          <HD SOURCE="HED">Subpart 5252.2—Texts of Provisions and Clauses</HD>
          <SECTION>
            <SECTNO>5252.215-9000</SECTNO>
            <SUBJECT>Submission of cost or pricing data.</SUBJECT>
            <P>As prescribed at 5215.407, insert the following provision:</P>
            <EXTRACT>
              <HD SOURCE="HD1">Submission of Cost or Pricing Data (Nov <E T="01">1987)</E>
              </HD>
              <P>(a) It is expected that this contract will be awarded based upon a determination that there is adequate price competition; therefore, the offeror is not required to submit or certify cost or pricing data (SF 1411) with its proposal.</P>
              <P>(b) If, after receipt of the proposals, the contracting officer determines that adequate price competition does not exist in accordance with FAR 15.804-3, the offeror shall provide certified cost or pricing data as requested by the contracting officer.</P>
              <HD SOURCE="HD3">(End of clause)</HD>
              <HD SOURCE="HD1">Alternate I (Nov <E T="01">1987)</E>
              </HD>
              <P>As prescribed at 5215.407, substitute the following paragraph (b):</P>
              <P>(b) If, after receipt of the proposals, the contracting officer determines that adequate price competition does not exist, the offeror shall provide certified cost or pricing data as requested by the contracting officer. The offeror shall provide the requested data within <SU>1</SU>
                <FTREF/> calendar days from the date of the contracting officer's request.</P>
              <FTNT>
                <P>
                  <SU>1</SU> To be completed by the contracting officer.</P>
              </FTNT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </EXTRACT>
          </SECTION>
          <SECTION>
            <SECTNO>5252.242-9000</SECTNO>
            <SUBJECT>Refunds.</SUBJECT>
            <P>As prescribed in 5242.9000 insert the following clause:</P>
            <EXTRACT>
              <HD SOURCE="HD1">Refunds (Spares and Support Equipment) (Dec <E T="01">1986)</E>
              </HD>
              <P>(a) In the event that the price of a spare part or item of support equipment delivered under this contract significantly exceeds its intrinsic value, the contractor agrees to refund the difference. Refunds will only be made for the difference between the intrinsic value of the item at the time an agreement on price was reached and the contract price. Refunds will not be made to recoup the amount of cost decreases that occur over time due to productivity gains (beyond economic purchase quantity considerations) or changes in market conditions.</P>
              <P>(b) For purposes of this clause, the intrinsic value of an item is defined as follows:</P>
              <P>(1) If the item is one which is sold, or is substantially similar or functionally equivalent to one that is sold in substantial quantities to the general public, intrinsic value is the established catalog or market price, plus the value of any unique requirements, including delivery terms, inspection, packaging, or labeling.</P>
              <P>(2) If there is no comparable item sold in substantial quantities to the general public, intrinsic value is defined as the price an individual would expect to pay for the item based upon an economic quantity as defined in FAR 52.207-4, plus the value of any unique requirements, including delivery terms, inspection, packaging, or labeling.</P>
              <P>(c) At any time up to two years after delivery of a space part or item of support equipment, the contracting officer may notify the contractor that based on all information available at the time of the notice, the price of the part or item apparently exceeds its intrinsic value.</P>

              <P>(d) If notified in accordance with paragraph (c) of this clause, the contractor agrees to enter into good faith negotiations <PRTPAGE P="214"/>with the Government to determine if, and in what amount, the Government is entitled to a refund.</P>
              <P>(e) If agreement pursuant to paragraph (d) of this clause, cannot be reached, and the Navy's return of the new or unused item to the contractor is practical, the Navy, subject to the contractor's agreement, may elect to return the item to the contractor. Upon return of the item to its original point of government acceptance, the contractor shall refund in full the price paid. If no agreement pursuant to paragraph (d) of this clause is reached, and return of the item by the Navy is impractical, the contracting officer may, with the approval of the Head of the Contracting Activity, issue a contracting officer's final decision on the matter, subject to contractor appeal as provided in the Disputes clause.</P>
              <P>(f) The contractor will make refunds, as required under this clause, in accordance with instructions from the contracting officer.</P>
              <P>(g) The contractor shall not be liable for a refund if the contractor advised the contracting officer in a timely manner that the price it would propose for a spare part or item of support equipment exceeded its intrinsic value, and with such advice, specified the estimated proposed price, the estimated intrinsic value, and known alternative sources or items, if any, that can meet the requirement.</P>
              <P>(h) This clause does not apply to any spare parts or items of support equipment whose price is determined through adequate price competition. This clause also does not apply to any spare part or item of support equipment with a unit price in excess of $100,000; or in excess of $25,000 if the contractor submitted, and certified the currency, accuracy and completeness of, cost or pricing data applicable to the item.</P>
              <HD SOURCE="HD3">(End of clause)</HD>
            </EXTRACT>
          </SECTION>
          <SECTION>
            <SECTNO>5252.243-9000—5252.243-9001</SECTNO>
            <RESERVED>[Reserved]</RESERVED>
          </SECTION>
        </SUBPART>
      </PART>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 54 (10-1-00 Edition)</LRH>
      <RRH>Defense Logistics Agency</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="215"/>
          <HD SOURCE="HED">CHAPTER 53—DEPARTMENT OF THE AIR FORCE FEDERAL ACQUISITION REGULATION SUPPLEMENT[RESERVED]</HD>
          <HD SOURCE="HED">CHAPTER 54—DEFENSE LOGISTICS AGENCY, DEPARTMENT OF DEFENSE</HD>
          <P>(Parts 5400 to 5499)</P>
        </TOCHD>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>5416</PT>
          <SUBJECT>Types of contracts</SUBJECT>
          <PG>217</PG>
          <PT>5452</PT>
          <SUBJECT>Solicitation provisions and contract clauses</SUBJECT>
          <PG>217</PG>
        </CHAPTI>
      </TOC>
      <PART>
        <PRTPAGE P="217"/>
        <EAR>Pt. 5416</EAR>
        <HD SOURCE="HED">PART 5416—TYPES OF CONTRACTS</HD>
        <CONTENTS>
          <SUBPART>
            <HD SOURCE="HED">Subpart 5416.2—Fixed Price Contracts</HD>
            <SECHD>Sec.</SECHD>
            <SECTNO>5416.203</SECTNO>
            <SUBJECT>Fixed-price contracts with economic price adjustment.</SUBJECT>
            <SECTNO>5416.203-1</SECTNO>
            <SUBJECT>Description.</SUBJECT>
            <SECTNO>5416.203-3</SECTNO>
            <SUBJECT>Limitations.</SUBJECT>
            <SECTNO>5416.203-4</SECTNO>
            <SUBJECT>Contract clauses.</SUBJECT>
          </SUBPART>
        </CONTENTS>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>Fixed Price Contracts</P>
        </AUTH>
        <SOURCE>
          <HD SOURCE="HED">Source:</HD>
          <P>64 FR 41835, Aug. 2, 1999, unless otherwise noted.</P>
        </SOURCE>
        <SUBPART>
          <HD SOURCE="HED">Subpart 5416.2—Fixed Price Contracts</HD>
          <SECTION>
            <SECTNO> 5416.203</SECTNO>
            <SUBJECT>Fixed-price contracts with economic price adjustment.</SUBJECT>
          </SECTION>
          <SECTION>
            <SECTNO> 5416.203-1</SECTNO>
            <SUBJECT>Description.</SUBJECT>
            <P>(a)(S-90) Adjustments based on established prices. Established prices may reflect industry-wide and/or geographically based market price fluctuations for commodity groups, specific supplies or services, or contract end items.</P>
            <P>(c)(S-90) Adjustments based on cost indexes of labor or materials. These price adjustments may also be based on increases or decreases in indexes for commodity groups, specific supplies or services, or contract end items.</P>
          </SECTION>
          <SECTION>
            <SECTNO> 5416.203-3</SECTNO>
            <SUBJECT>Limitations.</SUBJECT>
            <P>(S-90) A fixed price contract with economic price adjustment may also be used to provide for price adjustments authorized in this section.</P>
          </SECTION>
          <SECTION>
            <SECTNO> 5416.203-4</SECTNO>
            <SUBJECT>Contract clauses.</SUBJECT>
            <P>(S-90) When the contracting officer determines that an existing EPA clause is not appropriate, the contracting officer may develop and use another EPA clause in accordance with 5416.203-1 (a)(S-90) or (c)(S-90). Established prices and cost indexes need not reflect changes in the costs or established prices of a specific contractor. The established price or cost index may be derived from sales prices in the marketplace, quotes, or assessments as reported or made available in a consistent manner in a publication, electronic database, or other form, by an independent trade association, Governmental body, or other third party independent of the contractor. More than one established price or cost index may be combined in a formula for economic price adjustment purposes in the absence of an appropriate single price or cost index.</P>
