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  <AMDDATE>Apr. 27, 2004</AMDDATE>
  <FMTR>
    <TITLEPG>
      <CODE>CODE OF FEDERAL REGULATIONS</CODE>
      <PRTPAGE P="1"/>
      <TITLENUM>48</TITLENUM>
      <PARTS>Chapter 29 to End</PARTS>
      <REVISED>Revised as of October 1, 2004</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, 2004</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>A Special Edition of the Federal Register</SPECED>
    </TITLEPG>
    <BTITLE>
      <PRTPAGE P="?ii"/>
      <GPO>U.S. GOVERNMENT PRINTING OFFICE</GPO>
      <CITY>WASHINGTON : 2004</CITY>
      <FORSALE>
        <P>For sale by the Superintendent of Documents, U.S. Government Printing Office</P>
        <P>Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800</P>
        <P>Fax: (202) 512-2250 Mail: Stop SSOP, Washington, DC 20402-0001</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 30—Department of Homeland Security, Homeland Security Acquisition Regulation (HSAR)</SUBJECT>
          <PG>59</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 34—Department of Education Acquisition Regulation</SUBJECT>
          <PG>123</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 35—Panama Canal Commission</SUBJECT>
          <PG>151</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 44—Federal Emergency Management Agency</SUBJECT>
          <PG>235</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 51—Department of the Army Acquisition Regulations</SUBJECT>
          <PG>259</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 52—Department of the Navy Acquisition Regulations</SUBJECT>
          <PG>273</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>281</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 57—African Development Foundation</SUBJECT>
          <PG>285</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 61—General Services Administration Board of Contract Appeals</SUBJECT>
          <PG>289</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 63—Department of Transportation Board of Contract Appeals</SUBJECT>
          <PG>329</PG>
        </CHAPTI>
        <CHAPTI>
          <SUBJECT>Chapter 99—Cost Accounting Standards Board, Office of Federal Procurement Policy, Office of Management and Budget</SUBJECT>
          <PG>343</PG>
        </CHAPTI>
      </TITLENO>
      <FAIDS>
        <PRTPAGE P="iv"/>
        <HD SOURCE="HED">Finding Aids:</HD>
        <SUBJECT>Table of CFR Titles and Chapters</SUBJECT>
        <PG>561</PG>
        <SUBJECT>Alphabetical List of Agencies Appearing in the CFR</SUBJECT>
        <PG>579</PG>
        <SUBJECT>List of CFR Sections Affected</SUBJECT>
        <PG>589</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, 2004), 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, 2001, consult either the List of CFR Sections Affected, 1949-1963, 1964-1972, 1973-1985, or 1986-2000, published in 11 separate volumes. For the period beginning January 1, 2001, 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 202-741-6000 or write to the Director, Office of the Federal Register, National Archives and Records Administration, Washington, DC 20408 or e-mail fedreg.info@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 toll-free, 866-512-1800, or DC area, 202-512-1800, M-F 8 a.m. to 4 p.m. e.s.t. or fax your order to 202-512-2250, 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.archives.gov/federal_register. 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, 2004.</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, 2004.</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, Robert J. Sheehan 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 (10-1-04 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 30</E>—Department of Homeland Security, Homeland Security Acquisition Regulation (HSAR)</SUBJECT>
          <PG>3001</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>
          <PRTPAGE P="2"/>
          <SUBJECT>
            <E T="04">chapter 63</E>—Department of Transportation Board of Contract Appeals</SUBJECT>
          <PG>6301</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. 29 (10-1-04 Edition)</LRH>
      <RRH>Department of Labor</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="3"/>
          <HD SOURCE="HED">CHAPTER 29—DEPARTMENT OF LABOR</HD>
          <P>General Structure and Subparts (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>12</PG>
          <PT>2903</PT>
          <SUBJECT>Improper business practices and personal conflicts of interest</SUBJECT>
          <PG>13</PG>
          <PT>2904</PT>
          <SUBJECT>Administrative matters</SUBJECT>
          <PG>16</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER B—ACQUISITION PLANNING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2905</PT>
          <SUBJECT>Publicizing contract actions</SUBJECT>
          <PG>17</PG>
          <PT>2906</PT>
          <SUBJECT>Competition requirements</SUBJECT>
          <PG>18</PG>
          <PT>2907</PT>
          <SUBJECT>Acquisition planning</SUBJECT>
          <PG>18</PG>
          <PT>2908</PT>
          <SUBJECT>Required sources of supplies and services</SUBJECT>
          <PG>19</PG>
          <PT>2909</PT>
          <SUBJECT>Contractor qualifications</SUBJECT>
          <PG>19</PG>
          <PT>2910</PT>
          <SUBJECT>Market research</SUBJECT>
          <PG>22</PG>
          <PT>2911</PT>
          <SUBJECT>Describing agency needs</SUBJECT>
          <PG>23</PG>
          <PT>2912</PT>
          <SUBJECT>Acquisition of commercial items</SUBJECT>
          <PG>23</PG>
          <PT>2913</PT>
          <SUBJECT>Simplified acquisition procedures</SUBJECT>
          <PG>24</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2914</PT>
          <SUBJECT>Sealed bidding</SUBJECT>
          <PG>26</PG>
          <PT>2915</PT>
          <SUBJECT>Contracting by negotiation</SUBJECT>
          <PG>26</PG>
          <PT>2916</PT>
          <SUBJECT>Contract types</SUBJECT>
          <PG>28</PG>
          <PT>2917</PT>
          <SUBJECT>Special contracting methods</SUBJECT>
          <PG>28</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2918</PT>
          <RESERVED>[Reserved]</RESERVED>
          <PT>2919</PT>
          <SUBJECT>Small business and small disadvantaged business concerns</SUBJECT>
          <PG>31</PG>
          <PT>2920-2921</PT>
          <RESERVED>[Reserved]</RESERVED>
          <PT>2922</PT>
          <SUBJECT>Application of labor laws to government acquisitions</SUBJECT>
          <PG>33<PRTPAGE P="4"/>
          </PG>
          <PT>2923</PT>
          <SUBJECT>Environment, energy and water efficiency, renewable energy technologies, occupational safety, and drug-free workplace</SUBJECT>
          <PG>34</PG>
          <PT>2924-2927</PT>
          <RESERVED>[Reserved]</RESERVED>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2928</PT>
          <SUBJECT>Bonds and insurance</SUBJECT>
          <PG>36</PG>
          <PT>2929</PT>
          <SUBJECT>Taxes</SUBJECT>
          <PG>36</PG>
          <PT>2930</PT>
          <SUBJECT>Cost accounting standards administration</SUBJECT>
          <PG>36</PG>
          <PT>2931</PT>
          <SUBJECT>Contract cost principles and procedures</SUBJECT>
          <PG>37</PG>
          <PT>2932</PT>
          <SUBJECT>Contract financing</SUBJECT>
          <PG>37</PG>
          <PT>2933</PT>
          <SUBJECT>Protests, disputes, and appeals</SUBJECT>
          <PG>37</PG>
          <PT>2934-2935</PT>
          <RESERVED>[Reserved]</RESERVED>
          <PT>2936</PT>
          <SUBJECT>Construction and architect-engineer contracts</SUBJECT>
          <PG>40</PG>
          <PT>2937</PT>
          <SUBJECT>Service contracting</SUBJECT>
          <PG>42</PG>
          <PT>2938-2941</PT>
          <RESERVED>[Reserved]</RESERVED>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT </HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2942</PT>
          <SUBJECT>Contract administration and audit services</SUBJECT>
          <PG>45</PG>
          <PT>2943</PT>
          <SUBJECT>Contract modifications</SUBJECT>
          <PG>46</PG>
          <PT>2944</PT>
          <SUBJECT>Subcontracting policies and procedures</SUBJECT>
          <PG>46</PG>
          <PT>2945</PT>
          <SUBJECT>Government property</SUBJECT>
          <PG>47</PG>
          <PT>2946-2951</PT>
          <RESERVED>[Reserved]</RESERVED>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER H—CLAUSES AND FORMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>2952</PT>
          <SUBJECT>Solicitation provisions and contract clauses</SUBJECT>
          <PG>49</PG>
          <PT>2953</PT>
          <SUBJECT>Forms</SUBJECT>
          <PG>49</PG>
        </CHAPTI>
      </TOC>
      <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 2901.0—Scope of Subpart</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2901.001</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2901.1—Purpose, Authority, Issuance</HD>
              <SECTNO>2901.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <SECTNO>2901.103</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <SECTNO>2901.105-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>
              <SECTNO>2901.105-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2901.2—Administration</HD>
              <SECTNO>2901.201-1</SECTNO>
              <SUBJECT>Maintenance of the FAR.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2901.3—Agency Acquisition Regulations</HD>
              <SECTNO>2901.302</SECTNO>
              <SUBJECT>Limitations.</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 from the FAR.</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—Career Development, 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>2901.602-3</SECTNO>
              <SUBJECT>Ratification of unauthorized commitments.</SUBJECT>
              <SECTNO>2901.603</SECTNO>
              <SUBJECT>Selection, appointment, and termination of Appointment.</SUBJECT>
              <SECTNO>2901.603-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2901.603-3</SECTNO>
              <SUBJECT>Appointment.</SUBJECT>
              <SECTNO>2901.603-4</SECTNO>
              <SUBJECT>Terminations.</SUBJECT>
              <SECTNO>2901.603-70</SECTNO>
              <SUBJECT>Responsibility of other government personnel.</SUBJECT>
              <SECTNO>2901.603-71</SECTNO>
              <SUBJECT>Contracting officer's technical representatives (COTR).</SUBJECT>
              <SECTNO>2901.603-72</SECTNO>
              <SUBJECT>Administrative procurement management reviews.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2901.7—Determinations and Findings</HD>
              <SECTNO>2901.707</SECTNO>
              <SUBJECT>Signatory 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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.0—Scope of Subpart</HD>
            <SECTION>
              <SECTNO>2901.001</SECTNO>
              <SUBJECT>Scope of part.</SUBJECT>
              <P>This chapter may be referred to as the Department of Labor Acquisition Regulation or the DOLAR. This subpart sets forth introductory information about the Department of Labor Acquisition Regulation. 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>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.1—Purpose, Authority, Issuance</HD>
            <SECTION>
              <SECTNO>2901.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <P>(a) Chapter 29, Department of Labor Acquisition Regulation, is established within Title 48 of the Federal Acquisition Regulation System of the Code of Federal Regulations.</P>
              <P>(b) The purpose of the DOLAR is to implement the FAR, 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>2901.103</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <P>The DOLAR is issued pursuant to the authority of the Secretary of Labor under 5 U.S.C. 301 and 40 U.S.C. 486(c). This authority has been delegated to the Assistant Secretary for Administration and Management under Secretary's Order 4-76 in accordance with FAR 1.301(d)(3).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.105-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>
              <P>(a) <E T="03">Numbering.</E> Where DOLAR implements the FAR, the implementing part, subpart, section or subsection of the DOLAR is numbered and captioned, to the extent feasible, the same as the FAR part, subpart, section or subsection being implemented, except that <PRTPAGE P="6"/>the section or subsection being implemented is 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 l.105-l is shown as 290l.105-1 and the DOLAR implementation of FAR subpart 24.1 is shown as DOLAR subpart 2924.1. Material which supplements the FAR is assigned the subsection numbers 70 and up. For example, the DOL regulation governing appointment and termination of contracting officers' technical representatives is identified as 2901.603-71.</P>
              <P>(b) References to FAR materials within the DOLAR will include the acronym FAR and the identifying number, for example, FAR l.104-2(c)(2). References to DOLAR materials within the DOLAR simply cite the identifying number, for example, 2901.104-2(c)(2).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.105-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
              <P>Copies of the DOLAR published in the <E T="04">Federal Register,</E> CD-ROM, or Code of Federal Regulations may be purchased from the Superintendent of Documents, Government Printing Office, Washington, DC 20402, or from the Government Printing Office Web Page, <E T="03">http://www.gpo.gov/.</E> 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. Additional information on DOL may be obtained on the Internet at <E T="03">www.dol.gov.</E> Other DOL procurement policy documents referenced within the DOLAR may be available when appropriate by mail from the Division of Acquisition Management Services.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.2—Administration</HD>
            <SECTION>
              <SECTNO>2901.201-1</SECTNO>
              <SUBJECT>Maintenance of the FAR.</SUBJECT>
              <P>A member of the Division of Acquisition Management Services (DAMS), an organization within the Office of Acquisition and Management Support Services, the Business Operations Center, Office of the Assistant Secretary for Administration and Management (OASAM), represents the Department of Labor on the Civilian Agency Acquisition Council (CAAC). DAMS 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>2901.302</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <P>DOLAR System issuances are limited to 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>
            </SECTION>
            <SECTION>
              <SECTNO>2901.304</SECTNO>
              <SUBJECT>Agency control and compliance procedures.</SUBJECT>
              <P>(a) The DOLAR is under the direct oversight and control of the Department's Senior Procurement Executive. 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 subpart 2901.6.</P>
              <P>(b) DOLAR issuances shall comply with the restrictions in FAR 1.304(b).</P>

              <P>(c) Heads of Contracting Activity (HCAs) must submit all proposed instructions and materials that implement or supplement the DOLAR to the Director, DAMS. In conjunction with the Office of the Solicitor, DAMS will review all issuances whether or not they will be published in the <E T="04">Federal Register</E> as a part of the DOLAR System. In the case of internal procurement policy instructions, the purpose of the review is to ascertain that such instructions are consistent with the FAR and the DOLAR and that they do not contain information which should be issued under 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 from the FAR.</SUBJECT>

              <P>(a) The Senior Procurement Executive is authorized to approve deviations from FAR provisions (see FAR 1.403) or DOLAR provisions, which affect only one contracting action, unless FAR 1.405(e) is applicable. Requests for deviations shall be submitted through the Director, DAMS.<PRTPAGE P="7"/>
              </P>
              <P>(b) Requests for deviations under paragraph (a) of this section must be submitted by the HCA and include justification as to why the deviation is required.</P>
              <P>(c) A copy of the approved deviation must be included in the contract file.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
              <P>(a) The Senior Procurement Executive is authorized to approve class deviations from FAR or DOLAR provisions which affect more than one contracting action, unless FAR 1.405(e) is applicable. The request for deviation is submitted through the Director, DAMS.</P>
              <P>(b) Requests for deviations under paragraph (a) of this section must be submitted by the HCA and include justification as to why the deviation is required and the number of contracting actions which will be affected.</P>
              <P>(c) For a FAR class deviation the Director, DAMS will consult with the Chair of the CAAC, as required in FAR 1.404(a)(1), before authorizing the deviation.</P>
              <P>(d) A copy of the approved class deviation must be included in each contract file.</P>
              <P>(e) Recommended revisions to the FAR and a copy of each approved class FAR deviation will be transmitted to the FAR Secretariat by the Director, DAMS 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, DAMS is responsible for transmitting to the FAR Secretariat the information required in FAR 1.405(d).</P>
              <P>(b) For deviations not authorized by FAR 1.405(b) or (c), the Director, DAMS, will process the request for deviation through the FAR Secretariat.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.6—Career Development, Contracting Authority, and Responsibilities</HD>
            <SECTION>
              <SECTNO>2901.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) This section deals with contracting authority and responsibilities of the head of the agency as described in 2902.1, FAR subpart 1.6 and this subpart.</P>
              <P>(1) The authority and responsibility vested in the Secretary to contract for authorized supplies and services is delegated to the Assistant Secretary for Administration and Management.</P>
              <P>(2) The Assistant Secretary for Administration and Management may delegate contracting authority to a bureau or agency within the Department of Labor as he/she delineates in writing.</P>
              <P>(b) The Assistant Secretary for Administration and Management, acting through the Senior Procurement Executive, may delegate additional procurement authority subject to the issuance of warrants by the Senior Procurement Executive, and reserves the right to rescind any acquisition authority, if it is determined that such action is in the best interest of the Government.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.602</SECTNO>
              <SUBJECT>Contracting officers.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2901.602-1</SECTNO>
              <SUBJECT>Authority.</SUBJECT>

              <P>Contracting warrants, at all levels above the micro-purchase threshold, must be requested by the HCA in writing and signed by the Senior Procurement Executive. Warrants may be accompanied by letters of appointment that may provide requirements for maintaining the warrant (<E T="03">e.g.,</E> maintaining current documentation for the FAR, DOLAR, and other guidance, and recurrent training). Copies of the appointment shall be maintained in the Division of Acquisition Management Services. Contracting officers must display the original warrant (and its limitations) in their workspace. A listing of current contracting officers may be available for review on the Internet at <E T="03">http://www.dol.gov/oasam/grants/prgms.htm.</E> To modify a contracting officer's authority, the present appointment must be revoked and a new certificate issued.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.602-3</SECTNO>
              <SUBJECT>Ratification of unauthorized commitments.</SUBJECT>
              <P>(a) If the HCA agrees that the commitment appears to be without valid authorization, the Division of Acquisition Management Services must be notified by the HCA in accordance with the procedures outlined in this section.</P>
              <P>(b) <E T="03">Ratifications—Thresholds.</E> The Department of Labor may only ratify acquisitions that were intended to fulfill a bona fide need and otherwise could <PRTPAGE P="8"/>have been authorized when made. If the action to be ratified is not approved, then the employee who authorized the work may be liable for the entire cost of the action. Requests received by contracting officers for ratification of commitments made by personnel lacking contracting authority must be processed as follows:</P>
              <GPOTABLE CDEF="s100,r100,xs75" COLS="3" OPTS="L2">
                <BOXHD>
                  <CHED H="1">Dollar threshold</CHED>
                  <CHED H="1">Must be approved by (Ratifying official)</CHED>
                  <CHED H="1">Steps to be followed</CHED>
                </BOXHD>
                <ROW>
                  <ENT I="01">Below the micro-purchase threshold</ENT>
                  <ENT>Head of the Contracting Office</ENT>
                  <ENT>1 through 5 &amp; 7.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Between the micropurchase threshold and the Simplified Acquisition Threshold</ENT>
                  <ENT>Head of Contracting Activity</ENT>
                  <ENT>1 through 5 &amp; 7.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Above the Simplified Acquisition Threshold</ENT>
                  <ENT>Assistant Secretary for Administration and Management, after review by the Procurement Review Board</ENT>
                  <ENT>1 through 7.</ENT>
                </ROW>
                <TNOTE>
                  <E T="02">Note:</E> DOL procurement policies require review by the Procurement Review Board of advisory and assistance services acquisitions above $50,000 for competitive acquisitions and at any dollar amount for noncompetitive acquisitions, and waivers for contracts with employees and recently separated employees. Therefore, review by the PRB is required for unauthorized obligations at these lower thresholds.</TNOTE>
              </GPOTABLE>
              <HD SOURCE="HD2">Step—Instruction</HD>
              <P>(1) The individual is placed on notice by the contracting officer, in writing, that the purchase may be inappropriate because he did not have a purchasing request, funding, or authority to obligate the Government to make an expenditure of funds.</P>
              <P>(i) 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 the facts, including, but not limited to a statement as to why the acquisition office was not used, a description of work to be performed or products to be furnished, an estimated or agreed-upon contract price, citation of appropriation available, and a statement as to whether the contractor has commenced performance.</P>
              <P>(ii) In the absence of such an individual, the head of the applicable office will be responsible for providing such information, including an explanation of why the individual who made the unauthorized commitment is unavailable to provide this information.</P>
              <P>(2) The individual who made the unauthorized commitment or the head of the applicable office, as appropriate, shall provide a determination and finding (See FAR 1.704) to the contracting officer indicating that:</P>
              <P>(i) Supplies or services have been provided to and accepted by the Government, or the Government otherwise has obtained or will obtain a benefit resulting from performance of the unauthorized commitment;</P>
              <P>(ii) A procurement request and/or accompanying documentation including a statement signed by the individual that explains why normal acquisition procedures were not followed, explains why the source was selected, lists other sources considered, describes the work, and estimates or states the agreed upon price. (If the DOL employee who made the unauthorized commitment is no longer available, appropriate program personnel must provide the information described in this paragraph); and</P>
              <P>(iii) Funds are available and were available at the time of the unauthorized commitment.</P>
              <P>(3) The contracting officer reviewing the unauthorized commitment shall determine whether the price is fair and reasonable and if payment is recommended to the ratifying official. (The contracting officer may rely upon written documentation submitted by managing staff above the individual who made the unauthorized commitment, in making his/her determination.)</P>
              <P>(4) Legal review is required before ratification by the ratifying official.</P>
              <P>(5) The ratifying official shall make an affirmative determination and finding that:</P>
              <P>(i) The resulting purchase order or contract would otherwise have been proper if made by an appropriate contracting officer.</P>

              <P>(ii) The contracting officer reviewing the unauthorized commitment has determined that the price is fair and reasonable and payment is recommended.<PRTPAGE P="9"/>
              </P>
              <P>(6) For cases over the simplified acquisition threshold, all documentation for steps (1) through (5) must be forwarded to the Director, Division of Acquisition Management Services, for submission to the Procurement Review Board. However, the ratifying official is responsible for directing the receipt and acceptance for all products and deliverables received by the Government as a result of an unauthorized commitment.</P>

              <P>(7) The supervisor of the individual who made the unauthorized commitment shall prepare a corrective action plan to preclude further unauthorized commitments (<E T="03">e.g.,</E> ethics, purchase card, or administrative procedures training, or other appropriate action). The ratifying official may approve the corrective action plan. The individual shall report to the ratifying official in writing when the corrective action has been initiated and again after it has been fully implemented.</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) The Senior Procurement Executive will develop and manage an acquisition career management program for contracting personnel. Training requirements must conform to Office of Federal Procurement Policy Letters 92-3, 97-01, and the Federal Acquisition Institute's curriculum. These references are available at:
              </P>
              <FP SOURCE="FP-1">
                <E T="03">http://www.arnet.gov/Library/OFPP/PolicyLetters/Letters/PL97-01.html,</E>
              </FP>
              <FP SOURCE="FP-1">
                <E T="03">http://www.arnet.gov/Library/OFPP/PolicyLetters/Letters/PL92-3.html,</E> and through the Federal Acquisition Institute (FAI) at:</FP>
              <FP SOURCE="FP-1">
                <E T="03">http://www.faionline.com/fai/campus/index4.htm.</E>
              </FP>
              
              <P>(b) The program must cover all contracting personnel in the following categories:</P>
              <P>(1) <E T="03">General Schedule (GS-1102) Contracting Series</E> (See also FAR 1.603);</P>
              <P>(2) Contracting officers, regardless of General Schedule Series, with contracting authority above the simplified acquisition threshold;</P>
              <P>(3) Purchasing Series (GS-1105), other individuals performing purchasing duties and individuals with contracting authority between the micro-purchase and simplified acquisition thresholds.</P>
              <P>(4) All Contracting Officer Technical Representatives as identified in 2901.603-71.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603-3</SECTNO>
              <SUBJECT>Appointment.</SUBJECT>
              <P>
                <E T="03">General.</E> In accordance with FAR 1.603-3, appointments will be made in writing on an SF 1402 for all warrants above the micro-purchase threshold. In addition, appointments may be made for specific functions unrelated to dollar threshold, such as indirect cost negotiation, debt management, and closeout functions.</P>
              <P>(a) <E T="03">Purchase Cards (micro-purchase threshold).</E> Purchase cardholders will be appointed in accordance with the DOL Guidelines for Purchase Card Use and the Agency/Office procedures approved by the HCA. Agency/Organization Purchase Card Coordinators requesting issuance of a purchase card must be responsible for ensuring that the purchase cardholder has taken an orientation course before issuance and/or use of the purchase card. A list of purchase cardholders is available at: <E T="03">http://www.dol.gov/oasam/foia/hotfoia/citibank-list.htm.</E>
              </P>
              <P>(b) <E T="03">Simplified Acquisition Threshold (currently $100,000).</E> The HCA may request a delegation of procurement authority not to exceed the simplified acquisition threshold based on education, training, and experience in the acquisition field. Effective July 26, 2004, all new appointments must comply with training requirements listed in “OFPP Policy Letter No. 92-3, Procurement Professionalism Program Policy-Training for Contracting Personnel”, dated June 24, 1992.</P>
              <P>(c) <E T="03">$500,000.</E> The HCA may request a delegation of procurement authority not to exceed $500,000 based on the individual's education, training and experience in contracting. Although primarily reserved for those in the GS-1102 series, the HCA may consider business acumen, education, training, and experience. Effective May 27, 2004, all new appointments must comply with training requirements listed in “OFPP Policy Letter No. 92-3, Procurement Professionalism Program Policy-Training for Contracting Personnel”, dated June 24, 1992.<PRTPAGE P="10"/>
              </P>
              <P>(d) <E T="03">Unlimited.</E> The HCA may request a delegation of procurement authority on an unlimited basis for individuals whose education, training, and experience in contracting warrant such authority. Although primarily reserved for those in the GS-1102 series, the HCA may consider length of service, training, and experience. Effective May 27, 2004, all new appointments must comply with training requirements listed in “OFPP Policy Letter No. 92-3, Procurement Professionalism Program Policy-Training for Contracting Personnel”, dated June 24, 1992.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603-4</SECTNO>
              <SUBJECT>Terminations.</SUBJECT>

              <P>Termination of a contracting officer's appointment will be made in writing unless the warrant contains the basis for the termination (<E T="03">i.e.,</E> retirement, reassignment). Terminations may be immediate, but must not operate retroactively.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603-70</SECTNO>
              <SUBJECT>Responsibility of other government personnel.</SUBJECT>
              <P>(a) Only DOL personnel with contracting authority shall obligate DOL to any type of contractual obligation and only to the extent of their delegated authority. 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 determining agency needs should maintain a close and continuous relationship with their contracting officer 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 or insufficient contracting authority may not commit the Government, formally or informally, to any type of contractual obligation. However, DOL personnel who must use the contracting process to accomplish their programs must support the contracting officer to ensure that:</P>
              <P>(1) Requirements are clearly defined and specified without being overly restrictive in accordance with FAR 11.002;</P>
              <P>(2) Competitive sources are solicited, evaluated, and selected as appropriate;</P>

              <P>(3) The FAR and the Competition in Contracting Act requirements for full and open competition are satisfied to the maximum extent practicable. Sole source purchases may only be permitted in accordance with FAR Subpart 6.3 or other applicable provisions of the FAR (<E T="03">e.g.</E> FAR Part 8) or federal law;</P>
              <P>(4) Quality standards are prescribed, and met;</P>
              <P>(5) Performance or delivery is timely;</P>
              <P>(6) Files are documented to substantiate the judgments, decisions, and actions taken, including compliance with paragraphs (c)(2) and (3) of this section;</P>

              <P>(7) Requirements are written so as to encourage competition and to comply with regulations and federal policy for meeting acquisition goals such as performance-based contracting, HUBZone contractors, <E T="03">etc.</E> The contracting officer will identify these programs to the program office.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603-71</SECTNO>
              <SUBJECT>Contracting Officer's Technical Representatives (COTR).</SUBJECT>
              <P>(a) At the time a COTR is to become responsible for a contract, task order, or delivery order, the contracting officer must issue a written letter of delegation informing the individual by name of his or her authority, including a delineation of applicable limitations and responsibilities. This applies to contracts awarded by the Department of Labor and those awarded by other agencies, such as Federal Supply Schedule Contracts or Economy Act transactions. Only the contracting officer cognizant of the contract action may make a COTR delegation. However, a contracting officer at any level above the cognizant contracting officer may sign the delegation letter, following his or her determination of its accuracy, completeness, and sufficiency.</P>

              <P>(b) The functions of a COTR typically may include such actions as inspecting, testing, and accepting contract line items, monitoring the contractor's performance, controlling Government-furnished property, reviewing and approving and/or recommending to the contracting officer approval/disapproval of vouchers/invoices, <E T="03">etc.</E> An individual <PRTPAGE P="11"/>COTR may have only the duties specifically identified in a written delegation to him or her by name (<E T="03">i.e.,</E> COTR duties may not be delegated to a position) and has no authority to exceed them.</P>
              <P>(c) Contracting officers may not delegate to the COTR the following authorities:</P>
              <P>(1) The authority to issue task or delivery orders against a contract or any of the agreements defined under FAR 16.7;</P>
              <P>(2) The authority to change any of the terms and conditions of a contract or any of the agreements defined under FAR 16.7;</P>
              <P>(3) The authority to sign contracts or contract modifications;</P>
              <P>(4) The authority to write letters to the contractor that will affect the cost or schedule of the contract. The authority to otherwise write letters to a contractor must require the COTR to send a copy of the letters to the contracting officer for the contract file;</P>
              <P>(5) The authority to approve contractors' final invoices under cost-reimbursement contracts. However, the COTR must make a final payment recommendation to the contracting officer; or</P>

              <P>(6) The authority to commit the Government to any adjustments to the price or cost of the contract or order (<E T="03">e.g.,</E> the contracting officer must sign all pre-negotiation and price negotiation memoranda including those which may be combined into one document for those adjustments valued at $100,000 or less).</P>
              <P>(d) The contracting officer's delegation must include the admonition that the COTR may be personally liable for unauthorized commitments. Contracting officer authority to sign or authorize contractual instruments must not be delegated through a COTR designation or by any means other than a contracting officer warrant.</P>
              <P>(e) The contractor must be notified of the COTR designation in writing and a copy of the COTR letter of appointment also must be provided to the contractor. The contracting officer must provide the COTR with a copy of the COTR designation notification that was sent to the contractor.</P>
              <P>(f) The letter delegating COTR authority must include the contract number, and must include the following information, at a minimum:</P>
              <P>(1) Contracting officer's and contract specialist's/administrator's name and telephone number;</P>
              <P>(2) COTR's specific authority and responsibilities;</P>
              <P>(3) COTR's specific limitations, including the admonition that the COTR may be personally liable for unauthorized commitments;</P>
              <P>(4) Detailed description of the types of files and the content of the files to be maintained by the COTR;</P>

              <P>(5) Reference to meeting applicable requirements for ethics, procurement integrity, no conflict of interest, and proper standards of conduct, including a copy of FAR Part 3, and other regulations, statutes, or directives governing these topics (<E T="03">e.g.,</E> 5 CFR Part 2635 Standards of Conduct);</P>
              <P>(6) A requirement that the COTR acknowledge receipt and acceptance of the letter and return it to the contracting officer;</P>
              <P>(7) A description of the training required and information on obtaining such training.</P>
              <P>(g) <E T="03">Applicability.</E> The eligibility requirements of this subpart must apply to all individuals who are designated by the contracting officer as COTRs.</P>
              <P>(h) <E T="03">Eligibility standards.</E> To be determined eligible for an appointment as a DOL COTR, the following standards must be met:</P>
              <P>(1) The candidate must attend and successfully complete a minimum of a 16-hour basic COTR course; and</P>
              <P>(2) The candidate must attend a minimum of 1 hour of training specifically in procurement ethics, either through courses offered periodically by the Department of Labor, another federal agency's program, or a commercial vendor.</P>
              <P>(i) <E T="03">Limitations.</E> Effective May 27, 2004, each COTR appointment made by the contracting officer must clearly state that the representative is not an authorized contracting officer and does not have the authority under any circumstances to:</P>

              <P>(1) Award, agree to award, or execute any contract, contract modification, notice of intent, or other form of binding agreement;<PRTPAGE P="12"/>
              </P>
              <P>(2) Obligate, in any manner, the payment of money by the Government;</P>
              <P>(3) Make a final decision on any contract matter which is subject to the clause at FAR 52.233-1, Disputes; or</P>
              <P>(4) Terminate, suspend, or otherwise interfere with the contractor's right to proceed, or direct any changes in the contractor's performance that are inconsistent with or materially change the contract specifications.</P>
              <P>(j) <E T="03">Termination.</E> (1) Termination of the COTR's appointment must be made in writing by a contracting officer and must give the effective date of the termination. The contracting officer must promptly modify the contract once a COTR termination notice has been issued. A termination notice is not required when the COTR's appointment terminates upon expiration of the contract.</P>
              <P>(2) COTRs may be terminated for reasons (not an exhaustive listing) such as exceeding their authorities and limitations, conflicts of interest, unethical conduct, failure to perform, reassignment/resignation/retirement, and upon completion of the contract to which assigned.</P>
              <P>(k) <E T="03">Waivers.</E> No individual may serve as a COTR on any contract without the requisite training and signed COTR certificate for the file. In the rare event that there is an urgent requirement for a specific individual to serve as a COTR and the individual has not successfully completed the required training, the HCA may waive the training requirements and authorize the individual to perform the COTR duties.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2901.603-72</SECTNO>
              <SUBJECT>Administrative procurement management reviews.</SUBJECT>
              <P>(a) The Senior Procurement Executive is responsible for performing administrative procurement reviews for each procurement office in the Department of Labor, except the Office of the Inspector General (OIG). The purpose of these reviews is to audit internal controls to ensure compliance with established procurement law, regulations, policies, procedures and applicable directives. The reviews are to emphasize the development and improvement of managerial controls and best practices.</P>
              <P>(b) The administrative procurement review system is a three-pronged approach that includes self-assessment, statistical data for validation, and flexible quality reviews and assessment techniques. This system is required to:</P>
              <P>(1) Evaluate the effectiveness and efficiency of office acquisition systems;</P>
              <P>(2) Assess the adequacy of policies, procedures and regulations governing the acquisition process; and</P>
              <P>(3) Identify and implement changes necessary to improve the systems.</P>
              <P>(c) The Senior Procurement Executive shall establish procurement review procedures, which will focus on:</P>
              <P>(1) Conformance with policies of the FAR, DOLAR and the Department of Labor Manual Series 2-800 and 2-900.</P>
              <P>(2) Conformance with federal reporting requirements for the Department of Labor.</P>

              <P>(3) Understanding of new department-wide or government-wide initiatives (<E T="03">e.g.,</E> E-Procurement).</P>
              <P>(4) Government-wide procedures established by the Office of Management and Budget.</P>
              <P>(d) HCAs are responsible for ensuring contracting activity compliance with law and regulations through the review and oversight process.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2901.7—Determinations and Findings</HD>
            <SECTION>
              <SECTNO>2901.707</SECTNO>
              <SUBJECT>Signatory authority.</SUBJECT>
              <P>A class justification for other than full and open competition must be approved in writing by the same approval authority as for individual justifications in accordance with FAR 6.304(a). The approval level must be determined by the estimated total value of the class.</P>
            </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 2.1—Definitions</HD>
            <SECTION>
              <SECTNO>2902.101</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>

              <P>(a) Commonly used words and terms are defined in FAR subpart 2.1. This part 2902 gives DOL-specific meanings for some of these words and terms and <PRTPAGE P="13"/>defines other words and terms commonly used in the DOL acquisition process.</P>
              <P>(b) The following words and terms are used as defined in this subpart unless the context in which they are used clearly requires a different meaning, or a different definition is prescribed for a particular part or portion of a part:</P>
              <P>
                <E T="03">Competition Advocate</E> The Competition Advocate for the Department of Labor is appointed by the Assistant Secretary for Administration and Management and is defined in FAR 6.5 and 2906.5. If the appointee is recused from a procurement action, the Assistant Secretary for Administration and Management may designate another official to act in that capacity.</P>
              <P>
                <E T="03">Contracting Activity</E> means an agency or component office within the Department of Labor with specific responsibility for managing contract functions pursuant to one or more warrants signed by the Senior Procurement Executive (or the Office of the Inspector General for its contracting activity).</P>
              <P>
                <E T="03">Contracting Officer's Technical Representative</E> means the individual appointed by the contracting officer to represent the Department of Labor's programmatic interests on a Department of Labor contract, task order, or delivery order. This individual is responsible to the contracting officer for overseeing receipt and acceptance of goods/services by the Government, reporting on the contractor's performance, and approving/disapproving payment to the contractor. Authority is otherwise limited to giving technical direction to the contractor within the framework of the contract (see 2901.603-71). This position may go by other titles, such as: a technical point of contact (TPOC) or Contacting Officer's Representative (COR).</P>
              <P>
                <E T="03">Head of Agency</E> (also called agency head), for the FAR and DOLAR only, means the Assistant Secretary for Administration and Management; except that the Secretary of Labor is the Head of Agency for acquisition actions, which by the terms of a statute or delegation must be performed specifically by the Secretary of Labor; the Inspector General is the Head of Agency in all cases for the Office of the Inspector General. Authority to act as the Head of Agency has been delegated to the Assistant Secretary for Employment and Training and the Assistant Secretary for Mine Safety and Health for their respective agencies. For purposes of the Economy Act (determinations and interagency agreements under FAR 17.5) only, the Employee Benefits Security Administration, Employment Standards Administration, Women's Bureau, Office of the Solicitor, Bureau of Labor Statistics, Office of Disability Employment Policy, and the Occupational Safety and Health Administration are delegated contracting authority.</P>
              <P>
                <E T="03">Head of Contracting Activity</E> (HCA) means the official who has overall responsibility for managing the contracting activity, when the contracting activity has more than one person with a warrant issued by the Senior Procurement Executive. In the Department of Labor the following officials are the HCA for their respective organization:</P>
              <P>(i) For the Mine Safety and Health Administration, the Director, Administration and Management, MSHA.</P>
              <P>(ii) For the Employment and Training Administration, the Director, Office of Grants and Contract Management, ETA.</P>
              <P>(iii) For the Office of the Inspector General, the Director, Division of Finance and Administration, OIG.</P>
              <P>(iv) For the Bureau of Labor Statistics, the Director, Division of Administrative Services, BLS.</P>
              <P>(v) For the Office of the Assistant Secretary for Administration and Management and all other agencies not listed in this definition, the Director, Business Operations Center, OASAM.</P>
              <P>
                <E T="03">Senior Procurement Executive</E> means the Deputy Assistant Secretary for Administration and Management as defined at FAR 2.101.</P>
              <CITA>[69 FR 22991, Apr. 27, 2004]</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>2903.101-1</SECTNO>
              <SUBJECT>General.<PRTPAGE P="14"/>
              </SUBJECT>
              <SECTNO>2903.104</SECTNO>
              <SUBJECT>Procurement integrity.</SUBJECT>
              <SECTNO>2903.104-3</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>2903.104-5</SECTNO>
              <SUBJECT>Disclosure, protection, and marking of contractor bid or proposal information and source selection information.</SUBJECT>
              <SECTNO>2903.104-7</SECTNO>
              <SUBJECT>Violations or possible violations of standards of conduct.</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 2903.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
              <SECTNO>2903.601</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>2903.602</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>69 FR 22991, Apr. 27, 2004, 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>2903.101-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The statutory prohibitions and their application to DOL personnel are discussed in the Standards of Ethical Conduct for Employees of the Executive Branch, 5 CFR part 2635 and the supplemental DOL standards of conduct, 5 CFR part 5201. All DOL personnel involved in acquisitions must become familiar with these statutory prohibitions. Any questions concerning them must be referred to an Agency Ethics Official in the Office of the Solicitor. In addition to criminal penalties, the statutes provide that transactions entered into in violation of these prohibitions are voidable (18 U.S.C. 218). Any suspected violations must be reported promptly to the Office of the Inspector General.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2903.104</SECTNO>
              <SUBJECT>Procurement integrity.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2903.104-3</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Agency ethics official</E> means the Solicitor or the Associate Solicitor for Legislation and Legal Counsel.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2903.104-5</SECTNO>
              <SUBJECT>Disclosure, protection, and marking of contractor bid or proposal information and source selection information.</SUBJECT>
              <P>(a) Government employees serving in the following positions are authorized access to proprietary or source selection information, but only to the extent necessary to perform their official duties:</P>