          </SECTION>
        </SUBPART>
      </PART>
      <PART>
        <EAR>Pt. 5452</EAR>
        <HD SOURCE="HED">PART 5452—SOLICITATION PROVISIONS AND CONTRACT CLAUSES</HD>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>5 U.S.C. 301, 10 U.S.C. 2202, 48 CFR part 1, subpart 1.3 and 48 CFR part 201, subpart 201.3</P>
        </AUTH>
        <SUBPART>
          <HD SOURCE="HED">Subpart 5452.2—Texts of Provisions and Clauses</HD>
          <SECTION>
            <SECTNO>5452.249</SECTNO>
            <SUBJECT>Allocation.</SUBJECT>
            <P>The Defense Fuel Supply Center is authorized to use the following clause in domestic and overseas petroleum solicitations/contracts, including those for Canal Zone and Puerto Rico, when a fixed-price contract is contemplated and the contract amount is expected to exceed the small purchase limitation.</P>
            <EXTRACT>
              <HD SOURCE="HD1">Allocation (DFSC <E T="01">1995</E>
                <E T="04">) (Deviation) (</E>9<E T="04">F</E>01)</HD>
              <P>(a) Reduced Supplies.</P>
              <P>If, for any cause beyond the control and without the fault or negligence of the Contractor, the total supply of crude oil and/or refined petroleum product is reduced below the level that would have otherwise been available to the Contractor, the Contractor allocates to its regular customers its remaining available supplies of crude oil or product, then the Contractor may also allocate to the U.S. Government supplies to be delivered under this contract, provided—</P>
              <P>(1) Prompt notice of and evidence substantiating the necessity to allocate and describing the allocation rate for all the Contractor's customers are submitted to the Contracting Officer;</P>
              <P>(2) Allocation among the Contractor's regular customers is made on a fair and reasonable basis (except where allocation on a different basis is required by a governmental authority, agency or instrumentality); and</P>
              <P>(3) Reduction of the quantity of product due the Government under this contract shall not exceed the pro rata amount by which the Contractor reduces delivery to its other contractual customers.</P>
              <P>(b) Additional Supplies.</P>

              <P>If, after the event causing the shortage of crude oil and/or refined petroleum product as described in (a) above, additional supply becomes available to the Contractor, the Contracting Officer may choose any one of the following three possible courses of action:<PRTPAGE P="218"/>
              </P>
              <P>(1) Accept an updated pro rata reduction as outlined in (a);</P>
              <P>(2) Determine that continuance of the contract with the quantities as originally stated in the Schedule is in the best interests of the Government; or</P>
              <P>(3) Terminate the contract as permitted in (d) below.</P>
              <P>(c) Reduced Deliveries.</P>
              <P>If the Contractor believes that a law, regulation, or order of a foreign government requires the Contractor to deliver less than the quantity set forth in the Schedule for any location within that country, the Contractor may request allocation in accordance with (a) above. In addition to the criteria in (a) above, the Contractor's request shall cite—</P>
              <P>(1) The law, regulation or order, furnishing copies of the same;</P>
              <P>(2) The authority under which is imposed; and</P>
              <P>(3) The nature of the Government's waiver, exception, and enforcement procedure.</P>
              <P>The Contracting Officer will promptly review the matter and advise the Contractor whether or not the need to allocate has been substantiated. If the law, regulation, or order requiring the Contractor to reduce deliveries ceases to be effective, the Contractor shall resume deliveries in accordance with the original Schedule.</P>
              <P>(d) If, as a result of reduced deliveries permitted by (a), (b), or (c) above, the Contracting Officer decides that continuation of this contract is no longer in the best interests of the Government, the Government may terminate this contract or any quantity thereunder, by written notice, at no cost to the Government. However, the Government shall not be relieved of its obligation to pay for supplies actually delivered to and accepted by it.</P>
              <P>(e) Except as otherwise stated in (b) above, any volumes omitted pursuant to (a) or (b) above shall be deleted from this contract, and the Contractor shall have no continuing obligation, so far as this contract is concerned, to make up such omitted supplies.</P>
              <P>(f) For Posts, Camps, and Stations contracts, Department of Energy priority orders and allocation regulations will take precedence over any conflicting provisions of this clause.</P>
              <P>(g) For Bulk Fuels contracts, the provisions contained in (a) and (b) above shall be inoperative when the Secretary of Defense makes a written determination that it is essential to the National Defense that the Defense Fuel Supply Center be provided contract volumes exceeding the pro rata amount of product to which it would otherwise be entitled. However, in no case will the Contractor be required, under this contract, to supply more than 100% of the quantity specified in the Schedule.</P>
              <HD SOURCE="HD3">(End of clause)</HD>
            </EXTRACT>
            <CITA>[60 FR 21992, May 4, 1995]</CITA>
          </SECTION>
        </SUBPART>
      </PART>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 57 (10-1-00 Edition)</LRH>
      <RRH>African Development Foundation</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="219"/>
          <HD SOURCE="HED">CHAPTER 57—AFRICAN DEVELOPMENT FOUNDATION</HD>
          <P>(Parts 5700 to 5799)</P>
        </TOCHD>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER B—ACQUISITION PLANNING</HD>
        </SUBCHAP>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>5706</PT>
          <SUBJECT>Competition requirements</SUBJECT>
          <PG>220</PG>
        </CHAPTI>
      </TOC>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="220"/>
        <HD SOURCE="HED">SUBCHAPTER B—ACQUISITION PLANNING</HD>
        <PART>
          <EAR>Pt. 5706</EAR>
          <HD SOURCE="HED">PART 5706—COMPETITION REQUIREMENTS</HD>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>40 U.S.C. 474.</P>
          </AUTH>
          <SUBPART>
            <HD SOURCE="HED">Subpart 5706.3—Other Than Full and Open Competition</HD>
            <SECTION>
              <SECTNO>5706.302-70</SECTNO>
              <SUBJECT>Impairment of foreign aid programs.</SUBJECT>
              <P>(a) Full and open competition need not be obtained when it would impair or otherwise have an adverse effect on programs conducted for the purposes of foreign aid, relief and rehabilitation.</P>
              <P>(b) <E T="03">Application.</E> This authority may be used for:</P>
              <P>(1) An award under section 506(a)(5) of the African Development Foundation Act involving a personal service contractor serving abroad;</P>
              <P>(2) An award of $100,000 or less for audit, evaluation or program support services to be provided abroad;</P>
              <P>(3) An award for which the President of the Foundation makes a formal written determination, with supporting findings, that compliance with full and open competition procedures would impair foreign assistance objectives, and would be inconsistent with the fulfillment of the Foundation program.</P>
              <P>(c) <E T="03">Limitation.</E> (1) Offers shall be requested from as many potential offerors as is practicable under the circumstances.</P>
              <P>(2) The contract file must include an appropriate explanation and support justifying award without full and open competition, as provided in FAR 6.303, except that determinations made under paragraph (b)(3) of this section will not be subject to the requirement for contracting officer certification or to approvals in accord with FAR 6.304.</P>
              <CITA>[53 FR 5578, Feb. 25, 1988]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 61 (10-1-00 Edition)</LRH>
      <RRH>GSA Board of Contract Appeals</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="221"/>
          <HD SOURCE="HED">CHAPTER 61—GENERAL SERVICES ADMINISTRATION BOARD OF CONTRACT APPEALS</HD>
          <P>(Parts 6100 to 6199)</P>
        </TOCHD>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>6101</PT>
          <SUBJECT>Rules of procedure of the General Services Administration Board of Contract Appeals (standard proceedings)</SUBJECT>
          <PG>223</PG>
          <PT> 6102</PT>
          <SUBJECT>Rules of procedure of the General Services Administration Board of Contract Appeals (expedited proceedings)</SUBJECT>
          <PG>252</PG>
          <PT>6103</PT>
          <SUBJECT>Rules of procedure for transportation rate cases</SUBJECT>
          <PG>254</PG>
          <PT>6104</PT>
          <SUBJECT>Rules of procedure for travel and relocation expenses cases</SUBJECT>
          <PG>256</PG>
          <PT>6105</PT>
          <SUBJECT>Rules of procedure for decisions authorized by 31 U.S.C. 3529</SUBJECT>
          <PG>258</PG>
        </CHAPTI>
      </TOC>
      <PART>
        <PRTPAGE P="223"/>
        <EAR>Pt. 6101</EAR>
        <HD SOURCE="HED">PART 6101—RULES OF PROCEDURE OF THE GENERAL SERVICES ADMINISTRATION BOARD OF CONTRACT APPEALS (STANDARD PROCEEDINGS)</HD>
        <CONTENTS>
          <SECHD>Sec.</SECHD>
          <SECTNO>6101.0</SECTNO>
          <SUBJECT>Foreword.</SUBJECT>
          <SECTNO>6101.1</SECTNO>
          <SUBJECT>Scope of rules; definitions; construction; rulings and orders; panels; situs [Rule 101].</SUBJECT>
          <SECTNO>6101.2</SECTNO>
          <SUBJECT>Time: enlargement; computation [Rule 102].</SUBJECT>
          <SECTNO>6101.3</SECTNO>
          <SUBJECT>Service of papers [Rule 103].</SUBJECT>
          <SECTNO>6101.4</SECTNO>
          <SUBJECT>Appeal file [Rule 104].</SUBJECT>
          <SECTNO>6101.5</SECTNO>
          <SUBJECT>Filing cases; time limits for filing; docketing [Rule 105].</SUBJECT>
          <SECTNO>6101.6</SECTNO>
          <SUBJECT>Appearances; notice of appearance [Rule 106].</SUBJECT>
          <SECTNO>6101.7</SECTNO>
          <SUBJECT>Pleadings in appeals [Rule 107].</SUBJECT>
          <SECTNO>6101.8</SECTNO>
          <SUBJECT>Motions [Rule 108].</SUBJECT>
          <SECTNO>6101.9</SECTNO>
          <SUBJECT>Election of hearing or record submission [Rule 109].</SUBJECT>
          <SECTNO>6101.10</SECTNO>
          <SUBJECT>Conferences; conference memorandum; prehearing order; prehearing and presubmission briefs [Rule 110].</SUBJECT>
          <SECTNO>6101.11</SECTNO>
          <SUBJECT>Submission on the record without a hearing [Rule 111].</SUBJECT>
          <SECTNO>6101.12</SECTNO>
          <SUBJECT>Record of Board proceedings [Rule 112].</SUBJECT>
          <SECTNO>6101.13—6101.14</SECTNO>
          <SUBJECT>[Reserved]</SUBJECT>
          <SECTNO>6101.15</SECTNO>
          <SUBJECT>General provisions governing discovery [Rule 115].</SUBJECT>
          <SECTNO>6101.16</SECTNO>
          <SUBJECT>Depositions [Rule 116].</SUBJECT>
          <SECTNO>6101.17</SECTNO>
          <SUBJECT>Interrogatories to parties; requests for admission; requests for production of documents [Rule 117].</SUBJECT>
          <SECTNO>6101.18</SECTNO>
          <SUBJECT>Sanctions and other proceedings [Rule 118].</SUBJECT>
          <SECTNO>6101.19</SECTNO>
          <SUBJECT>Hearings: scheduling; notice; unexcused absences [Rule 119].</SUBJECT>
          <SECTNO>6101.20</SECTNO>
          <SUBJECT>Subpoenas [Rule 120].</SUBJECT>
          <SECTNO>6101.21</SECTNO>
          <SUBJECT>Hearing procedures [Rule 121].</SUBJECT>
          <SECTNO>6101.22</SECTNO>
          <SUBJECT>Admissibility and weight of evidence [Rule 122].</SUBJECT>
          <SECTNO>6101.23</SECTNO>
          <SUBJECT>Exhibits [Rule 123].</SUBJECT>
          <SECTNO>6101.24</SECTNO>
          <SUBJECT>Transcripts of proceedings; corrections [Rule 124].</SUBJECT>
          <SECTNO>6101.25</SECTNO>
          <SUBJECT>Briefs and memoranda of law [Rule 125].</SUBJECT>
          <SECTNO>6101.26</SECTNO>
          <SUBJECT>Consolidation; separate hearings; separate determination of liability [Rule 126].</SUBJECT>
          <SECTNO>6101.27</SECTNO>
          <SUBJECT>Stay or suspension of proceedings; dismissals in lieu of stay or suspension [Rule 127].</SUBJECT>
          <SECTNO>6101.28</SECTNO>
          <SUBJECT>Dismissals [Rule 128].</SUBJECT>
          <SECTNO>6101.29</SECTNO>
          <SUBJECT>Decisions: format; procedure [Rule 129].</SUBJECT>
          <SECTNO>6101.30</SECTNO>
          <SUBJECT>Full Board consideration [Rule 130].</SUBJECT>
          <SECTNO>6101.31</SECTNO>
          <SUBJECT>Clerical mistakes [Rule 131].</SUBJECT>
          <SECTNO>6101.32</SECTNO>
          <SUBJECT>Reconsideration; amendment of decisions; new hearings [Rule 132].</SUBJECT>
          <SECTNO>6101.33</SECTNO>
          <SUBJECT>Relief from decision or order [Rule 133].</SUBJECT>
          <SECTNO>6101.34</SECTNO>
          <SUBJECT>Harmless error [Rule 134].</SUBJECT>
          <SECTNO>6101.35</SECTNO>
          <SUBJECT>Award of costs [Rule 135].</SUBJECT>
          <SECTNO>6101.36</SECTNO>
          <SUBJECT>Payment of Board awards [Rule 136].</SUBJECT>
          <SECTNO>6101.37</SECTNO>
          <SUBJECT>Record on review of a Board decision [Rule 137].</SUBJECT>
          <SECTNO>6101.38</SECTNO>
          <SUBJECT>Office of the Clerk of the Board [Rule 138].</SUBJECT>
          <SECTNO>6101.39</SECTNO>
          <SUBJECT>Seal of the Board [Rule 139].</SUBJECT>
          <SECTNO>6101.40</SECTNO>
          <SUBJECT>Forms [Rule 140].</SUBJECT>
          <APP>
            <E T="05">Appendix to Part 6101—Form Nos. 1-5</E>
          </APP>
          <FP SOURCE="FP-2">Form 1—Notice of Appeal, GSA Form 2465.</FP>
          <FP SOURCE="FP-2">Form 2—Notice of Appearance.</FP>
          <FP SOURCE="FP-2">Form 3—Subpoena, GSA Form 9534.</FP>
          <FP SOURCE="FP-2">Form 4—Government Certificate of Finality.</FP>
          <FP SOURCE="FP-2">Form 5—Appellant/Applicant Certificate of Finality.</FP>
        </CONTENTS>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>41 U.S.C. 601-613.</P>
        </AUTH>
        <SOURCE>
          <HD SOURCE="HED">Source:</HD>
          <P>61 FR 52349, Oct. 7, 1996, unless otherwise noted.</P>
        </SOURCE>
        <SECTION>
          <SECTNO>6101.0</SECTNO>
          <SUBJECT>Foreword.</SUBJECT>
          <P>(a) The General Services Administration Board of Contract Appeals was established under the Contract Disputes Act of 1978, 41 U.S.C. 601-613, as an independent tribunal to hear and decide contract disputes between government contractors and the General Services Administration (GSA) and other executive agencies of the United States.</P>
          <P>(b) As an agency board established under the Contract Disputes Act, the Board is required to “provide to the fullest extent practicable, informal, expeditious and inexpensive resolution of disputes.” 41 U.S.C. 607(e). The rules in part 6101 represent the Board's concerted effort to be responsive to this charge in standard proceedings. In further response to this mandate, the Board also uses a variety of techniques intended to shorten and simplify, when appropriate, the proceedings normally used to resolve contract disputes. These techniques are described in part 6102.</P>

          <P>(c) As indicated in part 6102, the Board fully supports the use of alternative dispute resolution (ADR) in all appropriate cases. To encourage the prompt, expert, and inexpensive resolution of contract disputes as promoted by the Federal Acquisition Streamlining Act of 1994, Public Law 103-355, 108 Stat. 3243, the Board will also make a Board Neutral available for an ADR proceeding, as described in 6102.4, either before or after the issuance of a decision by a contracting officer of any <PRTPAGE P="224"/>agency if a joint written request is submitted to the Office of the Clerk of the Board by the parties.</P>
          <P>(d) The Board also conducts proceedings as required under other laws. In all matters before it, the Board will act in accordance with this part and Part 6102 and applicable standards of conduct so that the integrity, impartiality, and independence of the Board are preserved.</P>
        </SECTION>
        <SECTION>
          <SECTNO>§ 6101.1</SECTNO>
          <SUBJECT>Scope of rules; definitions; construction; rulings and orders; panels; situs [Rule 101].</SUBJECT>
          <P>(a) <E T="03">Scope.</E> The rules contained in this part and Part 6102 govern proceedings in all cases filed with the Board on or after October 7, 1996, and all further proceedings in cases then pending, except to the extent that, in the opinion of the Board, their use in a particular case pending on the effective date would be infeasible or would work an injustice, in which event the former procedure applies. The Board will look to the rules in this part and Part 6102 for guidance in conducting other proceedings authorized by law.</P>
          <P>(b) <E T="03">Definitions</E>—(1) <E T="03">Appeal; appellant.</E> The term “appeal” means a contract dispute filed with the Board. The term “appellant” means a party filing an appeal.</P>
          <P>(2) <E T="03">Application; applicant.</E> The term “application” means a submission to the Board of a request for award of costs, under the Equal Access to Justice Act, 5 U.S.C. 504, pursuant to 6101.35. The term “applicant” means a party filing an application.</P>
          <P>(3) <E T="03">Board judge; judge.</E>  The term “Board judge” or “judge” means a member of the Board.</P>
          <P>(4) <E T="03">Case.</E> The term “case” means an appeal, petition, or application.</P>
          <P>(5) <E T="03">Filing.</E> (i) Any document, other than a notice of appeal or an application for award of costs, is filed when it is received by the Office of the Clerk of the Board during the Board's working hours. A notice of appeal or an application for award of costs is filed upon the earlier of:</P>
          <P>(A) Its receipt by the Office of the Clerk of the Board or</P>
          <P>(B) If mailed, the date on which it is mailed. A United States Postal Service postmark shall be prima facie evidence that the document with which it is associated was mailed on the date thereof.</P>
          <P>(ii) Facsimile transmissions to the Board and the parties are permitted. Parties are expected to submit their facsimile machine numbers with their filings. The Board's facsimile machine number is: (202) 501-0664. The filing of a document by facsimile transmission occurs upon receipt by the Board of the entire printed submission. Parties are specfically cautioned that deadlines for the filing of cases will not be extended merely because the Board's facsimile machine is busy or otherwise unavailable at the time on which the filing is due.</P>
          <P>(6) <E T="03">Party.</E> The term “party” means an appeallant, applicant, petitioner, or respondent.</P>