              <P>(1) Personnel participating in technical evaluation panels (<E T="03">i.e.,</E> source selection board) or personnel evaluating an offeror's or bidder's technical or cost proposal under other competitive procedures, and personnel evaluating protests.</P>
              <P>(2) Personnel assigned to the contracting office.</P>
              <P>(3) The initiator of the procurement request (to include the official having principal technical cognizance over the requirement).</P>
              <P>(4) Small business specialists.</P>
              <P>(5) Personnel assigned to the Office of the Solicitor.</P>
              <P>(6) Personnel assigned to the Department of Labor's Division of Cost Determination and the Defense Contract Audit Agency.</P>
              <P>(7) Personnel assigned to the Division of Acquisition Management Services.</P>
              <P>(8) Members of the Procurement Review Board.</P>
              <P>(9) The Office of the Inspector General.</P>
              <P>(10) Other Government employees authorized by the contracting officer.</P>
              <P>(11) Supervisors, at any level, of the personnel listed in this paragraph (a).</P>
              <P>(b) The originator of information that may be source selection information must consult with the contracting officer or the procurement officer, who must determine whether the information is source selection information. DOL personnel responsible for preparing source selection information as defined in FAR 2.101 must assure that the material is marked with the legend in FAR 3.104-4 at the time the material is prepared.</P>

              <P>(c) Unless marked with the legend “SOURCE SELECTION INFORMATION—SEE FAR 3.104-4,” draft specifications, purchase descriptions, and statements of work could erroneously be released during a market survey in order to determine the capabilities of <PRTPAGE P="15"/>potential competitive sources (see FAR 7.1 and FAR 10).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2903.104-7</SECTNO>
              <SUBJECT>Violations or possible violations of standards of conduct.</SUBJECT>
              <P>(a) The Senior Procurement Executive is the individual designated to receive the contracting officer's report of violations.</P>
              <P>(b) The HCA or designee must refer all information describing an actual or possible violation to the Associate Solicitor for Legislation and Legal Counsel, the Senior Procurement Executive, and Inspector General staff.</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>Contractor gratuities offered to Government personnel are subject to the restriction under the Standards of Ethical Conduct for Employees of the Executive Branch, 5 CFR part 2635.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2903.204</SECTNO>
              <SUBJECT>Treatment of violations.</SUBJECT>
              <P>Any suspected violations of FAR subpart 3.2 and the clause at FAR 52.203-3, Gratuities, must be reported to the Office of the Inspector General. The authority to determine whether a violation of the Gratuities clause by the contractor, its agent, or another representative, has occurred and the appropriate remedies are delegated to the HCA.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2903.6—Contracts With Government Employees or Organizations Owned or Controlled by Them</HD>
            <SECTION>
              <SECTNO>2903.601</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>In addition to restrictions placed on current Federal government employees, 18 U.S.C. 207 places some restrictions on contracting with former officers, employees, and elected officials of the executive and legislative branches. Under these prohibitions, contracts with former employees are prohibited for a period of one year from the date of severance of duties, unless an exception is granted as set forth in 2903.602.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2903.602</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>(a) In accordance with FAR 3.602, only when there is a most compelling reason to do so, is the Assistant Secretary for Administration and Management authorized to except a contract from the policy in FAR 3.601, after the Procurement Review Board and the agency ethics official have reviewed and recommended approval of the exception. However, when time does not permit, the Assistant Secretary for Administration and Management may unilaterally approve an exception. The exception and information supporting the exception must be provided to the contracting officer for their official records.</P>
              <P>(b) When an exception under this subpart is requested, it is submitted through the director of the cognizant program office to the HCA. In the procurement request, the director must describe the basis for the exception from the restrictions of FAR 3.601.</P>
              <P>(c) Except as allowed in paragraph (a) of this section, the Department of Labor may enter into a negotiated contract or an amendment to an existing contract with former employees of DOL within one year of separation (or with firms in which former employees are known to have a substantial interest) only after review and recommendation for approval by the agency ethics official, the Procurement Review Board, and written approval by the Assistant Secretary for Administration and Management.</P>
              <P>(d) Approval of a decision to grant an exception as provided in this section must be documented by a written findings and determination prepared by the requesting official for signature by the Assistant Secretary for Administration and Management. The determination and findings must document compliance with FAR 3.603, FAR 9.5 and DOLAR 2909.5; specify the compelling reason(s) for award; and be placed in the contract files and the files of the Policy Review Board.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="16"/>
          <EAR>Pt. 2904</EAR>
          <HD SOURCE="HED">PART 2904—ADMINISTRATIVE MATTERS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2904.8—Government Contract Files</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2904.800-70</SECTNO>
              <SUBJECT>Contents of contract files.</SUBJECT>
              <APP>Appendix A to Part 2904.</APP>
            </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 2904.8—Government Contract Files</HD>
            <SECTION>
              <SECTNO>2904.800-70</SECTNO>
              <SUBJECT>Contents of contract files.</SUBJECT>
              <P>(a) The reports listed in appendix A to this part are applicable to the Department of Labor.</P>
              <P>(b) HCAs must be responsible for establishing standard contract files for their contracting activities. The HCA must provide one or more representative contract files to the Director, Division of Acquisition Management Services, as requested for comment.</P>
              <GPOTABLE CDEF="s50,r50,r50,r50" COLS="4" OPTS="L2">
                <TTITLE>Appendix A to Part 2904</TTITLE>
                <BOXHD>
                  <CHED H="1">Title of report</CHED>
                  <CHED H="1">Reference</CHED>
                  <CHED H="1">Date due</CHED>
                  <CHED H="1">Submitted to</CHED>
                </BOXHD>
                <ROW>
                  <ENT I="01">Report of Proposed Federal Construction*</ENT>
                  <ENT>29 CFR 1.4</ENT>
                  <ENT>Annually; 20-Aug</ENT>
                  <ENT>ESA Davis Bacon.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Contractor Report of Government Property*</ENT>
                  <ENT>FAR Chapter 45;</ENT>
                  <ENT>Annually; 31-Oct</ENT>
                  <ENT>Business Operations Center.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Major Preference Program Goals and Achievements Report*</ENT>
                  <ENT>DLMS 2 1000</ENT>
                  <ENT>By the 20th of each month</ENT>
                  <ENT>Office of Small Business Programs.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">A-76 &amp; FAIR Act Inventory</ENT>
                  <ENT>FAIR ACT &amp; OMB MEMO</ENT>
                  <ENT>June 30th of each year</ENT>
                  <ENT>Office of Competitive Sourcing.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">SF 294, Subcontracting Report for Individual Contracts</ENT>
                  <ENT>FAR Subpart 19.7;</ENT>
                  <ENT>Semi-annually;</ENT>
                  <ENT>Contracting Officer.</ENT>
                </ROW>
                <ROW>
                  <ENT I="22"/>
                  <ENT>SF 294</ENT>
                  <ENT>April 30; 30-Oct</ENT>
                  <ENT>Office of Small Business Programs.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">SF 295, Summary Subcontract Report</ENT>
                  <ENT>FAR Subpart 19.7;</ENT>
                  <ENT>Semi-annually March 30; September 30</ENT>
                  <ENT>Contracting Officer.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Value Engineering Report*</ENT>
                  <ENT>OMB Circular A-131</ENT>
                  <ENT>Annually; 7-Dec</ENT>
                  <ENT>Office of Acquisition and Management Support Services.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Report on Federal Support to Universities, Colleges, and Nonprofit Institutions</ENT>
                  <ENT>Section 3(a)(7) of the National Science Foundation (NSF) Act</ENT>
                  <ENT>Annually; O/A 15-May</ENT>
                  <ENT>Upon request From National Science Foundation.</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Procurement Forecast Initial and Update</ENT>
                  <ENT>Pub. L. 100-656;</ENT>
                  <ENT>Sept 15 (Init.) and Apr 15 (Update)</ENT>
                  <ENT>Division of Acquisition Management Services.</ENT>
                </ROW>
                <TNOTE>For those reports with an (*), if there was no activity for the period being reported, a negative response for the period must be submitted to the requisitioning office.</TNOTE>
              </GPOTABLE>
              <CITA>[69 FR 22991, Apr. 27, 2004]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="17"/>
        <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 2905.1—Dissemination of Information</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2905.101</SECTNO>
              <SUBJECT>Methods of disseminating information.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2905.2—Synopsis of Proposed Contract Actions</HD>
              <SECTNO>2905.202</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2905.4—Release of Information</HD>
              <SECTNO>2905.402</SECTNO>
              <SUBJECT>General public.</SUBJECT>
              <SECTNO>2905.403</SECTNO>
              <SUBJECT>Requests from Members of Congress.</SUBJECT>
              <SECTNO>2905.404</SECTNO>
              <SUBJECT>Release procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2905.5—Paid Advertisements</HD>
              <SECTNO>2905.501</SECTNO>
              <SUBJECT>Scope.</SUBJECT>
              <SECTNO>2905.502</SECTNO>
              <SUBJECT>Authority.</SUBJECT>
              <SECTNO>2905.503</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2905.1—Dissemination of Information</HD>
            <SECTION>
              <SECTNO>2905.101</SECTNO>
              <SUBJECT>Methods of disseminating information.</SUBJECT>
              <P>Contracting officers may only use the Government Point of Entry (GPE) for synopsis and dissemination of information concerning procurement actions. The Division of Acquisition Management Services manages the DOL account.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2905.2—Synopsis of Proposed Contract Actions</HD>
            <SECTION>
              <SECTNO>2905.202</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>The Assistant Secretary for Administration and Management 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 must be submitted by the HCA for appropriate action including communication with the officials listed in FAR 5.202(b).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2905.4—Release Of Information</HD>
            <SECTION>
              <SECTNO>2905.402</SECTNO>
              <SUBJECT>General public.</SUBJECT>
              <P>(a) Unless the HCA determines that disclosure would be prejudicial to the interests of DOL, if a list of interested parties is collected in reference to a solicitation, it may be released upon request.</P>
              <P>(b) Any request for release of information is subject to the Freedom of Information Act and FAR 24.2.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2905.403</SECTNO>
              <SUBJECT>Requests from Members of Congress.</SUBJECT>
              <P>All proposed responses to Congressional inquiries must be prepared and forwarded for coordination with the Office of the Solicitor and the Office of Congressional and Intergovernmental Affairs to determine whether circumstances exist that will allow the release of additional information. In such instances, the Congressional requestor must be furnished an interim reply providing the information that is releasable. The interim reply must describe the problem that 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 procedures.</SUBJECT>
              <P>HCAs are authorized to release long-range acquisition estimates under the conditions in FAR 5.404-1.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2905.5—Paid Advertisements</HD>
            <SECTION>
              <SECTNO>2905.501</SECTNO>
              <SUBJECT>Scope.</SUBJECT>
              <P>This subpart provides policies and procedures for the procurement of paid advertising as covered by 5 U.S.C. 302, and 44 U.S.C. 3701, 3702, and 3703.</P>
            </SECTION>
            <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 <PRTPAGE P="18"/>such publication may be obtained from the HCA or designee.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2905.503</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) Prior to obtaining HCA approval, an agency should seek legal review to determine whether it has appropriate legal authority for advertising. The HCA exercising the authority delegated by 2905.502 must do so in accordance with the procedures set forth in FAR 5.503 and those in this section.</P>
              <P>(b) Requests for procurement of advertising must be accompanied by written authority to advertise or publish which sets forth justification and includes the names of newspapers or journals concerned, frequency and dates of proposed advertisements, estimated cost, and other pertinent information.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2906</EAR>
          <HD SOURCE="HED">PART 2906—COMPETITION REQUIREMENTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2906.3—Other Than Full and Open Competition</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2906.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>2906.303</SECTNO>
              <SUBJECT>Justifications.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2906.3—Other Than Full and Open Competition</HD>
            <SECTION>
              <SECTNO>2906.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>

              <P>(a) Department of Labor acquisitions must comply with the Department of Labor Manual Series (DLMS) 2, Chapter 830 (available by mail from the Director, Division of Acquisition Management Services, 200 Constitution Ave., NW., Washington, DC 20210-0001), or electronically from <E T="03">http://www.dol.gov/oasam/programs/boc/prb.htm.</E> Any proposed noncompetitive acquisition in excess of the simplified acquisition threshold must be fully justified and, if required by the DLMS, submitted to the DOL Procurement Review Board and approved by the Assistant Secretary for Administration and Management and, in the case of research and development contracts, also by the Assistant Secretary for Policy.</P>
              <P>(b) With the exception of contracts for advisory and assistance services or for research and development, the contracting officer has the authority below the simplified acquisition threshold to approve sole source contracts. The contracting officer is responsible for assuring that proposed acquisitions below the simplified acquisition threshold are in compliance with FAR and DOLAR requirements regarding competition.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2906.303</SECTNO>
              <SUBJECT>Justifications.</SUBJECT>
              <P>The authority of the agency head to determine that only specified make and models of technical equipment will satisfy the agency's need under FAR 6.302-1 is delegated to the HCA.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2906.5—Competition Advocate</HD>
            <SECTION>
              <SECTNO>2906.501</SECTNO>
              <SUBJECT>Requirement.</SUBJECT>
              <P>The Assistant Secretary for Administration and Management must appoint a Competition Advocate for the Department of Labor. The appointment will be predicated on an understanding of the competition requirements in the FAR, and particularly small business programs.</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>2907.105</SECTNO>
              <SUBJECT>Contents of written acquisition plans.</SUBJECT>
              <SECTNO>2907.107</SECTNO>
              <SUBJECT>Additional requirements for acquisitions involving bundling.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2907.3—Contractor Versus Government Performance</HD>
              <SECTNO>02907.300</SECTNO>
              <SUBJECT>Availability of inventory.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <PRTPAGE P="19"/>
            <HD SOURCE="HED">Subpart 2907.1—Acquisition Plans</HD>
            <SECTION>
              <SECTNO>2907.105</SECTNO>
              <SUBJECT>Contents of written acquisition plans.</SUBJECT>

              <P>The Department of Labor has implemented its acquisition planning system in compliance with FAR 7.1 and internal procedures provided in DLMS 2 section 834. The annual forecast is available for review from: <E T="03">http://www.apps.dol.gov/contract_grant/index.htm.</E>
              </P>
            </SECTION>
            <SECTION>
              <SECTNO>2907.107</SECTNO>
              <SUBJECT>Additional requirements for acquisitions involving bundling.</SUBJECT>
              <P>The FAR requirements for justification, review, and approval of bundling of contract requirements also apply to an order from a Federal Supply Schedule contract, Governmentwide acquisition contracts, or other indefinite-delivery contracts if the requirements consolidated under the order meet the definition of “bundling” at FAR 2.101.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2907.3—Contractor Versus Government Performance</HD>
            <SECTION>
              <SECTNO>2907.300</SECTNO>
              <SUBJECT>Availability of inventory.</SUBJECT>

              <P>The Department of Labor's FAIR Act inventory of commercial activities performed by federal employees and inherently governmental functions may be accessed on the Internet at: <E T="03">www.dol.gov</E> under “Doing Business with DOL”.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2908</EAR>
          <HD SOURCE="HED">PART 2908—REQUIRED SOURCES OF SUPPLIES AND SERVICES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2908.4—Federal Supply Schedules</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2908.404</SECTNO>
              <SUBJECT>Using schedules.</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 2908.4—Federal Supply Schedules</HD>
            <SECTION>
              <SECTNO>2908.404</SECTNO>
              <SUBJECT>Using schedules.</SUBJECT>

              <P>Small business considerations, procedures regarding both prime and subcontracting, and clearances specified in DOLAR 2919 apply to GSA Federal Supply Schedule Orders above the simplified acquisition threshold. Procedures to be followed may be modified by the Office of Small Business Program as appropriate in order to comply with GSA Federal Supply Schedule procedures (<E T="03">e.g.,</E> first tier contracts may be required to report their commercial subcontracting goals to the DOL Office of Small Business Programs).</P>
              <CITA>[69 FR 22991, Apr. 27, 2004]</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>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2909.4—Debarment, Suspension, And Ineligibility</HD>
              <SECTNO>2909.402</SECTNO>
              <SUBJECT>Policy.</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>2906.407</SECTNO>
              <SUBJECT>Suspension.</SUBJECT>
              <SECTNO>2909.407-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2909.5—Organizational and Consultant Conflicts of Interest</HD>
              <SECTNO>2909.503</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <SECTNO>2909.506</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2909.1—Responsible Prospective Contractors</HD>
            <SECTION>
              <SECTNO>2909.105</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>

              <P>Before awarding a contract, the contracting officer must make a written determination of the otherwise successful bidder's/offeror's responsibility in accordance with FAR 9.105. In addition to past performance information, the contracting officer must insure that the proposed contractor, and any subcontractor representing more than $25,000 in goods or services, does not appear in the “List of Parties Excluded from Federal Procurement” (available on the Internet at <E T="03">www.epls.gov</E>). In addition, contracting officers should base <PRTPAGE P="20"/>their determination of contractor responsibility on a review of the company's “Summary or Financial Report” from Dun &amp; Bradstreet (available on the Internet for a fee at <E T="03">http://www.dnb.com/</E>).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2909.4—Debarment, Suspension, and Ineligibility</HD>
            <SECTION>
              <SECTNO>2909.402</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) 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. This subpart does not apply to Department of Labor debarments or suspensions issued for Davis-Bacon Act and Davis-Bacon Related Act violations, Service Contract Act violations, Affirmative Action/Equal Employment Opportunity violations, or violations under other statutes administered by the Department of Labor.</P>
              <P>(b) <E T="03">Contracting activity officials shall have the following responsibilities.</E> (1) Heads of contracting activity (HCA) shall:</P>

              <P>(i) Provide an effective system to ensure that contracting staffs consult the “List of Parties Excluded from Federal Procurement and Nonprocurement Programs” at <E T="03">http://epls.arnet.gov/</E> before soliciting offers, awarding or extending contracts, or consenting to subcontract.</P>
              <P>(ii) Consider debarment or suspension of a contractor when cause, as defined under FAR 9.406-2 for debarment and FAR 9.407-2 for suspension, is shown. Contracting officers should consult with their appropriate legal counsel before making a decision to initiate debarment or suspension proceedings. If a determination is made that available facts do not justify beginning debarment or suspension proceedings, the file should be documented accordingly. This determination is subject to reconsideration if warranted by new information.</P>
              <P>(iii) When the decision is made to initiate debarment and/or suspension of a contractor, the Senior Procurement Executive must prepare a notice in accordance with FAR 9.406-3(c) or FAR 9.407-3(c). The draft notice, along with the administrative file containing all relevant facts and analysis, must be forwarded to the Senior Procurement Executive, as the debarring and suspending official, following review by the activity's legal counsel.</P>
              <P>(2) The Senior Procurement Executive shall:</P>
              <P>(i) Review the notice and administrative file for sufficiency and provide for review by other DOL officials as considered appropriate;</P>
              <P>(ii) In accordance with FAR 9.406-3(c) or FAR 9.407-3(c), if it is determined that action is warranted, give the contractor prompt notice of the proposed debarment or suspension;</P>
              <P>(iii) Direct additional fact-finding as necessary when material facts are in dispute;</P>
              <P>(iv) Notify the contractor and any affiliates involved of the final decision to debar or suspend, including a decision not to debar or suspend, in accordance with FAR 9.406-3(c) and FAR 9.407-3(c);</P>
              <P>(v) Be responsible for accomplishing the actions required in FAR 9.404(c) within five working days after debarring or suspending a contractor or modifying or rescinding such an action;</P>
              <P>(vi) Maintain Department-wide records of debarred or suspended contractors in accordance with FAR 9.404.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.405</SECTNO>
              <SUBJECT>Effect of listing.</SUBJECT>
              <P>(a) Contractors debarred, suspended, or proposed for debarment are excluded from receiving contracts, and agencies must not solicit offers from, award contracts to, or consent to subcontract with these organizations, unless the HCA determines in writing that there is a compelling reason for such action and the Assistant Secretary for Administration and Management approves such determinations.</P>
              <P>(b) Bids received from any listed contractor in response to an invitation for bids must be entered on the abstract of bids, and rejected unless the HCA determines in writing that there is a compelling reason to consider the bid and the Assistant Secretary for Administration and Management approves such action.</P>

              <P>(c) Proposals, quotations, or offers received from any listed contractor shall not be evaluated for award or included in the competitive range, nor <PRTPAGE P="21"/>shall discussions be conducted with a listed offeror during a period of ineligibility, unless the HCA determines in writing that there is a compelling reason to do so and the Assistant Secretary for Administration and Management approves such action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.405-1</SECTNO>
              <SUBJECT>Continuation of current contracts.</SUBJECT>
              <P>(a) At the time an option is being exercised, contracting officers must review the List of Parties Excluded from Federal Procurement and Nonprocurement Programs. If a contractor or significant subcontractor is identified in the listing, the contracting officer must make a written determination either to proceed or to terminate the contract, and must explain the rationale for the decision. In accordance with FAR 9.405-1, contracting officers may continue contracts or subcontracts in existence at the time a contractor is suspended or debarred, unless it is determined that termination of the contract is in the best interest of the Government. The contracting officer must make such determination in writing, after consulting with the contracting officer's technical representative and legal counsel. The determination must be approved by the HCA.</P>
              <P>(b) Contracting activities must not renew or otherwise extend the duration of current contracts, or consent to subcontracts, with contractors debarred, suspended, or proposed for debarment, unless the HCA states, in writing, the compelling reasons for renewal or extension and the Assistant Secretary for Administration and Management approves such action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.406</SECTNO>
              <SUBJECT>Debarment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2909.406-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) The Senior Procurement Executive 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) The Senior Procurement Executive is authorized to make an exception regarding debarment by another agency debarring official 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 DOL employee knows a cause for debarment, as listed in FAR 9.406-2, the appropriate HCA affected must be notified. The contracting officer must consult with the Office of the Solicitor and the Office of the Inspector General, as appropriate, and submit a formal recommendation documenting the cause for debarment to the Senior Procurement Executive.</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 Senior Procurement Executive must 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">Fact-finding proceedings.</E> For actions listed under FAR 9.406-3(b)(2), the Senior Procurement Executive must afford the contractor the opportunity to appear at an informal fact-finding proceeding as required by FAR 9.406-3(b)(2)(i).  The proceeding must be conducted by the Office of Administrative Law Judges and must be held at a date and location reasonably convenient to the parties concerned. Subject to the provisions of 29 CFR part 18, entitled “Rules Of Practice And Procedure For Administrative Hearings Before The Office Of Administrative Law Judges”, the contractor and any specifically named affiliates, may be represented by counsel or any duly authorized representative. Either party may call witnesses. The proceedings must 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 must 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 Senior Procurement Executive 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 must be provided to the contractor and any affiliates involved <PRTPAGE P="22"/>in accordance with the procedures in FAR 9.406-3(e).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.407</SECTNO>
              <SUBJECT>Suspension.</SUBJECT>
              <P>(a) The Senior Procurement Executive 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 2909.406-3.</P>
              <P>(b) The Senior Procurement Executive is authorized to make an exception, regarding suspension by another agency suspending official under the conditions in FAR 9.407-1(d).</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.407-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) <E T="03">Investigation and referral.</E> Whenever a DOL employee knows of a cause for suspension, as listed in FAR 9.407-2, the appropriate HCA affected must be notified. The HCA must consult with the Office of the Solicitor and the Office of the Inspector General, as appropriate, and submit a formal recommendation documenting the cause for suspension, to the Senior Procurement Executive.</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 Senior Procurement Executive will initiate suspension by taking the actions listed in FAR 9.407-3(c) and advising the contractor of DOL's rules under this subpart.</P>
              <P>(c) <E T="03">Fact-finding proceedings.</E> For actions listed under FAR 9.407-3(b)(2), the Senior Procurement Executive must afford the contractor the opportunity to appear at informal proceedings, as required by FAR 9.407-3(b)(2)(i). Either party may call witnesses. The proceedings must 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 suspension.</P>
              <P>(d) <E T="03">Suspension decisions.</E> The Senior Procurement Executive must make a final decision on suspension as prescribed in FAR 9.407-3(d). Notice of the decision must 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 and Consultant Conflicts of Interest</HD>
            <SECTION>
              <SECTNO>2909.503</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <P>(a) The Senior Procurement Executive is delegated authority by the Assistant Secretary for Administration and Management 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 best interest.</P>
              <P>(b) Requests for waivers must be made by the HCA to the PE. Each request must 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 9.5 to be waived.</P>
              <P>(c) In making determinations under this subpart the Senior Procurement Executive must request the opinion of the Office of the Solicitor, Division of Legislation and Legal Counsel.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2909.506</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) If a prospective contractor disagrees with the decision of a contracting officer regarding an organizational conflict of interest and requests higher level review as referred to in FAR 9.506, the matter must be referred to the Office of the Solicitor, Associate Solicitor for Legislation and Legal Counsel, and the Director, Division of Acquisition Management Services.</P>
              <P>(b) Referrals must be made by the HCA concerned and include the contracting officer's decision and the position of the prospective contractor.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2910</EAR>
          <HD SOURCE="HED">PART 2910—MARKET RESEARCH</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>2910.002</SECTNO>
            <SUBJECT>Procedures.</SUBJECT>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SECTION>
            <SECTNO>2910.002</SECTNO>
            <SUBJECT>Procedures.</SUBJECT>

            <P>(a) In accordance with FAR 6.302-1(c), purchase descriptions must not specify a product, or specific feature of a product, peculiar to a manufacturer unless <PRTPAGE P="23"/>they are justified to the contracting officer in writing by the office initiating the purchase request. The justification must state that the product, or specific product feature, is essential to the Government's requirements and other similar products or features will not meet these requirements. This determination must be signed by a representative of the office originating the request and must accompany the purchase requisition submitted to the appropriate contracting office. If such a justification is not made, the contracting officer may assume that another make and model or a generic product could equally meet the DOL requirement.</P>

            <P>(b) In accordance with FAR 10.002(b), the requisitioning office must submit to the contracting officer information demonstrating that a variety of products from various commercial sources have been considered. This requirement is not necessary for required sources (See FAR 8.001). Orders to be placed against non-mandatory sources, such as the Federal Supply Schedules, or other Governmentwide Acquisition Contracts, should include product information concerning multiple sources based on research from <E T="03">www.contractdirectory.gov</E> site or other sources. When documented in this manner, the contracting officer may rely on this information in developing a procurement strategy, or for documenting the comparison of catalogs or pricelists.</P>
            <CITA>[69 FR 22991, Apr. 27, 2004]</CITA>
          </SECTION>
        </PART>
        <PART>
          <EAR>Pt. 2911</EAR>
          <HD SOURCE="HED">PART 2911—DESCRIBING AGENCY NEEDS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2911.1—Selecting And Developing Requirements Documents</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2911.103</SECTNO>
              <SUBJECT>Market acceptance.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2911.5—Liquidated Damages</HD>
              <SECTNO>2911.501</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2911.1—Selecting And Developing Requirements Documents</HD>
            <SECTION>
              <SECTNO>2911.103</SECTNO>
              <SUBJECT>Market acceptance.</SUBJECT>
              <P>The authority of the Head of an Agency under FAR 11.103(a), to require offerors to demonstrate that the items offered have either achieved commercial market acceptance or been satisfactorily supplied to an agency under current or recent contracts for the same or similar requirements, and otherwise meet the item description, specifications, or other criteria prescribed in the public notice and solicitation, is delegated to the HCA.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2911.5—Liquidated Damages</HD>
            <SECTION>
              <SECTNO>2911.501</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>In accordance with FAR 11.501(d), the authority of the Head of Agency to recommend to the Department of Treasury, Commissioner, Financial Management Services, that the amount of a contractor's liquidated damages be waived or reduced in whole or in part, is delegated to the HCA.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2912</EAR>
          <HD SOURCE="HED">PART 2912—ACQUISITION OF COMMERCIAL ITEMS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2912.3—Solicitation Provisions and Contract Clauses for the Acquisition of Commercial Items</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2912.302</SECTNO>
              <SUBJECT>Tailoring of provisions and clauses for the acquisition of commercial items.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2912.3—Solicitation Provisions and Contract Clauses for the Acquisition of Commercial Items</HD>
            <SECTION>
              <SECTNO>2912.302</SECTNO>
              <SUBJECT>Tailoring of provisions and clauses for the acquisition of commercial items.</SUBJECT>

              <P>In accordance with FAR 12.302(c), a request for waiver to tailor terms inconsistent with customary commercial <PRTPAGE P="24"/>practice must be documented in a written justification by the contracting officer, and may be approved by the HCA on an individual or class basis.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2913</EAR>
          <HD SOURCE="HED">PART 2913—SIMPLIFIED ACQUISITION PROCEDURES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2913.1—Procedures</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2913.106-3</SECTNO>
              <SUBJECT>Soliciting competition, evaluation of quotations or offers, award and documentation.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2913.2—Actions At Or Below The Micro-Purchase Threshold</HD>
              <SECTNO>2913.201</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2913.3—Simplified Acquisition Methods</HD>
              <SECTNO>2913.301</SECTNO>
              <SUBJECT>Governmentwide commercial purchase card.</SUBJECT>
              <SECTNO>2913.307</SECTNO>
              <SUBJECT>Forms.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2913.1—Procedures</HD>
            <SECTION>
              <SECTNO>2913.106-3</SECTNO>
              <SUBJECT>Soliciting competition, evaluation of quotations or offers, award and documentation.</SUBJECT>

              <P>In accordance with FAR 13.106-3(b), simplified acquisition files must contain documentation of the factors considered in making an award in excess of the micro-purchase threshold. When other than the lowest responsive quotation from a responsible supplier is used as the basis for a purchase, the contracting officer must identify the basis (<E T="03">i.e.,</E> best value) of the award and include in the purchase file documentation of the reasons for rejecting any lower quotation and the name of the individual responsible for making the determination to award to other than the lowest priced quotation. The contracting officer has broad discretion in determining the award of a purchase order, which may be based on the factors listed in FAR 13.106-3. This requirement does not necessitate a separate determination if the procurement file contains preprinted standardized classifications for award.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2913.2—Actions at or Below the Micro-Purchase Threshold</HD>
            <SECTION>
              <SECTNO>2913.201</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The Government commercial purchase card must be used in preference to other methods of procurement for purchases up to the micro-purchase threshold. Other small purchase methods (blanket purchase agreements, third party drafts, and purchase orders) may be used in lieu of the Government purchase card when it is more cost-effective or practicable.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2913.3—Simplified Acquisition Methods</HD>
            <SECTION>
              <SECTNO>2913.301</SECTNO>
              <SUBJECT>Governmentwide commercial purchase card.</SUBJECT>
              <P>(a) The Government purchase card has far fewer requirements for documentation than other methods of purchasing. However, the same legal restrictions apply to credit card purchases that apply to other purchases using appropriated funds. If a purchase cardholder has questions about the lawfulness of a particular purchase, he or she must initially consult his or her appropriate office purchase card administrator, who will consult the Office of the Solicitor as necessary.</P>
              <P>(b) GAO decisions surrounding the concept of the “availability of appropriations” are often stated in terms of whether appropriated funds are or are not “legally available” for a given expenditure. Restrictions on the purposes for which appropriated funds may be used come from a variety of sources, including the DOL Appropriations Acts, and decisions of the Comptroller General and his predecessor, the Comptroller of the Treasury.</P>

              <P>(c) HCAs, administrative officers, and contracting officers are encouraged to review the GAO publication entitled Principles of Federal Appropriations Law. This document must be consulted when developing Office/Agency Purchase/Credit Card Program procedures. A number of the more common restrictions which “accounting officers of the Government” have had frequent occasion to consider and apply include, for example:<PRTPAGE P="25"/>
              </P>
              <P>(1) Payment of attorney's fees;</P>
              <P>(2) Purchase of food, entertainment or recreation;</P>
              <P>(3) Payment of personal membership fees; and</P>
              <P>(4) Payment of personal expense items such as gifts for employees, and entry fees for contests.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2913.307</SECTNO>
              <SUBJECT>Forms.</SUBJECT>
              <P>(a) In accordance with FAR 13.307, contracting officers are encouraged to use the Standard Form (SF) SF-1449, when executing commercial acquisitions. Agencies may use forms other than the SF-1449 and may print on those forms the clauses considered to be suitable for these purchases. In these instances, alternate forms should conform with the Standard Form to the maximum extent practicable.</P>
              <P>(b) The SF-30 is to be used to modify a purchase order.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="26"/>
        <HD SOURCE="HED">SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES</HD>
        <PART>
          <EAR>Pt. 2914</EAR>
          <HD SOURCE="HED">PART 2914—SEALED BIDDING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2914.4—Opening of Bids and Award of Contract</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2914.404-1</SECTNO>
              <SUBJECT>Cancellation of invitations after opening.</SUBJECT>
              <SECTNO>2914.407-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
              <SECTNO>2914.408</SECTNO>
              <SUBJECT>Award.</SUBJECT>
              <SECTNO>2914.408-1</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2914.4—Opening of Bids and Award of Contract</HD>
            <SECTION>
              <SECTNO>2914.404-1</SECTNO>
              <SUBJECT>Cancellation of invitations after opening.</SUBJECT>

              <P>The authority of the agency head in FAR 14.404-1(c) and (f) to make a <E T="03">written</E> determination to cancel an invitation for bids and reject all bids after opening and to authorize completion of the acquisition through negotiation is delegated to the HCA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2914.407-3</SECTNO>
              <SUBJECT>Other mistakes disclosed before award.</SUBJECT>
              <P>(a) The authority to make determinations, as conferred by FAR 14.407-3(e) is delegated to the HCA, without power of redelegation, but only after consultation with the Office of the Solicitor. All such determinations shall be documented in the contract file.</P>
              <P>(b) The following procedures must be followed when submitting doubtful cases of mistakes in bids to the Comptroller General for an advance decision, as provided by FAR 14.407-3(i).</P>
              <P>(1) Requests must be made by the HCA after consultation with the Office of the Solicitor.</P>
              <P>(2) Requests must be in writing, dated, signed by the requestor, addressed to the Comptroller General of the United States, General Accounting Office, Washington, DC 20548, and contain the following:</P>
              <P>(i) The name and address of the party requesting the decision; and</P>
              <P>(ii) A statement of the question to be decided, a presentation of all relevant facts, a statement of the requesting party's position with respect to the question, and copies of all pertinent records and supporting documentation.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2914.408</SECTNO>
              <SUBJECT>Award.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2914.408-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) 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:</P>
              <P>(1) The specifications used in the invitation were not unduly restrictive;</P>
              <P>(2) Adequate competition was solicited and it could have been reasonably assumed that more than one bid would have been submitted;</P>
              <P>(3) The price is reasonable; and</P>
              <P>(4) The bid is otherwise in accordance with the invitation for bids.</P>
              <P>(b) Such a determination must 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—Contract Pricing</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2915.405-70</SECTNO>
              <SUBJECT>Determining fair and reasonable price.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2915.5—Preaward, Award, and Postaward Notifications, Protests, and Mistakes</HD>
              <SECTNO>2915.508</SECTNO>
              <SUBJECT>Discovery of mistakes.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2915.6—Unsolicited Proposals</HD>
              <SECTNO>2915.604</SECTNO>
              <SUBJECT>Agency points of contact.</SUBJECT>
              <SECTNO>2915.605</SECTNO>
              <SUBJECT>Content of unsolicited proposals.</SUBJECT>
              <SECTNO>2915.606</SECTNO>
              <SUBJECT>Agency 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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <PRTPAGE P="27"/>
            <HD SOURCE="HED">Subpart 2915.4—Contract Pricing</HD>
            <SECTION>
              <SECTNO>2915.405-70</SECTNO>
              <SUBJECT>Determining fair and reasonable price.</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 15.402), the contract action must be referred to the HCA for final resolution.</P>
              <P>(b) Resolution under paragraph (a) of this section must be documented and signed by the HCA and included in the contract file.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2915.5—Preaward, Award, and Postaward Notifications, Protests, and Mistakes</HD>
            <SECTION>
              <SECTNO>2915.508</SECTNO>
              <SUBJECT>Discovery of mistakes.</SUBJECT>
              <P>(a) The HCA is authorized to make the administrative determinations in FAR 15.508 after consultation with the Office of the Solicitor as required by FAR 14.407-4. This authority may not be redelegated.</P>
              <P>(b) The contracting officer must process a mistake and prepare a case file in accordance with the requirements of FAR 14.407-4(e)(2). The file must be submitted to the HCA for final determination.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2915.6—Unsolicited Proposals</HD>
            <SECTION>
              <SECTNO>2915.604</SECTNO>
              <SUBJECT>Agency points of contact.</SUBJECT>
              <P>(a) HCAs shall be the preliminary contacts for unsolicited proposals. This responsibility may be delegated.</P>
              <P>(b) HCAs must establish within their agencies procedures for handling unsolicited proposals to ensure that unsolicited proposals are controlled, evaluated, safeguarded and disposed of in accordance with FAR 15.6.</P>
              <P>(c) The HCA must not forward for consideration an unsolicited proposal, if the proposal resembles an upcoming solicitation or a procurement identified in the current annual acquisition plan.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2915.605</SECTNO>
              <SUBJECT>Content of unsolicited proposals.</SUBJECT>
              <P>In addition to the contents required by FAR 15.605, unsolicited proposals for research should contain a commitment by the offeror to include cost-sharing or should represent a significant cost savings to the Department of Labor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2915.606</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
              <P>When an unsolicited proposal is received by an official of the Department of Labor, the recipient of the proposal must forward it to the HCA. The HCA must address the requirements of FAR 15.604. The HCA must determine if there is an office(s) within the Department of Labor whose mission could be impacted by the proposal. If there is, the HCA must designate a recipient within that office as an “assignee”, and take the following action:</P>
              <P>(a) Within seven (7) working days of receipt, the HCA must forward the proposal to the assignee along with instructions concerning the security, review and disposition of the document.</P>
              <P>(1) Inform the offeror of this transfer in writing (preferably by facsimile or other electronic means).</P>
              <P>(2) Within one (1) month of receipt of the unsolicited proposal by the assignee, the office receiving the proposal must determine the merit of the unsolicited proposal.</P>
              <P>(i) If the office finds insufficient merit to consider the unsolicited proposal further, then a letter will be sent to inform the offeror that their proposal will not be considered further, and is not being retained.</P>

              <P>(ii) If, after a comprehensive evaluation as defined by FAR 15.606-2, the office finds merit in the proposal, it must consult with a Department of Labor contracting officer for direction in complying with FAR 15.607. If not excluded by a condition of FAR 15.607(a), a requisition may be prepared in accordance with FAR 15.607(b). If the requirement exceeds the simplified acquisition threshold inclusive of options then a request must be prepared for the Procurement Review Board in accordance with Department of Labor procedures stated in Department of Labor Manual Series 2-830 (available by mail from the Division of Acquisition Management Services).<PRTPAGE P="28"/>
              </P>
              <P>(b) If within one (1) month of receipt (by the HCA) no assignee can be identified, the HCA must notify the offeror that the proposal is not being considered further.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2916</EAR>
          <HD SOURCE="HED">PART 2916—CONTRACT TYPES</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>2916.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2916.5—Indefinite-Delivery Contracts</HD>
              <SECTNO>2916.505</SECTNO>
              <SUBJECT>Ordering.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2916.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
              <SECTNO>2916.603-2</SECTNO>
              <SUBJECT>Application.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>2916.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part describes types of contracts that may be used in acquisitions. It further prescribes policies and procedures for implementing contracts.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2916.5—Indefinite-Delivery Contracts</HD>
            <SECTION>
              <SECTNO>2916.505</SECTNO>
              <SUBJECT>Ordering.</SUBJECT>
              <P>In accordance with FAR 16.505(b)(5), the Department of Labor Task Order and Delivery Order Ombudsman is the DOL Competition Advocate (see DOLAR part 2902).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2916.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
            <P>Task orders against DOL contracts and orders against multi-agency or Governmentwide contracts for services above the micropurchase threshold must comply with the provisions of FAR 16.505.</P>
            <SECTION>
              <SECTNO>2916.603-2</SECTNO>
              <SUBJECT>Application.</SUBJECT>
              <P>The HCA 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>
        </PART>
        <PART>
          <EAR>Pt. 2917</EAR>
          <HD SOURCE="HED">PART 2917—SPECIAL CONTRACTING METHODS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>2917.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2917.2-Options</HD>
              <SECTNO>2917.202</SECTNO>
              <SUBJECT>Use of options.</SUBJECT>
              <SECTNO>2917.207</SECTNO>
              <SUBJECT>Exercising options.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2917.5—Interagency Acquisitions Under The Economy Act</HD>
              <SECTNO>2917.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <SECTNO>2917.501</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>2917.502</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2917.503</SECTNO>
              <SUBJECT>Determinations and findings requirements.</SUBJECT>
              <SECTNO>2917.504</SECTNO>
              <SUBJECT>Ordering procedures.</SUBJECT>
              <SECTNO>2917.504-70</SECTNO>
              <SUBJECT>Signature authority and internal procedures.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 31 U.S.C. 1535; 40 U.S.C. 486(c).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>2917.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements polices and procedures stated in FAR part 17.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2917.2—Options</HD>
            <SECTION>
              <SECTNO>2917.202</SECTNO>
              <SUBJECT>Use of options.</SUBJECT>
              <P>The HCA may, in unusual circumstances, approve option quantities in excess of the 50 percent limit prescribed in FAR 17.203(g)(2). The documentation required by FAR 17.205(a) must include a written justification to fully support the need for such action.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2917.207</SECTNO>
              <SUBJECT>Exercising options.</SUBJECT>
              <P>The contracting officer must use a standardized determination and finding before exercising an option in accordance with FAR 17.207(f).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2917.5—Interagency Acquisitions Under The Economy Act</HD>
            <SECTION>
              <SECTNO>2917.500</SECTNO>
              <SUBJECT>Scope of subpart.</SUBJECT>
              <P>This subpart establishes DOL policy and procedures to assure the appropriate and consistent use of interagency acquisitions under the Economy Act (31 U.S.C. 1535) as prescribed by FAR 17.5.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="29"/>
              <SECTNO>2917.501</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Interagency Acquisition</E> means a procedure by which a DOL agency obtains needed supplies or services from, or through, another DOL agency or Federal agency, and appropriated funds are obligated.</P>
              <P>
                <E T="03">Interagency Agreement</E> means the legal instrument used for an interagency acquisition to exchange funds or property between two DOL organizations or between a DOL agency and another Federal agency. This instrument is used when the DOL organization meets the definition of either the Requesting Agency or the Servicing Agency. “Interagency Agreement” and “Interagency Acquisition” does not include:</P>
              <P>(1) Agreements involving supplies and services acquired from or through mandatory sources, as described in FAR part 8;</P>
              <P>(2) Contracts with the Small Business Administration based upon Section 8(a) of the Small Business Act or a HUBZone small business under the Historically Underutilized Business Zone (HUBZone) Act of 1997;</P>
              <P>(3) Cooperative agreements and grants; or</P>
              <P>(4) Any agreement or acquisition where a statute authorizes exception.</P>
              <P>
                <E T="03">Military Interdepartmental Procurement Request (MIPR)</E> means a type of interagency agreement used to place orders for supplies and non-personal services with a military department.</P>
              <P>
                <E T="03">Requesting Agency</E> means the Federal agency that needs the supplies or services, and is obligating the funds to provide for the costs of performance.</P>
              <P>
                <E T="03">Servicing Agenc</E>y means the Federal agency which is providing the supplies or performing the services, directly or indirectly, and will be receiving the funds to provide for the costs of performance.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2917.502</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) <E T="03">Policy.</E> It is the policy of DOL to require that interagency agreements are written to assure that the obligation of fiscal year funds is valid, that statutory authority exists to obtain or perform the stated requirements, that the stated requirements are consistent with DOL's mission responsibilities, and that each agreement complies with applicable laws and regulations.</P>
              <P>(b) <E T="03">Applicability.</E> The provisions of this subpart apply to interagency acquisitions and agreements under the Economy Act.</P>
              <P>(c) <E T="03">Appropriations principles.</E> The appropriate use of interagency acquisitions embodies several principles of Federal appropriations law.</P>
              <P>(1) In order to record a valid obligation of appropriations, 31 U.S.C. 1501 imposes the requirements that interagency agreements be:</P>

              <P>(i) A binding written agreement for specific goods or services to meet an existing <E T="03">bona fide</E> need;</P>
              <P>(ii) For a purpose authorized by law; and</P>
              <P>(iii) Executed and obligated by the receiving agency before the expiration of available funds.</P>
              <P>(2) The Economy Act authorizes interagency acquisitions and provides for payment in advance, as well as reimbursement to the appropriation account to which the performance costs have been charged. The Economy Act further authorizes the servicing agency, as an alternative to fulfilling the requirement through internal resources, to obtain the needed supplies or services by contract.</P>
              <P>(3) An agreement entered into under the Economy Act is recorded as an obligation by the requesting agency the same as a contract. However, under the Economy Act, the obligated appropriations must be deobligated upon the date of “expiration” of the appropriation account to the extent that the servicing agency has not incurred obligations through charged costs or under a contract.</P>
              <P>(4) Within DOL, the DOL agencies have a number of statutory authorities available for entering into interagency agreements. Each DOL agency, in consultation with the Office of the Solicitor, must be responsible for determining those authorities, as well as constraints applicable to the use of advance payments and contractors, and set-up procedures.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2917.503</SECTNO>
              <SUBJECT>Determinations and findings requirements.</SUBJECT>
              <P>
                <E T="03">Applicability.</E> Before the execution of an interagency agreement under the <PRTPAGE P="30"/>Economy Act, the contracting officer, or other authorized official, must sign the determination required in FAR 17.503 and 31 U.S.C. 1535.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2917.504</SECTNO>
              <SUBJECT>Ordering procedures.</SUBJECT>
              <P>(a) Requests for the processing of interagency agreements must be submitted to the procurement office serving the requisitioning office.</P>
              <P>(b) The procurement request must state whether the work is to be performed by a DOL organization, a Federal agency other than DOL, or through one of these entities by a contractor.</P>
              <P>(c) Where the Economy Act is to be used as the authority for an interagency acquisition, the requisitioning office must include the facts which support the conclusion that it is more economical to obtain the required supplies or services through the proposed interagency agreement, rather than by direct contract with a commercial concern. Current market prices or recent procurement prices may be used in this process.</P>
              <P>(d) Orders placed under interagency agreements may take any form that is legally sufficient and reflects the agreement of the parties.</P>
              <P>(e) The contracting officer, or authorized official, must assure compliance with the ordering procedures and payment provisions prescribed in FAR 17.504 and FAR 17.505, and require inclusion of the following provisions in all interagency agreements and/or orders placed against them:</P>
              <P>(1) Legislative authority;</P>
              <P>(2) Period of performance;</P>
              <P>(3) Dollar amount of agreement;</P>
              <P>(4) Billing provisions, including the name and address of the following offices:</P>
              <P>(i) Designated office to receive the required deliverables; and</P>
              <P>(ii) Designated office to receive billings and process payments;</P>
              <P>(5) Modification and termination provisions; and</P>
              <P>(6) Other provisions, as appropriate.</P>
              <P>(f) The contracting officer must assure that each interagency agreement or order placed against it includes a reference number assigned by each of the parties. Such numbers must be assigned in accordance with the existing procedures established by the respective organizations.</P>
              <P>(g) Modifications to existing interagency agreements may be accomplished through the use of an SF 30, Amendment of Solicitation/Modification of Contract, or through any other format acceptable to the parties.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2917.504-70</SECTNO>
              <SUBJECT>Signature authority and internal procedures.</SUBJECT>
              <P>(a) A DOL contracting officer, HCA, Agency Head, or another official designated by the Assistant Secretary for Administration and Management in accordance with FAR 17.503(c), must sign interagency agreements and/or orders placed against them which will result in a procurement action by the requesting or servicing agency.</P>
              <P>(b) Internal procedures (DLMS 3-1700) require DOL Agency Heads to provide notice to the Director, Executive Secretariat of the signing of all new Federal Interagency Agreements and deleting expired agreements.</P>
              <P>(c) Agencies should be aware that, in addition to the requirements of this subpart, there are various other internal Departmental procedures that apply to various types of agreements. Agencies should consult with the Office of the Solicitor and the Office of the Assistant Secretary for Administration and Management, as appropriate.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="31"/>
        <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        <PART>
          <RESERVED>PART 2918 [RESERVED]</RESERVED>
        </PART>
        <PART>
          <EAR>Pt. 2919</EAR>
          <HD SOURCE="HED">PART 2919—SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS</HD>
          <CONTENTS>
            <SECHD>Sec.</SECHD>
            <SECTNO>2919.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2919.2—Policies</HD>
              <SECTNO>2919.201</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <SECTNO>2919.202</SECTNO>
              <SUBJECT>Specific policies.</SUBJECT>
              <SECTNO>2919.202-1</SECTNO>
              <SUBJECT>Encouraging small business participation in acquisitions.</SUBJECT>
              <SECTNO>2919.202-2</SECTNO>
              <SUBJECT>Locating small business sources.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2919.5—Set-Asides for Small Business</HD>
              <SECTNO>2919.502</SECTNO>
              <SUBJECT>Setting aside acquisitions.</SUBJECT>
              <SECTNO>2919.505</SECTNO>
              <SUBJECT>Rejecting Small Business Administration recommendations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2919.7—The Small Business Subcontracting Program</HD>
              <SECTNO>2919.704</SECTNO>
              <SUBJECT>Subcontracting plan requirements.</SUBJECT>
              <SECTNO>2919.705-1</SECTNO>
              <SUBJECT>General support for the program.</SUBJECT>
              <SECTNO>2919.705-5</SECTNO>
              <SUBJECT>Awards involving subcontracting plans.</SUBJECT>
              <SECTNO>2919.705-6</SECTNO>
              <SUBJECT>Post-award responsibilities of the contracting officer.</SUBJECT>
              <SECTNO>2919.706</SECTNO>
              <SUBJECT>Responsibilities of the cognizant administrative contracting officer.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2919.8—Contracting with the Small Business Administration (The 8(a) Program)</HD>
              <SECTNO>2919.812</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SECTION>
            <SECTNO>2919.000</SECTNO>
            <SUBJECT>Scope of part.</SUBJECT>
            <P>This part implements FAR part 19 and small business programs at the Department of Labor.</P>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2919.2—Policies</HD>
            <SECTION>
              <SECTNO>2919.201</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <P>(a) It is the policy of the Department of Labor to provide maximum practicable opportunities to small businesses in acquisitions.</P>

              <P>(b) Management responsibilities for small and disadvantaged business utilization are the responsibility of the Director, Office of Small Business Programs. This individual is responsible for performing all functions and duties prescribed in FAR 19.2 including appointing, as prescribed in FAR 19.201(d)(8), a small business specialist (SBS) for each contract office. The Department of Labor Manual Series (DLMS), Chapter 2 1000, addresses the implementation of the preference programs in procurement including HUBZone, Subcontracting Plans, Standard Form 294 (Subcontracting Report for Individual Contracts), and the report, Standard Form 295 (Summary Subcontracting Report) submission, <E T="03">et al.</E>
              </P>
              <P>(c) All DOL procurements over the simplified acquisition threshold, whether being conducted via open market or by ordering from a pre-existing contract vehicle such as GSA Schedule, must be reviewed and receive a recommendation by the Office of Small Business Programs, the Department of Labor's Office of Small Disadvantaged Business Utilization, prior to being advertised. The Acquisition Screening and Review Form DL-1-2004 shall be used for this purpose and the statement of work and market survey documentation shall be submitted to Office of Small Business Programs with the request for review.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.202</SECTNO>
              <SUBJECT>Specific policies.</SUBJECT>

              <P>Contracting officers, administrative officers and program management shall ensure that procurements are structured and conducted to afford small businesses the maximum practicable opportunity to participate in DOL's prime and subcontracts. Administrative officers will review requisitions that will result in an award of $2 million or more using available information to certify whether the acquisition would constitute a “bundled contract” under the definition provided in FAR 2.101 in accordance with procedures established by the Office of Small Business Programs. Each certification will be submitted to the Division of Acquisition Management Services, and included with the requisition <PRTPAGE P="32"/>to the contracting officer. Reports will be provided to the Office of Small Business Programs.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.202-1</SECTNO>
              <SUBJECT>Encouraging small business participation in acquisitions.</SUBJECT>
              <P>During the performance of a contract, the contracting officer will consider performance against subcontracting plan goals, objectives and planned efforts before exercising an optional period of performance. The contracting officer will document the evaluation of the contractor's actual performance using SF-294 data compared to their approved subcontracting plan goals.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.202-2</SECTNO>
              <SUBJECT>Locating small business sources.</SUBJECT>

              <P>Any procurement conducted on an unrestricted basis will include solicitations to small businesses of each category with legislatively established government-wide procurement goals (<E T="03">e.g.,</E> small, small disadvantaged, women-owned small, HUBZone and service disabled veteran-owned small businesses) to the extent practicable.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2919.5—Set-Asides for Small Business</HD>
            <SECTION>
              <SECTNO>2919.502</SECTNO>
              <SUBJECT>Setting aside acquisitions.</SUBJECT>
              <P>Contracting officers will conduct market surveys specifically to determine whether procurements should be conducted via 8(a) procedures, HUBZone procedures or as small business set-asides. If a reasonable expectation exists that at least two responsible small businesses may submit offers at fair market prices (three responsible small businesses in procurements via GSA Federal Supply Schedule), then the procurement will be set aside for small business. Market surveys will be documented in all procurement actions not reserved for small businesses.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.505</SECTNO>
              <SUBJECT>Rejecting Small Business Administration recommendations.</SUBJECT>
              <P>When the SBA Procurement Center Representative appeals a “rejection of an SBA recommendation” as referenced in FAR 19.505(b) and (c), the appeal must be referred to the Assistant Secretary for Administration and Management who is authorized to make a final decision.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2919.7—The Small Business Subcontracting Program</HD>
            <SECTION>
              <SECTNO>2919.704</SECTNO>
              <SUBJECT>Subcontracting plan requirements.</SUBJECT>
              <P>Contracting Officers will refer subcontracting plans to the Office of Small Business Programs for review and recommendation before awarding contracts that require subcontracting plans. Contracting officers will document the substance of any agreement with the contractor that permits performance at less than the stated goals recommended by the Office of the Small Business Programs.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.705-1</SECTNO>
              <SUBJECT>General support for the program.</SUBJECT>
              <P>Contracting officers will make available a significant number of award points for quality of the subcontracting plan. High-rated subcontract plans will incorporate the highest yield of subcontracting to all categories of small businesses when compared to DOL or separately negotiated agency subcontracting goals on a dollar and percentage basis. Conversely, prime small businesses will be compared favorably to large businesses with subcontract goals, but may also be given the maximum score for qualifying under multiple small business categories. Contracting officers may also make available a significant number of award points for performance against previous subcontracting plan goals and efforts to achieve those goals.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.705-5</SECTNO>
              <SUBJECT>Awards involving subcontracting plans.</SUBJECT>
              <P>The Office of Small Business Programs will review subcontracting plans and SF 295 submissions for performance against business goals negotiated between the Department of Labor and the Small Business Administration.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.705-6</SECTNO>
              <SUBJECT>Post-award responsibilities of the contracting officer.</SUBJECT>

              <P>(a) Even when a subcontracting plan was submitted to and approved by the Office of Small Business Programs before award, the contracting officer upon award, amendment, or significant <PRTPAGE P="33"/>modification of a contract, must forward to the Director, Office of Small Business Programs, a copy of the subcontracting plan that was incorporated into a contract or contract modification.</P>
              <P>(b) Each contracting activity must maintain a list of active prime contracts containing subcontracting plans.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2919.706</SECTNO>
              <SUBJECT>Responsibilities of the cognizant administrative contracting officer.</SUBJECT>
              <P>Contracting officers must collect annual and semiannual subcontracting reports from contractors with established subcontracting plans. Copies of the report, Standard Form 294 (Subcontracting Report for Individual Contracts), and the report, Standard Form 295 (Summary Subcontracting Report), must be forwarded to the Director, Office of Small Business Programs, not later than the 30th day of the month following the close of the reporting period. If the contractor has not met the goals for the reporting period, the contracting officer will provide an acknowledgement to the contractor and request corrective action to be taken. If goals are not met in subsequent periods, the contracting officer must consider factors that would demonstrate a good faith effort, and take appropriate action including assessing liquidated damages in accordance with FAR 52.219-16, and/or not exercising subsequent option periods.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2919.8—Contracting with the Small Business Administration (The 8(a) Program)</HD>
            <SECTION>
              <SECTNO>2919.812</SECTNO>
              <SUBJECT>Contract administration.</SUBJECT>
              <P>(a) Contracting officers, or designees, must conduct periodic evaluations of 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, must be referred to the Office of Small Business Programs for subsequent review and discussion with the appropriate SBA official.</P>
              <P>(b) The Office of Small Business Programs and the SBA should be notified at least 45 days before initiating final action to terminate an 8(a) contract.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PARTS 2920—2921 [RESERVED]</HD>
        </PART>
        <PART>
          <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>2922.101-3</SECTNO>
              <SUBJECT>Reporting labor disputes.</SUBJECT>
              <SECTNO>2922.101-4</SECTNO>
              <SUBJECT>Removal of items from contractor's facilities affected by work stoppages.</SUBJECT>
              <SECTNO>2922.103-4</SECTNO>
              <SUBJECT>Approvals.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2922.8—Equal Employment Opportunity</HD>
              <SECTNO>2922.802</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2922.1—Basic Labor Policies</HD>
            <SECTION>
              <SECTNO>2922.101-3</SECTNO>
              <SUBJECT> Reporting labor disputes.</SUBJECT>
              <P>Potential or actual labor disputes that may interfere with contract performance must be reported by the contracting activity to the Office of the Solicitor for legal advice or assistance. It may also become necessary to seek advice or assistance from the National Office of the Federal Mediation and Conciliation Service, 2100 K Street, NW., Washington, DC 20006, or other mediation agencies.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2922.101-4</SECTNO>
              <SUBJECT>Removal of items from contractor facilities affected by work stoppages.</SUBJECT>
              <P>Before initiating any action under FAR 22.101-4 for removal of items from contractors' facilities, the contracting officer must obtain legal advice from the Office of the Solicitor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2922.103-4</SECTNO>
              <SUBJECT>Approvals.</SUBJECT>
              <P>The “agency approving official” as identified in FAR 22.103-4(a) and (b) is a manager, supervisor, or executive responsible for the contracting officer's technical representative (see 2901.603-71).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="34"/>
            <HD SOURCE="HED">Subpart 2922.8—Equal Employment Opportunity</HD>
            <SECTION>
              <SECTNO>2922.802</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>Executive Order 11246, as amended, sets forth the Equal Opportunity clause and requires that the Secretary of Labor promote full realization of equal opportunity for all persons regardless of race, color, religion, sex, or national origin. No DOL contracting officer may contract for supplies or services in a manner to avoid applicability of the requirements of E.O. 11246.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2923</EAR>
          <HD SOURCE="HED">PART 2923 ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2923.2—Energy And Water Efficiency and Renewable Energy.</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2923.271</SECTNO>
              <SUBJECT>Purchase and use of environmentally sound and energy efficient products and services.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c); 42 U.S.C. 8262(g).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2923.2—Energy And Water Efficiency and Renewable Energy</HD>
            <SECTION>
              <SECTNO>2923.271</SECTNO>
              <SUBJECT>Purchase and use of environmentally sound and energy efficient products and services.</SUBJECT>
              <P>The Department will implement policies and procedures that comply with the intent and specific goals mandated by the following statutes and executive orders and any other issuances as may be mandated to maximize cost efficient energy management:</P>

              <P>(a) The GSA Federal Supply Schedule Products Guide identifies the recycled and recycled-content items available in the GSA FSS supply system. Copies of the guide may be obtained, without cost, from the GSA, Centralized Mailing List Service, P.O. Box 6477, Fort Worth, Texas, 76115, or by calling (817) 334-5215. <E T="03">See also</E> GSA Advantage! at: <E T="03">www.gsaadvantage.gov.</E>
              </P>
              <P>(b) Executive Order 13123, <E T="03">Greening the Government Through Efficient Energy Management,</E> dated June 8, 1999, requires agencies to select for procurement those energy consuming goods or products which are the most life cycle cost-effective (<E T="03">see</E> FAR 7.101). Green purchasing includes the acquisition of recycled content products, environmentally preferable products and services, biobased products, energy- and water-efficient products, alternate fuel vehicles, and products using renewable energy.</P>
              <P>(1) To the extent practicable, each program official must require vendors of goods or products to provide appropriate data that can be used to assess the life cycle cost of each good or product, including building energy system components, lighting systems, office equipment and other energy using equipment.</P>
              <P>(2) In preparing solicitations and evaluating and selecting offers for award, contracting personnel must consider the life cycle cost data along with other relevant evaluation criteria. If life cycle costing is not used, the contract file must be documented to reflect the rationale for not obtaining and evaluating the data.</P>
              <P>(c) Executive Order 13101, <E T="03">Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition,</E> dated September 14, 1998, requires agencies to comply with executive branch policies for the acquisition and use of environmentally preferable products and services and implement cost-effective procurement preference programs favoring the purchase of these products and services.</P>
              <P>(d) Executive Order 13148, <E T="03">Greening the Government Through Leadership in Environmental Management Systems, dated April 21, 2000.</E> This Executive Order assists with developing an environmental management system. The following sources are provided as references for the subject matter indicated:</P>

              <P>(1) The Office of the Federal Environmental Executive provides references to all greening the Government executive orders, web links to other relevant cites, and information on biobased and bioenergy products. <E T="03">http://www.ofee.gov/gp/gp.htm.</E>
                <PRTPAGE P="35"/>
              </P>

              <P>(2) The Comprehensive Procurement Guidelines program is part of the Environmental Protection Agency's continued effort to promote the use of materials recovered from solid waste. This listing provides information on products made from recycled materials, such as the carpeting and insulation used in office buildings, or reams of office paper. <E T="03">www.epa.gov/cpg.</E>
              </P>

              <P>(3) ENERGY STAR is a government-backed program helping businesses and individuals protect the environment through superior energy efficiency. See also <E T="03">http://www.eere.energy.gov/femp/procurement.</E>
                <E T="03">www.energystar.gov.</E>
              </P>

              <P>(4) The Alternative Fuels Data Center is a one-stop shop for agency alternative fuel and vehicle information needs. <E T="03">http://www.afdc.nrel.gov.</E>
              </P>

              <P>(5) The Defense Logistics Agency has created an electronic mall for buying environmentally preferable products. <E T="03">www.emall.dla.mil.</E>
              </P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PARTS 2924-2927 [RESERVED]</HD>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="36"/>
        <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        <PART>
          <EAR>Pt. 2928</EAR>
          <HD SOURCE="HED">PART 2928—BONDS AND INSURANCE</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2928.2—Sureties and Other Security for Bonds</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2928.204</SECTNO>
              <SUBJECT>Alternatives in lieu of corporate or individual sureties.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2928.3—Insurance</HD>
              <SECTNO>2928.305</SECTNO>
              <SUBJECT>Overseas workers' compensation and war hazard insurance.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2928.2—Sureties and Other Security for Bonds</HD>
            <SECTION>
              <SECTNO>2928.204</SECTNO>
              <SUBJECT>Alternatives in lieu of corporate or individual sureties.</SUBJECT>

              <P>Upon receipt of any of the types of securities listed in FAR 28.20l or FAR 28.203, the contracting officer must verify the validity of the security and coordinate the retention of the security with the Chief Financial Officer. Contracting officers may obtain access to Department of Treasury Circular 570 through the Internet at <E T="03">http://www.fms.treas.gov/c570/index.html.</E>
              </P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2928.3—Insurance</HD>
            <SECTION>
              <SECTNO>2928.305</SECTNO>
              <SUBJECT>Overseas workers' compensation and war hazard insurance.</SUBJECT>

              <P>The authority of the Agency Head to recommend to the Secretary of Labor waiver of the applicability of the Defense Base Act (42 U.S.C. 1651, <E T="03">et seq.</E>) to any contract, subcontract, work location, or classification of employees, is delegated to the HCA.</P>
            </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>Application 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>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <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 must be referred by the contracting officer to the Office of the Solicitor for resolution.</P>
            </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 may only be treated as agents of the Government for the purposes set forth in FAR 29.303(a) upon 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 must be submitted by the HCA through the Office of the Solicitor, to the Division of Acquisition Management Services, for further action.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2930</EAR>
          <HD SOURCE="HED">PART 2930—COST ACCOUNTING STANDARDS ADMINISTRATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2930.2—CAS Program Requirements</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2930.201-5</SECTNO>
              <SUBJECT>Waiver.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2930.2—CAS Program Requirements</HD>
            <SECTION>
              <SECTNO>2930.201-5</SECTNO>
              <SUBJECT> Waiver.</SUBJECT>

              <P>(a) The HCA is authorized to waive CAS requirements as provided in FAR 30.201-5.<PRTPAGE P="37"/>
              </P>
              <P>(b) Requests for waivers under paragraph (a) of this subsection must be prepared by the contracting officer as prescribed in FAR 30.201-5(e) and submitted to the HCA.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2931</EAR>
          <HD SOURCE="HED">PART 2931—CONTRACT COST PRINCIPLES AND PROCEDURES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2931.1—Applicability</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2931.101</SECTNO>
              <SUBJECT>Objectives.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2931.1—Applicability</HD>
            <SECTION>
              <SECTNO>2931.101</SECTNO>
              <SUBJECT>Objectives.</SUBJECT>
              <P>Individual and class deviations from cost principles in FAR part 31 must be processed as prescribed in DOLAR subpart 2901.4.</P>
              <CITA>[69 FR 22991, Apr. 27, 2004]</CITA>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2932</EAR>
          <HD SOURCE="HED">PART 2932—CONTRACT FINANCING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2932.4—Advance Payments for Non-Commercial Items</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2932.402</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>2932.407</SECTNO>
              <SUBJECT>Interest.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2932.7—Contract Funding.</HD>
              <SECTNO>2932.703</SECTNO>
              <SUBJECT>Contract funding requirements.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2932.4—Advance Payments for Non-Commercial Items</HD>
            <SECTION>
              <SECTNO>2932.402</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>The HCA is authorized to approve determinations and findings as well as contract terms for advance payments. The contracting officer must submit a recommendation for approval or disapproval of the contractor's request to the HCA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2932.407</SECTNO>
              <SUBJECT>Interest.</SUBJECT>
              <P>The HCA may authorize advance payments without interest pursuant to FAR 32.407.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2932.7—Contract Funding</HD>
            <SECTION>
              <SECTNO>2932.703</SECTNO>
              <SUBJECT>Contract funding requirements.</SUBJECT>
              <P>(a) Except in unusual circumstances, the contracting office may not issue solicitations until an approved procurement request (PR), containing a certification that funds are available, has been received. However, the contracting office may take all necessary actions up to the point of contract obligation before receipt of the PR certifying that funds are available when:</P>
              <P>(1) The Assistant Secretaries, Inspector General, Bureau Chief, Deputy Under Secretary, Solicitor of Labor, Commissioner, or Director of the Women's Bureau certifies that such action is necessary to meet critical program schedules for their program area;</P>
              <P>(2) The Budget Officer certifies that program authority has been issued and funds to cover the acquisition will be available before the date set for receipt of proposals;</P>
              <P>(3) The solicitation includes the clause at FAR 52.232-18, Availability of Funds.</P>
              <P>(b) The contracting office may not open bids/close solicitations until a PR, either planning or final, has been received that contains a certification of fund availability. Only the project or program official with the authority to commit funds from the agency that initiated the PR may make that written certification.</P>
              <P>(c) The project or program office that initiated the PR is responsible for obtaining required certifications.</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 agency.</SUBJECT>
              <SECTNO>2933.104</SECTNO>
              <SUBJECT>Protests to GAO.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2933.2—Disputes And Appeals</HD>
              <SECTNO>2933.203</SECTNO>
              <SUBJECT>Applicability.<PRTPAGE P="38"/>
              </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>
              <SECTNO>2933.213</SECTNO>
              <SUBJECT>Obligation to continue performance.</SUBJECT>
              <SECTNO>2933.270</SECTNO>
              <SUBJECT>Department of Labor Board of Contract Appeals.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 40 U.S.C. 486(c); E.O. 12979, 60 FR 55171, 3 CFR, 1995 Comp., p. 417.</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2933.1—Protests</HD>
            <SECTION>
              <SECTNO>2933.102</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) The Division of Acquisition Management Services, 200 Constitution Ave., NW., S-1513 B, Washington, DC 20210-0001, telephone (202) 693-7285, facsimile (202) 693-7290 (or the Office acting in that capacity), is responsible for coordinating procurement protests filed with the General Accounting Office.</P>
              <P>(b) The authority of the Assistant Secretary for Administration and Management under FAR 33.102(b) to determine that a solicitation, proposed award, or award does not comply with the requirements of law or regulation may be delegated to the HCA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.103</SECTNO>
              <SUBJECT>Protests to the agency.</SUBJECT>
              <P>(a) In accordance with Executive Order 12979, the following procedures apply to agency protests:</P>
              <P>(1) The filing time frames in FAR 33.103(e) apply to agency protests. An agency protest is filed when the protest complaint is received at the location the solicitation designates for serving protests; or if none is designated, when filed with a contracting officer or HCA.</P>
              <P>(2) An interested party filing an agency protest may request either that the contracting officer or the Agency Protest Official decide the protest. The “Agency Protest Official” is an individual above the level of the contracting officer and designated by the Assistant Secretary for Administration and Management, such as the Competition Advocate. The deciding official, whether a contracting officer or Agency Protest Official, must work in consultation with the Office of the Solicitor to resolve the protest.</P>
              <P>(3) In addition to the information required by FAR 33.103(d)(2), the protest must:</P>
              <P>(i) Indicate that it is a protest to the agency;</P>
              <P>(ii) Be contemporaneously filed with the contracting officer;</P>
              <P>(iii) State whether the protestor chooses to have the contracting officer or the Agency Protest Official decide the protest. If the protest is silent on this matter, the contracting officer will decide the protest.</P>
              <P>(b) “Interested Party” means an actual or prospective offeror whose direct economic interest would be affected by the award of a contract or by the failure to award a contract.</P>
              <P>(c) If the Agency Protest Official is chosen by the protestor to decide the protest, this is an alternative to a decision by the contracting officer, not an appeal. The Agency Protest Official will not consider appeals from a contracting officer's decision on an agency protest.</P>
              <P>(d) The deciding official should consider conducting a scheduling conference with the protestor within five (5) days after the protest is filed. The scheduling conference will establish deadlines for written arguments in support of the agency protest and for agency officials to present information in response to the protest issues. Alternative Dispute Resolution techniques will be considered if determined appropriate by the deciding official.</P>
              <P>(e) Oral conferences may take place either by telephone or in person. Other parties may attend at the discretion of the deciding official.</P>
              <P>(f) Apart from its protest document, the protestor will be given only one opportunity to support or explain in writing the substance of its protest. Department of Labor procedures do not provide for any discovery. The deciding official has discretion to request additional information from either the agency or the protestor. However, the deciding official will normally decide protests on the basis of information provided by the protestor and the agency.</P>