          <P>(7) <E T="03">Petition; petitioner.</E>  The term “petition” means a request filed under 41 U.S.C. 605(c)(4) that the Board direct a contracting officer to issue a written decision on a claim. The term “petitioner” means a party submitting a petition.</P>
          <P>(8) <E T="03">Respondent.</E> The term “respondent” means the Government agency whose decision, action, or inaction is the subject of an appeal, petition, or appplication.</P>
          <P>(9) <E T="03">Working day.</E> The term “working day” means any date other than a Saturday, Sunday, or federal holiday.</P>
          <P>(10) <E T="03">Working hours.</E> The Board's working hours are 8:00 a.m. to 4:30 p.m., Eastern Time, on each working day.</P>
          <P>(c) <E T="03">Construction.</E> The rules in this part and part 6102 shall be construed to secure the just, speedy, and inexpensive resolution of every case. The Board looks to the Federal Rules of Civil Procedure for guidance in construing those Board rules which are similar to Federal Rules.</P>
          <P>(d) <E T="03">Rulings, orders, and directions.</E> The Board may apply the rules in this part and part 6102 and make such rulings and issue such orders and directions as are necessary to secure the just, speedy, and inexpensive resolution of every case before the Board. Any ruling, order, or direction that the Board may make or issue pursuant to the rules in this part and part 6102 may be made on the motion or request of any party or on the initiative of the Board. <PRTPAGE P="225"/>The Board may also amend, alter, or vacate a ruling, order, or direction upon such terms as are just. In making rulings and issuing orders and directions pursuant to the rules in this part and part 6102, the Board takes into consideration those Federal Rules of Civil Procedure which address matters not specifically covered in this part and part 6102.</P>
          <P>(e) <E T="03">Panels.</E> Each case will be assigned to a panel consisting of three judges, with one member designated as the panel chairman, in accordance with such procedures as may be established by the Board. The panel chairman is responsible for processing the case, including scheduling and conducting proceedings and hearings. In addition, the panel chairman may, without participation by other panel members, decide an appeal under the small claims procedure (6102.2), rule on nondispositive motions (except for amounts in controversy under 6102.2(a)(2)), and dismiss a case if no party objects (6101.28(c)). All other matters, except for those before the full Board under 6101.30, are decided for the Board by a majority of the panel.</P>
          <P>(f) <E T="03">Situs.</E> The address of the Office of the Clerk of the Board is: Room 7022, General Services Administration Building, 18th and F Streets, NW., Washington, DC 20405. The Clerk's telephone number is: (202) 501-0116. The Clerk's facsimile machine number is (202) 501-0664.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.2</SECTNO>
          <SUBJECT>Time: enlargement; computation [Rule 102].</SUBJECT>
          <P>(a) <E T="03">Time for performing required actions.</E> All time limitations prescribed in the rules in this part and part 6102 or in any order or direction given by the Board are maximums, and the action required should be accomplished in less time whenever possible.</P>
          <P>(b) <E T="03">Enlarging time.</E> Upon request of a party for good cause shown, the Board may enlarge any time prescribed by the rules in this part and part 6102 or by an order or direction of the Board. The exception is the time limit for filing appeals (6101.5(b)(1)). A written request is required, but in exigent circumstances an oral request may be made and followed by a written request. An enlargement of time may be granted even through the request was filed after the time for taking the required action expired, but the party requesting the enlargement must show good cause for its inability to make the request before that time expired.</P>
          <P>(c) <E T="03">Computing time.</E> Except as otherwise required by law, in computing a period of time prescribed by the rules in this part and part 6102 or by order of the Board, the day from which the designated period of time begins to run shall not counted, but the last day of the period shall be counted unless that day is (1) a Saturday, a Sunday, or a federal holiday, or (2) a day on which the Office of the Clerk of the Board is required to close earlier than 4:30 p.m., or does not open at all, as in the case of inclement weather, in which event the period shall include the next working day. Except as otherwise provided in this paragraph, when the period of time prescribed or allowed is less than 11 days, any intervening Saturday, Sunday, or federal holiday shall not be counted. When the period of time prescribed or allowed is 11 days or more, intervening Saturdays, Sundays, and federal holidays shall be counted. Time for filing any document or copy thereof with the Board expires when the Office of the Clerk of the Board closes on the last day on which such filing may be made.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.3</SECTNO>
          <SUBJECT>Service of papers [Rule 103].</SUBJECT>
          <P>(a) <E T="03">On whom and when service must be made.</E> When a party sends a document to the Board it must at the same time send a copy to the other party by mail or some other equally or more expeditious means of transmittal. Subpoenas (6101.20) and documents filed <E T="03">in camera</E> (6101.12(h)) are exceptions to this requirement. Any papers required to be served on a party (except requests for discovery and responses thereto, unless ordered by the Board to be filed) shall be filed with the Board before service or within a reasonable time thereafter.</P>
          <P>(b) <E T="03">Proof of service.</E> Except when service is not required, a party sending a document to the Board must indicate to the Board that a copy has also been sent to the other party. This may be done by certificate of service, by the notation of a photostatic copy (cc:), or <PRTPAGE P="226"/>by any other means that can reasonably be expected to indicate to the Board that the other party has been provided a copy.</P>
          <P>(c) <E T="03">Failure to make service.</E> If a document sent to the Board by a party does not indicate that a copy has been served on the other party, the Board may return the document to the party that submitted it with such directions as it considers appropriate, or the Board may inquire whether a party has received a copy and note on the record the fact of inquiry and the response, and may also direct the party that submitted the document to serve a copy on the other party. In the absence of proof of service a document may be treated by the Board as not properly filed.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.4</SECTNO>
          <SUBJECT>Appeal file [Rule 104].</SUBJECT>
          <P>(a) <E T="03">Submission to the Board by the contracting officer.</E> (1) Within 30 calendar days from receipt of notice that an appeal has been filed, or within such time as the Board may allow, the contracting officer shall file with the Board appeal file exhibits consisting of all documents and other tangible things relevant to the claim and to the contracting officer's decision which has been appealed, including:</P>
          <P>(i) The contracting officer's decision, if any, from which the appeal is taken;</P>
          <P>(ii) The contract, if any, including amendments, specifications, plans, and drawings;</P>
          <P>(iii) All correspondence between the parties that is relevant to the appeal, including the written claim or claims that are the subject of the appeal, and evidence of their certification, if any;</P>
          <P>(iv) Affidavits or statements of any witnesses on the matter in dispute and transcripts of any testimony taken before the filing of the notice of appeal;</P>
          <P>(v) All documents and other tangible things on which the contracting officer relied in making the decision, and any correspondence relating thereto;</P>
          <P>(vi) The abstract of bids, if relevant; and</P>
          <P>(vii) Any additional existing evidence or information deemed necessary to determine the merits of the appeal.</P>
          <P>(2) The contracting officer shall serve a copy of the appeal file on the appellant at the same time that the contracting officer files it with the Board, except that</P>

          <P>(i) The contracting officer need not serve on the appellant those documents furnished the Board <E T="03">in camera</E> pursuant to 6101.12(h), and</P>

          <P>(ii) The contracting officer shall serve documents submitted under protective order only on those individuals who have been granted access to such documents by the Board. However, the contracting officer must serve on the appellant a list identifying the specific documents filed <E T="03">in camera</E> or under protective order with the Board, giving sufficient details necessary for their recognition. This list must also be filed with the Board as an exhibit to the appeal file.</P>
          <P>(b) <E T="03">Submission to the Board by the appellant.</E> Within 30 calendar days after filing of the respondent's appeal file exhibits, or within such time as the Board may allow, the appellant shall file with the Board for inclusion in the appeal file documents or other tangible things relevant to the appeal that have not been submitted by the contracting officer. The appellant shall serve a copy of its additional exhibits upon the respondent at the same time as it files them with the Board.</P>
          <P>(c) <E T="03">Submissions on order of the Board.</E> The Board may, at any time during the pendency of the appeal, require any party to file other documents and tangible things as additional exhibits.</P>
          <P>(d) <E T="03">Organization of the appeal file.</E> Appeal file exhibits may be originals or true, legible, and complete copies. They shall be arranged in chronological order within each submission, earliest documents first; bound in a loose-leaf binder on the left margin except where size or shape makes such binding impracticable; numbered; tabbed; and indexed. The numbering shall be consecutive, in whole arabic numerals (no letters, decimals, or fractions), and continuous from one submission to the next, so that the complete file, after all submissions, will consist of one set of consecutively numbered exhibits. In addition, the pages within each exhibit shall be numbered consecutively unless the exhibit already is paginated in a logical manner. Consecutive pagination of the entire file is not required. The index <PRTPAGE P="227"/>should include the date and a brief description of each exhibit and shall indicate which exhibits, if any, have been filed with the Board <E T="03">in camera</E> or under protective order or otherwise have not been served on every other party.</P>
          <P>(e) <E T="03">Lengthy or bulky materials.</E> The Board may waive the requirement to furnish other parties copies or duplicates of bulky, lengthy, or outsized materials submitted to the Board as exhibits.</P>
          <P>(f) <E T="03">Use of appeal file as evidence.</E> All exhibits in the appeal file, except for those as to which an objection has been sustained, are part of the record upon which the Board will render its decision. Unless otherwise ordered by the Board, objection to any exhibit may be made at any time before the first witness is sworn or, if the appeal is submitted on the record pursuant to 6101.11, at any time prior to or concurrent with the first record submission. The Board may enlarge the time for such objections and will consider an objection made during a hearing if the ground for objection could not reasonably have been earlier known to the objecting party. If an objection is sustained, the Board will so note in the record.</P>
          <P>(g) <E T="03">When appeal file not required.</E> Upon motion of a party, the Board may postpone or dispense with the submission of any or all appeal file exhibits.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.5</SECTNO>
          <SUBJECT>Filing cases; time limits for filing; docketing [Rule 105].</SUBJECT>
          <P>(a) <E T="03">Filing cases.</E> Filing of a case occurs as provided in 6101.1(b)(5).</P>
          <P>(1) <E T="03">Notice of appeal.</E> (i) A notice of appeal shall be in writing and should be signed by the appellant or by the appellant's attorney or authorized representative. If the appeal is from a contracting officer's decision, the notice of appeal should describe the decision in enough detail to enable the Board to differentiate that decision from any other; the appellant can satisfy this requirement by attaching to the notice of appeal a copy of the contracting officer's decision. If an appeal is taken from the failure of a contracting officer to issue a decision, the notice of appeal should describe in detail the claim that the contracting officer has failed to decide; the appellant can satisfy this requirement by attaching a copy of the written claim submission to the notice of appeal.</P>
          <P>(ii) A written notice in any form, including the one specified in the appendix to this part and part 6102, is sufficient to initiate an appeal. The notice of appeal should include the following information:</P>
          <P>(A) The number and date of the contract;</P>
          <P>(B) The name of the agency and the component thereof against which the claim has been asserted;</P>
          <P>(C) The name of the contracting officer whose decision or failure to decide is appealed and the date of the decision, if any;</P>
          <P>(D) A brief account of the circumstances giving rise to the appeal; and</P>
          <P>(E) An estimate of the amount of money in controversy, if any and if known.</P>
          <P>(iii) The appellant must send a copy of the notice of appeal to the contracting officer whose decision is appealed or, if there has been no decision, to the contracting officer before whom the appellant's claim is pending.</P>
          <P>(2) <E T="03">Petition.</E> (i) A petition shall be in writing and signed by the petitioner or by the petitioner's attorney or authorized representative. The petition should describe in detail the claim that the contracting officer has failed to decide; the contractor can satisfy this requirement by attaching to the petition a copy of the written claim submission.</P>
          <P>(ii) The petition should include the following information:</P>
          <P>(A) The number and date of the contract;</P>
          <P>(B) The name of the agency and the component thereof against which the claim has been asserted; and</P>
          <P>(C) The name of the contracting officer whose decision is sought.</P>
          <P>(3) <E T="03">Application.</E> An application for costs shall meet all requirements specified in 6101.35(c).</P>
          <P>(4) <E T="03">Other participation.</E> The Board may, on motion, in its discretion, permit an entity to participate in a case in a special or limited way, such as by filing an <E T="03">amicus curiae</E> brief.</P>
          <P>(b) <E T="03">Time limits for filing</E>—(1) <E T="03">Appeals.</E> (i) An appeal from a decision of a contracting officer shall be filed no later <PRTPAGE P="228"/>than 90 calendar days after the date the appellant receives that decision.</P>
          <P>(ii) An appeal may be filed with the Board should the contracting officer fail or refuse to issue a timely decision on a claim submitted in writing, properly certified if required.</P>
          <P>(2) <E T="03">Applications.</E> An application for costs shall be filed within 30 calendar days of a final disposition in the under-lying appeal, as provided in 6101.35(b).</P>
          <P>(c) <E T="03">Notice of docketing.</E> Notices of appeal, petitions, and applications will be docketed by the Office of the Clerk of the Board, and a written notice of docketing will be sent promptly to all parties.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.6</SECTNO>
          <SUBJECT>Appearances; notice of appearance [Rule 106].</SUBJECT>
          <P>(a) <E T="03">Appearances before the Board</E>—(1) <E T="03">Appellant; petitioner; applicant.</E> Any appellant, petitioner, or applicant may appear before the Board by an attorney-at-law licensed to practice in a state, commonwealth, or territory of the United States, or in the District of Columbia. An individual appellant, petitioner, or applicant may appear in his own behalf; a corporation, trust, or association may appear by one of its officers or by any other authorized employee; and a partnership may appear by one of its members or by any other authorized employee.</P>
          <P>(2) <E T="03">Respondent.</E> The respondent may appear before the Board by an attorney-at-law licensed to practice in a state, commonwealth, or territory of the United States, or in the District of Columbia. Alternatively, if not prohibited by agency regulation or otherwise, the respondent may appear by the contracting officer or by the contracting officer's authorized representative.</P>
          <P>(b) <E T="03">Notice of appearance.</E> Unless a notice of appearance is filed by some other person, the person signing the notice of appeal, petition, or application shall be deemed to have appeared on behalf of the appellant, petitioner, or applicant, and the head of the respondent agency's litigation office shall be deemed to have appeared on behalf of the respondent. A notice of appearance in the form specified in the appendix to this part and Part 6102 is sufficient. Attorneys representing parties before the Board are required to list the state bars to which they are admitted and their state bar numbers or other bar identifiers.</P>
          <P>(c) <E T="03">Withdrawal of appearance.</E> Any person who has filed a notice of appearance and who wishes to withdraw from a case must file a motion which includes the name, address, telephone number, and facsimile machine number of the person who will assume responsibility for representation of the party in question. The motion shall state the grounds for withdrawal unless it is accompanied by a representation from the successor representative or existing co-counsel that the established case schedule will be met.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.7</SECTNO>
          <SUBJECT>Pleadings in appeals [Rule 107].</SUBJECT>
          <P>(a) <E T="03">Pleadings required and permitted.</E> Except as the Board may otherwise order, the Board requires the submission of a complaint and an answer. In appropriate circumstances, the Board may order or permit a reply to an answer.</P>
          <P>(b) <E T="03">Complaint.</E> No later than 30 calendar days after the docketing of the appeal, the appellant shall file with the Board a complaint setting forth its claim or claims in simple, concise, and direct terms. The complaint should set forth the factual basis of the claim or claims, with appropriate reference to the contract provisions, and should state the amount in controversy, or an estimate thereof, if any and if known. No particular form is prescribed for a complaint, and the Board may designate the notice of appeal, a claim submission, or any other document as the complaint, either on its own initiative or on request of the appellant, if such document sufficiently states the factual basis and amount of the claim.</P>