              <P>(g) The preferred practice is to resolve protests through informal oral discussion.<PRTPAGE P="39"/>
              </P>
              <P>(h) An interested party may represent itself or be represented by legal counsel. The Department of Labor will not reimburse the protester for any legal fees or costs related to the agency protest.</P>
              <P>(i) If an agency protest is received before contract award, the contracting officer may only make award if the HCA makes a determination to proceed under FAR 33.103(f)(1). Similarly, if an agency protest is filed within ten (10) days after award, or within five (5) days of the offer of a debriefing required by FAR 15.505 or 15.506, whichever is later, the contracting officer must suspend performance of the contract unless the HCA makes a determination to proceed under FAR 33.103(f)(3). Any stay of award or suspension of performance remains in effect until the protest is decided, dismissed, or withdrawn.</P>
              <P>(j) The deciding official must make a best effort to issue a decision on the protest within twenty (20) days after the filing date. The decision may be oral or written, dependent upon advice of legal counsel.</P>
              <P>(k) The deciding official must send a confirming letter within three (3) days after the decision using a means that provides evidence of receipt. The confirming letter must include the following information:</P>
              <P>(1) State whether the protest was denied, sustained or dismissed.</P>
              <P>(2) Indicate the date the decision was provided.</P>
              <P>(3) If the deciding official sustains the protest, relief may consist of any of the following:</P>
              <P>(i) Recommendation that the contract be terminated for convenience or cause, or that the solicitation be canceled.</P>
              <P>(ii) Recompeting the requirement from the beginning of the solicitation or from the last round of negotiations.</P>
              <P>(iii) Amending the solicitation.</P>
              <P>(iv) Refraining from exercising contract options.</P>
              <P>(v) Awarding a contract consistent with statute, regulation, and the terms of the solicitation.</P>
              <P>(vi) Other action that the deciding official determines is appropriate.</P>
              <P>(l) If the deciding official sustains a protest, then within 30 days after receiving the official's recommendations for relief, the contracting officer must either:</P>
              <P>(1) Fully implement the recommended relief; or</P>
              <P>(2) Notify the deciding official, if the contracting officer was not the deciding official, in writing, if any recommendations have not been implemented and explain why.</P>
              <P>(m) If the protest is denied, and contract performance has been suspended under paragraph (i) of this section, the contracting officer will not lift such suspension until five (5) days after the protest decision has been issued, to allow the protester to file a protest with the General Accounting Office, unless the HCA makes a new finding under FAR 33.103(f)(3). The contracting officer shall consider allowing such suspension to remain in effect pending the resolution of any GAO proceeding.</P>
              <P>(n) Proceedings on an agency protest may be dismissed or stayed if a protest on the same or similar basis is filed with a protest forum outside of the Department of Labor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.104</SECTNO>
              <SUBJECT>Protests to GAO.</SUBJECT>
              <P>(a) <E T="03">General procedures.</E> The HCA has the responsibility to prepare and provide to the General Accounting Office (GAO) the agency report with the information required by FAR 33.104(a). The agency report must be coordinated with the Office of the Solicitor before the report is signed and sent to the GAO.</P>
              <P>(b) <E T="03">Protests before award.</E> The authority of the HCA under FAR 33.104(b) to authorize a contract award when the agency has received notice from the GAO of a protest filed directly with the GAO is nondelegable. The HCA has the responsibility to prepare and provide to the GAO the written finding with the information required by FAR 33.104(b)(1). The written finding must be coordinated with Office of the Solicitor before the HCA affirms its approval by signing the written finding and sending it to the GAO. Copies of the signed written finding and the signed written notice to the GAO must be provided to the Senior Procurement Executive within two (2) working days after they are sent to the GAO.<PRTPAGE P="40"/>
              </P>
              <P>(c) <E T="03">Protests after award.</E> The authority of the HCA under FAR 33.104(c) to authorize contract performance when the agency has received notice from the GAO of a protest filed directly with the GAO is nondelegable. The HCA has the responsibility to prepare and provide to the GAO the written finding with the information required by FAR 33.104(c)(2). The written finding must be coordinated with the Office of the Solicitor before the notice is signed by the HCA and sent to the GAO.</P>
              <P>(d) <E T="03">Notice to the GAO.</E> The authority of the HCA under FAR 33.104(g), to report to the GAO the failure to fully implement the GAO recommendations with respect to a solicitation for a contract or an award or a proposed award of a contract within 60 days of receiving the GAO recommendations, is nondelegable. The written notice must be coordinated with the Office of the Solicitor before the notice is signed by the HCA and sent to the GAO. A copy of all notices to the GAO submitted in accordance with FAR 33.104(g) must be provided to the Senior Procurement Executive within (two) working days after they are sent to the GAO.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2933.2—Disputes and Appeals</HD>
            <SECTION>
              <SECTNO>2933.203</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>The authority of the Agency Head to determine that the application of the Contract Disputes Act of 1978 to any contract with a foreign government or agency of that government, or an international organization or a subsidiary body of that organization, would not be in the public interest is delegated to the HCA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.209</SECTNO>
              <SUBJECT>Suspected fraudulent claims.</SUBJECT>
              <P>The contracting officer must refer all matters relating to suspected fraudulent claims by a contractor under the conditions in FAR 33.209 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) must include, in the paragraph listed under FAR 33.211(a)(4)(v), specific reference to the Department of Labor Board of Contract Appeals (LBCA), 800 K Street, NW, Suite 400 North, Washington, DC 20001-8002.</P>
            </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 must endorse on the appeal the date of mailing (or the date of receipt if the notice was not mailed). The contracting officer must also notify the Solicitor of Labor of the appeal.</P>
              <P>(b) The contracting officer should prepare and transmit the administrative file for the Office of the Solicitor and assist with the appeal.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.213</SECTNO>
              <SUBJECT>Obligation to continue performance.</SUBJECT>
              <P>The contracting officer must include the clause at FAR 52.233-1, Disputes (Alternate I), in contracts where continued performance is necessary pending resolution of any claim arising under or relating to the contract.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2933.270</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 LBCA rules of procedure are contained in 41 CFR part 29-60.104, appearing in the July 1, 1983, edition of 41 CFR, subtitle A, chapters 19-100.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PARTS 2934-2935 [RESERVED]</HD>
        </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>2936.209</SECTNO>
              <SUBJECT>Construction contracts with architect-engineer firms.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <PRTPAGE P="41"/>
              <HD SOURCE="HED">Subpart 2936.5—Contract Clauses</HD>
              <SECTNO>2936.516</SECTNO>
              <SUBJECT>Quality 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 board 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 $100,000.</SUBJECT>
              <SECTNO>2936.603</SECTNO>
              <SUBJECT>Collecting data on and appraising firms' qualifications.</SUBJECT>
              <SECTNO>2936.604</SECTNO>
              <SUBJECT>Performance evaluation.</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>69 FR 22991, Apr. 27, 2004, 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>The HCA must establish procedures to evaluate construction contractor performance and prepare performance reports as required by FAR 36.201.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.209</SECTNO>
              <SUBJECT>Construction contracts with architect-engineer firms.</SUBJECT>
              <P>As required by FAR 36.209, no contract for construction of a project may be awarded to the firm that designed the project, or to its subsidiaries or affiliates, without the written approval of the Assistant Secretary for Administration and Management. Any request for approval must 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>Quality surveys.</SUBJECT>
              <P>The HCA 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>HCAs 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>HCAs must establish procedures to provide permanent or ad hoc architect-engineer evaluation boards as prescribed in FAR 36.602-2. Procedures must provide for the appointment of private practitioners of architecture, engineering, or related professions when such action is determined in writing by the HCA to be essential to meeting the Government's minimum needs.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.602-3</SECTNO>
              <SUBJECT>Evaluation board functions.</SUBJECT>
              <P>The selection report required in FAR 36.602-3(d) must be prepared for the approval of the HCA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.602-4</SECTNO>
              <SUBJECT>Selection Authority.</SUBJECT>
              <P>The HCA is authorized to serve as the designated Selection Authority in accordance with FAR 36.602-1.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.602-5</SECTNO>
              <SUBJECT>Short selection processes for contracts not to exceed $100,000.</SUBJECT>
              <P>The selection process prescribed in FAR 36.602-5(b) must be used for architect-engineer contracts not exceeding the simplified acquisition threshold.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2936.603</SECTNO>
              <SUBJECT>Collecting data on and appraising firms'qualifications.</SUBJECT>
              <P>(a) HCAs who acquire architect-engineer services must establish procedures to comply with the requirements of FAR 36.603.</P>
              <P>(b) Copies of procedures established under paragraph (a) of this section must be submitted to the Division of Acquisition Management Services, for review and recommendation for approval to the HCA when updated. These procedures must include a list of names, addresses, and telephone numbers of offices or boards assigned to maintain architect-engineer qualification data files.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="42"/>
              <SECTNO>2936.604</SECTNO>
              <SUBJECT>Performance evaluation.</SUBJECT>
              <P>(a) The HCA must establish procedures to evaluate architect-engineer contractor performance as required in FAR 36.604. Normally, the performance report must 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 must prescribe instructions for review of the report, before distribution, as prescribed in FAR 36.604(b).</P>
              <P>(b) Performance reports must 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 and written comments by the contractor, must also be attached to the report.</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>
              <SECTNO>2937.103-70</SECTNO>
              <SUBJECT>Department of Labor checklist to aid analysis and review of requirements for service contracts.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2937.2—Advisory and Assistance Services</HD>
              <SECTNO>2937.203</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2937.6—Preference for Performance-Based Contracting (PBC)</HD>
              <SECTNO>2937.602</SECTNO>
              <SUBJECT>Elements of performance-based contracting.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2937.1—Service Contracts-General</HD>
            <SECTION>
              <SECTNO>2937.103</SECTNO>
              <SUBJECT>Contracting officer responsibility.</SUBJECT>
              <P>The HCA is responsible for establishing internal review and approval procedures for service contracts in accordance with OFPP Policy Letter 93-1 (Reissued), “Management Oversight of Service Contracting”. As defined by FAR 37.101, contracts for personal services are permitted under the circumstances in 5 U.S.C. 3109.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2937.103-70</SECTNO>
              <SUBJECT>Department of Labor checklist to aid analysis and review of requirements for service contracts.</SUBJECT>
              <P>Contracting specialists and contracting officers must work in close collaboration with the beneficiaries of the services being purchased to ensure that contractor performance meets contract requirements and performance standards.</P>
              <P>(a) <E T="03">General.</E> Following is a checklist to aid analysis and review of requirements for service contracts.</P>
              <P>(1) Is the statement of work complete, with a clear-cut division of responsibility between the contracting parties?</P>
              <P>(2) Is the statement of work discussed in terms the market can satisfy?</P>
              <P>(3) Does the statement of work encompass all commercially available services that can meet the actual functional need (eliminates any nonessential preferences that may thwart full and open competition)?</P>

              <P>(4) Is the statement of work performance-based to the maximum extent possible (<E T="03">i.e.,</E> is the acquisition structured around the purpose of the work to be performed, as opposed to either the manner by which the work is to be performed or a broad and imprecise statement of work)?</P>
              <P>(b) <E T="03">Cost effectiveness.</E> If the response to any of the following questions is negative, the agency may not have a valid requirement or not be obtaining the requirement in the most cost effective manner.</P>
              <P>(1) Is the statement of work written so that it supports the need for a specific service?</P>
              <P>(2) Is the statement of work written so that it permits adequate evaluation of contractor versus in-house cost and performance?</P>

              <P>(3) Are the choices of contract type, quality assurance plan, competition strategy, or other related acquisition strategies and procedures in the acquisition plan appropriate to ensure good <PRTPAGE P="43"/>contractor performance to meet the user's needs?</P>
              <P>(4) If a cost reimbursement contract is contemplated, is the acquisition plan adequate to ensure that the contractor will have the incentive to control costs under the contract?</P>
              <P>(5) Is the acquisition plan adequate to address the cost effectiveness of using contractor support (either long-term or short-term) versus in-house performance?</P>
              <P>(6) Is the cost estimate or other supporting cost information adequate to enable the contracting office to effectively determine whether costs are reasonable?</P>
              <P>(7) Is the statement of work adequate to describe the requirement in terms of “what” is to be performed as opposed to “how” the work is to be accomplished?</P>
              <P>(8) Is the acquisition plan adequate to ensure that there is proper consideration given to “quality” and “best value?”</P>
              <P>(c) <E T="03">Control.</E> If the response to any of the following questions is negative, there may be a control problem.</P>
              <P>(1) Are there sufficient resources to evaluate contractor performance when the statement of work requires the contractor to provide advice, analysis and evaluation, opinions, alternatives, or recommendations that could significantly influence agency policy development or decision-making?</P>
              <P>(2) Does the quality assurance plan provide for adequate monitoring of contractor performance?</P>
              <P>(3) Is the statement of work written so that it specifies a contract deliverable or requires progress reporting on contractor performance?</P>
              <P>(4) Is agency expertise adequate to independently evaluate the contractor's approach, methodology, results, options, conclusions or recommendations?</P>
              <P>(d) <E T="03">Conflicts of interest.</E> If the response to any of the following questions is affirmative, there may be a conflict of interest.</P>
              <P>(1) Can the potential offeror perform under the contract to devise solutions or make recommendations that would influence the award of future contracts to that contractor?</P>
              <P>(2) If the requirement is for support services (such as system engineering or technical direction), were any of the potential offerors involved in developing the system design specifications or in the production of the system?</P>
              <P>(3) Has a potential offeror participated in earlier work involving the same program or activity that is the subject of the present contract, wherein the offeror had access to source selection or proprietary information not available to other offerors competing for the contract?</P>
              <P>(4) Will the contractor be evaluating a competitor's work?</P>
              <P>(5) Does the contract allow the contractor to accept its own products or activities on behalf of the Government?</P>

              <P>(6) Will the work under this contract put the contractor in a position to influence government decision-making, <E T="03">e.g.,</E> developing regulations that will affect the contractor's current or future business?</P>
              <P>(7) Will the work under this contract affect the interests of the contractor's other clients?</P>
              <P>(8) Are any of the potential offerors, or their personnel who will perform the contract, former agency officials who—while employed by the agency—personally and substantially participated in the development of the requirement for, or the procurement of, these services within the past two years?</P>
              <P>(e) <E T="03">Competition.</E> If the response to any of the following questions is negative, competition may be unnecessarily limited.</P>
              <P>(1) Is the statement of work defined so as to avoid overly restrictive specifications or performance standards?</P>
              <P>(2) Is the contract formulated in such a way as to avoid creating a continuous and dependent arrangement with the same contractor?</P>
              <P>(3) Is the use of an indefinite quantity or term contract arrangement appropriate to obtain the required services?</P>
              <P>(4) Will the requirement be obtained through the use of full and open competition?</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="44"/>
            <HD SOURCE="HED">Subpart 2937.2—Advisory and Assistance Services</HD>
            <SECTION>
              <SECTNO>2937.203</SECTNO>
              <SUBJECT>Policy.</SUBJECT>

              <P>(a) HCAs having a requirement for certain advisory and assistance services are required by the Department of Labor Manual Series (<E T="03">See</E> DLMS 2 836) to prepare a written justification for such services. Written justification must be submitted to the Assistant Secretary for Administration and Management for review by the Procurement Review Board, for Assistant Secretary for Administration and Management approval.</P>
              <P>(b) Regardless of the type of action planned, the justification in paragraph (a) of this section must 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 need, and the results expected.</P>
              <P>(3) Extent to which in-house staff availability was assessed, and the reasons why procurement of outside services is necessary.</P>
              <P>(4) Any additional information or data that support the requirement for a contract.</P>
              <P>(5) 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>(6) A statement that the Government policy on advisory and assistance services has been reviewed and complies with FAR 37.203.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2937.6—Preference for Performance-Based Contracting (PBC)</HD>
            <SECTION>
              <SECTNO>2937.602</SECTNO>
              <SUBJECT>Elements of performance-based contracting.</SUBJECT>

              <P>(a) Performance-based contracting is defined in FAR 37.101 and discussed in FAR 37.6. Although FAR Part 37 primarily addresses services contracts, PBC is not limited to these contracts. PBC is the preferred way of contracting for services. (<E T="03">See</E> exceptions listed in FAR 37.102.) Generally, when contract performance risk under a PBC specification can be shifted to the contractor to allow for the operation of objective incentives, a contract type with objectively measurable incentives (<E T="03">e.g.,</E> Firm-Fixed-Price, Fixed-Price-Incentive-Fee, or Cost-Plus-Incentive-Fee) is appropriate. However, when contractor performance (<E T="03">e.g.,</E> cost control, schedule, or quality/technical) is best evaluated subjectively using qualitative measures, a Cost-Plus-Award-Fee contract may be used.</P>
              <P>(b) A labor hour level-of-effort contract is not considered a PBC.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PARTS 2938—2941 [RESERVED]</HD>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="45"/>
        <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        <PART>
          <EAR>Pt. 2942</EAR>
          <HD SOURCE="HED">PART 2942—CONTRACT ADMINISTRATION AND AUDIT SERVICES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2942.1—Contract Audit Services</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2942.101</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2942.15—Contractor Performance Information</HD>
              <SECTNO>2942.1501</SECTNO>
              <SUBJECT>Scope.</SUBJECT>
              <SECTNO>2942.1502</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>2942.1503</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <AUTH>
                <HD SOURCE="HED">Authority:</HD>
                <P>5 U.S.C. 301, 40 U.S.C. 486(c).</P>
              </AUTH>
            </SUBPART>
          </CONTENTS>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2942.1—Contract Audit Services</HD>
            <SECTION>
              <SECTNO>2942.101</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>The OASAM Division of Cost Determination is responsible for establishing billing rates and indirect cost rates as prescribed in FAR 42.7 for the Department of Labor.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2942.15—Contractor Performance Information</HD>
            <SECTION>
              <SECTNO>2942.1501</SECTNO>
              <SUBJECT>Scope.</SUBJECT>
              <P>This subpart provides policies and procedures for evaluating, maintaining, and releasing contractor performance information under DOL contracts.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2942.1502</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>DOL contracting officers are required to use or interface with the Past Performance Information Retrieval System (PPIRS), and specifically the National Institutes of Health's Contractor Performance System. The HCA is responsible for ensuring that a contractor performance evaluation system is generated to meet the requirements of FAR subpart 42.15, including compliance with subcontracting plans. Contracts, task orders, and delivery orders, exceeding the simplified acquisition threshold, should be formally evaluated in writing. Interim evaluations should be performed on contracts exceeding one year in duration. This will assist contractors with improving marginal performance and identifying any major deficiencies. It will also facilitate performance evaluations at contract completion, as well as determining whether to exercise contract options, if any.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2942.1503</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>(a) In accordance with FAR 42.1502, the contracting officer will prepare an interim evaluation of a contractor's performance at least annually for submission to the Past Performance Information Retrieval System (PPIRS), and specifically the Contractor Performance System maintained by the National Institutes of Health.</P>
              <P>(b) The contracting officer, or designee, must determine who will evaluate a contractor's performance. The contracting officer's technical representative, program manager, contract specialists or administrators, and users are candidates likely to be selected to perform the evaluation.</P>
              <P>(c) A contractor's performance evaluation should be obtained from a person who monitored contractor performance when that individual's assignment of duties or employment terminates before physical completion of the contract. The areas of performance to be selected for evaluation should be tailored to the type of supplies or services normally acquired by the contracting activities and the type of contract. HCAs must ensure uniformity of the evaluation criteria within their contracting activities.</P>
              <P>(d) Release of contractor performance evaluation information.</P>
              <P>(1) Requests for performance evaluation information from the public must be processed in accordance with FOIA, as implemented by DOL under 29 CFR part 70.</P>

              <P>(2) Release of a contractor's performance evaluation information to other Federal agencies is subject to FAR 42.1502. When the performance evaluation information is released to other federal agencies, it should be provided with a written statement that it is nonpublic information that must be <PRTPAGE P="46"/>processed under FOIA principles if a request for its disclosure is received.</P>

              <P>(e) Even though the retention period for past performance evaluation information is three years (<E T="03">see</E> FAR 42.1503), the contractor's performance evaluation, any contractor rebuttal, and final decision become a part of the contract file. Therefore, disposal of the contractor's evaluation information must be accomplished in accordance with FAR 4.804.</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>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2943.2—Change Orders</HD>
            <SECTION>
              <SECTNO>2943.205</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>HCAs may establish procedures, or office policies, 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.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2943.3—Forms</HD>
            <SECTION>
              <SECTNO>2943.301</SECTNO>
              <SUBJECT>Use of forms.</SUBJECT>
              <P>(a) FAR 43.301(a)(1)(vi) requires the use of Standard Form 30 (SF-30) to execute any obligation or deobligation of contract funds after award. FAR 13.307(c)(3) allows, and the Department of Labor prefers, the use of the SF-30 for simplified acquisitions. The SF-30 also must be used to deobligate funds when effecting contract closeout 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.</P>
              <P>(b) The contracting officer must include, in any unilateral contract modification issued for contract closeout, a statement that the contractor has signed a release of claims and indicate the date the release of claims was signed by the contractor.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2944</EAR>
          <HD SOURCE="HED">PART 2944—SUBCONTRACTING POLICIES AND PROCEDURES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2944.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2944.101</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2944.2—Consent To Subcontract</HD>
              <SECTNO>2944.201-1</SECTNO>
              <SUBJECT>Consent requirements.</SUBJECT>
              <SECTNO>2944.202</SECTNO>
              <SUBJECT>Contracting officer's evaluation.</SUBJECT>
              <SECTNO>2944.202-2</SECTNO>
              <SUBJECT>Considerations.</SUBJECT>
              <SECTNO>2944.203</SECTNO>
              <SUBJECT>Consent limitations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2944.3—Contractors' Purchasing Systems Reviews</HD>
              <SECTNO>2944.302</SECTNO>
              <SUBJECT>Requirements. </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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2944.1—General.</HD>
            <SECTION>
              <SECTNO>2944.101</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <P>The waiver of consent must be in writing, signed by the contracting officer, and included in the contract file. The waiver must include all supporting facts, including the rationale for waiving the consent to subcontract requirements.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2944.2—Consent To Subcontract</HD>
            <SECTION>
              <SECTNO>2944.201-1</SECTNO>
              <SUBJECT>Consent requirements.</SUBJECT>
              <P>In accordance with FAR 44.201-1(b) or FAR 44.201-2, advance notification and agreement are required for all cost-reimbursement, time-and-materials, or labor-hour subcontracts exceeding the simplified acquisition threshold.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2944.202</SECTNO>
              <SUBJECT>Contracting officer's evaluation.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>2944.202-2</SECTNO>
              <SUBJECT>Considerations.</SUBJECT>
              <P>The review required by FAR 44.202-2(a) must be documented in writing (including supporting facts and rationale), signed by the contracting officer, and included in the contract file.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="47"/>
              <SECTNO>2944.203</SECTNO>
              <SUBJECT>Consent limitations.</SUBJECT>
              <P>Any limitations placed on the consent to subcontract must be documented in writing (including supporting facts and rationale), signed by the contracting officer, and included in the contract file.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2944.3—Contractors' Purchasing Systems Reviews</HD>
            <SECTION>
              <SECTNO>2944.302</SECTNO>
              <SUBJECT>Requirements.</SUBJECT>
              <P>The authority of the Assistant Secretary for Administration and Management under FAR 44.302(a), to raise or lower the $25 million review level for a contractor's purchasing system, may not be delegated. When a contractor's purchasing system review is required by the contracting officer, the effort must be coordinated with the OASAM Business Operations Center's Division of Acquisition Management Services and the Division of Cost Determination.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2945</EAR>
          <HD SOURCE="HED">PART 2945—GOVERNMENT PROPERTY</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2945.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2945.104</SECTNO>
              <SUBJECT>Review and correction of contractors' property control systems.</SUBJECT>
              <SECTNO>2945.105</SECTNO>
              <SUBJECT>Records of Government property.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2945.3—Providing Government Property to Contractors</HD>
              <SECTNO>2945.302</SECTNO>
              <SUBJECT>Providing facilities.</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>
            </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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2945.1—General</HD>
            <SECTION>
              <SECTNO>2945.104</SECTNO>
              <SUBJECT>Review and correction of contractors' property control systems.</SUBJECT>
              <P>When the Government's property administrator determines that review and approval of the contractor's property control system rests with DOL, the Government's property administrator must review the system to determine whether the contractor will be able to meet the requirements of FAR 45.104. The review must be completed, signed by the appointed property administrator, and retained in the contract file.</P>
            </SECTION>
            <SECTION>
              <SECTNO>2945.105</SECTNO>
              <SUBJECT>Records of Government property.</SUBJECT>
              <P>Contracting officers must maintain a file on any Government-furnished property (GFP) in the possession of contractors. As a minimum, the file must contain the following:</P>
              <P>(a) A copy of the applicable portions of the contract that list the GFP;</P>
              <P>(b) Contracting officer's letters assigning the GFP administrator to the contract;</P>
              <P>(c) Written evidence that the contractor's property control system was reviewed and approved as required by FAR 45.104;</P>
              <P>(d) If applicable, documentation of the request and approval or denial of the contractor's requests to acquire or fabricate special test equipment in accordance with FAR 45.307 or other property;</P>
              <P>(e) The contractor's written notice of receipt of the GFP and any reported discrepancies thereto, as required by FAR 45.502-1 and 45.502-2, respectively;</P>
              <P>(f) Any other documents pertaining to or affecting the status of the GFP in the possession of contractors or subcontractors under the contract;</P>
              <P>(g) Documentation of the screening and disposal of all GFP as required by FAR 45.6.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2945.3—Providing Government Property to Contractors</HD>
            <SECTION>
              <SECTNO>2945.302</SECTNO>
              <SUBJECT>Providing facilities.</SUBJECT>
              <P>The HCA is authorized to make the determination to provide facilities to a contractor as prescribed in FAR 45.302-1(a)(4).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="48"/>
            <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 HCA must make the determination to charge rent on the basis of use under the clause at FAR 52.245-9 when the contracting officer provides access to Government production and research property, as prescribed in FAR 45.403(a).</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PARTS 2946-2951 [RESERVED]</HD>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="49"/>
        <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>
            <SUBPART>
              <HD SOURCE="HED">Subpart 52.2—Text of Provisions and Clauses</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2952.201-70</SECTNO>
              <SUBJECT>Contracting Officer's Technical Representative (COTR). </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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 52.2—Text of Provisions and Clauses</HD>
            <SECTION>
              <SECTNO>2952.201-70</SECTNO>
              <SUBJECT>Contracting Officer's Technical Representative (COTR).</SUBJECT>

              <P>Insert the following clause into contracts requiring COTR representation under 2901.603.71:
              </P>
              <EXTRACT>
                <P>
                  <E T="03">Contracting officer's technical representative (COTR)</E> May 2004</P>
                <P>(a) Mr./Ms. (Name) of (Organization) (Room No.), (Building), (Address), (Area Code &amp; Telephone No.), is hereby designated to act as contracting officer's technical representative (COTR) under this contract.</P>
                <P>(b) The COTR is responsible, as applicable, for: receiving all deliverables; inspecting and accepting the supplies or services provided hereunder in accordance with the terms and conditions of this contract; providing direction to the contractor which clarifies the contract effort, fills in details or otherwise serves to accomplish the contractual scope of work; evaluating performance; and certifying all invoices/vouchers for acceptance of the supplies or services furnished for payment.</P>
                <P>(c) The COTR does not have the authority to alter the contractor's obligations under the contract, and/or modify any of the expressed terms, conditions, specifications, or cost of the agreement. If, as a result of technical discussions, it is desirable to alter/change contractual obligations or the scope of work, the contracting officer must issue such changes.</P>
              </EXTRACT>
              
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 2953</EAR>
          <HD SOURCE="HED">PART 2953—FORMS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 2953.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>2953.100</SECTNO>
              <SUBJECT>Request for Recommendation by Procurement Review Board DL 1-490.</SUBJECT>
              <SECTNO>2953.101</SECTNO>
              <SUBJECT>Simplified Acquisition Documentation Checklist DL 1-2216.</SUBJECT>
              <SECTNO>2953.102</SECTNO>
              <SUBJECT>Quotation for Simplified Acquisitions DL 1-2078.</SUBJECT>
              <SECTNO>2953.103</SECTNO>
              <SUBJECT>Acquisition Screening and Review—over $100,000 DL 1-2004.</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>69 FR 22991, Apr. 27, 2004, unless otherwise noted.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 2953.1—General</HD>
            <SECTION>
              <SECTNO>2953.100</SECTNO>
              <SUBJECT>Request for Recommendation by Procurement Review Board DL 1-490.</SUBJECT>
              <P>The following form must be used by the requisitioning office to submit a request for review by the Procurement Review Board as specified in DOLAR 2901 and 2943. This form must be submitted through the Assistant Secretary for the program office to the Director, Division of Acquisition Management Services, for scheduling before the Procurement Review Board.</P>
              <GPH DEEP="459" SPAN="2">
                <PRTPAGE P="50"/>
                <GID>ER27AP04.000</GID>
              </GPH>
              <GPH DEEP="454" SPAN="2">
                <PRTPAGE P="51"/>
                <GID>ER27AP04.001</GID>
              </GPH>
              <GPH DEEP="470" SPAN="2">
                <PRTPAGE P="52"/>
                <GID>ER27AP04.002</GID>
              </GPH>
              <GPH DEEP="470" SPAN="2">
                <PRTPAGE P="53"/>
                <GID>ER27AP04.003</GID>
              </GPH>
            </SECTION>
            <SECTION>
              <PRTPAGE P="54"/>
              <SECTNO>2953.101</SECTNO>
              <SUBJECT>Simplified Acquisition Documentation Checklist DL 1-2216.</SUBJECT>
              <P>The following checklist must be used to document all simplified acquisitions at or below the simplified acquisition threshold.</P>
              <GPH DEEP="470" SPAN="2">
                <PRTPAGE P="55"/>
                <GID>ER27AP04.004</GID>
              </GPH>
            </SECTION>
            <SECTION>
              <PRTPAGE P="56"/>
              <SECTNO>2953.102</SECTNO>
              <SUBJECT>Quotation for Simplified Acquisitions DL 1-2078.</SUBJECT>
              <P>The following form must be used to document all simplified acquisitions above the micro-purchase threshold and below the simplified acquisition threshold. This form may also be used to document commercial acquisitions on a fixed price basis up to $5 million.</P>
              <GPH DEEP="459" SPAN="2">
                <GID>ER27AP04.005</GID>
              </GPH>
            </SECTION>
            <SECTION>
              <PRTPAGE P="57"/>
              <SECTNO>2953.103</SECTNO>
              <SUBJECT>Acquisition Screening and Review—over $100,000 DL 1-2004.</SUBJECT>

              <P>The requiring organization must complete the following form for all acquisitions above the <E T="03">simplified acquisition threshold.</E> This form will then be submitted through the contracting officer to the Office of Small Business Programs for review.</P>
              <GPH DEEP="448" SPAN="2">
                <GID>ER27AP04.006</GID>
              </GPH>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 30 (10-1-04 Edition)</LRH>
      <RRH>Homeland Security Department</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="59"/>
          <HD SOURCE="HED">CHAPTER 30—DEPARTMENT OF HOMELAND SECURITY, HOMELAND SECURITY ACQUISITION REGULATION (HSAR)</HD>
          <P>(Parts 3000 to 3099)</P>
        </TOCHD>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        </SUBCHAP>
        <PTHD>Part</PTHD>
        <PGHD>Page</PGHD>
        <CHAPTI>
          <PT>3001</PT>
          <SUBJECT>Federal Acquisition Regulations System</SUBJECT>
          <PG>61</PG>
          <PT>3002</PT>
          <SUBJECT>Definitions of words and terms</SUBJECT>
          <PG>66</PG>
          <PT>3003</PT>
          <SUBJECT>Improper business practices and personal conflicts Of interest</SUBJECT>
          <PG>67</PG>
          <PT>3004</PT>
          <SUBJECT>Administrative matters</SUBJECT>
          <PG>68</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER B—ACQUISITION PLANNING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3005</PT>
          <SUBJECT>Publicizing contract actions</SUBJECT>
          <PG>71</PG>
          <PT>3006</PT>
          <SUBJECT>Competition requirements</SUBJECT>
          <PG>71</PG>
          <PT>3007</PT>
          <RESERVED>Acquisition planning [Reserved]</RESERVED>
          <PT>3008</PT>
          <RESERVED>Required sources of supplies and services [Reserved]</RESERVED>
          <PT>3009</PT>
          <SUBJECT>Contractor qualifications</SUBJECT>
          <PG>72</PG>
          <PT>3010</PT>
          <RESERVED>Market research [Reserved]</RESERVED>
          <PT>3011</PT>
          <SUBJECT>Describing agency needs</SUBJECT>
          <PG>74</PG>
          <PT>3012</PT>
          <RESERVED>Acquisition of commercial items [Reserved]</RESERVED>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER C—CONTRACT METHODS AND CONTRACT TYPES</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3013</PT>
          <SUBJECT>Simplified acquisition procedures</SUBJECT>
          <PG>77</PG>
          <PT>3014</PT>
          <RESERVED>Sealed bidding [Reserved]</RESERVED>
          <PT>3015</PT>
          <SUBJECT>Contracting by negotiation</SUBJECT>
          <PG>78</PG>
          <PT>3016</PT>
          <SUBJECT>Types of contracts</SUBJECT>
          <PG>79</PG>
          <PT>3017</PT>
          <SUBJECT>Special contracting methods</SUBJECT>
          <PG>80</PG>
          <PT>3018</PT>
          <RESERVED>[Reserved]</RESERVED>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3019</PT>
          <SUBJECT>Small business programs</SUBJECT>
          <PG>83</PG>
          <PT>3020-3021</PT>
          <RESERVED>[Reserved]<PRTPAGE P="60"/>
          </RESERVED>
          <PT>3022</PT>
          <SUBJECT>Application of labor laws to government acquisitions</SUBJECT>
          <PG>83</PG>
          <PT>3023</PT>
          <SUBJECT>Environment, conservation, occupational safety, and drug-free workplace</SUBJECT>
          <PG>85</PG>
          <PT>3024</PT>
          <SUBJECT>Protection of privacy and freedom of information</SUBJECT>
          <PG>85</PG>
          <PT>3025</PT>
          <RESERVED>Foreign acquisition [Reserved]</RESERVED>
          <PT>3026</PT>
          <RESERVED>Other socioeconomic programs [Reserved]</RESERVED>
          <PT>3027</PT>
          <SUBJECT>Patents, data and copyrights</SUBJECT>
          <PG>86</PG>
          <PT>3028</PT>
          <SUBJECT>Bonds and insurance</SUBJECT>
          <PG>87</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3029</PT>
          <RESERVED>Taxes [Reserved]</RESERVED>
          <PT>3030</PT>
          <SUBJECT>Cost accounting standards administration</SUBJECT>
          <PG>91</PG>
          <PT>3031</PT>
          <SUBJECT>Contract cost principles and procedures</SUBJECT>
          <PG>91</PG>
          <PT>3032</PT>
          <SUBJECT>Contract financing</SUBJECT>
          <PG>91</PG>
          <PT>3033</PT>
          <SUBJECT>Protests, disputes, and appeals</SUBJECT>
          <PG>92</PG>
          <PT>3034</PT>
          <RESERVED>Major system acquisition [Reserved]</RESERVED>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3035</PT>
          <SUBJECT>Research and development contracting</SUBJECT>
          <PG>93</PG>
          <PT>3036</PT>
          <SUBJECT>Construction and architect-engineer contracts</SUBJECT>
          <PG>93</PG>
          <PT>3037</PT>
          <SUBJECT>Service contracting</SUBJECT>
          <PG>93</PG>
          <PT>3038</PT>
          <RESERVED>Federal supply schedule contracting [Reserved]</RESERVED>
          <PT>3039</PT>
          <RESERVED>Acquisition of information technology [Reserved]</RESERVED>
          <PT>3040</PT>
          <RESERVED>[Reserved]</RESERVED>
          <PT>3041</PT>
          <RESERVED>Acquisition of utility services [Reserved]</RESERVED>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3042</PT>
          <SUBJECT>Contract administration and audit services</SUBJECT>
          <PG>97</PG>
          <PT>3043</PT>
          <RESERVED>Contract modifications [Reserved]</RESERVED>
          <PT>3044</PT>
          <RESERVED>Subcontracting policies and procedures [Reserved]</RESERVED>
          <PT>3045</PT>
          <SUBJECT>Government property</SUBJECT>
          <PG>97</PG>
          <PT>3046</PT>
          <SUBJECT>Quality assurance</SUBJECT>
          <PG>98</PG>
          <PT>3047</PT>
          <SUBJECT>Transportation</SUBJECT>
          <PG>101</PG>
          <PT>3048</PT>
          <RESERVED>Value engineering [Reserved]</RESERVED>
          <PT>3049</PT>
          <RESERVED>Termination of contracts [Reserved]</RESERVED>
          <PT>3050</PT>
          <RESERVED>Extraordinary contractual actions [Reserved]</RESERVED>
          <PT>3051</PT>
          <RESERVED>Use of government sources by contractors [Reserved]</RESERVED>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER H—CLAUSES AND FORMS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3052</PT>
          <SUBJECT>Solicitation provisions and contract clauses</SUBJECT>
          <PG>103</PG>
          <PT>3053</PT>
          <SUBJECT>Forms</SUBJECT>
          <PG>122</PG>
        </CHAPTI>
      </TOC>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="61"/>
        <HD SOURCE="HED">SUBCHAPTER A—GENERAL</HD>
        <PART>
          <EAR>Pt. 3001</EAR>
          <HD SOURCE="HED">PART 3001—FEDERAL ACQUISITION REGULATIONS SYSTEM</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3001.1—Purpose, Authority, Issuance</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3001.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <SECTNO>3001.102</SECTNO>
              <SUBJECT>Statement of Guiding Principles for the Federal Acquisition System.</SUBJECT>
              <SECTNO>3001.104</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3001.105</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
              <SECTNO>3001.105-1</SECTNO>
              <SUBJECT>Publication and code arrangement.</SUBJECT>
              <SECTNO>3001.105-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>
              <SECTNO>3001.105-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
              <SECTNO>3001.106</SECTNO>
              <SUBJECT>OMB Approval under the Paperwork Reduction Act.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3001.3—Agency Acquisition Regulations</HD>
              <SECTNO>3001.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3001.301-70</SECTNO>
              <SUBJECT>Amendment of HSAR.</SUBJECT>
              <SECTNO>3001.301-71</SECTNO>
              <SUBJECT>Effective date.</SUBJECT>
              <SECTNO>3001.301-72</SECTNO>
              <SUBJECT>HSAC or HSAR Notice numbering.</SUBJECT>
              <SECTNO>3001.303</SECTNO>
              <SUBJECT>Publication and codification.</SUBJECT>
              <SECTNO>3001.304</SECTNO>
              <SUBJECT>Agency control and compliance procedures.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3001.4—Deviations from the FAR</HD>
              <SECTNO>3001.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>
              <SECTNO>3001.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3001.6—Career Development, Contracting Authority, and Responsibilities</HD>
              <SECTNO>3001.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3001.602</SECTNO>
              <SUBJECT>Contracting Officers.</SUBJECT>
              <SECTNO>3001.602-3</SECTNO>
              <SUBJECT>Ratification of unauthorized commitments.</SUBJECT>
              <SECTNO>3001.603</SECTNO>
              <SUBJECT>Selection, appointment, and termination of appointment.</SUBJECT>
              <SECTNO>3001.603-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3001.7—Determinations and Findings</HD>
              <SECTNO>3001.704</SECTNO>
              <SUBJECT>Content.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3001.70—Other Determinations, Waivers, Exceptions, Approvals, Reviews, and Submittals.</HD>
              <SECTNO>3001.7000</SECTNO>
              <SUBJECT>Coordination and approval.</SUBJECT>
              <SECTNO>3001.7001</SECTNO>
              <SUBJECT>Content.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3001.1—Purpose, Authority, Issuance</HD>
            <SECTION>
              <SECTNO>3001.101</SECTNO>
              <SUBJECT>Purpose.</SUBJECT>
              <P>The Department of Homeland Security Acquisition Regulation (HSAR) establishes uniform acquisition policies and procedures, which implement and supplement the Federal Acquisition Regulation (FAR).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.102</SECTNO>
              <SUBJECT>Statement of Guiding Principles for the Federal Acquisition System.</SUBJECT>
              <P>(d) The FAR and this supplement are to be interpreted permissively, if consistent with statutory and regulatory requirements, policy, and sound professional judgment.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.104</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>(a) The following order of precedence applies to resolve any acquisition regulation or procedural inconsistency found within HSAR or the Homeland Security Acquisition Manual (HSAM):</P>
              <P>(1) Statute;</P>
              <P>(2) FAR or other applicable regulation or Executive Order;</P>
              <P>(3) HSAR;</P>
              <P>(4) Department of Homeland Security (DHS) Directives; and</P>
              <P>(5) HSAM.</P>
              <P>(b) The Transportation Security Administration (TSA) exception to this regulation is authorized by the Aviation and Transportation Security Act of 2001 (Section 101(a) of Public Law 107-71). However, see (HSAR) 48 CFR 3033.211, regarding Board of Contract Appeals (BCA).</P>
              <P>(c) For nonappropriated fund contracts, the FAR and HSAR will be followed to the maximum extent feasible excluding provisions determined by counsel not to apply to Nonappropriated Fund institutions (NAFIs). Contracting terms may provide for mutual agreement as to the Board of Contract Appeals jurisdiction but this policy will not confer court jurisdiction concerning NAFIs that does not otherwise exist.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="62"/>
              <SECTNO>3001.105</SECTNO>
              <SUBJECT>Issuance.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3001.105-1</SECTNO>
              <SUBJECT>Publication and code arrangement.</SUBJECT>
              <P>(a) The HSAR is published in:</P>
              <P>(1) The <E T="04">Federal Register</E> and</P>
              <P>(2) Cumulated form in the Code of Federal Regulations (CFR).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.105-2</SECTNO>
              <SUBJECT>Arrangement of regulations.</SUBJECT>