          <P>(c) <E T="03">Answer.</E> No later than 30 calendar days after the filing of the complaint or of the Board's designation of a complaint, the respondent shall file with the Board an answer setting forth simple, concise, and direct statements of its defenses to the claim or claims asserted in the complaint, as well as any affirmative defenses it chooses to assert. A dispositive motion or a motion for a more definite statement may be filed in lieu of the answer only with the permission of the Board. If no answer is timely filed, the board may enter a <PRTPAGE P="229"/>general denial, in which case the respondent may thereafter amend the answer to assert affirmative defenses only by leave of the Board and as otherwise prescribed by paragraph (f) of this section. The Board will inform the parties when it enters a general denial on behalf of the respondent.</P>
          <P>(d) <E T="03">Reply to an answer.</E> If the Board orders or permits a reply to an answer, it shall be filed as directed by the Board.</P>
          <P>(e) <E T="03">Modifications to requirement for pleadings.</E> If the appellant has elected the small claims procedure provided by 6102.2 or the accelerated procedure provided by 6102.3, the submission of pleadings shall be governed by the applicable section.</P>
          <P>(f) <E T="03">Amendment of pleadings.</E> Each party to an appeal may amend its pleadings once without leave of the Board at any time before a responsive pleading is filed; if the pleading is one to which no responsive pleading is permitted, such amendment may be made at any time within 20 calendar days after it is served or, in small claims proceedings under 6102.2, within 10 working days after it is served. The Board may permit the parties to amend pleadings further on conditions fair to both parties. If a response to the unamended pleading was required by the rules in this part or by an order of the Board, a response to the amended pleading shall be filed no later than 30 calendar days after the filing of the amended pleading or, in small claims proceedings, no later than 15 calendar days after the filing of the amended pleading. 6101.12(e) concerns amendments to pleadings to conform to the evidence.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.8</SECTNO>
          <SUBJECT>Motions [Rule 108].</SUBJECT>
          <P>(a) <E T="03">How motions are made.</E> Motions may be oral or written. A written motion shall indicate the relief sought and, either in the text of the motion or in an accompanying legal memorandum, the grounds therefor. In addition, a motion for summary relief shall comply with the requirements of paragraph (g) of this section. 6101.25 prescribes the form and content of legal memoranda. Oral motions shall be made on the record and in the presence of the other party.</P>
          <P>(b) <E T="03">When motions may be made.</E> A motion filed in lieu of an answer pursuant to 6101.7(c) shall be filed no later than the date on which the answer is required to be filed or such later date as may be established by the Board. Any other dispositive motion shall be made as soon as practicable after the grounds therefor are known. Any other motion shall be made promptly or as required by this part.</P>
          <P>(c) <E T="03">Dispositive motions.</E> The following dispositive motions may properly be made before the Board:</P>
          <P>(1) Motions to dismiss for lack of jurisdiction or for failure to state a claim upon which relief can be granted;</P>
          <P>(2) Motions to dismiss for failure to prosecute;</P>
          <P>(3) Motions for summary relief (analogous to summary judgment); and</P>
          <P>(4) Any other motion to dismiss.</P>
          <P>(d) <E T="03">Other motions.</E> Other motions may be made in good faith and in proper form.</P>
          <P>(e) <E T="03">Jurisdictional questions.</E> The Board may at any time consider the issue of its jurisdiction to decide a case. When all facts touching upon the Board's jurisdiction are not to record, or in other appropriate circumstances, a decision on a jurisdictional question may be deferred pending a hearing on the merits or the filing of record submissions.</P>
          <P>(f) <E T="03">Procedure.</E> Unless otherwise directed by the Board, a party may respond to a written motion other than a motion pursuant to 6101.30, 6101.31, 6101.32, or 6101.33 at any time within 20 calendar days after the filing of the motion. Responses to motions pursuant to 6101.30, 6101.31, 6101.32, or 6101.33 may be made only as permitted or directed by the Board. The Board may permit hearing or oral argument on written motions and may require additional submissions from any of the parties.</P>
          <P>(g) <E T="03">Motions for summary relief.</E> (1) A motion for summary relief should be filed only when a party believes that, based upon uncontested material facts, it is entitled to relief in whole or in part as a matter of law. A motion for summary relief should be filed as soon as feasible, to allow the Board to rule on the motion in advance of a scheduled hearing date.</P>

          <P>(2) With each motion for summary relief, there shall be served and filed a <PRTPAGE P="230"/>separate document titled Statement of Uncontested Facts, which shall contain in separately numbered paragraphs all of the material facts upon which the moving party bases its motion and as to which it contends there is no genuine issue. This statement shall include references to the supporting affidavits or declarations and documents, if any, and to the 6101.4 appeal file exhibits relied upon to support such statement.</P>
          <P>(3) An opposing party shall file with its opposition (or cross-motion) a separate document titled Statement of Genuine Issues. This document shall identify, by reference to specific paragraph numbers in the moving party's Statement of Uncontested Facts, those facts as to which the opposing party claims there is a genuine issue necessary to be litigated. An opposing party shall state the precise nature of its disagreement and give its version of the facts. This statement shall include references to the supporting affidavits or declarations and documents, if any, and to the 6101.4 appeal file exhibits that demonstrate the existence of a genuine dispute. An opposing party may also file a Statement of Uncontested Facts as to any relevant matters not covered by the moving party's statement.</P>
          <P>(4) When a motion for summary relief is made and supported as provided in this section, an opposing party may not rest upon the mere allegations or denials of its pleadings, but the opposing party's response, by affidavits or as otherwise provided by this section, must set forth specific facts showing that there is a genuine issue of material fact. If the opposing party does not so respond, summary relief, if appropriate, shall be entered against that party. For good cause shown, if an opposing party cannot present facts essential to justify its opposition, the Board may defer ruling on the motion to permit affidavits to be obtained or depositions to be taken or other discovery to be conducted, or may made such other order as is just.</P>
          <P>(h) <E T="03">Effect of pending motion.</E> Except as this part and part 6102 provide or the Board may order, a pending motion shall not excuse the parties from proceeding with the case in accordance with this part and part 6102 and the orders and directions of the Board.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.9</SECTNO>
          <SUBJECT> Election of hearing or record submission [Rule 109].</SUBJECT>
          <P>Each party shall inform the Board, in writing, whether it elects a hearing or submission of its case on the record pursuant to 6101.11. Such an election may be filed at any time unless a time for filing is prescribed by the Board. A party electing to submit its case on the record pursuant to 6101.11 may also elect to appear at a hearing solely to cross-examine any witness presented by the opposing party, provided that the Board is informed of that party's intention within 10 working days of its receipt of notice of the election of hearing by the other party. If a hearing is elected, the election should state where and when the electing party desires the hearing to be held and should explain the reasons for its choices. A hearing will be held if either party elects one. If a party's decision whether to elect a hearing is dependent upon the intentions of the other party, it shall consult with the other party before filing its election. If there is to be a hearing, it will be held at a time and place prescribed by the Board after consultation with the party or parties electing the hearing. The record submissions from a party that has elected to submit its case on the record shall be due as provided in 6101.11.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.10</SECTNO>
          <SUBJECT> Conferences; conference memorandum; prehearing order; prehearing and presubmission briefs [Rule 110].</SUBJECT>
          <P>(a) <E T="03">Conferences</E>. The Board may convene the parties in conference, either by telephone or in person, for any purpose. The conference may be stenographically or electronically recorded, at the discretion of the Board. Matters to be considered and actions to be taken at a conference may include:</P>
          <P>(1) Simplifying, clarifying, or severing the issues;</P>

          <P>(2) Stipulations, admissions, agreements, and rulings to govern the admissibility of evidence, understandings on matters already of record, or other similar means of avoiding unnecessary proof;<PRTPAGE P="231"/>
          </P>
          <P>(3) Plans, schedules, and rulings to facilitate discovery;</P>
          <P>(4) Limiting the number of witnesses and other means of avoiding cumulative evidence;</P>
          <P>(5) Stipulations or agreements disposing of matters in dispute; or</P>
          <P>(6) Ways to expedite disposition of the case or to facilitate settlement of the dispute, including, if the parties and the Board agree, the use of alternative dispute resolution techniques, as provided in 6102.1 and 6102.4.</P>
          <P>(b) <E T="03">Conference memorandum</E>. The Board may prepare a memorandum of the results of a conference or issue an order reflecting any actions taken, or both. A memorandum or order so issued shall be placed in the record of the case and sent to each party. Each party shall have 5 working days after receipt of a memorandum to object to the substance of it.</P>
          <P>(c) <E T="03">Prehearing order</E>. The Board may issue a prehearing or presubmission order to govern the proceedings in a case.</P>
          <P>(d) <E T="03">Prehearing or presubmission briefs</E>. A party may, by leave of the Board, file a prehearing or presubmission brief at any time before the hearing or upon or before the date on which first record submissions are due.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.11</SECTNO>
          <SUBJECT>Submission on the record without a hearing [Rule 111].</SUBJECT>
          <P>(a) <E T="03">Submission on the record.</E> (1) A party may elect to submit its case on the record without a hearing. A party submitting its case on the record may include in its written record submission or submissions:</P>
          <P>(i) Any relevant documents or other tangible things it wishes the Board to admit into evidence;</P>
          <P>(ii) Affidavits, depositions, and other discovery materials that set forth relevant evidence; and</P>
          <P>(iii) A brief or memorandum of law.</P>
          <P>(2) The Board may require the submission of additional evidence or briefs and may order oral argument in a case submitted on the record.</P>
          <P>(b) <E T="03">Time for submission.</E> (1) If both parties have elected to submit the case on the record, the Board will issue an order prescribing the time for initial and, if appropriate, reply record submissions.</P>
          <P>(2) If one party has elected a hearing and the other party has elected to submit its case on the record, the party submitting on the record shall make its initial submission no later than the commencement of the hearing or at an earlier date if the Board so orders, and a further submission in the form of a brief at the time for submission of posthearing briefs.</P>
          <P>(c) <E T="03">Objections to evidence.</E> Unless otherwise directed by the Board, objections to evidence (other than the appeal file and supplements thereto) in a record submission may be made within 10 working days after the filing of the submission. Replies to such objections, if any, may be made within 10 working days after the filing of the objection. The Board may rule on such objections in its opinion deciding the merits or otherwise disposing of the case.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.12</SECTNO>
          <SUBJECT>Record of Board proceedings [Rule 112].</SUBJECT>
          <P>(a) <E T="03">Composition of the record for decision.</E> (1) The record upon which any decision of the Board will be rendered consists of:</P>
          <P>(i) The notice of appeal, petition, or application;</P>
          <P>(ii) Appeal file exhibits other than those as to which objection has been sustained;</P>
          <P>(iii) Hearing exhibits other than those as to which an objection has been sustained;</P>
          <P>(iv) Pleadings;</P>
          <P>(v) Motions and responses thereto;</P>
          <P>(vi) Memoranda, orders, rulings, and directions to the parties issued by the Board;</P>
          <P>(vii) Documents and other tangible things admitted in evidence by the Board;</P>
          <P>(viii) Written transcripts or electronic recordings of proceedings;</P>
          <P>(ix) Stipulations and admissions by the parties;</P>
          <P>(x) Depositions, or parts thereof, received in evidence;</P>
          <P>(xi) Written interrogatories and responses received in evidence;</P>
          <P>(xii) Briefs and memoranda of law; and</P>
          <P>(xiii) Anything else that the Board may designate.</P>

          <P>(2) All other papers and documents in a case are part of the administrative <PRTPAGE P="232"/>record of the proceedings. The administrative record shall include file and hearing exhibits offered but not received in evidence in a case; it may also include correspondence with and between the parties, and depositions, interrogatories, offers of proof contained in the transcript, and other documents that are not part of the record for decision.</P>
          <P>(b) <E T="03">Time for entry into the record.</E> Except as the Board may otherwise order, nothing other than posthearing briefs will be received into the record after a hearing is completed. In cases submitted on the record without a hearing, nothing will be received into the record after the time for filing of the last record submission. Briefs will be due as provided in 6101.25(b).</P>
          <P>(c) <E T="03">Closing of the record.</E> Except as the Board may otherwise order, no proof shall be received in evidence after a hearing is completed or, in cases submitted on the record without a hearing, after notice by the Board to the parties that the record is closed and that the case is ready for decision.</P>
          <P>(d) <E T="03">Notice that the case is ready for decision.</E> The Board will give written notice to the parties when the record is closed and the case is ready for decision.</P>
          <P>(e) <E T="03">Amendments to conform to the evidence.</E> When issues within the proper scope of a case, but not raised in the pleadings, have been raised without objection or with permission of the Board at a hearing (see 6101.21(h)) or in record submissions, they shall be treated in all respects as if they had been raised in the pleadings. The Board may formally amend the pleadings to conform to the proof or may order that the record be deemed to contain pleadings so amended.</P>
          <P>(f) <E T="03">Enlargement of the record.</E> The Board may at any time require or permit enlargement of the record with additional evidence and briefs. It may reopen the record to receive additional evidence and oral argument at a hearing.</P>
          <P>(g) <E T="03">Inspection of the record of proceedings; release of any paper, document, or tangible thing prohibited.</E> Except for any part thereof that is subject to a protective order or deemed an <E T="03">in camera</E> submission, the record of proceedings in a case shall be made available for inspection by any person. Such record shall be made available at the Office of the Clerk of the Board during the Board's normal working hours, as soon as practicable given the demands on the Board of processing the subject case and other cases. Except as provided in 6101.23(c) and 6101.37(d), no paper, document, or tangible thing which is part of the record of proceedings in a case may be released from the offices of the Board. Copies may be obtained by any person as provided in 6101.38(d). If such inspection or copying involves more than minimal costs to the Board, reimbursement will be required.</P>
          <P>(h) <E T="03">Protected and in camera submissions.</E> (1) A party may by motion request that the Board receive and hold materials under conditions that would limit access to them on the ground that such documents are privileged or confidential, or sensitive in some other way. The moving party must state the grounds for such limited access. The board may also determine on its own initiative to hold materials under such conditions. The manner in which such materials will be held, the persons who shall have access to them, and the conditions (if any) under which such access will be allowed will be specified in an order of the Board. If the materials are held under such an order, they will be part of the record of the case. If the Board denies the motion, the materials may be returned to the party that submitted them. If the moving party asks, however, that the materials be placed in the administrative record, <E T="03">in camera,</E> for the purpose of possible later review of the Board's denial, the Board will comply with the request.</P>

          <P>(2) A party may also ask, or the Board may direct, that testimony be received under protective order or <E T="03">in camera.</E> The procedures under paragraph (h)(1) of this section shall be followed with respect to such request or direction.</P>
        </SECTION>
        <SECTION>
          <PRTPAGE P="233"/>
          <SECTNO>6101.13—6101.14</SECTNO>
          <RESERVED>[Reserved]</RESERVED>
        </SECTION>
        <SECTION>
          <SECTNO>6101.15</SECTNO>
          <SUBJECT>General provisions governing discovery [Rule 115].</SUBJECT>
          <P>(a) <E T="03">Discovery methods.</E> The parties may obtain discovery by one or more of the following methods:</P>
          <P>(1) Depositions upon oral examination or written questions;</P>