              <P>(a) General. The HSAR, which encompasses both Department-wide and organizational element-unique guidance, conforms to the arrangement and numbering system prescribed by (FAR) 48 CFR 1.105-2. Guidance that is unique to an organization with Head of the Contracting Activity (HCA) authority contains the organization's acronym directly preceding the cite. The following acronyms apply:
              </P>
              <FP SOURCE="FP-1">Bureau of Customs and Border Protection (CBP)</FP>
              <FP SOURCE="FP-1">Bureau of Immigration and Customs Enforcement (ICE)</FP>
              <FP SOURCE="FP-1">DHS Office of Procurement Operations (OPO)</FP>
              <FP SOURCE="FP-1">Federal Emergency and Management Agency (FEMA) (Includes all elements of the Emergency Preparedness and Response Directorate)</FP>
              <FP SOURCE="FP-1">Federal Law Enforcement Training Center (FLETC)</FP>
              <FP SOURCE="FP-1">Transportation Security Administration (TSA)</FP>
              <FP SOURCE="FP-1">U.S. Coast Guard (USCG)</FP>
              <FP SOURCE="FP-1">U.S. Secret Service (Secret Service)</FP>
            </SECTION>
            <SECTION>
              <SECTNO>3001.105-3</SECTNO>
              <SUBJECT>Copies.</SUBJECT>
              <P>The HSAR is available in the <E T="04">Federal Register</E> and electronically at <E T="03">http://www.dhs.gov/dhspublic/.</E>
              </P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.106</SECTNO>
              <SUBJECT>OMB Approval under the Paperwork Reduction Act.</SUBJECT>

              <P>(a) The Office of Management and Budget (OMB) has assigned the following control numbers that must appear on the upper right-hand corner of the face page of each solicitation, contract, modification, and order:
              </P>
              <FP SOURCE="FP-1">OMB Control No. 1600-002 (Contract related forms)</FP>
              <FP SOURCE="FP-1">OMB Control No. 1600-005 (Offeror submissions)</FP>
              <FP SOURCE="FP-1">OMB Control No. 1600-003 (Contractor submissions)</FP>
              <FP SOURCE="FP-1">OMB Control No. 1600-004 (Protests)</FP>
              
              <P>(b) OMB regulations and OMB's approval and assignment of control numbers are conditioned upon not requiring more than three copies (including the original) of any document of information. OMB has granted a waiver to permit the Department to require up to eight copies of proposal packages, including proprietary data, for solicitations, provided that contractors who submit only an original and two copies will not be placed at a disadvantage.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3001.3—Agency Acquisition Regulations</HD>
            <SECTION>
              <SECTNO>3001.301</SECTNO>
              <SUBJECT>Policy.</SUBJECT>

              <P>(a)(1) The HSAR is issued for Departmental guidance according to the policy cited in (FAR) 48 CFR 1.301. The HSAR establishes uniform Homeland Security policies and procedures for all acquisition activities within the Department of the Homeland Security, except the TSA. OE supplemental acquisition regulations to be inserted in the HSAR as a HSAR supplement regulation must be reviewed and approved by the Chief Procurement Officer (CPO) before the CPO submits the proposed coverage for publication in the <E T="04">Federal Register</E> according to (FAR) 48 CFR 1.501.</P>
              <P>(2)(i) The CPO is authorized to issue internal agency guidance at any organizational level. Department-wide procedures are contained in the HSAM. The HCA may implement internal procedures or supplement the FAR, HSAR, or HSAM as provided in HSAM 3001.3. The HCA may issue procedures or delegate this authority to any organizational level deemed appropriate. OE procedures may be more restrictive or require higher approval levels than those permitted by the HSAM, unless otherwise specified.</P>
              <P>(ii) Individuals granted authority in the HSAR may delegate that authority, unless the FAR or HSAR specifically state that the authority is not delegable.</P>

              <P>(b) The Under Secretary of Management established procedures through Management Directive (MD) 0490.1, entitled <E T="03">Federal Register Notice and Rules,</E>
                <PRTPAGE P="63"/>to ensure that agency acquisition regulations are published for comment in the <E T="04">Federal Register</E> in conformance with FAR procedures at (FAR) 48 CFR subpart 1.5.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.301-70</SECTNO>
              <SUBJECT>Amendment of HSAR.</SUBJECT>
              <P>(a) Request for changes to the regulation may be recommended by DHS personnel, other Government agencies, or the public. Change requests are to be submitted in the following format to the Department of Homeland Security, Attn: Office of the Under Secretary of Management, Chief Procurement Officer, Washington, DC 20598.</P>
              <P>(1) <E T="03">Problem:</E> Succinctly state the problem(s) created by current HSAR requirements or processes and describe the factual or legal reasons for requesting a regulatory change.</P>
              <P>(2) <E T="03">Recommendation:</E> Identify the recommended change by using the current language and lining through the words to be deleted and inserting proposed language in brackets. If the change is extensive, deleted language may be displayed by forming a box with diagonal lines connecting the corners.</P>
              <P>(3) <E T="03">Discussion:</E> Explain why the change is necessary and how the change will solve the problem. Address any cost or administrative impact on Government activities, offerors, and contractors. Provide any other helpful information and documents such as statutes, legal decisions, regulations, reports, etc.</P>
              <P>(4) <E T="03">Point of Contact:</E> Provide a point of contact for answering questions regarding the recommendation, along with a telephone number, e-mail or other method of reaching the contact.</P>

              <P>(b) The HSAR is maintained by the CPO through the HSAR/HSAM change process (<E T="03">i.e.,</E> input from various OEs including representatives specifically designated to formulate Departmental acquisition policies and procedures).</P>

              <P>(1) Homeland Security Acquisition Circular (HSAC). HSAC (<E T="03">see</E> (HSAR) 48 Chapter 3001.301-72) will be used to amend (HSAR) 48 Chapter 30.</P>
              <P>(2) HSAR Notices will be issued (with a specified expiration date) when interim guidance is necessary under any of the following circumstances:</P>
              <P>(i) To promulgate, as rapidly as possible, selected material in a general or narrative manner, in advance of a HSAC issuance;</P>
              <P>(ii) To disseminate other acquisition related information; or</P>
              <P>(iii) To issue guidance that is expected to be effective for a period of 1 year or less.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.301-71</SECTNO>
              <SUBJECT>Effective date.</SUBJECT>
              <P>Unless otherwise stated, the following applies—</P>
              <P>(a) Statements in HSACs or HSAR Notices that the content is “upon a specified date,” or that changes in the document are “to be used upon receipt,” mean that any new or revised provisions, clauses, procedures, or forms must be included in solicitations or contracts issued thereafter; and</P>

              <P>(b) Unless expressly directed by statute or regulation, if solicitations have been issued prior to the HSAC or HSAR notice receipt or publication, the new information (<E T="03">e.g.,</E> forms and clauses) need not be included if the Chief of the Contracting Office (COCO) determines, in writing, that including the new information would not be in the best interests of the Government.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.301-72</SECTNO>
              <SUBJECT>HSAC or HSAR Notice numbering.</SUBJECT>

              <P>HSACs and HSAR Notices will be numbered consecutively on a fiscal year basis beginning with number “01” prefixed by the last two digits of the fiscal year (<E T="03">e.g.,</E> HSAR Notices 03-01 and 03-02 indicate the first two HSAR Notices issued in fiscal year 2003).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.303</SECTNO>
              <SUBJECT>Publication and codification.</SUBJECT>
              <P>(a) The HSAR is issued as chapter 30 of Title 48 of the CFR.</P>
              <P>(1) The FAR numbering illustrations at (FAR) 48 CFR 1.105-2 apply to the HSAR.</P>

              <P>(2) Coverage within HSAR 48 CFR chapter 30 is identified by the prefix “30” followed by the complete FAR cite which may extend downward to the subparagraph level (<E T="03">e.g.,</E> (HSAR) 48 CFR 3001.101).</P>

              <P>(3) Coverage in HSAR Chapter 30 that supplements the FAR will use part, subpart, section and subsection numbers ending in “70” through “89”. A series of numbers beginning with “70” is used for provisions and clauses (<E T="03">e.g.,</E> (HSAR) 48 CFR 3001.301-70).<PRTPAGE P="64"/>
              </P>

              <P>(4) Coverage in HSAR 48 CFR chapter 30, other than that identified with a “70” or higher number, which implements the FAR uses the identical number sequence and caption of the FAR segment being implemented which may extend downward to the subparagraph level. Subparagraph numbers/letters may not be shown as sequential, but may be shown by the specific paragraph/subparagraph implemented from the FAR (<E T="03">e.g.,</E> (HSAR) 48 CFR 3003.301 contains subparagraphs (a) and (b) because only these subparagraphs, correlating to FAR, are being supplemented by (HSAR) 48 CFR chapter 30).</P>

              <P>(5) Organizational Element-unique guidance. Supplementary material for which there is no counterpart in the FAR or HSAR shall be identified using chapter, part, subpart, section, or subsection numbers of “90” and up (<E T="03">e.g.,</E> the U.S. Coast Guard's acronym is “USCG”; an USCG-unique clause pertaining to “Inspection and/or Acceptance” would be designated “USCG 3052.246-90”).</P>
              <P>(6) References and citations. Cross references to the FAR in the HSAR will be cited by “FAR” followed by the FAR numbered cite, and cross reference to the HSAM in the HSAR will be cited by “HSAM” followed by the HSAM numbered cite.</P>
              <P>(7) Department/agency and OE supplements must parallel the FAR and HSAR numbering, except department/agency supplemental numbering uses subsection numbering of 90 and up, instead of 70 and up.</P>
              <GPOTABLE CDEF="s100,14.5,12.7" COLS="3" OPTS="L2">
                <TTITLE>Table 1-1.—HSAR Numbering</TTITLE>
                <BOXHD>
                  <CHED H="1">FAR</CHED>
                  <CHED H="1">Is implemented as</CHED>
                  <CHED H="1">Is supplemented as</CHED>
                </BOXHD>
                <ROW>
                  <ENT I="01">19</ENT>
                  <ENT>3019</ENT>
                  <ENT>3019.70</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">19.5</ENT>
                  <ENT>3019.5</ENT>
                  <ENT>3019.570</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">19.501</ENT>
                  <ENT>3019.501</ENT>
                  <ENT>3019.501-70</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">19.501-1</ENT>
                  <ENT>3019.501-1</ENT>
                  <ENT>3019.501-170</ENT>
                </ROW>
              </GPOTABLE>
            </SECTION>
            <SECTION>
              <SECTNO>3001.304</SECTNO>
              <SUBJECT>Agency control and compliance procedures.</SUBJECT>

              <P>(a) The HSAR is under the direct oversight and control of the Homeland Security, Office of the Chief Procurement Officer (OCPO), which is responsible for evaluation, review, and issuance of all Department-wide acquisition regulations and guidance. Each HCA may supplement the HSAR with OE guidance. Supplementation should be kept to a minimum. OEs proposing to issue regulatory supplements or use solicitation or contract clauses on a repetitive basis must obtain legal review by the OE's legal counsel and forward supplements to the CPO for concurrence prior to publication in the <E T="04">Federal Register</E>.</P>
              <P>(c) The CPO is responsible for evaluating all regulatory coverage in agency acquisition regulations to determine if the substance could apply to other agencies and to make recommendation for inclusion in the FAR.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3001.4—Deviations from the FAR and HSAR</HD>
            <SECTION>
              <SECTNO>3001.403</SECTNO>
              <SUBJECT>Individual deviations.</SUBJECT>

              <P>Unless precluded by law, executive order, or other regulation, the HCA is authorized to approve individual deviation (except with respect to (FAR) 48 CFR 30.201-3, 30.201-4; the requirements of the Cost Accounting Standards board rules and regulations at 48 CFR chapter 99 (FAR appendix); and part 50). Submit requests per (HSAR) 48 CFR 3001.7000(a), including complete documentation of the justification for the deviation (<E T="03">See</E> HSAM 3001.403).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.404</SECTNO>
              <SUBJECT>Class deviations.</SUBJECT>

              <P>(a) Unless precluded by law, executive order, or other regulation, the CPO is authorized to approve class deviations (except (FAR) 48 CFR 30.201-3, 30.201-4; the requirements of the Cost Accounting Standards board rules and regulations at 48 CFR Chapter 99 (FAR Appendix); and Part 50). Submit requests per (HSAR) 48 CFR 3001.7000(a), including complete documentation of the justification for the deviation, and <PRTPAGE P="65"/>the number and type of contract actions affected. Include a copy of the approved deviation in each contract file. The CPO will transmit a copy of each approved deviation to the FAR Secretariat.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3001.6—Career Development, Contracting Authority, and Responsibilities</HD>
            <SECTION>
              <SECTNO>3001.601</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>DHS Delegation Number 0200.1, Delegation to the Directorate of Management, delegates authority from the Secretary to the Under Secretary of Management to manage the acquisition function. DHS Delegation 0700, Delegation to the Chief Procurement Officer for Acquisition and Financial Assistance Management, delegates this authority from the Under Secretary of Management to the Chief Procurement Officer.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.602</SECTNO>
              <SUBJECT>Contracting officers.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3001.602-3</SECTNO>
              <SUBJECT>Ratification of unauthorized commitments.</SUBJECT>
              <P>Department of Homeland Security (DHS) policy requires that acquisitions be made only by Government officials having authority to enter into such acquisitions. Acquisitions made by other than authorized personnel are contrary to Departmental policy and may be considered matters of serious misconduct on the part of an employee making an unauthorized commitment, and may result in disciplinary action being taken against an employee who makes an unauthorized commitment.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.603</SECTNO>
              <SUBJECT>Selection, appointment, and termination of appointment.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3001.603-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>Under DHS Delegations, the Heads of the Contracting Activity (HCA), with authority to redelegate no lower than the COCO, are authorized to select and appoint contracting officers and terminate their appointment.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3001.7—Determinations and Findings</HD>
            <SECTION>
              <SECTNO>3001.704</SECTNO>
              <SUBJECT>Content.</SUBJECT>
              <P>The following format shall be used for all determinations and findings (D&amp;Fs), unless otherwise specified in the FAR or the HSAR. The contracting officer is responsible for preparing D&amp;Fs, and requirements and technical personnel are responsible for the accuracy and adequacy of the supporting factual information, which shall be furnished to the contracting officer.</P>
              <P>Insert specific information indicated in brackets.</P>
              <EXTRACT>
                <HD SOURCE="HD2">Determination and Findings</HD>
                <P>Under [<E T="03">insert citation for appropriate statutory and/or regulatory basis for D&amp;F</E>], the Department of Homeland Security, [<E T="03">insert contracting activity</E>], is granted authority to [<E T="03">insert nature and/or description of the action being approved</E>].</P>
                <HD SOURCE="HD2">Findings</HD>
                <P>[<E T="03">Findings that detail the particular circumstances, facts, or reasoning essential to support the determination.</E>]</P>
                <HD SOURCE="HD2">Determination</HD>
                <P>[<E T="03">A determination, based on the findings, that the proposed action is justified under the applicable statute or regulation.</E>] [<E T="03">Expiration date of the D&amp;F, if required.</E>]
                </P>
                <FP>[<E T="03">Signature of authorized official</E>]</FP>
                
                <FP>Name and Title</FP>
                
                <FP>[month, day, and year]</FP>
                
                <FP>Date</FP>
              </EXTRACT>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3001.70—Other Determinations, Waivers, Exceptions, Approvals, Reviews, and Submittals</HD>
            <SECTION>
              <SECTNO>3001.7000</SECTNO>
              <SUBJECT>Coordination and approval.</SUBJECT>
              <P>
                <E T="03">Documents requiring CPO approval.</E> Requests shall be prepared in writing by the contracting officer and submitted through the HCA to the CPO for approval.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3001.7001</SECTNO>
              <SUBJECT>Content.</SUBJECT>
              <P>The general format at (HSAR) 48 CFR 3001.704 shall be used to provide a justification to support the requested determination, waiver, exception or approval.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="66"/>
          <EAR>Pt. 3002</EAR>
          <HD SOURCE="HED">PART 3002—DEFINITIONS OF WORDS AND TERMS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3002.1—Definitions</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3002.101</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3002.2—Abbreviations</HD>
              <SECTNO>3002.270</SECTNO>
              <SUBJECT>Abbreviations.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3002.1—Definitions</HD>
            <SECTION>
              <SECTNO>3002.101</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Chief Information Officer (CIO)</E> means the Director of the Office of the CIO.</P>
              <P>
                <E T="03">Chief of the Contracting Office (COCO)</E> means the individual(s) responsible for managing the contracting office(s) within an organizational element (OE).</P>
              <P>
                <E T="03">Chief Procurement Officer (CPO)</E> means the Senior Procurement Executive (SPE).</P>
              <P>
                <E T="03">Contracting activity</E> includes all the contracting offices within an OE and is the same as the term “procuring activity.”</P>
              <P>
                <E T="03">Contracting officer</E> means an individual authorized by virtue of position or by appointment to perform the functions assigned by the Federal Acquisition Regulation and the Homeland Security Acquisition Regulation.</P>
              <P>
                <E T="03">Head of Contracting Activity (HCA)</E> means the individual responsible for direct management of the entire acquisition function within an organizational element.</P>
              <P>
                <E T="03">Head of the Agency</E> means the Secretary of the Department of Homeland Security, or, by delegation, the Under Secretary of Management. “Legal counsel” means the Department of Homeland Security Office of General Counsel or OE office providing legal services to the contracting organization.</P>
              <P>
                <E T="03">Legal review</E> means review by legal counsel.</P>
              <P>
                <E T="03">Major system</E> means an acquisition as defined in Management Directive Number 1400, Investment Review Process.</P>
              <P>
                <E T="03">Micro-purchase threshold</E> means $2,500 (see (HSAR) 48 CFR 3013-70), except it means—</P>
              <P>(1) $2,000 for construction subject to the Davis-Bacon Act; and</P>
              <P>(2) $7,500 for acquisitions of supplies or services, except for construction subject to the Davis-Bacon, if the Secretary determines in writing that the mission of the Department (described in Pub. L. 107-296, Sec. 101) would be seriously impaired without the use of such authorities, Act (Pub. L. 107-296, section 833).</P>
              <P>
                <E T="03">Organizational Element (OE)</E> means the following entities for purposes of this chapter:</P>
              <P>(1) Bureau of Customs and Border Protection (CBP);</P>
              <P>(2) Bureau of Immigration and Customs Enforcement (ICE);</P>
              <P>(3) DHS Office of Procurement Operations (OPO);</P>
              <P>(4) Federal Emergency Management Agency (FEMA) (Includes all elements of the Emergency Preparedness and Response Directorate);</P>
              <P>(5) Federal Law Enforcement Training Center (FLETC);</P>
              <P>(6) Transportation Security Administration (TSA); (TSA is exempt from the HSAR and HSAM according to the “Aviation and Transportation Security Act of 2001”);</P>
              <P>(7) U.S. Coast Guard (USCG); and</P>
              <P>(8) U.S. Secret Service (Secret Service).</P>
              <P>
                <E T="03">Senior Procurement Executive (SPE)</E> for the Department of Homeland Security is the Chief Procurement Officer (CPO).</P>
              <P>
                <E T="03">Simplified acquisition threshold</E> means $100,000 (see (HSAR) 48 CFR 3013-70), except that for acquisitions of supplies or services that, if the Secretary determines in writing that the mission of the Department (described in Pub. L. 107-296, section 101) would be seriously impaired without the use of such authorities from November 25, 2002 to December 30, 2007 (Pub. L. 107-296, section 833(c)), the term means—</P>
              <P>(1) $200,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and</P>
              <P>(2) $300,000 for any contract to be awarded and performed, or purchase to be made, outside the United States.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3002.2—Abbreviations</HD>
            <SECTION>
              <SECTNO>3002.270</SECTNO>
              <SUBJECT>Abbreviations.</SUBJECT>
              
              <EXTRACT>
                <FP SOURCE="FP-2">CFOChief Financial Officer<PRTPAGE P="67"/>
                </FP>
                <FP SOURCE="FP-2">CIOChief Information Officer</FP>
                <FP SOURCE="FP-2">COCOChief of the Contracting Office</FP>
                <FP SOURCE="FP-2">CORContracting Officers Representative</FP>
                <FP SOURCE="FP-2">COTRContracting Officer's Technical Representative</FP>
                <FP SOURCE="FP-2">CPOChief Procurement Officer</FP>
                <FP SOURCE="FP-2">D&amp;FDetermination and Findings</FP>
                <FP SOURCE="FP-2">DOTBCADepartment of Transportation Board of Contract Appeals</FP>
                <FP SOURCE="FP-2">FOIAFreedom of Information Act</FP>
                <FP SOURCE="FP-2">HCAHead of Contracting Activity</FP>
                <FP SOURCE="FP-2">J &amp; AJustification and Approval for Other than Full and Open Competition</FP>
                <FP SOURCE="FP-2">KOContracting officer</FP>
                <FP SOURCE="FP-2">MDManagement Directive</FP>
                <FP SOURCE="FP-2">OCPOOffice of the Chief Procurement Officer</FP>
                <FP SOURCE="FP-2">OEOrganizational Element</FP>
                <FP SOURCE="FP-2">OIGOffice of the Inspector General</FP>
                <FP SOURCE="FP-2">OSDBUOffice of Small and Disadvantaged Business Utilization</FP>
                <FP SOURCE="FP-2">PCRSBA's Procurement Center Representative</FP>
                <FP SOURCE="FP-2">RFPRequest for Proposal</FP>
                <FP SOURCE="FP-2">SBASmall Business Administration</FP>
                <FP SOURCE="FP-2">SBSSmall Business Specialist</FP>
                <FP SOURCE="FP-2">SPESenior Procurement Executive</FP>
              </EXTRACT>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3003</EAR>
          <HD SOURCE="HED">PART 3003—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3003.1—Safeguards</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3003.101</SECTNO>
              <SUBJECT>Standards of conduct.</SUBJECT>
              <SECTNO>3003.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3003.2—Contractor Gratuities to Government Personnel</HD>
              <SECTNO>3003.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the Gratuities clause.</SUBJECT>
              <SECTNO>3003.204</SECTNO>
              <SUBJECT>Treatment of violations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3003.3—Reports Of Suspected Antitrust Violations</HD>
              <SECTNO>3003.301</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3003.4—Contingent Fees</HD>
              <SECTNO>3003.405</SECTNO>
              <SUBJECT>Misrepresentations or violations of the Covenant Against Contingent Fees.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3003.5—Other Improper Business Practices</HD>
              <SECTNO>3003.502</SECTNO>
              <SUBJECT>Subcontractor kickbacks.</SUBJECT>
              <SECTNO>3003.502-2</SECTNO>
              <SUBJECT>Subcontractor kickbacks.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3003.9—Whistleblower Protections for Contractor Employees</HD>
              <SECTNO>3003.901</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3003.1—Safeguards</HD>
            <SECTION>
              <SECTNO>3003.101</SECTNO>
              <SUBJECT>Standards of conduct.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3003.101-3</SECTNO>
              <SUBJECT>Agency regulations.</SUBJECT>
              <P>(a) Government-wide and Department of Homeland Security regulations governing the conduct and responsibilities of employees are contained in 5 CFR parts 2635 and 3101, and MD 0480, Ethics/Standards of Conduct.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3003.2—Contractor Gratuities to Government Personnel</HD>
            <SECTION>
              <SECTNO>3003.203</SECTNO>
              <SUBJECT>Reporting suspected violations of the Gratuities clause.</SUBJECT>
              <P>(a) Suspected violations of the Gratuities clause shall be reported to the contracting officer responsible for the acquisition (or the COCO if the contracting officer is suspected of the violation). The contracting officer (or the COCO) shall obtain from the person reporting the violation, and any witnesses to the violation, the following information:</P>
              <P>(1) The date, time, and place of the suspected violation;</P>
              <P>(2) The name and title (if known) of the individual(s) involved in the violation; and</P>
              <P>(3) The details of the violation (<E T="03">e.g.,</E> the gratuity offered or intended) to obtain a contract or favorable treatment under a contract.</P>
              <P>(4) The person reporting the violation and witnesses (if any) shall be requested to sign and date the information certifying that the information furnished is true and correct.</P>
              <P>(b) The contracting officer shall submit the report to the COCO (unless the alleged violation was directly reported to the COCO) and the Head of the Contracting Activity (HCA) for further action. The COCO and HCA will determine, with the advice of OE legal counsel, whether the case warrants submission to the OIG, or other investigatory organization.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3003.204</SECTNO>
              <SUBJECT>Treatment of violations.</SUBJECT>

              <P>(a) The HCA is the individual to determine whether a Gratuities clause <PRTPAGE P="68"/>violation has occurred. If the HCA has been personally and substantially involved in the specific procurement, the advice of Government legal counsel should be sought to determine whether an alternate decision maker should be designated.</P>
              <P>(b) The COCO shall ensure that the hearing procedures required by (FAR) 48 CFR 3.204(b) are afforded to the contractor. Government legal counsel shall be consulted regarding the appropriateness of the hearing procedures that are established.</P>
              <P>(c) If the HCA determines that the alleged gratuities violation occurred during the “conduct of an agency procurement” the COCO shall consult with Government legal counsel regarding the approach for appropriate processing of either the Procurement Integrity Act violation or the Gratuities violation.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3003.3—Reports Of Suspected Antitrust Violations</HD>
            <SECTION>
              <SECTNO>3003.301</SECTNO>
              <SUBJECT> General.</SUBJECT>
              <P>(b) The procedures at (HSAR) 48 CFR 3003.203 shall be followed for suspected antitrust violations, except reports of suspected antitrust violations shall be coordinated with legal counsel for referral to the Department of Justice, if deemed appropriate.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3003.4—Contingent Fees</HD>
            <SECTION>
              <SECTNO>3003.405</SECTNO>
              <SUBJECT>Misrepresentations or violations of the Covenant Against Contingent Fees.</SUBJECT>
              <P>(a) The procedures at (HSAR) 48 CFR 3003.203 shall be followed for misrepresentation or violations of the covenant against contingent fees.</P>
              <P>(b)(4) The procedures at (HSAR) 48 CFR 3003.203 shall be followed for misrepresentation or violations of the covenant against contingent fees, except reports of misrepresentation or violations of the covenant against contingent fees shall be coordinated with legal counsel for referral to the Department of Justice, if deemed appropriate.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3003.5—Other Improper Business Practices</HD>
            <SECTION>
              <SECTNO>3003.502</SECTNO>
              <SUBJECT>Subcontractor kickbacks.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3003.502-2</SECTNO>
              <SUBJECT>Subcontractor kickbacks.</SUBJECT>
              <P>(g) The DHS OIG shall receive the prime contractor or subcontractors written report.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3003.9—Whistleblower Protections for Contractor Employees</HD>
            <SECTION>
              <SECTNO>3003.901</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>
                <E T="03">Authorized official of an agency</E> means the Department of Homeland Security's CPO.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3004</EAR>
          <HD SOURCE="HED">PART 3004—ADMINISTRATIVE MATTERS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3004.1—Contract Execution</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3004.103</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3004.4—Contract Clause</HD>
              <SECTNO>3004.470-4</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3004.8—Government Contract Files</HD>
              <SECTNO>3004.804</SECTNO>
              <SUBJECT>Closeout of contract files.</SUBJECT>
              <SECTNO>3004.804-1</SECTNO>
              <SUBJECT>Closeout by the office administering the contract.</SUBJECT>
              <SECTNO>3004.804-5</SECTNO>
              <SUBJECT>Procedures for closing out contract files.</SUBJECT>
              <SECTNO>3004.804-570</SECTNO>
              <SUBJECT>Supporting closeout documents.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3004.1—Contract Execution</HD>
            <SECTION>
              <SECTNO>3004.103</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>Insert the clause at (FAR) 48 CFR 52.204-1, Approval of Contract, in each solicitation where approval to award the resulting contract is required above the contracting officer level.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3004.4—Contract Clause</HD>
            <SECTION>
              <SECTNO>3004.470-4</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>

              <P>The contracting officer shall insert a clause substantially the same as the <PRTPAGE P="69"/>clause at (HSAR) 48 CFR 3052.204-70, Security Requirements for Unclassified Information Technology Resources, in solicitations and contracts which require submission of an IT Security Plan.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3004.8—Government Contract Files</HD>
            <SECTION>
              <SECTNO>3004.804</SECTNO>
              <SUBJECT>Closeout of contract files.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3004.804-1</SECTNO>
              <SUBJECT>Closeout by the office administering the contract.</SUBJECT>
              <P>(b) The quick closeout procedures under (FAR) 48 CFR 42.708 may be used for the settlement of indirect costs under contracts when the estimated amount (excluding any fixed fee) of the contract is $3 million or less if determined appropriate by the contracting officer.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3004.804-5</SECTNO>
              <SUBJECT>Procedures for closing out contract files.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3004.804-570</SECTNO>
              <SUBJECT>Supporting closeout documents.</SUBJECT>
              <P>(a) When applicable and prior to contract closure, the contracting officer shall obtain the listed DHS and Department of Defense (DOD) forms from the contractor for closeout.</P>
              <P>(1) DHS Form 0700-03, Contractor's Release (<E T="03">e.g.,</E> see (FAR) 48 CFR 52.216-7);</P>

              <P>(2) DHS Form 0700-02, Contractor's Assignment of Refunds, Rebates, Credits and Other Amounts (<E T="03">e.g.,</E> see (FAR) 48 CFR 52.216-7);</P>

              <P>(3) DHS Form 0700-01, Cumulative Claim and Reconciliation Statement (<E T="03">e.g.,</E> see (FAR) 48 CFR 4.804-5(a)(13); and</P>

              <P>(4) DD Form 882, Report of Inventions and Subcontracts (<E T="03">e.g.,</E> see (FAR) 48 CFR 52.227-14).</P>
              <P>(b) The forms listed in this section (see (HSAR) 48 CFR part 3053) are used primarily for the closeout of cost-reimbursement, time-and-materials, and labor-hour contracts. The forms may also be used for closeout of other contract types to protect the Government's interest.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="71"/>
        <HD SOURCE="HED">SUBCHAPTER B—ACQUISITION PLANNING</HD>
        <PART>
          <EAR>Pt. 3005</EAR>
          <HD SOURCE="HED">PART 3005—PUBLICIZING CONTRACT ACTIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3005.4—Release of Information</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3005.402</SECTNO>
              <SUBJECT>General public.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3005.90—Publicizing Contract Actions for Personal Services Contracting</HD>
              <SECTNO>3005.9000</SECTNO>
              <SUBJECT>Applicability (USCG).</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3005.4—Release of Information</HD>
            <SECTION>
              <SECTNO>3005.402</SECTNO>
              <SUBJECT>General public.</SUBJECT>
              <P>Requests for other specific records information shall be processed according to the DHS Freedom of Information Act rules and regulations (HSAR) 48 CFR 3024.203.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3005.90—Publicizing Contract Actions for Personal Services Contracting.</HD>
            <SECTION>
              <SECTNO>3005.9000</SECTNO>
              <SUBJECT>Applicability (USCG).</SUBJECT>
              <P>Contracts awarded by the U.S. Coast Guard using the procedures in (HSAR) 48 CFR 3037.104-91 are expressly authorized under section 1091 of Title 10 U.S.C. as amended by Public Law 107-296, for the Coast Guard and are exempt from the requirements of (FAR) 48 CFR part 5.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3006</EAR>
          <HD SOURCE="HED">PART 3006—COMPETITION REQUIREMENTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3006.2—Full and Open Competition After Exclusion of Sources</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3006.202</SECTNO>
              <SUBJECT>Establishing or maintaining alternative sources.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3006.3—Other Than Full and Open Competition</HD>
              <SECTNO>3006.302</SECTNO>
              <SUBJECT>Circumstances permitting other than full and open competition.</SUBJECT>
              <SECTNO>3006.302-7</SECTNO>
              <SUBJECT>Public interest.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3006.5—Competition Advocates</HD>
              <SECTNO>3006.501</SECTNO>
              <SUBJECT>Requirement.</SUBJECT>
              <SECTNO>3006.502</SECTNO>
              <SUBJECT>Duties and responsibilities.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3006.90—Competition Requirements for Personal Services Contracting</HD>
              <SECTNO>3006.9000</SECTNO>
              <SUBJECT>Applicability (USCG).</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3006.2—Full and Open Competition After Exclusion of Sources</HD>
            <SECTION>
              <SECTNO>3006.202</SECTNO>
              <SUBJECT>Establishing or maintaining alternative sources.</SUBJECT>
              <P>(b)(1) The HCA is delegated authority to approve a D&amp;F in support of a contract action award under the authority of (FAR) 48 CFR 6.202(a). Submit D&amp;F in the format per (HSAR) 48 CFR 3001.704.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3006.3—Other Than Full and Open Competition</HD>
            <SECTION>
              <SECTNO>3006.302</SECTNO>
              <SUBJECT>Circumstances permitting other than full and open competition.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3006.302-7</SECTNO>
              <SUBJECT>Public interest.</SUBJECT>
              <P>(c)(1)(ii) Requests shall be prepared in writing by the contracting officer, using the format found in (HSAR) 48 CFR 3001.704, and submitted through the HCA to the CPO for review and transmittal to the Secretary for approval.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3006.5—Competition Advocates</HD>
            <SECTION>
              <SECTNO>3006.501</SECTNO>
              <SUBJECT>Requirement.</SUBJECT>
              <P>The DHS Senior Competition Advocate (SCA) is located in the Office of the Chief Procurement Officer (OCPO).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3006.502</SECTNO>
              <SUBJECT>Duties and responsibilities.</SUBJECT>
              <P>(a) OE competition advocates will submit an annual report to the Departmental Advocate for Competition.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="72"/>
            <HD SOURCE="HED">Subpart 3006.90—Competition Requirements For Personal Services Contracting</HD>
            <SECTION>
              <SECTNO>3006.9000</SECTNO>
              <SUBJECT>Applicability (USCG).</SUBJECT>
              <P>Contracts awarded by the U.S. Coast Guard using the procedures in (HSAR) 48 CFR 3037.104-91 are expressly authorized under Section 1091 of Title 10 U.S.C. as amended, for the Coast Guard and are exempt from the competition requirements of (FAR) 48 CFR part 6.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3007—ACQUISITION PLANNING [RESERVED]</HD>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3008—REQUIRED SOURCES OF SUPPLIES AND SERVICES [RESERVED]</HD>
        </PART>
        <PART>
          <EAR>Pt. 3009</EAR>
          <HD SOURCE="HED">PART 3009—CONTRACTOR QUALIFICATIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3009.1—Responsible Prospective Contractors</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3009.104-70</SECTNO>
              <SUBJECT>Prohibition on contracts with corporate expatriates.</SUBJECT>
              <SECTNO>3009.104-71</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3009.104-72</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>3009.104-73</SECTNO>
              <SUBJECT>Special rules.</SUBJECT>
              <SECTNO>3009.104-74</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <SECTNO>3009.104-75</SECTNO>
              <SUBJECT>Clause.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3009.4—Debarment, Suspension, and Ineligibility</HD>
              <SECTNO>3009.470</SECTNO>
              <SUBJECT>Reserve Officer Training Corps and military recruiting on campus.</SUBJECT>
              <SECTNO>3009.470-1</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <SECTNO>3009.470-2</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3009.470-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <SECTNO>3009.470-4</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3009.5—Organizational and Consultant Conflicts of Interest</HD>
              <SECTNO>3009.507</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3009.1—Responsible Prospective Contractors</HD>
            <SECTION>
              <SECTNO>3009.104-70</SECTNO>
              <SUBJECT>Prohibition on contracts with corporate expatriates.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3009.104-71</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>DHS may not enter into any contract with a foreign incorporated entity, which is treated as an inverted domestic corporation under subsection (b) of section 835 of the Homeland Security Act, Pub. L. 107-296.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3009.104-72</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <P>As used in this subpart—</P>
              <P>
                <E T="03">Expanded Affiliated Group</E> means an affiliated group as defined in section 1504(a) of the Internal Revenue Code of 1986 (without regard to section 1504(b) of such Code), except that section 1504 of such Code shall be applied by substituting ‘more than 50 percent' for ‘at least 80 percent' each place it appears.</P>
              <P>
                <E T="03">Foreign Incorporated Entity</E> means any entity which is, or but for subsection (b) of section 835 of the Homeland Security Act, Pub. L. 107-296, would be, treated as a foreign corporation for purposes of the Internal Revenue Code of 1986.</P>
              <P>
                <E T="03">Inverted Domestic Corporation.</E> A foreign incorporated entity shall be treated as an inverted domestic corporation if, pursuant to a plan (or a series of related transactions)—</P>
              <P>(1) The entity completes after the date of enactment of this Act, the direct or indirect acquisition of substantially all of the properties held directly or indirectly by a domestic corporation or substantially all of the properties constituting a trade or business of a domestic partnership;</P>
              <P>(2) After the acquisition at least 80 percent of the stock (by vote or value) of the entity is held—</P>
              <P>(i) In the case of an acquisition with respect to a domestic corporation, by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation; or</P>