          <P>(2) Written interrogatories;</P>
          <P>(3) Requests for production of documents or other tangible things; and</P>
          <P>(4) Requests for admission.</P>
          <P>(b) <E T="03">Scope of discovery.</E> Except as otherwise limited by order of the Board in accordance with this part and part 6102, the parties may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending case, whether it relates to the claim or defense of a party, including the existence, description, nature, custody, condition, and location of any books, documents, or other tangible things, and the identity and location of persons having knowledge of any discoverable matter. It is not a ground for objection that the information sought will be inadmissible if the information sought appears reasonably calculated to lead to the discovery of admissible evidence.</P>
          <P>(c) <E T="03">Discovery limits.</E> The Board may limit the frequency or extent of use of the discovery methods set forth in this section if it determines that:</P>
          <P>(1) The discovery sought is unreasonably cumulative or duplicative, or is obtainable from some other source that is more convenient, less burdensome, or less expensive;</P>
          <P>(2) The party seeking discovery has had ample opportunity by discovery in the case to obtain the information sought; or</P>
          <P>(3) The discovery is unduly burdensome and expensive, taking into account the needs of the case, the amount in controversy, limitations on the parties’ resources, and the importance of the issues at stake.</P>
          <P>(d) <E T="03">Conduct of discovery.</E> Parties may engage in discovery only to the extent the Board enters an order which either incorporates an agreed plan and schedule acceptable to the Board or otherwise permits such discovery as the moving party can demonstrate is required for the expeditious, fair, and reasonable resolution of the case.</P>
          <P>(e) <E T="03">Discovery conference.</E> Upon request of a party or on its own initiative, the Board may at any time hold an informal meeting or telephone conference with the parties to identify the issues for discovery purposes; establish a plan and schedule for discovery; set limitations on discovery, if any; and determine such other matters as are necessary for the proper management of discovery. The Board may include in the conference such other matters as it deems appropriate in accordance with 6101.10.</P>
          <P>(f) <E T="03">Discovery objections.</E> (1) In connection with any discovery procedure, the Board, on motion or on its own initiative, may make any order which justice requires to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense, including, but not limited to, one or more of the following:</P>
          <P>(i) That the discovery not be had;</P>
          <P>(ii) That the discovery be had only on specified terms and conditions, including a designation of the time and place, or that the scope of discovery be limited to certain matters;</P>
          <P>(iii) That the discovery be conducted with no one present except persons designated by the Board; and</P>
          <P>(iv) That confidential information not be disclosed or that it be disclosed only in a designated way.</P>
          <P>(2) Unless otherwise ordered by the Board, any objection to a discovery request must be filed within 15 calendar days after receipt. A party shall fully respond to any discovery request to which it does not file a timely objection. The parties are required to make a good faith effort to resolve objections to discovery requests informally.</P>

          <P>(3) A party receiving an objection to a discovery request, or a party which believes that another party's response to a discovery request is incomplete or entirely absent, may file a motion to compel a response, but such a motion must include a representation that the moving party has tried in good faith, prior to filing the motion, to resolve the matter informally. The motion to compel shall include a copy of each discovery request at issue and the response, if any.<PRTPAGE P="234"/>
          </P>
          <P>(g) <E T="03">Failure to make or cooperate in discovery; sanctions.</E> If a party fails</P>
          <P>(i) To appear for a deposition, after being served with a proper notice;</P>
          <P>(ii) To serve answers or objections to interrogatories submitted under 6101.17, after proper service of interrogatories; or</P>
          <P>(iii) To serve a written response to a request for inspection, production, and copying of any documents and things under 6101.17, the party seeking discovery may move the Board to impose appropriate sanctions under 6101.18.</P>
          <P>(h) <E T="03">Subpoenas.</E> A party may request the issuance of a subpoena in aid of discovery under the provision of 6101.20.</P>
        </SECTION>
        <SECTION>
          <SECTNO>6101.16</SECTNO>
          <SUBJECT>Depositions [Rule 116].</SUBJECT>
          <P>(a) <E T="03">When depositions may be taken.</E> Upon request of a party, the Board may order the taking of testimony of any person by deposition upon oral examination or written questions before an officer authorized to administer oaths at the place of examination. Attendance of witnesses may be compelled by subpoena as provided in 6101.20, and the Board may upon motion order that the testimony at a deposition be recorded by other than stenographic means, in which event the order may designate the manner of recording, preserving, and filing the deposition and may include other provisions to ensure that the recorded testimony will be accurate and trustworthy. If the order is made, a party may, nevertheless, arrange to have a stenographic transcription made at its own expense.</P>
          <P>(b) <E T="03">Depositions: time; place; manner of taking.</E> The time, place, and manner of taking depositions, including the taking of depositions by telephone, shall be as agreed upon by the parties or, failing such agreement, as ordered by the Board. A deposition taken by telephone is taken at the place where the deponent is to answer questions.</P>
          <P>(c) <E T="03">Use of depositions.</E> At a hearing on the merits or upon a motion or interlocutory proceeding, any part or all of a deposition, so far as admissible and as though the witness were then present and testifying, may be used against a party who was present or represented at the taking of the deposition or who had reasonable notice thereof, in accordance with any of the following provisions:</P>
          <P>(1) Any deposition may be used by a party for the purpose of contradicting or impeaching the testimony of the deponent as a witness.</P>
          <P>(2) The deposition of a party or of anyone who at the time of taking the deposition was an officer, director, or managing agent, or a person designated to testify on behalf of a public or private corporation, partnership or association, or governmental agency which is a party may be used by an adverse party for any purpose.</P>
          <P>(3) The deposition of a witness, whether or not a party, may be used by a party for any purpose in its own behalf if the Board finds that:</P>
          <P>(i) The witness is dead;</P>
          <P>(ii) The attendance of the witness at the place of hearing cannot be reasonably obtained, unless it appears that the absence of the witness was procured by the party offering the deposition;</P>
          <P>(iii) The witness is unable to attend or testify because of illness, infirmity, age, or imprisonment;</P>
          <P>(iv) The party offering the deposition has been unable to procure the attendance of the witness by subpoena; or</P>
          <P>(v) Upon request and notice, exceptional circumstances exist which make it desirable in the interest of justice and with due regard to the importance of presenting the testimony of witnesses orally in open hearing, to allow the deposition to be used.</P>
          <P>(4) If only part of a deposition is offered in evidence by a party, an adverse party may require the offering party to introduce any other part which in fairness ought to be considered with the part introduced.</P>
          <P>(d) <E T="03">Depositions pending appeal from a decision of the Board.</E> (1) If an appeal has been taken from a decision of the Board, or before the taking of an appeal if the time therefor has not expired, the Board may allow the taking of depositions of witnesses to perpetuate their testimony for use in the event of further proceedings before the Board. In such case, the party that desires to perpetuate testimony may make a motion before the Board for leave to take the depositions as if the <PRTPAGE P="235"/>action were pending before the Board. The motion shall show:</P>
          <P>(i) The names and addresses of the persons to be examined and the substance of the testimony which the moving party expects to elicit from each; and</P>
          <P>(ii) The reasons for perpetuating the testimony of the persons named.</P>
          <P>(2) If the Board finds that the perpetuation of testimony is proper to avoid a failure or a delay of justice, it may order the depositions to be taken and may make orders of the character provided for in 6101.15 and in this section. Thereupon, the depositions may be taken and used as prescribed in this part for depositions taken in actions pending before the Board. Upon request and for good cause shown, a judge may issue or obtain a subpoena, in accordance with 6101.20, for the purpose of perpetuating testimony by deposition during the pendency of an appeal from a Board decision.</P>
      