              <P>(ii) In the case of an acquisition with respect to a domestic partnership, by former partners of the domestic partnership by reason of holding a capital or profits interest in the domestic partnership; and<PRTPAGE P="73"/>
              </P>
              <P>(3) The expanded affiliated group which after the acquisition includes the entity does not have substantial business activities in the foreign country in which or under the law of which the entity is created or organized when compared to the total business activities of such expanded affiliated group.</P>
              <P>
                <E T="03">Person, domestic, and foreign</E> have the meanings given such terms by paragraphs (1), (4), and (5) of section 7701(a) of the Internal Revenue Code of 1986, respectively.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3009.104-73</SECTNO>
              <SUBJECT>Special rules.</SUBJECT>
              <P>The following special rules shall apply when determining whether a foreign incorporated entity should be treated as an inverted domestic corporation.</P>
              <P>(a) <E T="03">Certain stock disregarded.</E> For the purpose of treating a foreign incorporated entity as an inverted domestic corporation these shall not be taken into account in determining ownership:</P>
              <P>(1) Stock held by members of the expanded affiliated group which includes the foreign incorporated entity; or</P>
              <P>(2) Stock of such entity which is sold in a public offering related to the acquisition described in subsection (b)(1) of section 835 of the Homeland Security Act (the Act), Pub. L. 107-296.</P>
              <P>(b) <E T="03">Plan deemed in certain cases.</E> If a foreign incorporated entity acquires directly or indirectly substantially all of the properties of a domestic corporation or partnership during the 4-year period beginning on the date which is after the date of enactment of this Act and which is 2 years before the ownership requirements of subsection (b)(2) of the Act are met, such actions shall be treated as pursuant to a plan.</P>
              <P>(c) <E T="03">Certain transfers disregarded.</E> The transfer of properties or liabilities (including by contribution or distribution) shall be disregarded if such transfers are part of a plan a principal purpose of which is to avoid the purposes of this section.</P>
              <P>(d) <E T="03">Special rule for related partnerships.</E> For purposes of applying subsection (b) to the acquisition of a domestic partnership, except as provided in regulations, all domestic partnerships which are under common control (within the meaning of section 482 of the Internal Revenue Code of 1986) shall be treated as a partnership.</P>
              <P>(e) <E T="03">Treatment of certain rights.</E> (1) Certain rights shall be treated as stocks to the extent necessary to reflect the present value of all equitable interests incident to the transaction, as follows:</P>
              <P>(i) Warrants;</P>
              <P>(ii) Options;</P>
              <P>(iii) Contracts to acquire stock;</P>
              <P>(iv) Convertible debt instruments;</P>
              <P>(v) Others similar interests.</P>
              <P>(2) Rights labeled as stocks shall not be treated as stocks whenever it is deemed appropriate to do so to reflect the present value of the transaction or to disregard transactions whose recognition would defeat the purpose of section 835 of the Act.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3009.104-74</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <P>(a) The Secretary shall waive subsection (a) of section 835 of Pub. L. 107-296 with respect to any specific contract if the Secretary determines that the waiver is required in the interest of homeland security, or to prevent the loss of any jobs in the United States or prevent the Government from incurring any additional costs that otherwise would not occur.</P>
              <P>(b) Contractors shall submit waiver requests to the CPO. If a waiver is granted, a copy of the approved waiver shall be attached with the bid or proposal.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3009.104-75</SECTNO>
              <SUBJECT>Clause.</SUBJECT>
              <P>Insert the provision (HSAR) 48 CFR 3052.209-70, Prohibition on Contracts with Corporate Expatriates, in all solicitations and contracts.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3009.4—Debarment, Suspension, and Ineligibility</HD>
            <SECTION>
              <SECTNO>3009.470</SECTNO>
              <SUBJECT>Reserve Officer Training Corps and military recruiting on campus.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3009.470-1</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <P>
                <E T="03">Institution of higher education</E> as used in this section, means an institution that meets the requirements of 20 U.S.C. 1001 and includes all subelements of such an institution.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="74"/>
              <SECTNO>3009.470-2</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) Except as provided in paragraph (b) of this subsection, 10 U.S.C. 983 prohibits the Department of Homeland Security from providing funds by contract or grant to an institution of higher education if the Secretary of Defense determines that the institution has a policy or practice that prohibits or in effect prevents—</P>
              <P>(1) The Secretary of a military department from maintaining, establishing, or operating a unit of the Senior Reserve Officer Training Corps (ROTC) at that institution;</P>
              <P>(2) A student at that institution from enrolling in a unit of the Senior ROTC at another institution of higher education;</P>
              <P>(3) The Secretary of a military department or the Secretary of Homeland Security from gaining entry to campuses, or access to students on campuses, for purposes of military recruiting; or</P>
              <P>(4) Military recruiters from accessing certain information pertaining to students enrolled at that institution.</P>
              <P>(b) The prohibition in paragraph (a) of this subsection does not apply to an institution of higher education if the Secretary of Defense determines that—</P>
              <P>(1) The institution (and each subelement of that institution) has ceased the policy or practice described in paragraph (a) of this subsection; or</P>
              <P>(2) The institution involved has a long-standing policy of pacifism based on historical religious affiliation.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3009.470-3</SECTNO>
              <SUBJECT>Procedures.</SUBJECT>
              <P>Whenever the Secretary of Defense determines that an institution of higher education (including any subelement of such institution) is ineligible and the provisions of 10 U.S.C. 983 apply:</P>
              <P>(a) The Secretary of Defense will list the institution on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs published by the General Services Administration (also see (FAR) 48 CFR 9.404 and 32 CFR part 216); and</P>
              <P>(b) The Department of Homeland Security—</P>
              <P>(1) Shall not solicit offers from, award contracts to, or consent to subcontracts with the institution;</P>
              <P>(2) Shall make no further payments under existing contracts with the institution; and</P>
              <P>(3) Shall terminate existing contracts with the institution.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3009.470-4</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>Insert the clause at (HSAR) 48 CFR 3052.3009-71, Reserve Officer Training Corps and Military Recruiting on Campus, in all solicitations and contracts with institutions of higher education.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3009.5—Organizational and Consultant Conflicts of Interest</HD>
            <SECTION>
              <SECTNO>3009.507</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
              <P>The contracting officer may insert the provision at (HSAR) 48 CFR 3052.209-72, “Disclosure of Conflicts of Interest” in all solicitations for negotiated acquisitions, and when simplified acquisitions procedures in (FAR) 48 CFR Part 13, are not used. The contracting officer shall ensure the conditions enumerated in (FAR) 48 CFR 9.507-2 warrant inclusion.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3010—MARKET RESEARCH [RESERVED]</HD>
        </PART>
        <PART>
          <EAR>Pt. 3011</EAR>
          <HD SOURCE="HED">PART 3011—DESCRIBING AGENCY NEEDS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3011.1—Selecting and Developing Requirements Documents</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3011.103</SECTNO>
              <SUBJECT>Market acceptance.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3011.2—Using and Maintaining Requirements</HD>
              <SECTNO>3011.204-70</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
              <SECTNO>3011.204-90</SECTNO>
              <SUBJECT>Solicitation provisions and contract clause (USCG).</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3011.5—Liquidated Damages</HD>
              <SECTNO>3011.501</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3011.6—Priorities and Allocations</HD>
              <SECTNO>3011.602</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <PRTPAGE P="75"/>
            <HD SOURCE="HED">Subpart 3011.1—Selecting and Developing Requirements Documents</HD>
            <SECTION>
              <SECTNO>3011.103</SECTNO>
              <SUBJECT>Market acceptance.</SUBJECT>
              <P>(a) Contracting officers may act on behalf of the head of the agency in this subpart only. Contracting officers may, under appropriate circumstances, require offerors to make the required demonstrations.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3011.2—Using and Maintaining Requirements Documents</HD>
            <SECTION>
              <SECTNO>3011.204-70</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
              <P>The contracting officer shall insert the clause at (HSAR) 48 CFR 3052.211-70, Index for Specifications, when an index or table of contents may be furnished with the specification.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3011.204-90</SECTNO>
              <SUBJECT>Solicitation provision and contract clause (USCG).</SUBJECT>
              <P>(a) For U.S. Coast Guard contracts, the contracting officer shall insert the USCG clause at (HSAR) 48 CFR 3052.211-90, Bar Coding Requirement, (also see (HSAR) 48 CFR 3013.302-70) when the bar coding of supplies is necessary.</P>
              <P>(b) See (HSAR) 48 CFR 3013.302-590 for a provision which is required when the USCG clause at HSAR 3052.211-90, Bar Coding Requirement, is used with simplified acquisition procedures.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3011.5—Liquidated Damages</HD>
            <SECTION>
              <SECTNO>3011.501</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(d) The HCA may reduce or waive the amount of liquidated damages assessed under a contract, if the Commissioner, Financial Management Service, or designee approves.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3011.6—Priorities and Allocations</HD>
            <SECTION>
              <SECTNO>3011.602</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(c) The following DHS OEs may assign priority ratings on contracts and orders placed with contractors to acquire products, materials, and services under the Defense Priorities and Allocations System (DPAS) regulations (15 CFR part 700):</P>
              <P>(1) The U.S. Coast Guard in support of certified national defense related programs; and</P>
              <P>(2) The Federal Emergency Management Agency in support of emergency preparedness activities.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3012—ACQUISITION OF COMMERCIAL ITEMS [RESERVED]</HD>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="77"/>
        <HD SOURCE="HED">SUBCHAPTER C—CONTRACT METHODS AND CONTRACT TYPES</HD>
        <PART>
          <EAR>Pt. 3013</EAR>
          <HD SOURCE="HED">PART 3013—SIMPLIFIED ACQUSITION PROCEDURES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3013.1—Procedures</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3013.106</SECTNO>
              <SUBJECT>Soliciting competition, evaluation of quotations or offers, award and documentation.</SUBJECT>
              <SECTNO>3013.106-190</SECTNO>
              <SUBJECT>Soliciting competition (USCG).</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3013.3—Simplified Acquisition Methods</HD>
              <SECTNO>3013.302</SECTNO>
              <SUBJECT>Purchase orders.</SUBJECT>
              <SECTNO>3013.302-590</SECTNO>
              <SUBJECT>Clauses (USCG).</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3013.70—Special Streamlined Acquisition Authority</HD>
              <SECTNO>3013.7000</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3013.7001</SECTNO>
              <SUBJECT>Delegations.</SUBJECT>
              <SECTNO>3013.7002</SECTNO>
              <SUBJECT>Reporting requirements.</SUBJECT>
              <SECTNO>3013.7003</SECTNO>
              <SUBJECT>Micro-purchase authority.</SUBJECT>
              <SECTNO>3013.7004</SECTNO>
              <SUBJECT>Simplified acquisition authority.</SUBJECT>
              <SECTNO>3013.7005</SECTNO>
              <SUBJECT>Test program for certain commercial items.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3013.1—Procedures</HD>
            <SECTION>
              <SECTNO>3013.106</SECTNO>
              <SUBJECT>Soliciting competition, evaluation of quotations or offers, award and documentation.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3013.106-190</SECTNO>
              <SUBJECT>Soliciting competition (USCG).</SUBJECT>
              <P>For the U.S. Coast Guard, the contracting officer shall insert the USCG provision at (HSAR) 48 CFR 3052.213-90, Evaluation Factor for Coast Guard Performance of Bar Coding Requirement, in requests for quotations when the USCG clause at (HSAR) 48 CFR 3052.211-90, Bar Coding Requirement, is used with simplified acquisition procedures.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3013.3—Simplified Acquisition Methods</HD>
            <SECTION>
              <SECTNO>3013.302</SECTNO>
              <SUBJECT>Purchase orders.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3013.302-590</SECTNO>
              <SUBJECT>Clauses (USCG).</SUBJECT>
              <P>For the U.S. Coast Guard, the contracting officer shall insert the USCG clause at (HSAR) 48 CFR 3052.211-90, Bar Coding Requirement, in requests for quotations and purchase orders issued by the Inventory Control Points when bar coding of supplies is necessary.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3013.70—Special Streamlined Acquisition Authority</HD>
            <SECTION>
              <SECTNO>3013.7000</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) The Secretary may use special streamlined acquisition authority set forth in Public Law 107-296, section 833, with respect to any procurement made during the period beginning on November 25, 2002 and ending September 30, 2007 where if the Secretary determines in writing the mission of the Department (described in Pub. L. 107-296, section 101) would be seriously impaired without the use of such authorities.</P>
              <P>(b) The Secretary may deem any item or service to be a commercial item for the purpose of federal procurement laws for procurements described in (HSAR) 48 CFR 3013.7005.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3013.7001</SECTNO>
              <SUBJECT>Delegations.</SUBJECT>
              <P>The Secretary may delegate this authority to an officer of the Department who is appointed by the President with the advice and consent of the Senate. Delegations of this authority are discussed in HSAM 3013.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3013.7002</SECTNO>
              <SUBJECT>Reporting requirements.</SUBJECT>
              <P>(a) The Secretary shall submit to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate—</P>
              <P>(1) Notification of such determination; and</P>
              <P>(2) The justification for such determination.<PRTPAGE P="78"/>
              </P>
              <P>(b) This report shall be submitted no later than seven days after the date of any determination. Reporting requirements and procedures are discussed in HSAM 3013.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3013.7003</SECTNO>
              <SUBJECT>Micro-purchase authority.</SUBJECT>
              <P>(a) When the streamlined acquisition authority is exercised, the micro-purchase threshold is raised to $7,500.</P>
              <P>(b) The authority in this section may be exercised only by individuals designated by the Secretary. The number of employees shall be—</P>
              <P>(1) Fewer than the number of employees of the Department that are authorized to make purchases without obtaining competitive quotations.</P>
              <P>(2) Sufficient to ensure the geographic dispersal of the availability of the use of the procurement authority under such paragraph at locations reasonably considered to be potential terrorist targets; and</P>
              <P>(3) Sufficiently limited to allow for careful monitoring of employees designated under each paragraph.</P>
              <P>(c) Procurements made under this authority shall be subject to review by a designated supervisor on not less than a monthly basis. The supervisor responsible for the review shall be responsible for no more than seven employees making procurements under this authority.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3013.7004</SECTNO>
              <SUBJECT>Simplified acquisition authority.</SUBJECT>
              <P>When the streamlined acquisition authority is exercised, the simplified acquisition threshold shall be:</P>
              <P>(a) $200,000 in the case of a contract to be awarded and performed, or purchase to be made, within the United States; and</P>
              <P>(b) $300,000 in the case of a contract to be awarded and performed, or purchase to be made, outside of the United States.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3013.7005</SECTNO>
              <SUBJECT>Test program for certain commercial items.</SUBJECT>
              <P>When the streamlined authority is exercised, the $5,000,000 limitation provided in (FAR) 48 CFR subpart 13.5 is increased to $7,500,000.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3014—SEALED BIDDING [RESERVED]</HD>
        </PART>
        <PART>
          <EAR>Pt. 3015</EAR>
          <HD SOURCE="HED">PART 3015—CONTRACTING BY NEGOTIATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3015.2—Solicitation and Receipt of Proposals andInformation</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3015.204-3</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <SECTNO>3015.207-70</SECTNO>
              <SUBJECT>Handling proposals and information.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3015.4—Contract Pricing</HD>
              <SECTNO>3015.404-470</SECTNO>
              <SUBJECT>Payment of profit or fee.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3015.6—Unsolicited Proposals</HD>
              <SECTNO>3015.602</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <SECTNO>3015.603</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3015.604</SECTNO>
              <SUBJECT>Agency points of contact.</SUBJECT>
              <SECTNO>3015.606</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
              <SECTNO>3015.606-1</SECTNO>
              <SUBJECT>Receipt and initial review.</SUBJECT>
              <SECTNO>3015.606-2</SECTNO>
              <SUBJECT>Evaluation.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3015.2—Solicitation and Receipt of Proposals and Information</HD>
            <SECTION>
              <SECTNO>3015.204-3</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>The contracting officer shall insert clause (HSAR) 48 CFR 3052.215-70, Key Personnel or Facilities, in solicitations and contracts when the selection for award is substantially based on the offeror's possession of special capabilities regarding personnel or facilities.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3015.207-70</SECTNO>
              <SUBJECT>Handling proposals and information.</SUBJECT>
              <P>(b) Proposals and information may be released outside the Government for evaluation and similar purposes if qualified personnel are not available to thoroughly evaluate or analyze proposals or information. The contracting officer shall document the file in such cases.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3015.4—Contract Pricing</HD>
            <SECTION>
              <SECTNO>3015.404-470</SECTNO>
              <SUBJECT>Payment of profit or fee.</SUBJECT>

              <P>The contracting officer shall not pay profit or fee on undefinitized contracts <PRTPAGE P="79"/>or undefinitized contract modifications. Any profit or fee earned shall be paid after the contract or modification is definitized.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3015.6—Unsolicited Proposals</HD>
            <SECTION>
              <SECTNO>3015.602</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>The Department of Homeland Security (DHS) encourages new and innovative proposals and ideas that will sustain or enhance the DHS mission, which is stipulated in the Homeland Security Act of 2002, Pub. L. 107-296.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3015.603</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>(a) Costs associated with the time and effort to prepare a proposal are solely the responsibility of and assumed by the offeror that is submitting the proposal.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3015.604</SECTNO>
              <SUBJECT>Agency points of contact.</SUBJECT>

              <P>(a) The DHS does not have a central clearinghouse for distributing information or assistance regarding unsolicited proposals. Each HCA is responsible for disseminating the information required at (FAR) 48 CFR 15.604(a). General information concerning DHS's scope of responsibilities and functions is available at <E T="03">http://www.dhs.gov/dhspublic/.</E>
              </P>
            </SECTION>
            <SECTION>
              <SECTNO>3015.606</SECTNO>
              <SUBJECT>Agency procedures.</SUBJECT>
              <P>(a) The agency authority to establish procedures for receiving, reviewing and evaluating, and timely disposing of unsolicited proposals, consistent with the requirements of (FAR) 48 CFR 15.6 and this subpart, is delegated to each HCA.</P>

              <P>(b) The agency authority to establish points of contact (see (FAR) 48 CFR 15.604) to coordinate the receipt and handling of unsolicited proposals is delegated to each HCA. Contracting offices are designated as the receiving point for unsolicited proposals. Persons within DHS (<E T="03">e.g.,</E> technical personnel) who receive proposals shall forward them to their cognizant contracting office.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3015.606-1</SECTNO>
              <SUBJECT>Receipt and initial review.</SUBJECT>
              <P>(a) The agency contact point shall make an initial review determination within seven calendar days after receiving a proposal.</P>
              <P>(b) If the proposal meets the requirements at (FAR) 48 CFR 15.606-1(a), the agency contact point shall acknowledge receipt within three calendar days after making the initial review determination and advise the offeror of the general timeframe for completing the evaluation.</P>
              <P>(c) If the proposal does not meet the requirements of (FAR) 48 CFR 15.606-1(a), the agency contact point shall return the proposal within three calendar days after making the determination. The offeror shall be informed, in writing, of the reasons for returning the proposal.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3015.606-2</SECTNO>
              <SUBJECT>Evaluation.</SUBJECT>
              <P>(a) Comprehensive evaluations should be completed within sixty calendar days after making the initial review determination. If additional time is needed, then the agency contact point shall advise the offeror accordingly and provide a new evaluation completion date. The evaluating office shall neither reproduce nor disseminate the proposal to other offices without the consent of the contracting office from which the proposal was received for evaluation. If the evaluating office requires additional information from the offeror, the evaluator shall convey this request to the responsible contracting office. The evaluator shall not directly contact the proposal originator.</P>
              <P>(b) If the evaluators recommend accepting the proposal, the responsible contracting officer shall ensure compliance with all of the requirements of (FAR) 48 CFR 15.607.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3016</EAR>
          <HD SOURCE="HED">PART 3016—TYPES OF CONTRACTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3016.2—Fixed-Price Contracts</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3016.203</SECTNO>
              <SUBJECT>Fixed-price contracts with economic price adjustment.</SUBJECT>
              <SECTNO>3016.203-4</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <SECTNO>3016.203-470</SECTNO>
              <SUBJECT>Solicitation provision.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3016.4—Incentive Contracts</HD>
              <SECTNO>3016.406</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3016.5—Indefinite-Delivery Contracts</HD>
              <SECTNO>3016.505</SECTNO>
              <SUBJECT>Ordering.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <PRTPAGE P="80"/>
              <HD SOURCE="HED">Subpart 3016.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
              <SECTNO>3016.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
              <SECTNO>3016.603-4</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3016.2—Fixed-Price Contracts</HD>
            <SECTION>
              <SECTNO>3016.203</SECTNO>
              <SUBJECT>Fixed price contracts with economic price adjustments.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3016.203-4</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>(d)(2) Any clause using this method shall be prepared and approved by the contracting officer.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3016.203-470</SECTNO>
              <SUBJECT>Solicitation provision.</SUBJECT>
              <P>The contracting officer shall insert a provision substantially the same as (HSAR) 48 CFR 3052.216-70, Evaluation of Offers Subject to an Economic Price Adjustment Clause, in solicitations containing an economic price adjustment clause.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3016.4—Incentive Contracts</HD>
            <SECTION>
              <SECTNO>3016.406</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>(e)(1)(i) The contracting officer shall insert a clause substantially the same as (HSAR) 48 CFR 3052.216-71, Determination of Award Fee, in solicitations and contracts that includes an award fee.</P>
              <P>(ii) The contracting officer shall insert a clause substantially the same as (HSAR) 48 CFR 3052.216-72, Performance Evaluation Plan, in all solicitations and contracts that includes an award fee.</P>
              <P>(iii) The contracting officer shall insert a clause substantially the same as (HSAR) 48 CFR 3052.216-73, Distribution of Award Fee, in all solicitations and contracts that includes an award fee.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3016.5—Indefinite-Delivery Contracts</HD>
            <SECTION>
              <SECTNO>3016.505</SECTNO>
              <SUBJECT>Ordering.</SUBJECT>
              <P>(b)(5) The OE Competition Advocate is designated as the OE Task and Delivery Order Ombudsman, unless otherwise provided in OE procedures.</P>
              <P>(i) If any corrective action is needed after reviewing complaints from contractors on task and delivery order contracts, the OE Ombudsman shall provide a written determination of such action to the contracting officer.</P>
              <P>(ii) Issues that cannot be resolved within the OE, shall be forwarded to the DHS Task and Delivery Order Ombudsman for review and resolution.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3016.6—Time-and-Materials, Labor-Hour, and Letter Contracts</HD>
            <SECTION>
              <SECTNO>3016.603</SECTNO>
              <SUBJECT>Letter contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3016.603-4</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>The contracting officer shall insert a clause substantially the same as (HSAR) 48 CFR 3052.216-74, Settlement of Letter Contract, in all definitized letter contracts.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3017</EAR>
          <HD SOURCE="HED">PART 3017—SPECIAL CONTRACTING METHODS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3017.2—Options</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3017.202</SECTNO>
              <SUBJECT>Use of options.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3017.4—Leader Company Contracting</HD>
              <SECTNO>3017.402</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3017.70—Energy Savings Performance Contracts</HD>
              <SECTNO>3017.7000</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3017.90—Fixed Price Contracts for Vessel Repair, Alteration or Conversion</HD>
              <SECTNO>3017.9000</SECTNO>
              <SUBJECT>Clauses (USCG).</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3017.2—Options.</HD>
            <SECTION>
              <SECTNO>3017.202</SECTNO>
              <SUBJECT>Use of options.</SUBJECT>
              <P>(a) Contracting officers shall not use unpriced options.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="81"/>
            <HD SOURCE="HED">Subpart 3017.4—Leader Company Contracting</HD>
            <SECTION>
              <SECTNO>3017.402</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <P>(a)(4) Submit requests per (HSAR) 48 CFR 3001.7000(a).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3017.70—Energy Savings Performance Contracts</HD>
            <SECTION>
              <SECTNO>3017.7000</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>DHS and its OEs may enter into Energy Savings Performance Contracts under 42 U.S.C. 8287, as amended subject to the requirements of 10 CFR part 436. Proposed contracts under this section shall be coordinated with the CPO.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3017.90—Fixed Price Contracts for Vessel Repair, Alteration or Conversion</HD>
            <SECTION>
              <SECTNO>3017.9000</SECTNO>
              <SUBJECT>Clauses (USCG).</SUBJECT>
              <P>For the U.S. Coast Guard, the following clauses are to be used in specific solicitations and contracts:</P>
              <P>(a) The clauses in (HSAR) 48 CFR 3052.217-90 through (HSAR) 48 CFR 3052.217-93 and (HSAR) 48 CFR 3052.217-95 through (HSAR) 48 CFR 3052.217-99 shall be included and clause (HSAR) 48 CFR 3052.217-94 may be included in sealed bid fixed-price solicitations and contracts for vessel repair, alteration, or conversion which are to be performed within the United States, its possessions, or Puerto Rico. The contracting officer may, in whole or in part (such as after incidents), increase the dollar amounts in the clause at (HSAR) 48 CFR 3052.217-95(b)(6) and (c)(1) consistent with contract size, inflation, and other circumstances.</P>
              <P>(b) Unless inappropriate, the clauses in (HSAR) 48 CFR 3052.217-90 through (HSAR) 48 CFR 3052.217-93 and (HSAR) 48 CFR 3052.217-95 through (HSAR) 48 CFR 3052.217-99 should be included and (HSAR) 48 CFR 3052.217-94 may be included in negotiated solicitations and contracts to be performed outside the United States. The contracting officer may, in whole or in part (such as after incidents), increase the dollar amounts in the clause at (HSAR) 48 CFR 3052.217-95(b)(6) and (c)(1) consistent with contract size, inflation, and other circumstances.</P>
              <P>(c) The clause at (HSAR) 48 CFR 3052.217-100, Guarantee, shall be used where general guarantee provisions are deemed desirable by the contracting officer.</P>
              <P>(1) When inspection and acceptance tests will afford full protection to the Government in ascertaining conformance to specifications and the absence of defects and deficiencies, no guarantee clause for that purpose shall be included in the contract.</P>
              <P>(2) The customary guarantee period, to be inserted in the first sentence of the clause at (HSAR) 48 CFR 3052.217-100, Guarantee, is 60 days. However, in certain instances, the contracting officer may desire to include a clause in a contract for a guarantee period of more than 60 days. In such instances:</P>
              <P>(i) Where, after full inquiry, it has been determined that such longer guarantee period will not involve increased costs, a longer guarantee period may be substituted by the contracting officer for the usual 60 days; or</P>
              <P>(ii) Where the full inquiry discloses that such longer guarantee period will involve, or is reasonably expected to involve, increased costs, such facts and the reasons for the need for such longer period shall be set forth in letter form to the COCO, requesting approval for use of guarantee period in excess of 60 days. Upon approval, the longer period may be inserted by the contracting officer in the first sentence of the clause at (HSAR) 48 CFR 3052.217-100, Guarantee.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3018 [RESERVED]</HD>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="83"/>
        <HD SOURCE="HED">SUBCHAPTER D—SOCIOECONOMIC PROGRAMS</HD>
        <PART>
          <EAR>Pt. 3019</EAR>
          <HD SOURCE="HED">PART 3019—SMALL BUSINESS PROGRAMS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3019.2—Policies</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3019.201</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3019.7—The Small Business Subcontracting Program</HD>
              <SECTNO>3019.705</SECTNO>
              <SUBJECT>Responsibilities of the contracting officer under the subcontracting assistance program.</SUBJECT>
              <SECTNO>3019.705-1</SECTNO>
              <SUBJECT>General support for the program.</SUBJECT>
              <SECTNO>3019.708</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <SECTNO>3019.708-70</SECTNO>
              <SUBJECT>DHS solicitation and contract clauses.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3019.2—Policies</HD>
            <SECTION>
              <SECTNO>3019.201</SECTNO>
              <SUBJECT>General policy.</SUBJECT>
              <P>(d) The Director, Office of Small and Disadvantaged Business Utilization is responsible for the implementation and execution of the small and small disadvantaged business programs required by the Small Business Act.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3019.7—The Small Business Subcontracting Program</HD>
            <SECTION>
              <SECTNO>3019.705</SECTNO>
              <SUBJECT>Responsibilities for the contracting officer under the subcontracting program.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3019.705-1</SECTNO>
              <SUBJECT>General support for the program.</SUBJECT>
              <P>Contracting officers will consider making the submission of a subcontracting plan part of the evaluation criteria. Contracting officers may also consider an offerors past performance in previous subcontracting plan goals and efforts to achieve those goals.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3019.708</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3019.708-70</SECTNO>
              <SUBJECT>DHS solicitation and contract clauses.</SUBJECT>
              <P>(a) The contracting officer shall insert the clause at (HSAR) 48 CFR 3052.219-70, Small Business and Small Disadvantaged Business Subcontracting Reporting, in solicitations and contracts containing the clause at (FAR) 48 CFR 52.219-9.</P>
              <P>(b) The contracting officer shall insert the clause at (HSAR) 48 CFR 3052.219-71, DHS Mentor-Protégé Program in all solicitations that anticipate the need for a subcontracting plan.</P>
              <P>(c) The contracting officer shall insert the clause at (HSAR) 48 CFR 3052.219-72, Evaluation of Prime Contractor Participation in the Mentor-Protégé Program, in all solicitations containing (HSAR) 48 CFR 3052.219-71, Mentor-Protégé Program and (FAR) 48 CFR 52.219-9 Small Business Subcontracting Plan.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3020—3021 [RESERVED]</HD>
        </PART>
        <PART>
          <EAR>Pt. 3022</EAR>
          <HD SOURCE="HED">PART 3022—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3022.1—Basic Labor Policies</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3022.101</SECTNO>
              <SUBJECT>Labor relations.</SUBJECT>
              <SECTNO>3022.101-70</SECTNO>
              <SUBJECT>Admittance of union representatives to DHS installations.</SUBJECT>
              <SECTNO>3022.101-71</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3022.4—Labor Standards for Contracts Involving Construction</HD>
              <SECTNO>3022.406</SECTNO>
              <SUBJECT>Administration and enforcement.</SUBJECT>
              <SECTNO>3022.406-9</SECTNO>
              <SUBJECT>Withholding from or suspension of contract payments.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3022.90— Local Hire (USCG)</HD>
              <SECTNO>3022.9000</SECTNO>
              <SUBJECT>Policy (USCG).</SUBJECT>
              <SECTNO>3022.9001</SECTNO>
              <SUBJECT>Contract clause (USCG).</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <PRTPAGE P="84"/>
            <HD SOURCE="HED">Subpart 3022.1—Basic Labor Policies</HD>
            <SECTION>
              <SECTNO>3022.101</SECTNO>
              <SUBJECT>Labor relations.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3022.101-70</SECTNO>
              <SUBJECT>Admittance of union representatives to DHS installations.</SUBJECT>
              <P>(a) It is the policy of DHS to admit labor union representatives of contractor employees to DHS installations to visit work sites and transact labor union business with contractors, their employees, or union stewards pursuant to existing union collective bargaining agreements. Their presence shall not interfere with the contractor's work progress under a DHS contract nor violate safety or security regulations that may be applicable to persons visiting the installation. Union representatives will not be permitted to conduct meetings, collect union dues, or make speeches concerning union matters while visiting a work site.</P>
              <P>(b) Whenever a union representative is denied entry to a work site, the person denying entry shall make a written report to the DHS labor coordinator and OE labor advisor, if any, within two working days after the request for entry is denied. The report shall include the reason(s) for the denial, the name of the representative denied entry, the union affiliation and number, and the name and title of the person that denied the entry.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3022.101-71</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>(a) The contracting officer, may, when applicable, insert the clause at (HSAR) 48 CFR 3052.222-70, Strikes or Picketing Affecting Timely Completion of the Contract Work, in solicitations and contracts.</P>
              <P>(b) The contracting officer may, when applicable, insert the clause at (HSAR) 48 CFR 3052.222-71, Strikes or Picketing Affecting Access to a DHS Facility, in solicitations and contracts.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3022.4—Labor Standards for Contracts Involving Construction</HD>
            <SECTION>
              <SECTNO>3022.406</SECTNO>
              <SUBJECT>Administration and enforcement.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3022.406-9</SECTNO>
              <SUBJECT>Withholding from or suspension of contract payments.</SUBJECT>
              <P>(c) Disposition of contract payments withheld or suspended.</P>
              <P>(1) Forwarding wage underpayments to the Comptroller General. The contracting officer shall ensure that a completed DHS Form 0700-04, Employee Claim for Wage Restitution, is obtained from each employee claiming restitution under the contract. The Comptroller General (Claims Division) shall receive this form with a completed SF 1093, Schedule of Withholding Under the Davis-Bacon Act and/or the Contract Work Hours and Safety Standards Act, before payment can be made to the employee.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3022.90—Local Hire (USCG)</HD>
            <SECTION>
              <SECTNO>3022.9000</SECTNO>
              <SUBJECT>Policy (USCG).</SUBJECT>
              <P>As required by 14 U.S.C. 666, the U.S. Coast Guard shall include a provision for local hire in each contract for construction or services to be performed in whole or in part in a State that has an unemployment rate in excess of the national average rate of unemployment as determined by the Secretary of Labor.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3022.9001</SECTNO>
              <SUBJECT>Contract clause (USCG).</SUBJECT>
              <P>For the U.S. Coast Guard, the contracting officer shall insert the USCG clause at (HSAR) 48 CFR 3052.222-90, Local Hire Provision, in all solicitations and contracts as stated in (HSAR) 48 CFR 3022.9000.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="85"/>
          <EAR>Pt. 3023</EAR>
          <HD SOURCE="HED">PART 3023—ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3023.3—Hazardous Material Identification and Material Safety Data</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3023.303</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3023.5—Drug-Free Workplace</HD>
              <SECTNO>3023.501</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <SECTNO>3023.506</SECTNO>
              <SUBJECT>Suspension of payments, termination of contract, and debarment and suspension actions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3023.10—Federal Compliance with Right-to-Know Laws and Pollution Prevention Requirements</HD>
              <SECTNO>3023.1002</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3023.90—Safety Requirements for USCG Contracts</HD>
              <SECTNO>3023.9000</SECTNO>
              <SUBJECT>Contract Clause (USCG).</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3023.3—Hazardous Material Identification and Material Safety Data</HD>
            <SECTION>
              <SECTNO>3023.303</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>The contracting officer shall insert the clause at (HSAR) 48 CFR 3052.223-70, Removal or Disposal of Hazardous Substances—Applicable Licenses and Permits, in solicitations and contracts involving the removal or disposal of hazardous waste material.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3023.5—Drug-Free Workplace</HD>
            <SECTION>
              <SECTNO>3023.501</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>(d) The head of the law enforcement organizational element may determine that (FAR) 48 CFR 23.501 does not apply. This authority may not be redelegated.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3023.506</SECTNO>
              <SUBJECT>Suspension of payments, termination of contract, and debarment and suspension actions.</SUBJECT>
              <P>(e) Submit requests per (HSAR) 48 CFR 3001.7000(b).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3023.10—Federal Compliance With Right-to-Know Laws and Pollution Requirements</HD>
            <SECTION>
              <SECTNO>3023.1002</SECTNO>
              <SUBJECT>Applicability.</SUBJECT>
              <P>DHS MD 5110, Environmental Compliance, provides guidance and direction for compliance with environmental laws.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3023.90—Safety Requirements for USCG Contracts</HD>
            <SECTION>
              <SECTNO>3023.9000</SECTNO>
              <SUBJECT>Contract clause (USCG).</SUBJECT>
              <P>For the U.S. Coast Guard, where all or part of a contract will be performed on Government-owned or leased property, the contracting officer shall insert the clause at (HSAR) 48 CFR 3052.223-90, Accident and Fire Reporting.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3024</EAR>
          <HD SOURCE="HED">PART 3024—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3024.1—Protection of Individual Privacy</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3024.102-70</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3024.2—Freedom of Information Act</HD>
              <SECTNO>3024.203</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3024.1—Protection of Individual Privacy</HD>
            <SECTION>
              <SECTNO>3024.102-70</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>Procedures for implementing the Privacy Act of 1974 are contained in Departmental regulations under 6 CFR part 5, subpart B, Privacy Act.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="86"/>
            <HD SOURCE="HED">Subpart 3024.2—Freedom of Information Act</HD>
            <SECTION>
              <SECTNO>3024.203</SECTNO>
              <SUBJECT>Policy.</SUBJECT>

              <P>(a) The Department's implementation of the Freedom of Information Act is codified in regulations 6 CFR part 5, subpart B, FOIA. Information request concerning awards beyond those routinely handled by contracting officers (<E T="03">e.g.,</E> identification of successful offerors, public announcements, debriefings, surety notices under HSAR 3028.106-6) shall be submitted to the FOIA Office of the Organizational Element making the award. The FOIA office for the DHS Office of Operations only, is Departmental Disclosure Officer (DDO), DHS, Washington, DC 20528 or <E T="03">foia@dhs.gov.</E>
              </P>
              <P>(b) <E T="03">See</E> (FAR) 48 CFR 15.207(b) on safeguarding proposals.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3025—FOREIGN ACQUISITION [RESERVED]</HD>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3026—OTHER SOCIOECONOMIC PROGRAMS [RESERVED]</HD>
        </PART>
        <PART>
          <EAR>Pt. 3027</EAR>
          <HD SOURCE="HED">PART 3027—PATENTS, DATA, AND COPYRIGHTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3027.2—Patents</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3027.205</SECTNO>
              <SUBJECT>Adjustment of royalties.</SUBJECT>
              <SECTNO>3027.208</SECTNO>
              <SUBJECT>Use of patented technology under the North American Free Trade Agreement.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3027.3—Patent Rights Under Government Contracts</HD>
              <SECTNO>3027.304-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3027.304-5</SECTNO>
              <SUBJECT>Appeals.</SUBJECT>
              <SECTNO>3027.305-4</SECTNO>
              <SUBJECT>Administration of Patent Rights Clause.</SUBJECT>
              <SECTNO>3027.306</SECTNO>
              <SUBJECT>Licensing background patent rights to third parties.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3027.4—Rights in Data and Copyrights</HD>
              <SECTNO>3027.404</SECTNO>
              <SUBJECT>Basic Rights in Data clause.</SUBJECT>
              <SECTNO>3027.409</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3027.2—Patents</HD>
            <SECTION>
              <SECTNO>3027.205</SECTNO>
              <SUBJECT>Adjustment of royalties.</SUBJECT>
              <P>(a) Reports shall be made to OE legal counsel. Contracting Officers shall coordinate actions with the COCO and HCA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3027.208</SECTNO>
              <SUBJECT>Use of patented technology under the North American Free Trade Agreements.</SUBJECT>
              <P>(f) Contracting officers shall ensure compliance.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3027.3—Patent Rights under Government Contracts</HD>
            <SECTION>
              <SECTNO>3027.304-1</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <P>Interim and final invention reports and notification of all subcontracts for experimental, developmental, or research work (FAR) 48 CFR 27.304-1(e)(2)(ii) may be submitted on DD Form 882, Report of Inventions and Subcontracts.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3027.304-5</SECTNO>
              <SUBJECT>Appeals.</SUBJECT>
              <P>(a) Contracting officers are authorized to take the specified actions.</P>
              <P>(b) Appeals shall be made to the CPO.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3027.305</SECTNO>
              <SUBJECT>Administration of Patent Rights Clauses.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3027.305-4</SECTNO>
              <SUBJECT>Conveyance of invention rights acquired by the Government.</SUBJECT>
              <P>The contracting officer shall ensure that solicitations and contracts which include a patent rights clause include a means for the contractor to report inventions made in the course of contract performance and at contract completion. This requirement may be fulfilled by requiring the contractor to submit a DD Form 882, Report of Inventions and Subcontract.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3027.306</SECTNO>
              <SUBJECT>Licensing background patent rights to third parties.</SUBJECT>
              <P>(b) The CPO shall make the required determinations and notifications under this subpart.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <PRTPAGE P="87"/>
            <HD SOURCE="HED">Subpart 3027.4—Rights in Data and Copyrights</HD>
            <SECTION>
              <SECTNO>3027.404</SECTNO>
              <SUBJECT>Basic rights in data clause.</SUBJECT>
              <P>(f)(1)(iii) The DHS will use Alternate IV of the (FAR) 48 CFR clause 52.227-14 in all contracts containing the basic clause, unless the HCA approves an exclusion. Approval at a level above the contracting officer is required for the contract to exclude items or categories of data from Alternative IV.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3027.409</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
              <P>Alternate IV of the (FAR) 48 CFR clause 52.227-14 shall be included in solicitations and contracts containing the basic clause unless the HCA approves an exclusion. Additional non-conflicting alternates may be used.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3028</EAR>
          <HD SOURCE="HED">PART 3028—BONDS AND INSURANCE</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3028.1—Bonds and Other Financial Protections</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3028.106</SECTNO>
              <SUBJECT>Administration.</SUBJECT>
              <SECTNO>3028.106-6</SECTNO>
              <SUBJECT>Furnishing information.</SUBJECT>
              <SECTNO>3028.106-70</SECTNO>
              <SUBJECT>Execution and administration of bonds.</SUBJECT>
              <SECTNO>3028.106-490</SECTNO>
              <SUBJECT>Contract clause (USCG).</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3028.3—Insurance</HD>
              <SECTNO>3028.306</SECTNO>
              <SUBJECT>Insurance under fixed-price contracts.</SUBJECT>
              <SECTNO>3028.306-90</SECTNO>
              <SUBJECT>Contracts for lease of aircraft (USCG).</SUBJECT>
              <SECTNO>3028.307</SECTNO>
              <SUBJECT>Insurance under cost-reimbursement contracts.</SUBJECT>
              <SECTNO>3028.307-1</SECTNO>
              <SUBJECT>Group insurance plans.</SUBJECT>
              <SECTNO>3028.310</SECTNO>
              <SUBJECT>Contract clause for work on a Government installation.</SUBJECT>
              <SECTNO>3028.310-70</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <SECTNO>3028.311</SECTNO>
              <SUBJECT>Solicitation provision and contract clause on liability insurance under cost-reimbursement contracts.</SUBJECT>
              <SECTNO>3028.311-1</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3028.1—Bonds and Other Financial Protections</HD>
            <SECTION>
              <SECTNO>3028.106</SECTNO>
              <SUBJECT>Administration.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3028.106-6</SECTNO>
              <SUBJECT>Furnishing information.</SUBJECT>
              <P>(b) The contracting officer shall, upon request, furnish the name and address of the prime contractor's surety or sureties to employees, suppliers, and subcontractors having a contractual or employment relationship with prime contractors, subcontractors or suppliers. When furnishing surety information, the inquirer may also be informed that:</P>
              <P>(1) Persons believing that they have legal remedies under the Miller Act are cautioned to consult their own legal advisor regarding the proper steps to take to obtain remedies.</P>
              <P>(2) On construction contracts exceeding $2,000, if the contracting officer is informed (through routine compliance checking, a complaint, or a request for information) that a laborer, mechanic, apprentice, trainee, watchman, or guard employed by the contractor or subcontractor at any tier may have been paid wages less than those required by the applicable labor standards provisions of the contract, the contracting officer shall promptly initiate an investigation in accordance with (FAR) 48 CFR Subpart 22.4, irrespective of the employee's rights under the Miller Act. When an employee's request for information is involved, the contracting officer shall inform the inquirer that such investigation will be made. Such investigation is required pursuant to the provisions of the Davis-Bacon Act, Contract Work Hours and Safety Standards Act, and Copeland (Anti-Kickback) Act for assuring proper payment to such employees.</P>

              <P>(c) When furnishing a copy of a payment bond and contract in accordance with (FAR) 48 CFR 28.106-6(c), the requirement for a copy of the contract may be satisfied by furnishing a machine-duplicate copy of the contractor's first pages which show the contract number and date, the contractor's name and signature, the contracting officer's signature, and the description of the contract work. The <PRTPAGE P="88"/>contracting officer furnishing the copies shall place the statement “Certified to be a true and correct copy” followed by a signature, title and name of the OE. The fee for furnishing the requested certified copies shall be determined according to the DHS Freedom of Information Act regulation, 6 CFR part 5, subpart B, FOIA.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3028.106-70</SECTNO>
              <SUBJECT>Execution and administration of bonds.</SUBJECT>
              <P>(a) The contracting officer shall notify the surety within 30 days, of the contractor's failure to perform in accordance with the terms of the contract.</P>
              <P>(b) When a partnership is a principal on a bond, the names of all the members of the firm shall be listed in the bond following the name of the firm, and the phrase “a partnership composed of.” If a principal is a corporation, the state of incorporation shall also appear on the bond.</P>
              <P>(c) Performance or payment bond(s) other than an annual bond shall not predate the contract to which it pertains.</P>
              <P>(d) Bonds may be filed with the original contract to which they apply, or all bonds can be separately maintained and reviewed quarterly for validity. If separately maintained, each contract file shall cross-reference the applicable bonds.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3028.106-490</SECTNO>
              <SUBJECT>Contract clause (USCG).</SUBJECT>
              <P>For the U.S. Coast Guard, the contracting officer shall insert the USCG clause at (HSAR) 48 CFR 3052.228-90. Notification of Miller Act Payment Bond Protection, in solicitation and contracts, and shall require its first-tier subcontractors to insert the clause in all of their subcontracts, when payment bonds are required.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3028.3—Insurance</HD>
            <SECTION>
              <SECTNO>3028.306</SECTNO>
              <SUBJECT>Insurance under fixed-price contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3028.306-90</SECTNO>
              <SUBJECT>Contracts for lease of aircraft (USCG).</SUBJECT>
              <P>(a) For the U.S. Coast Guard, the contracting officer shall insert the clauses at (HSAR) 48 CFR 3052.228-91 through 3052.228-93, unless otherwise indicated by the specific instructions for their use, in any contract for the lease of aircraft (including aircraft used in out-service flight training).</P>
              <P>(b) For the U.S. Coast Guard, the contracting officer shall insert the clause at (HSAR) 48 CFR 3052.228-91, Loss of or Damage to Leased Aircraft, in any contract for the lease of aircraft, except in the following circumstances:</P>
              <P>(1) When the hourly rental rate does not exceed $250 and the total rental cost for any single transaction is not in excess of $2,500:</P>
              <P>(2) When the cost of hull insurance does not exceed 10 percent of the contract rate; or</P>
              <P>(3) When the lessor's insurer does not grant a credit for uninsured hours, thereby preventing the lessor from granting the same to the Government.</P>
              <P>(c) For the U.S. Coast Guard, the contracting officer shall insert the clause at (HSAR) 48 CFR 3052.228-92, Fair Market Value of Aircraft, when fair market value of the aircraft can be determined.</P>

              <P>(d) 49 U.S.C. 44112, as amended, provides that no lessor of an aircraft under a <E T="03">bona fide</E> lease of 30 days or more shall be liable by reason of his interest as lessor or title-holder of the aircraft for any injury to or death of persons, or damage to or loss of property, unless such aircraft is in the actual possession or control of such person at the time of such injury, death, damage or loss. On short-term or intermittent-use leases, however, the owner may be liable for damage caused by operation of the aircraft. It is usual for the aircraft owner to retain insurance covering this liability during the term of such lease. Such insurance can, often for little or no increase in premium, be made to cover the Government's exposure to liability as well. In order to take advantage of this coverage, the Risks and Indemnities clause at (HSAR) 48 CFR 3052.228-93 prescribed in paragraph (d)(1) of this section shall be used.</P>

              <P>(1) For the U.S. Coast Guard, the contracting officer shall insert the clause at (HSAR) 48 CFR 3052.228-93, Risk and Indemnities, in any contract for out-service flight training or for the lease of aircraft when the Government will <PRTPAGE P="89"/>have exclusive use of the aircraft for a period of less than thirty days.</P>
              <P>(2) For the U.S. Coast Guard, any contract for out-service flight training shall include a clause in the contract schedule stating substantially that the contractor's personnel shall at all times during the course of the training be in command of the aircraft and that at no time shall other personnel be permitted to take command of the aircraft.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3028.307</SECTNO>
              <SUBJECT>Insurance under cost-reimbursement contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3028.307-1</SECTNO>
              <SUBJECT>Group insurance plans.</SUBJECT>
              <P>Plans shall be submitted to the contracting officer, who must obtain the advice of legal counsel.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3028.310</SECTNO>
              <SUBJECT>Contract clause for work on a Government installation.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3028.310-70</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>Insert a clause substantially similar to (HSAR) 48 CFR 3052.228-70, “Insurance,” in all solicitations and contracts that contain the clause at (FAR) 47 CFR 52.228-5.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3028.311</SECTNO>
              <SUBJECT>Solicitation provision and contract clause on liability insurance under cost-reimbursement contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3028.311-1</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>Insert a clause substantially similar to (HSAR) 48 CFR 3052.228-70, “Insurance,” in all solicitations and contracts that contain the clause at (FAR) 48 CFR 52.228-7, unless waived by an official one level above the contracting officer.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="91"/>
        <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        <PART>
          <HD SOURCE="HED">PART 3029—TAXES [RESERVED]</HD>
        </PART>
        <PART>
          <EAR>Pt. 3030</EAR>
          <HD SOURCE="HED">PART 3030—COST ACCOUNTING STANDARDS ADMINISTRATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3030.2—CAS Program Requirements</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3030.201</SECTNO>
              <SUBJECT>Contract requirements.</SUBJECT>
              <SECTNO>3030.201-5</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3030.2—CAS Program Requirements</HD>
            <SECTION>
              <SECTNO>3030.201</SECTNO>
              <SUBJECT>Contract requirements.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3030.201-5</SECTNO>
              <SUBJECT>Waiver.</SUBJECT>
              <P>(b)(1) The CPO is authorized to waive the application of the Cost Accounting Standards to individual firm fixed-price contracts for the acquisition of commercial items. This authority may not be redelegated.</P>
              <P>(2) Submit waiver requests per (HSAR) 48 CFR 3001.7000(a), for review and transmittal by the CPO to the Cost Accounting Standard Board.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3031</EAR>
          <HD SOURCE="HED">PART 3031—CONTRACT COST PRINCIPLES AND PROCEDURES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3031.2—Contracts with Commercial Organizations</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3031.205</SECTNO>
              <SUBJECT>Selected costs.</SUBJECT>
              <SECTNO>3031.205-32</SECTNO>
              <SUBJECT>Precontract costs.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3031.2—Contracts with Commercial Organizations</HD>
            <SECTION>
              <SECTNO>3031.205</SECTNO>
              <SUBJECT>Selected costs.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3031.205-32</SECTNO>
              <SUBJECT>Precontract costs.</SUBJECT>
              <P>(a) The decision to incur precontract costs is that of the contractor. DHS employees may not can authorize, demand, or require a contractor to incur precontract costs. The contracting officer must advise the prospective contractor that any costs incurred before contract award are incurred at the contractor's sole risk and that if negotiations fail to result in a binding contract, payment of these costs will not be made by the Government. See (HSAR) 48 CFR 3032.205-32(b) regarding exception due to reconciliation of costs.</P>
              <P>(b) When the contracting officer determines that incurring precontract costs was necessary to meet the proposed contract delivery schedule of a cost-reimbursement contract, the clause at (HSAR) 48 CFR 3052.231-70, Precontract Costs, may be inserted in the resultant contract.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3032</EAR>
          <HD SOURCE="HED">PART 3032—CONTRACT FINANCING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3032.000—Scope of Part</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3032.003</SECTNO>
              <SUBJECT>Simplified acquisition procedures financing.</SUBJECT>
              <SECTNO>3032.006</SECTNO>
              <SUBJECT>Reduction or suspension of contract payments upon finding of fraud.</SUBJECT>
              <SECTNO>3032.006-2</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <SECTNO>3032.006-3</SECTNO>
              <SUBJECT>Responsibilities.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3032.11—Electronic Funds Transfer</HD>
              <SECTNO>3032.1110</SECTNO>
              <SUBJECT>Solicitation provision and contract clauses.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3032.000—Scope of Part</HD>
            <SECTION>
              <SECTNO>3032.003</SECTNO>
              <SUBJECT>Simplified acquisition procedures financing.</SUBJECT>
              <P>Contract financing may be permitted for purchases made under the authority of (FAR) 48 CFR Part 13. This authority is delegated to COCO and may not be redelegated.</P>
            </SECTION>
            <SECTION>
              <PRTPAGE P="92"/>
              <SECTNO>3032.006</SECTNO>
              <SUBJECT>Reduction or suspension of contract payments upon finding of fraud.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3032.006-2</SECTNO>
              <SUBJECT>Definition.</SUBJECT>
              <P>The CPO is the DHS remedy coordination official (RCO).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3032.006-3</SECTNO>
              <SUBJECT>Responsibilities.</SUBJECT>
              <P>(a) The CPO is authorized to establish specific procedures.</P>
              <P>(b) Reports shall be made through the HCA to the CPO.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3032.11—Electronic Funds Transfer</HD>
            <SECTION>
              <SECTNO>3032.1110</SECTNO>
              <SUBJECT> Solicitation provision and contract clauses.</SUBJECT>
              <P>(a)(1) Contracting officer shall insert FAR 48 CFR 52.232-33, Payment by Electronic Funds Transfer—Central Contractor Registration, in all proposed solicitations and contracts.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3033</EAR>
          <HD SOURCE="HED">PART 3033—PROTESTS, DISPUTES, AND APPEALS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3033.2—Disputes and Appeals</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3033.201</SECTNO>
              <SUBJECT>Definitions.</SUBJECT>
              <SECTNO>3033.211</SECTNO>
              <SUBJECT>Contracting officer's decision.</SUBJECT>
              <SECTNO>3033.214</SECTNO>
              <SUBJECT>Alternative disputes resolution (ADR).</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3033.2—Disputes and Appeals</HD>
            <SECTION>
              <SECTNO>3033.201</SECTNO>
              <SUBJECT> Definitions.</SUBJECT>
              <P>
                <E T="03">Agency Board of Contract Appeals</E> means the Department of Transportation Board of Contract Appeals (DOTBCA).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3033.211</SECTNO>
              <SUBJECT>Contracting officer's decision.</SUBJECT>
              <P>For DHS contracts, the Board of Contract Appeals (BCA) noted in (FAR) 48 CFR 33.211 is the Department of Transportation Board of Contract Appeals (DOTBCA) (S-20), 400 7th Street, S.W., Washington, DC, 20590. The DOTBCA Rules of Procedure are contained in 48 CFR Chapter 63, Part 6301. TSA shall use the DOTBCA for only Contract Disputes Act (CDA) requirements.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3033.214</SECTNO>
              <SUBJECT>Alternative dispute resolution (ADR).</SUBJECT>

              <P>(c) The Administrative Dispute Resolution Act (ADRA) of 1996, as amended, 5 U.S.C. 571, <E T="03">et seq.,</E> authorizes and encourages agencies to use mediation, conciliation, arbitration, and other techniques for the prompt and informal resolution of disputes, and for other purposes. The DOTBCA ADR procedures are contained in 48 CFR chapter 63, section 6302.30, ADR Methods (Rule 30), and will be distributed to the parties, if ADR procedures are used. These procedures may be obtained from the DOTBCA upon request. ADR procedures may be used when—</P>
              <P>(1) There is mutual consent by the parties to participate in the ADR process (with consent being obtained either before or after an issue in controversy has arisen);</P>
              <P>(2) Prior to the submission of a claim; and</P>
              <P>(3) In resolution of a formal claim.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <RESERVED>PART 3034—MAJOR SYSTEM ACQUISITION [RESERVED]</RESERVED>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="93"/>
        <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        <PART>
          <EAR>Pt. 3035</EAR>
          <HD SOURCE="HED">PART 3035—RESEARCH AND DEVELOPMENT CONTRACTING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3035.000—Scope of Part</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3035.003</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3035.000—Scope of Part</HD>
            <SECTION>
              <SECTNO>3035.003</SECTNO>
              <SUBJECT> Policy.</SUBJECT>
              <P>(b) Cost sharing shall be determined on a case by case basis. OEs may establish procedures for cost sharing.</P>
              <P>(c) Recoupment shall be determined on a case-by-case basis. Recoupment not otherwise required by law should be structured to address factors such as recovering the Department's fair share of its investment in nonrecurring costs related to the items acquired. Advice of legal counsel shall be obtained prior to establishing cost sharing policies and recoupment mechanisms under (FAR) 48 CFR 35.003(b) and (c).</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3036</EAR>
          <HD SOURCE="HED">PART 3036—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3036.2—Special Aspects of Contracting for Construction</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3036.201</SECTNO>
              <SUBJECT>Evaluation of contractor performance.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3036.5—Contract Clauses</HD>
              <SECTNO>3036-570</SECTNO>
              <SUBJECT> Special precautions for work at operating airports.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3036.2—Special Aspects of Contracting for Construction</HD>
            <SECTION>
              <SECTNO>3036.201</SECTNO>
              <SUBJECT> Evaluation of contractor performance.</SUBJECT>
              <P>(a)(2) Performance reports shall be prepared and entered into the Contractor Performance System (CPS) on an annual basis for contracts exceeding one year, or as otherwise required by (FAR) 48 CFR 36.201. Access to reports is through the CPS or the government-wide system, Past Performance Information Retrieval System (PPIRS).</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3036.5—Contract Clauses</HD>
            <SECTION>
              <SECTNO>3036.570</SECTNO>
              <SUBJECT> Special precautions for work at operating airports.</SUBJECT>
              <P>Where any acquisition will require work at an operating airport, insert the clause at (HSAR) 48 CFR 3052.236-70, Special Precautions for Work at Operating Airports, in solicitations and contracts.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3037</EAR>
          <HD SOURCE="HED">PART 3037—SERVICE CONTRACTING</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3037.1—Service Contracts—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3037.103</SECTNO>
              <SUBJECT>Contracting officer responsibility.</SUBJECT>
              <SECTNO>3037.103-70</SECTNO>
              <SUBJECT>Contractor personnel access application.</SUBJECT>
              <SECTNO>3037.103-71</SECTNO>
              <SUBJECT>Conditional access to sensitive but unclassified information.</SUBJECT>
              <SECTNO>3037.104</SECTNO>
              <SUBJECT>Personal services contracts.</SUBJECT>
              <SECTNO>3037.104-70</SECTNO>
              <SUBJECT>Personal services contracts.</SUBJECT>
              <SECTNO>3037.104-90</SECTNO>
              <SUBJECT>Personal services contracts (USCG).</SUBJECT>
              <SECTNO>3037.104-91</SECTNO>
              <SUBJECT>Personal services with individuals under the authority of 10 U.S.C. 1091 (USCG).</SUBJECT>
              <SECTNO>3037.110-70</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3037.1—Service Contracts—General</HD>
            <SECTION>
              <SECTNO>3037.103</SECTNO>
              <SUBJECT> Contracting officer responsibility.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3037.103-70</SECTNO>
              <SUBJECT>Contractor personnel access application.</SUBJECT>

              <P>Contractor personnel who will require recurring access to DHS facilities as part of contract performances shall complete HSIF Form 3237, Contractor Personnel Access Application, before starting work under the contract. The <PRTPAGE P="94"/>completed form shall be submitted to the appropriate DHS office as designated in the contract. Contractor personnel may be required to complete additional forms, as necessary.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3037.103-71</SECTNO>
              <SUBJECT>Conditional access to sensitive but unclassified information.</SUBJECT>
              <P>Contractor personnel who will require access to sensitive but unclassified information as part of contract performances shall complete HSIF Form 4024, Sensitive Information Non-Disclosure Agreement, before starting work under the contract. The completed form shall be submitted to the appropriate DHS office as designated in the contract. Additional requirements are established in clause (HSAR) 48 CFR 3052.237-71, Information Technology Systems Access for Contractors.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3037.104</SECTNO>
              <SUBJECT>Personal services contracts.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3037.104-70</SECTNO>
              <SUBJECT>Personal services contracts.</SUBJECT>
              <P>(b)(i) Authorization to acquire the personal services of experts and consultants is included in Public Law 107-296, sections 832(1) and (2). This section includes authority to use personal service contracts without regard to the pay limitation of 5 U.S.C. 3109 when the services are necessary due to an urgent homeland security need.</P>
              <P>(A) Prepare each D&amp;F in accordance with (FAR) 48 CFR 1.7 and include a determination that—</P>
              <P>(1) The duties are of a temporary or intermittent nature and not to exceed one year;</P>
              <P>(2) DHS personnel with necessary skills are not available;</P>
              <P>(3) Excepted appointment cannot be obtained;</P>
              <P>(4) A nonpersonal services contract is not practicable;</P>
              <P>(5) Statutory authority, Public Law 107-297, section 832(1) or section 832(2) and other legislation, apply;</P>
              <P>(6) If the pay limitation of 5 U.S.C. 3109 is exceeded, the D&amp;F supports the rationale; and</P>
              <P>(7) Any other determination required by statues has been made.</P>
              <P>(B)(1) Except as provided in paragraph (b)(i)(B)(2) of this subsection, the COCO shall approve the D&amp;F required by paragraph (b)(i)(A).</P>
              <P>(2) The HCA shall approve the D&amp;F for personal service contracts for experts and consultant services that are acquired without regard to the pay limitation of 5 U.S.C. 3109. This determination shall include a finding that the services are necessary due to urgent homeland security needs.</P>
              <P>(i) The contract may provide for the same per diem and travel expenses authorized for a Government employee, including actual transportation and per diem in lieu of subsistence for travel between home or place of business and official duty station and only for travel outside the local area in support of the statement of work.</P>
              <P>(ii) Coordinate benefits, taxes, personnel ceilings, and maintenance of records with the appropriate office(s).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3037.104-90</SECTNO>
              <SUBJECT>Personal services contracts (USCG).</SUBJECT>
              <P>(a) The U.S. Coast Guard HCA may enter into medical personal services contracts according to 10 U.S.C. 1091.</P>
              <P>(b) The authority of 10 U.S.C. 1091(a)(2) expires December 31, 2003.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3037.104-91</SECTNO>
              <SUBJECT> Personal services contracts with individuals under the authority of 10 U.S.C. 1091 (USCG).</SUBJECT>
              <P>(a) Health care personal services contracts awarded to individuals shall be selected through procedures established in this section. Selections made using the procedures in this section are exempt by statute from (HSAR) 48 CFR part 3006 competition requirements (see (HSAR) 48 CFR 3006.9000 (USCG)) and from (FAR) 48 CFR Part 6 competition requirements.</P>

              <P>(b) The contracting officer shall provide adequate advance notice of contracting opportunities to individuals residing in the area of the facility. The notice should include the qualification criteria against which individuals responding shall be evaluated. Contracting officers shall solicit offerors through the most effective means of seeking competition, such as a local publication, which serves the area of the facility. Acquisitions of health care services using personal services contracts are exempt from posting and synopsis requirements of (FAR) 48 CFR Part 5.<PRTPAGE P="95"/>
              </P>
              <P>(c) The contracting officer shall provide the qualifications of individuals responding to the notice to the representative(s) responsible for evaluation and ranking according to the evaluation procedures. Individuals shall be considered solely on the professional qualifications established for the particular health care services being acquired and the Government's estimate of reasonable rates, fees, or costs. The representative(s) responsible for the evaluation and ranking shall provide the contracting officer with rationale for the ranking of the individuals consistent with the required qualifications.</P>
              <P>(d) Upon receipt of the ranked listing of offerors, the contracting officer shall either:</P>
              <P>(1) Enter into negotiations with the highest ranked offeror. If a mutually satisfactory contract cannot be negotiated, the contracting officer shall terminate negotiations with the highest ranked offeror and enter into negotiations with the next highest, or;</P>
              <P>(2) Enter into negotiations with all qualified offerors and select on the basis of qualifications and rates, fees, or other costs.</P>
              <P>(e) In the event only one individual responds to an advertised requirement, the contracting officer is authorized to negotiate the contract award. In this case, the individual must still meet the minimum qualifications of the requirement and the contracting officer must be able to make a determination that the price is fair and reasonable.</P>
              <P>(f) If a fair and reasonable price cannot be obtained from a qualified individual, the requirement should be canceled and acquired using procedures other than those set forth in this section.</P>
              <P>(g) The total amount paid to an individual in any year for health care services under a personal services contract shall not exceed the paycap in COMDTINST M4200.19 (series), Coast Guard Acquisition Procedures.</P>
              <P>(h) The contract may provide for the same per diem and travel expenses authorized for a Government employee, including actual transportation and per diem in lieu of subsistence for travel between home or place of business and official duty station and only for travel outside the local area in support of the statement of work.</P>
              <P>(i) Coordinate benefits, taxes and maintenance of records with the appropriate office(s).</P>
              <P>(j) The contracting officer shall insure that contract funds are sufficient to cover all contingency items that may be cited in the statement of work for health care services.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3037.110-70</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
              <P>(a) Contracting officers shall insert the clause at (HSAR) 48 CFR 3052.237-70, Qualifications of Contractor Employees, in all solicitations and contracts for services, which require contract employees to have recurring access to Government facilities, sensitive information, including proprietary data or resources. This may include Information Technology (IT) requirements for design, development, or operation and maintenance of sensitive application in non-DHS or DHS facilities.</P>
              <P>(b) In addition to the (HSAR) clause 48 CFR 3052.237-70, the contracting officer shall also include the contract clauses, (HSAR) clause 48 CFR 3052.237-71, “Information Systems Access for Contractors” and (HSAR) clause 48 CFR 3052.237-72, “Contractor Personnel Screening for Unclassified Information Technology”</P>
              <P>(c) The contracting officer shall also include (HSAR) clause 48 CFR 3052.204-70, “Information Technology Security Plan” in solicitations and contracts when the prescription at paragraph (a) above applies.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3038—FEDERAL SUPPLY SCHEDULE CONTRACTING [RESERVED]</HD>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3039—ACQUISITION OF INFORMATION TECHNOLOGY [RESERVED]</HD>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3040 [RESERVED]</HD>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3041—ACQUISITION OF UTILITY SERVICES [RESERVED]</HD>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="97"/>
        <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        <PART>
          <EAR>Pt. 3042</EAR>
          <HD SOURCE="HED">PART 3042—CONTRACT ADMINISTRATION AND AUDIT SERVICES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3042.2—Contract Administration Services</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3042.202</SECTNO>
              <SUBJECT>Assignment of contract administration.</SUBJECT>
              <SECTNO>3042.202-70</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3042.15—Contractor Performance Information</HD>
              <SECTNO>3042.1502</SECTNO>
              <SUBJECT> Policy.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3042.70—Contracting Officer's Technical Representative</HD>
              <SECTNO>3042.7000</SECTNO>
              <SUBJECT> Contract clause.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3042.2—Contract Administration Services</HD>
            <SECTION>
              <SECTNO>3042.202</SECTNO>
              <SUBJECT> Assignment of contract administration.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3042.202-70</SECTNO>
              <SUBJECT>Contract clauses.</SUBJECT>
              <P>(a) The contracting officer may use the clause at (HSAR) 48 CFR 3052.242-70, Dissemination of Information—Educational Institutions, in lieu of the clause at (HSAR) 48 CFR 3052.242-71, Dissemination of Contract Information, in DHS research contracts with educational institutions, except contracts that require the release or coordination of information.</P>
              <P>(b) The contracting officer may insert the clause at (HSAR) 48 CFR 3052.242-71, Dissemination of Contract Information, in all DHS contracts except contracts that require the release or coordination of information.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3042.15—Contractor Performance Information</HD>
            <SECTION>
              <SECTNO>3042.1502</SECTNO>
              <SUBJECT>Policy.</SUBJECT>
              <P>(a) OEs shall use the Contractor Performance System (CPS) for evaluating contractor performance in accordance with (FAR) 48 CFR 42.1502 and part 1503.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3042.70—Contracting Officer's Technical Representative</HD>
            <SECTION>
              <SECTNO>3042.7000</SECTNO>
              <SUBJECT>Contract clause.</SUBJECT>
              <P>The contracting officer shall insert the clause at (HSAR) 48 CFR 3052.242-72, Contracting Officer's Technical Representative, in solicitations and contracts when it is intended that a representative will be assigned to the contract to perform functions of a technical nature.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3043—CONTRACT MODIFICATIONS [RESERVED]</HD>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3044—SUBCONTRACTING POLICIES AND PROCEDURES [RESERVED]</HD>
        </PART>
        <PART>
          <EAR>Pt. 3045</EAR>
          <HD SOURCE="HED">PART 3045—GOVERNMENT PROPERTY</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3045.5—Management of Government Property in the Possession of Contractors</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3045.505</SECTNO>
              <SUBJECT>Records and reports of Government property.</SUBJECT>
              <SECTNO>3045.505-14</SECTNO>
              <SUBJECT>Reports of Government property.</SUBJECT>
              <SECTNO>3045.505-70</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
              <SECTNO>3045.508</SECTNO>
              <SUBJECT>Physical inventories.</SUBJECT>
              <SECTNO>3045.508-2</SECTNO>
              <SUBJECT>Reporting results of inventories.</SUBJECT>
              <SECTNO>3045.508-3</SECTNO>
              <SUBJECT>Quantitative and monetary control.</SUBJECT>
              <SECTNO>3045.511</SECTNO>
              <SUBJECT>Audit of property control system.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3045.5—Management of Government Property in the Possession of Contractors</HD>
            <SECTION>
              <SECTNO>3045.505</SECTNO>
              <SUBJECT> Records and reports of Government property.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3045.505-14</SECTNO>
              <SUBJECT>Reports of Government property.</SUBJECT>

              <P>(a) When Government property is furnished to or acquired by the contractor to perform the contract, the contract shall require the contractor to submit <PRTPAGE P="98"/>annual reports (see (FAR) 48 CFR 45.505-14) to the contracting officer not later than September 15 of each year. The contractor's report shall be submitted on DHS Form 0700-05, Contractor Report of Government Property.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3045.505-70</SECTNO>
              <SUBJECT>Solicitation provisions and contract clauses.</SUBJECT>
              <P>Contracting officers shall insert the clause at (HSAR) 48 CFR 3052.245-70 in solicitations and contracts when the contract will require Government provided or contractor acquired property.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3045.508</SECTNO>
              <SUBJECT>Physical inventories.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3045.508-2</SECTNO>
              <SUBJECT>Reporting results of inventories.</SUBJECT>
              <P>The inventory report shall also include the following:</P>
              <P>(a) Name and title of the individual(s) that performed the physical inventory;</P>
              <P>(b) An itemized, categorized listing of all property capitalized:</P>
              <P>(1) Land and rights therein;</P>
              <P>(2) Other real property;</P>
              <P>(3) Plant equipment;</P>
              <P>(4) Special test equipment; and</P>
              <P>(5) Special tooling;</P>
              <P>(c) An itemized listing of the property lost, damaged, destroyed, or stolen, the circumstances surrounding each incident, and the resolution of the incident; and</P>
              <P>(d) Any discrepancies between the physical inventory and the contractor's record of Government property.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3045.508-3</SECTNO>
              <SUBJECT>Quantitative and monetary control.</SUBJECT>
              <P>Contracting officers shall require the contractor to provide the quantity and unit cost of each item of Government property reported under (HSAR) 48 CFR 3045.508-2(b) and (c).</P>
            </SECTION>
            <SECTION>
              <SECTNO>3045.511</SECTNO>
              <SUBJECT>Audit of property control system.</SUBJECT>
              <P>(a) The property administrator (or other Government official authorized by the contracting officer) shall audit the contractor's property control system whenever there are indications that the contractor's property control system may be deficient. Examples of deficiencies are:</P>
              <P>(1) Failure of the contractor to acknowledge receipt of GFP;</P>
              <P>(2) Failure of the contractor to submit the annual property reports required by (HSAR) 48 CFR 3045.505-14;</P>
              <P>(3) Failure of the contractor to reconcile its physical inventory with its property control record; or</P>
              <P>(4) Failure of the contractor to submit a Government property listing when requested by the property administrator.</P>
              <P>(b) When it is determined that the contractor's property control system is deficient, the property administrator, in coordination with the contracting officer, shall discuss the deficiencies with the contractor. If the contractor does not take action to correct the deficiencies, the contracting officer shall provide the contractor with a written notice of the deficiencies and the date all deficiencies shall be corrected.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3046</EAR>
          <HD SOURCE="HED">PART 3046—QUALITY ASSURANCE</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3046.7—Warranties</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3046.702</SECTNO>
              <SUBJECT>General.</SUBJECT>
              <SECTNO>3046.702-70</SECTNO>
              <SUBJECT>Additional definitions.</SUBJECT>
              <SECTNO>3046.703</SECTNO>
              <SUBJECT>Criteria for use of warranties.</SUBJECT>
              <SECTNO>3046.705</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <SECTNO>3046.706</SECTNO>
              <SUBJECT>Warranty terms and conditions.</SUBJECT>
              <SECTNO>3046.790</SECTNO>
              <SUBJECT>Additional USCG definitions (USCG).</SUBJECT>
              <SECTNO>3046.791</SECTNO>
              <SUBJECT>Use of warranties in major systems acquisitions by the USCG (USCG).</SUBJECT>
              <SECTNO>3046.791-1</SECTNO>
              <SUBJECT>Policy (USCG).</SUBJECT>
              <SECTNO>3046.791-2</SECTNO>
              <SUBJECT>Tailoring warranty terms and conditions. (USCG).</SUBJECT>
              <SECTNO>3046.791-3</SECTNO>
              <SUBJECT>Warranties on Government-furnished property (USCG).</SUBJECT>
              <SECTNO>3046.792</SECTNO>
              <SUBJECT>Cost benefit analysis (USCG).</SUBJECT>
              <SECTNO>3046.793</SECTNO>
              <SUBJECT>Waiver and notification procedures (USCG).</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3046.7—Warranties</HD>
            <SECTION>
              <SECTNO>3046.702</SECTNO>
              <SUBJECT>General.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3046.702-70</SECTNO>
              <SUBJECT> Additional definitions.</SUBJECT>
              <P>
                <E T="03">At no additional cost to the Government,</E> means without an increase in price for firm-fixed-price contracts, without an increase in target or ceiling price for fixed price incentive contracts (see (FAR) 48 CFR 46.707), or without <PRTPAGE P="99"/>an increase in estimated cost or fee for cost-reimbursement contracts.</P>
              <P>
                <E T="03">Defect</E> means any condition or characteristic in any supplies or services furnished by the contractor under the contract that is not in compliance with the requirements of the contract.</P>
              <P>
                <E T="03">Design and manufacturing requirements</E> means structural and engineering plans and manufacturing particulars, including precise measurements, tolerances, materials and finished product tests for the major system being produced.</P>
              <P>
                <E T="03">Major system</E> means a system or major subsystem used directly by the Department of Homeland Security (DHS) to carry out its mission(s), as defined by HSAM Chapter 1234, Major Acquisition Policies and Procedures (for dollar threshold applicable to U.S. Coast Guard, See Coast Guard guidance at (HSAR) 48 CFR 3046.701-90). The term does not include:</P>
              <P>(1) Related support equipment, such as ground-handling equipment, training devices and accessories thereto, unless a cost effective warranty for the system would require inclusion of such items; or</P>
              <P>(2) Commercial items sold in substantial quantities to the general public as described in (FAR) 48 CFR part 2.</P>
              <P>
                <E T="03">Performance requirements</E> means the operating capabilities, maintenance, and reliability characteristics of a system that are determined to be necessary for it to fulfill the requirement for which the system is designed.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.703</SECTNO>
              <SUBJECT>Criteria for use of warranties.</SUBJECT>
              <P>(a) <E T="03">Major Systems.</E> The use of warranties in the procurement of major systems by the USCG is mandatory, unless waived (see USCG guidance at (HSAR) 48 CFR 3046.792). Other OEs may use the procedures in USCG guidance in this part as a guideline for major systems acquisitions.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.705</SECTNO>
              <SUBJECT>Limitations.</SUBJECT>
              <P>(a) The following restrictions are applicable to DHS contracts:</P>
              <P>(1) The USCG is required to include a warranty in cost reimbursement contracts for the production of major systems acquisitions.</P>
              <P>(2) Any warranty on major system acquisitions shall not apply in the case of any system or component thereof which has been furnished by the Government to a contractor except as indicated in the USCG guidance at (HSAR) 48 CFR 3046.791-3.</P>
              <P>(3) Any warranty obtained shall specifically exclude coverage of damage in time of war or national emergency.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.706</SECTNO>
              <SUBJECT>Warranty terms and conditions.</SUBJECT>
              <P>(a) The contracting officer, in developing the warranty terms and conditions, shall consider the following, and, where appropriate and cost beneficial, shall:</P>
              <P>(1) Identify the affected line item(s) and the applicable specification(s);</P>
              <P>(2) Require that the line item's design and manufacture will conform to:</P>
              <P>(i) An identified revision of a top-level drawing; and/or</P>
              <P>(ii) An identified specification or revision thereof;</P>
              <P>(3) Require that the system conform to the specified Government performance requirements;</P>
              <P>(4) Require that all systems and components delivered under the contract will be free from defects in materials and workmanship;</P>
              <P>(5) State that in the event of failure due to nonconformance with specification and/or defects in material and workmanship, the contractor will bear the cost of all work necessary to achieve the specified performance requirements, including repair and/or replacement of all parts;</P>
              <P>(6) Require the timely replacement/repair of warranted items and specify lead times for replacement/repair where possible;</P>
              <P>(7) Identify the specific paragraphs containing Government performance requirements which must be met;</P>
              <P>(8) Ensure that any performance requirements identified as goals or objectives in excess of specification requirements are excluded from the warranty provision;</P>

              <P>(9) Define what constitutes the start of the warranty period (<E T="03">e.g.,</E> delivery, acceptance, in-service date), the ending of the warranty (<E T="03">e.g.,</E> passing a test or demonstration, or operation without failure for a specified time period), and circumstances requiring an extension of warranty duration (<E T="03">e.g.,</E> extending <PRTPAGE P="100"/>the warranty period as a result of mass defect correction during warranty period);</P>
              <P>(10) Identify what transportation costs will be paid by the contractor in conjunction with warranty coverage;</P>
              <P>(11) Identify any conditions which will not be covered by the warranty, other than the exclusion of combat damage; and</P>
              <P>(12) Identify any limitation on the total dollar amount of the contractor's warranty exposure, or agreement to share costs after a certain dollar threshold to avoid unnecessary warranty returns.</P>
              <P>(b) Any contract that contains a warranty clause shall contain warranty implementation procedures, including warranty notification content and procedures, and identify the individuals responsible for implementation of warranty provisions. The contract may also permit the contractor's participation in investigation of system failures, providing that the contractor is reimbursed at established rates for fault isolation work, and that the Government receives credit for any payments where equipment failure is covered by warranty provisions.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.790</SECTNO>
              <SUBJECT>Additional USCG definitions (USCG).</SUBJECT>
              <P>For the USCG, in accordance with Public Law 99-190, the dollar threshold as it pertains to the inclusion of a warranty in major systems acquisitions is $10 million.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.791</SECTNO>
              <SUBJECT>Use of warranties in major systems acquisitions by the USCG (USCG).</SUBJECT>
              <P>This subpart provides the policy for the USCG to use in obtaining warranties from contractors when contracting for the acquisition of a major system.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.791-1</SECTNO>
              <SUBJECT>Policy (USCG).</SUBJECT>
              <P>The USCG shall include a warranty in all contracts for major systems acquisitions. When drafting warranty provisions/clauses for major systems acquisitions, the contracting officer shall ensure that the items listed at (HSAR) 48 CFR 3046.706 have been considered. The warranty shall also meet the following requirements:</P>
              <P>(a) For systems or components which are commercially available, such warranty as is normally provided by the manufacturer or supplier shall be obtained in accordance with (FAR) 48 CFR 46.703(d) and (FAR) 48 CFR 46.710(b)(2).</P>
              <P>(b) For systems or components provided in accordance with either design and manufacturing or performance requirements as specified in the contract or any modification to that contract, a warranty of compliance with the stated requirements shall be obtained.</P>
              <P>(c) The warranty provided under paragraph (b) of this section shall provide that in the event the major system or any component thereof fails to meet the terms of the warranty provided, the contracting officer may:</P>
              <P>(1) Require the contractor to promptly take such corrective action as the contracting officer determines to be necessary at no additional cost to the Government, including repairing or replacing all parts necessary to achieve the requirements set forth in the contract;</P>
              <P>(2) Require the contractor to pay costs reasonably incurred by the United States in taking necessary corrective action; or</P>
              <P>(3) Equitably reduce the contract price.</P>
              <P>(d) Any warranty shall specifically exclude coverage of combat damage.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.791-2</SECTNO>
              <SUBJECT>Tailoring warranty terms and conditions (USCG).</SUBJECT>
              <P>(a) As the objectives and circumstances vary considerably among major systems acquisition programs, contracting officers shall appropriately tailor the warranty on a case-by-case basis, including remedies, exclusions, limitations and durations, provided the tailoring is consistent with the specific requirements of this subpart and (FAR) 48 CFR 46.706.</P>

              <P>(b) Contracting officers of major systems acquisitions may exclude from the terms of the warranty certain defects for specified supplies (exclusions) and may limit the contractor's liability under the terms of the warranty (limitations), as appropriate, if necessary to derive a cost-effective warranty in light of the technical risk, <PRTPAGE P="101"/>contractor financial risk, or other program uncertainties.</P>

              <P>(c) Contracting officers are encouraged to structure a broader and more comprehensive warranty where such is advantageous. Likewise, the contracting officer may narrow the scope of a warranty when appropriate (<E T="03">e.g.,</E> where it would be inequitable to require a warranty of all performance requirements because a contractor had not designed the system).</P>
              <P>(d) Contracting officers shall not include in a warranty clause any terms that require the contractor to incur liability for loss, damage, or injury to third parties.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.791-3</SECTNO>
              <SUBJECT>Warranties on Government-furnished property (USCG).</SUBJECT>
              <P>A contractor for a major systems acquisition shall not be required to provide the warranties specified in (HSAR) 48 CFR 3046.790-1 on any property furnished to that contractor by the Government except for:</P>
              <P>(a) Defects in installation; and</P>
              <P>(b) Installation or modification in such a manner that invalidates a warranty provided by the manufacturer of the property.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.792</SECTNO>
              <SUBJECT>Cost benefit analysis (USCG).</SUBJECT>
              <P>If a specific warranty is considered not to be cost beneficial by the contracting officer, a waiver request shall be initiated in accordance with guidance at (HSAR) 48 CFR 3046.793.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3046.793</SECTNO>
              <SUBJECT>Waiver and notification procedures (USCG).</SUBJECT>
              <P>(a) The Secretary of Homeland Security, without delegation, may waive the requirement for a warranty for USCG major system acquisitions when the waiver is in the interest of national defense or if the warranty obtained would not be cost beneficial. A waiver may be granted provided that the Committees on Appropriations of the Senate and the House of Representatives, the Committee on Commerce, Science and Transportation of the Senate, and the Committee on Merchant Marine and Fisheries of the House of Representatives are notified, in writing, of the Secretary's intention to waive the warranty requirements and the reasons supporting such a determination prior to granting the waiver. The request for Secretarial waiver shall include, as a minimum:</P>

              <P>(1) A brief description of the major system and its stage of production (<E T="03">e.g.,</E> the number of units delivered and anticipated to be delivered during the life of the program);</P>
              <P>(2) The specific waiver requested, the duration of the waiver if it is to involve more than one contract, and the rationale for the waiver; and</P>
              <P>(3) All documentation supporting the request for waiver, such as a cost-benefit analysis.</P>
              <P>(b) The waiver request shall be forwarded to the Secretary, via the CPO. The USCG shall maintain a written record of each waiver granted and the Congressional notification and report made, together with supporting documentation.</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <EAR>Pt. 3047</EAR>
          <HD SOURCE="HED">PART 3047—TRANSPORTATION</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3047.3—Transportation in Supply Contracts</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3047.305</SECTNO>
              <SUBJECT>Solicitation provisions, contract clauses, and transportation factors.</SUBJECT>
              <SECTNO>3047.305-70</SECTNO>
              <SUBJECT>Solicitation provision.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3047.3—Transportation in Supply Contracts</HD>
            <SECTION>
              <SECTNO>3047.305</SECTNO>
              <SUBJECT>Solicitation provisions, contract clauses, and transportation factors.</SUBJECT>
            </SECTION>
            <SECTION>
              <SECTNO>3047.305-70</SECTNO>
              <SUBJECT>Solicitation provisions.</SUBJECT>
              <P>The contracting officer shall insert the following provisions in solicitations, as applicable:</P>
              <P>(a) (HSAR) 48 CFR 3052.247-70, F.o.b. Origin Information, with Alternates I or II, as applicable, shall be inserted in accordance with (FAR) 48 CFR 47.305-3(b);</P>
              <P>(b) (HSAR) 48 CFR 3052.247-71, F.o.b. Origin Only, shall be inserted in accordance with (FAR) 48 CFR 47.305-3(e); and</P>

              <P>(c) (HSAR) 48 CFR 3052.247-72, F.o.b. Destination Only, shall be inserted in <PRTPAGE P="102"/>accordance with (FAR) 48 CFR 47.305-4(b).</P>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3048—VALUE ENGINEERING [RESERVED]</HD>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3049—TERMINATION OF CONTRACTS [RESERVED]</HD>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3050—EXTRAORDINARY CONTRACTUAL ACTIONS [RESERVED]</HD>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 3051—USE OF GOVERNMENT SOURCES BY CONTRACTORS [RESERVED]</HD>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="103"/>
        <HD SOURCE="HED">SUBCHAPTER H—CLAUSES AND FORMS</HD>
        <PART>
          <EAR>Pt. 3052</EAR>
          <HD SOURCE="HED">PART 3052—SOLICITATION PROVISIONS AND CONTRACT CLAUSES</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3052.1—Instructions for Using Provisions and Clauses</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3052.101</SECTNO>
              <SUBJECT>Using part 3052.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3052.2—Texts of Provisions and Clauses</HD>
              <SECTNO>3052.204-70</SECTNO>
              <SUBJECT> Security requirements for unclassified information technology resources.</SUBJECT>
              <SECTNO>3052.209-70</SECTNO>
              <SUBJECT>Prohibition on contracts with corporate expatriates.</SUBJECT>
              <SECTNO>3052.209-71</SECTNO>
              <SUBJECT>Reserve Officer Training Corps and military recruiting on campus.</SUBJECT>
              <SECTNO>3052.209-72</SECTNO>
              <SUBJECT>Disclosure of conflicts of interest.</SUBJECT>
              <SECTNO>3052.211-70</SECTNO>
              <SUBJECT>Index for specifications.</SUBJECT>
              <SECTNO>3052.211-90</SECTNO>
              <SUBJECT>Bar coding requirement (USCG).</SUBJECT>
              <SECTNO>3052.213-90</SECTNO>
              <SUBJECT>Evaluation factor for Coast Guard performance of bar coding requirement (USCG).</SUBJECT>
              <SECTNO>3052.215-70</SECTNO>
              <SUBJECT>Key personnel or facilities.</SUBJECT>
              <SECTNO>3052.216-70</SECTNO>
              <SUBJECT>Evaluation of offers subject to an economic price adjustment clause.</SUBJECT>
              <SECTNO>3052.216-71</SECTNO>
              <SUBJECT>Determination of award fee.</SUBJECT>
              <SECTNO>3052.216-72</SECTNO>
              <SUBJECT>Performance evaluation plan.</SUBJECT>
              <SECTNO>3052.216-73</SECTNO>
              <SUBJECT>Distribution of award fee.</SUBJECT>
              <SECTNO>3052.216-74</SECTNO>
              <SUBJECT>Settlement of letter contract.</SUBJECT>
              <SECTNO>3052.217-90</SECTNO>
              <SUBJECT>Delivery and shifting of vessel (USCG).</SUBJECT>
              <SECTNO>3052.217-91</SECTNO>
              <SUBJECT>Performance (USCG).</SUBJECT>
              <SECTNO>3052.217-92</SECTNO>
              <SUBJECT>Inspection and manner of doing work (USCG).</SUBJECT>
              <SECTNO>3052.217-93</SECTNO>
              <SUBJECT>Subcontracts (USCG).</SUBJECT>
              <SECTNO>3052.217-94</SECTNO>
              <SUBJECT>Lay days (USCG).</SUBJECT>
              <SECTNO>3052.217-95</SECTNO>
              <SUBJECT>Liability and insurance (USCG).</SUBJECT>
              <SECTNO>3052.217-96</SECTNO>
              <SUBJECT>Title (USCG).</SUBJECT>
              <SECTNO>3052.217-97</SECTNO>
              <SUBJECT>Discharge of liens (USCG).</SUBJECT>
              <SECTNO>3052.217-98</SECTNO>
              <SUBJECT>Delays (USCG).</SUBJECT>
              <SECTNO>3052.217-99</SECTNO>
              <SUBJECT>Department of Labor safety and health regulations for ship repair (USCG).</SUBJECT>
              <SECTNO>3052.217-100</SECTNO>
              <SUBJECT>Guarantee (USCG).</SUBJECT>
              <SECTNO>3052.219-70</SECTNO>
              <SUBJECT>Small business subcontracting program reporting.</SUBJECT>
              <SECTNO>3052.219-71</SECTNO>
              <SUBJECT>DHS mentor-protégé program.</SUBJECT>
              <SECTNO>3052.219-72</SECTNO>
              <SUBJECT>Evaluation of prime contractor participation in the DHS mentor-protégé program.</SUBJECT>
              <SECTNO>3052.222-70</SECTNO>
              <SUBJECT>Strikes or picketing affecting timely completion of the contract work.</SUBJECT>
              <SECTNO>3052.222-71</SECTNO>
              <SUBJECT>Strikes or picketing affecting access to a DHS facility.</SUBJECT>
              <SECTNO>3052.222-90</SECTNO>
              <SUBJECT>Local hire (USCG).</SUBJECT>
              <SECTNO>3052.223-70</SECTNO>
              <SUBJECT>Removal or disposal of hazardous substances—applicable licenses and permits.</SUBJECT>
              <SECTNO>3052.223-90</SECTNO>
              <SUBJECT>Accident and fire reporting (USCG).</SUBJECT>
              <SECTNO>3052.228-70</SECTNO>
              <SUBJECT>Insurance.</SUBJECT>
              <SECTNO>3052.228-90</SECTNO>
              <SUBJECT>Notification of Miller Act payment bond protection (USCG).</SUBJECT>
              <SECTNO>3052.228-91</SECTNO>
              <SUBJECT>Loss of or damage to leased aircraft (USCG).</SUBJECT>
              <SECTNO>3052.228-92</SECTNO>
              <SUBJECT>Fair Market value of aircraft (USCG).</SUBJECT>
              <SECTNO>3052.228-93</SECTNO>
              <SUBJECT>Risk and indemnities (USCG).</SUBJECT>
              <SECTNO>3052.231-70</SECTNO>
              <SUBJECT>Precontract costs.</SUBJECT>
              <SECTNO>3052.236-70</SECTNO>
              <SUBJECT>Special provisions for work at operating airports.</SUBJECT>
              <SECTNO>3052.237-70</SECTNO>
              <SUBJECT>Qualifications of contractor employees.</SUBJECT>
              <SECTNO>3052.237-71</SECTNO>
              <SUBJECT>Information technology systems access for contractors.</SUBJECT>
              <SECTNO>3052.237-72</SECTNO>
              <SUBJECT>Contractor personnel screening for unclassified information technology access.</SUBJECT>
              <SECTNO>3052.242.70</SECTNO>
              <SUBJECT>Dissemination of information—educational institutions.</SUBJECT>
              <SECTNO>3052.242-71</SECTNO>
              <SUBJECT>Dissemination of contract information.</SUBJECT>
              <SECTNO>3052.242-72</SECTNO>
              <SUBJECT>Contracting officer's technical representative.</SUBJECT>
              <SECTNO>3052.245-70</SECTNO>
              <SUBJECT>Government property reports.</SUBJECT>
              <SECTNO>3052.247-70</SECTNO>
              <SUBJECT>F.o.b. origin information.</SUBJECT>
              <SECTNO>3052.247-71</SECTNO>
              <SUBJECT>F.o.b. origin only.</SUBJECT>
              <SECTNO>3052.247-72</SECTNO>
              <SUBJECT>F.o.b. destination only.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3052.1—Instructions for Using Provisions and Clauses</HD>
            <SECTION>
              <SECTNO>3052.101</SECTNO>
              <SUBJECT>Using part 3052.</SUBJECT>
              <P>(b) Numbering.</P>
              <P>(2)(i) Provisions or clauses that supplement the FAR.</P>

              <P>(A) Agency-prescribed provisions and clauses permitted by HSAR and used on a standard basis (<E T="03">i.e.,</E> normally used in two or more solicitations or contracts regardless of contract type) shall be prescribed and contained in the HSAR. OEs desiring to use a provision or a clause on a standard basis shall submit a request containing a copy of the clause(s), justification for its use, and evidence of legal counsel review to the CPO in accordance with (HSAR) 48 CFR 3001.304 for possible inclusion in the HSAR.<PRTPAGE P="104"/>
              </P>
              <P>(B) Provisions and clauses used on a one-time basis (<E T="03">i.e.,</E> non-standard provisions and clauses) may be approved by the contracting officer, unless a higher level is designated by the OE. This authority is subject to:</P>
              <P>
                <E T="03">(1)</E> Evidence of legal counsel review in the contract file;</P>
              <P>
                <E T="03">(2)</E> Inserting these clauses in the appropriate sections of the uniform contract format; and</P>
              <P>
                <E T="03">(3)</E> Ensuring the provisions and clauses do not deviate from the requirements of the FAR and HSAR.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3052.2—Text of Provisions and Clauses</HD>
            <SECTION>
              <SECTNO>3052.204-70</SECTNO>
              <SUBJECT> Security requirements for unclassified information—technology resources.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3004.470-4 Contract clauses, and (HSAR) 48 CFR 3037.110-70 (a) and (b), insert a clause substantially the same as follows:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Security Requirements for Unclassified Information Technology Resources (DED 2003)</HD>
                <P>(a) The Contractor shall be responsible for Information Technology (IT) security for all systems connected to a DHS network or operated by the Contractor for DHS, regardless of location. This clause applies to all or any part of the contract that includes information technology resources or services for which the Contractor must have physical or electronic access to sensitive information contained in DHS unclassified systems that directly support the agency's mission. The security requirements include, but are not limited to, how the Department of Homeland Security's sensitive information is to be handled and protected at the Contractor's site, (including any information stored, processed, or transmitted using the Contractor's computer systems), the background investigation and/or clearances required, and the facility security required. This requirement includes information technology, hardware, software, and the management, operation, maintenance, programming, and system administration of computer systems, networks, and telecommunications systems. Examples of tasks that require security provisions include—</P>
                <P>(1) Acquisition, transmission or analysis of data owned by DHS with significant replacement cost should the contractor's copy be corrupted; and</P>

                <P>(2) Access to DHS networks or computers at a level beyond that granted the general public, (<E T="03">e.g.</E> such as bypassing a firewall).</P>
                <P>(b) At the expiration of the contract, the contractor shall return all sensitive DHS information and IT resources provided to the contractor during the contract, and a certification that all DHS information has been purged from any contractor-owned system used to process DHS information. Organizational elements shall conduct reviews to ensure that the security requirements in the contract are implemented and enforced.</P>

                <P>(c) The Contractor shall provide, implement, and maintain an IT Security Plan. This plan shall describe the processes and procedures that will be followed to ensure appropriate security of IT resources that are developed, processed, or used under this contract. The plan shall describe those parts of the contract to which this clause applies. The Contractor's IT Security Plan shall be compliant with Federal laws that include, but are not limited to, the Computer Security Act of 1987 (40 U.S.C. 1441 <E T="03">et seq.</E>), and the Government Information Security Reform Act of 2000, and the Federal Information Security Management Act of 2002. The plan shall meet IT security requirements in accordance with Federal policies and procedures that include, but are not limited to OMB Circular A-130, Management of Federal Information Resources, Appendix III, and Security of Federal Automated Information Resources;</P>
                <P>(d) Within__days after contract award, the contractor shall submit for approval an IT Security Plan. This plan shall be consistent with and further detail the approach contained in the offeror's proposal or quote that resulted in the award of this contract and in compliance with the requirements stated in this clause. The plan, as approved by the Contracting Officer, shall be incorporated into the contract as a compliance document.</P>

                <P>(e) Within 6 months after contract award, the contractor shall submit written proof of IT Security accreditation to DHS for approval by the DHS Contracting Officer. Accreditation will be according to the criteria of the Homeland Security Information Technology Security program Publication, DHS MD 4300.Pub., Volume I, Policy Guide, Part A, Sensitive Systems, which is available from the Contracting Officer upon request. This accreditation will include a final security plan, risk assessment, security test and evaluation, and disaster recovery plan/continuity of operations plan. This accreditation, when accepted by the Contracting Officer, shall be incorporated into the contract as a compliance document, and shall include a final security plan, a risk assessment, security test and evaluation, and disaster recovery/continuity of operations plan. The <PRTPAGE P="105"/>contractor shall comply with the approved accreditation documentation.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.209-70</SECTNO>
              <SUBJECT>Prohibition on contracts with corporate expatriates.</SUBJECT>
              <P>As prescribed at (HSAR) 48 CFR 3009.104-75, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Prohibition on Contracts With Corporate Expatriates (DEC 2003)</HD>
                <P>(a) Prohibitions.</P>
                <P>Section 835 of Public Law 107-296, prohibits the Department of Homeland Security from entering into any contract with a foreign incorporated entity after November 25, 2002, which is treated as an inverted domestic corporation as defined in this clause.</P>
                <P>The Secretary shall waive the prohibition with respect to any specific contract if the Secretary determines that the waiver is required in the interest of homeland security, or to prevent the loss of any jobs in the United States or prevent the Government from incurring any additional costs that otherwise would not occur.</P>
                <P>(b) Definitions. As used in this clause:</P>
                <P>
                  <E T="03">Expanded Affiliated Group</E> means an affiliated group as defined in section 1504(a) of the Internal Revenue Code of 1986 (without regard to section 1504(b) of such Code), except that section 1504 of such Code shall be applied by substituting ‘more than 50 percent' for ‘at least 80 percent' each place it appears.</P>
                <P>
                  <E T="03">Foreign Incorporated Entity</E> means any entity which is, or but for subsection (b) of section 835 of the Homeland Security Act, Public Law 107-296, would be, treated as a foreign corporation for purposes of the Internal Revenue Code of 1986.</P>
                <P>
                  <E T="03">Inverted Domestic Corporation.</E> A foreign incorporated entity shall be treated as an inverted domestic corporation if, pursuant to a plan (or a series of related transactions)—</P>
                <P>(1) The entity completes after November 25, 2002, the direct or indirect acquisition of substantially all of the properties held directly or indirectly by a domestic corporation or substantially all of the properties constituting a trade or business of a domestic partnership;</P>
                <P>(2) After the acquisition at least 80 percent of the stock (by vote or value) of the entity is held—</P>
                <P>(i) In the case of an acquisition with respect to a domestic corporation, by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation; or</P>
                <P>(ii) In the case of an acquisition with respect to a domestic partnership, by former partners of the domestic partnership by reason of holding a capital or profits interest in the domestic partnership; and</P>
                <P>(3) The expanded affiliated group which after the acquisition includes the entity does not have substantial business activities in the foreign country in which or under the law of which the entity is created or organized when compared to the total business activities of such expanded affiliated group.</P>
                <P>
                  <E T="03">Person, domestic, and foreign</E> have the meanings given such terms by paragraphs (1), (4), and (5) of section 7701(a) of the Internal Revenue Code of 1986, respectively.</P>
                <P>(c) Special rules. The following definitions and special rules shall apply when determining whether a foreign incorporated entity should be treated as an inverted domestic corporation.</P>
                <P>(1) <E T="03">Certain stock disregarded.</E> For the purpose of treating a foreign incorporated entity as an inverted domestic corporation these shall not be taken into account in determining ownership:</P>
                <P>(i) stock held by members of the expanded affiliated group which includes the foreign incorporated entity; or</P>
                <P>(ii) stock of such entity which is sold in a public offering related to the acquisition described in subsection (b)(1) of Section 835 of the Homeland Security Act, Public Law 107-296.</P>
                <P>(2) <E T="03">Plan deemed in certain cases.</E> If a foreign incorporated entity acquires directly or indirectly substantially all of the properties of a domestic corporation or partnership during the 4-year period beginning on the date which is after the date of enactment of this Act and which is 2 years before the ownership requirements of subsection (b)(2) are met, such actions shall be treated as pursuant to a plan.</P>
                <P>(3) <E T="03">Certain transfers disregarded.</E> The transfer of properties or liabilities (including by contribution or distribution) shall be disregarded if such transfers are part of a plan a principal purpose of which is to avoid the purposes of this section.</P>
                <P>(d) <E T="03">Special rule for related partnerships.</E> For purposes of applying section 835(b) of Public Law 107-296 to the acquisition of a domestic partnership, except as provided in regulations, all domestic partnerships which are under common control (within the meaning of section 482 of the Internal Revenue Code of 1986) shall be treated as a partnership.</P>
                <P>(e) Treatment of Certain Rights.</P>
                <P>(1) Certain rights shall be treated as stocks to the extent necessary to reflect the present value of all equitable interests incident to the transaction, as follows:</P>
                <P>(i) Warrants;</P>
                <P>(ii) Options;</P>
                <P>(iii) Contracts to acquire stock;</P>
                <P>(iv) Convertible debt instruments;</P>
                <P>(v) Others similar interests.</P>

                <P>(2) Rights labeled as stocks shall not be treated as stocks whenever it is deemed appropriate to do so to reflect the present value of the transaction or to disregard <PRTPAGE P="106"/>transactions whose recognition would defeat the purpose of section 835.</P>
                <P>(f) <E T="03">Disclosure.</E> By signing and submitting its offer, an offeror under this solicitation represents that it not a foreign incorporated entity that should be treated as an inverted domestic corporation pursuant to the criteria of Section 835 of the Homeland Security Act, Public Law 107-296 of November 25, 2002.</P>
                <P>(g) If a waiver has been granted, a copy of the approved waiver shall be attached to the bid or proposal.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.209-71</SECTNO>
              <SUBJECT>Reserve Officer Training Corps and military recruiting on campus.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3009.470-4, use the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Reserve Officer Training Corps and Military Recruiting on Campus (DEC 2003)</HD>
                <P>(a) Definitions. <E T="03">Institution of higher education,</E> as used in this clause, means an institution that meets the requirements of 20 U.S.C. 1001 and includes all subelements of such an institution.</P>
                <P>(b) Limitation on contract award. Except as provided in paragraph (c) of this clause, an institution of higher education is ineligible for contract award if the Secretary of Defense determines that the institution has a policy or practice (regardless of when implemented) that prohibits or in effect prevents—</P>
                <P>(1) The Secretary of a military department from maintaining, establishing, or operating a unit of the Senior Reserve Officer Training Corps (ROTC) (in accordance with 10 U.S.C. 654 and other applicable Federal laws) at that institution;</P>
                <P>(2) A student at that institution from enrolling in a unit of the Senior ROTC at another institution of higher education;</P>
                <P>(3) The Secretary of a military department or the Secretary of Homeland Security from gaining entry to campuses, or access to students (who are 17 years of age or older) on campuses, for purposes of military recruiting; or</P>
                <P>(4) Military recruiters from accessing, for purposes of military recruiting, the following information pertaining to students (who are 17 years of age or older) enrolled at that institution:</P>
                <P>(i) Name.</P>
                <P>(ii) Address.</P>
                <P>(iii) Telephone number.</P>
                <P>(iv) Date and place of birth.</P>
                <P>(v) Educational level.</P>
                <P>(vi) Academic major.</P>
                <P>(vii) Degrees received.</P>
                <P>(viii) Most recent educational institution enrollment.</P>
                <P>(c) Exception. The limitation in paragraph (b) of this clause does not apply to an institution of higher education if the Secretary of Defense determines that—</P>
                <P>(1) The institution has ceased the policy or practice described in paragraph (b) of this clause; or</P>
                <P>(2) The institution has a long-standing policy of pacifism based on historical religious affiliation.</P>
                <P>(d) Agreement. The Contractor represents that it does not now have, and agrees that during performance of this contract it will not adopt, any policy or practice described in paragraph (b) of this clause, unless the Secretary of Defense has granted an exception in accordance with paragraph (c)(2) of this clause.</P>
                <P>(e) Notwithstanding any other clause of this contract, if the Secretary of Defense determines that the Contractor misrepresented its policies and practices at the time of contract award or has violated the agreement in paragraph (d) of this clause—</P>
                <P>(1) The Contractor will be ineligible for further payments under this and any other contracts with the Department of Homeland Security; and</P>
                <P>(2) The Government will terminate this contract for default for the Contractor's material failure to comply with the terms and conditions of award. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.209-72</SECTNO>
              <SUBJECT>Disclosure of conflicts of interest.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3009.507, insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD3">Disclosure of Conflicts of Interest (DED 2003)</HD>
                <P>The Department of Homeland Security (DHS) will award contracts only to those offerors whose objectivity is not impaired by conflicting interests. Based on this policy—</P>

                <P>(a) The offeror shall provide a statement in its proposal which describes in a concise manner all past, present or planned organizational, financial, contractual or other interest(s) with an organization whose interests may be substantially affected by Departmental activities, and which is related to the work under this solicitation. The interest(s) described shall include those of the proposer, its affiliates, proposed consultants, proposed subcontractors for more than 20% of the work and key personnel of the offeror and any subcontractor accounting for more than 20% of the contract. Past interest shall be limited to within one year of the date of the offeror's technical proposal. Key personnel, for purposes of this clause, shall include any person owning more than 20% interest in the company, and the company's corporate officers, its senior managers and <PRTPAGE P="107"/>any employees responsible for making a decision or taking an action on this contract where the decision or action can have an economic or other impact on the interests of a regulated or affected organization.</P>
                <P>(b) The offeror shall describe in detail why it believes, in light of the interest(s) identified in (a) above, that performance of the proposed contract can be accomplished in an impartial and objective manner.</P>
                <P>(c) In the absence of any relevant interest identified in (a) above, the offeror shall submit in its proposal a statement certifying that to its best knowledge and belief no affiliation exists relevant to possible conflicts of interest. The offeror must obtain the same information from potential subcontractors prior to award of a subcontract.</P>
                <P>(d) The Contracting Officer will review the statement submitted and may require additional relevant information from the offeror. All such information, and any other relevant information known to DHS, will be used to determine whether an award to the offeror may create a conflict of interest. If any such conflict of interest is found to exist, the Contracting Officer may (1) disqualify the offeror, or (2) determine that it is otherwise in the best interest of the United States to contract with the offeror and include appropriate provisions to mitigate or avoid such conflict in the contract awarded.</P>
                <P>(e) The refusal to provide the disclosure or representation, or any additional information required, may result in disqualification of the offeror for award. If nondisclosure or misrepresentation is discovered after award, the resulting contract may be terminated. If, after award, the Contractor discovers a conflict of interest with respect to the contract awarded as a result of this solicitation, which could not reasonably have been known prior to award, an immediate and full disclosure shall be made in writing to the Contracting Officer. The disclosure shall include a full description of the conflict, a description of the action the contractor has taken, or proposes to take, to avoid or mitigate such conflict. The Contracting Officer may, however, terminate the contract for convenience if he or she deems that termination is in the best interest of the Government. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.211-70</SECTNO>
              <SUBJECT>Index for specifications.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3011.204-70 insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Index for Specifications (DEC 2003)</HD>
                <P>If an index or table of contents is furnished in connection with specifications, it is understood that such index or table of contents is for convenience only. Its accuracy and completeness is not guaranteed, and it is not to be considered as part of the specifications. In case of discrepancy between the index or table of contents and the specifications, the specifications shall govern. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.211-90</SECTNO>
              <SUBJECT>Bar coding requirement (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3011.204-90(a) and 3013.302-590, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Bar Coding Requirements (DEC 2003)</HD>
                <P>Item markings shall include bar coding in accordance with MIL-STD-1189 as clarified below:</P>
                <P>(a) The stock number shall be bar coded with no prefixes, dashes, spaces, or suffixes encoded. The contract number, the delivery order, or call order number, when used, shall be bar coded with no spaces or dashes encoded.</P>
                <P>(b) Prefixes and suffixes to the stock number may be included in the OCR-A in-the-clear markings, but not in the bar code.</P>
                <P>(c) Preferred Bar Code Density (characters per inch as defined in MIL-STD-1189) is “standard,” but densities from “standard” to “low” are acceptable.</P>
                <P>(d) OCR-A characters do not have to be machine-readable.</P>
                <P>(e) Bar coding shall be machine-readable.</P>
                <P>(f) Unless otherwise specified herein, minimum bar code height shall be 0.25 inch (6.4 mm) or 15 percent of the bar code length, whichever is greater.</P>
                <P>(g) The preferred position of the OCR-A characters is below the bar codes, but the OCR-A characters may be above the bar codes.</P>
                <P>(h) On outer containers contractors shall either:</P>
                <P>(1) Encode the stock numbers and contract number in one line of bar code with the stock number appearing first; or</P>
                <P>(2) Encode the item stock number and contract number on two labels, with the top label containing the stock number and the lower label containing the contract number.</P>
                <P>(i) On unit and intermediate containers, the item stock number in bar code with OCR-A below may be on the same label as the other data (identification markings) required by MIL-STD-129H. However, the bar code stock number shall appear on the top line with OCR-A characters on the second line; the OCR-A characters may include the stock number prefix and suffix, or alternatively, the complete stock number including any prefix and suffix, shall be repeated as part of the identification markings.</P>
                <P>(j) Exclusions from bar code markings are:</P>

                <P>(1) Multi-packs/consolidation containers (containers with two or more different stock numbers within).<PRTPAGE P="108"/>
                </P>
                <P>(2) Reusable shipping containers used for multiple/ different stock number applications.</P>
                <P>(3) Items consigned to a prime contractor's plant for installation in production.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.213-90</SECTNO>
              <SUBJECT>Evaluation factor for Coast Guard performance of bar coding requirement (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3013.106-190, insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Evaluation Factor for Coast Guard Performance of Bar Coding Requirement (DEC 2003)</HD>
                <P>If a small business cannot provide the bar coding requirement, as indicated elsewhere in the schedule, the contracting officer will apply the following formula to the quoted amounts:</P>
                <P>(a) Unit price quoted by small business $___</P>
                <P>(b) Add unit cost to the USCG to provide bar coding $___</P>
                <P>(c) Adjusted unit price (add lines a. and b.) $___
                </P>
                <FP>The line (c) amount will become the amount the contracting officer considered when determining the lowest quoted amount.</FP>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.215-70</SECTNO>
              <SUBJECT>Key personnel or facilities.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3015.204-3, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Key Personnel or Facilities. (DEC 2003)</HD>
                <P>(a) The personnel or facilities specified below are considered essential to the work being performed under this contract and may, with the consent of the contracting parties, be changed from time to time during the course of the contract by adding or deleting personnel or facilities, as appropriate.</P>
                <P>(b) Before removing or replacing any of the specified individuals or facilities, the Contractor shall notify the Contracting Officer, in writing, before the change becomes effective. The Contractor shall submit sufficient information to support the proposed action and to enable the Contracting Officer to evaluate the potential impact of the change on this contract. The Contractor shall not remove or replace personnel or facilities until the Contracting Officer approves the change.</P>

                <P>The Key Personnel or Facilities under this Contract:
                </P>
                <FP>(<E T="03">specify key personnel or facilities</E>)</FP>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.216-70</SECTNO>
              <SUBJECT>Evaluation of offers subject to an economic price adjustment clause.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3016.203-470, insert a provision substantially the same as the following:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Evaluation of Offers Subject to an Economic Price Adjustment Clause (DEC 2003)</HD>
                <P>Offers shall be evaluated without adding an amount for an economic price adjustment. Offers will be rejected which: (1) Increase the stipulated ceiling; (2) limit the downward adjustment; or (3) delete the economic price adjustment clause. If the offer stipulates a ceiling lower than that included in the solicitation, the lower ceiling will be incorporated into any resulting contract. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.216-71</SECTNO>
              <SUBJECT>Determination of award fee.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3016.406(e)(1)(i), insert a clause substantially the same as the following:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Determination of Award Fee (DEC 2003)</HD>
                <P>(a) The Government shall evaluate contractor performance at the end of each specified evaluation period(s) to determine the amount of award. The contractor agrees that the amount of award and the award fee methodology are unilateral decisions to be made at the sole discretion of the Government.</P>
                <P>(b) Contractor performance shall be evaluated according to a Performance Evaluation Plan. The contractor shall be periodically informed of the quality of its performance and areas in which improvements are expected.</P>

                <P>(c) The contractor shall be promptly advised, in writing, of the determination and reasons why the award fee was or was not earned. The contractor may submit a performance self-evaluation for each evaluation period. The amount of award is at the sole discretion of the Government but any self-evaluation received within ___ (<E T="03">insert number</E>) days after the end of the current evaluation period will be given such consideration, as may be deemed appropriate by the Government.</P>
                <P>(d) The Government may specify that a fee not earned during a given evaluation period may be accumulated and be available for allocation to one or more subsequent periods. In that event, the distribution of award fee shall be adjusted to reflect such allocations.</P>
              </EXTRACT>
              <PRTPAGE P="109"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.216-72</SECTNO>
              <SUBJECT>Performance evaluation plan.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3016.406(e)(i)(ii), insert a clause substantially the same as the following:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Performance Evaluation Plan (DEC 2003)</HD>

                <P>(a) A Performance Evaluation Plan shall be unilaterally established by the Government based on the criteria stated in the contract and used for the determination of award fee. This plan shall include the criteria used to evaluate each area and the percentage of award fee (if any) available for each area. A copy of the plan shall be provided to the contractor ___ (<E T="03">insert number</E>) calendar days prior to the start of the first evaluation period.</P>
                <P>(b) The criteria contained within the Performance Evaluation Plan may relate to: (1) Technical (including schedule) requirements if appropriate; (2) Management; and (3) Cost.</P>

                <P>(c) The Performance Evaluation Plan may, consistent with the contract, be revised unilaterally by the Government at any time during the period of performance. Notification of such changes shall be provided to the contractor ___ (<E T="03">insert number</E>) calendar days prior to the start of the evaluation period to which the change will apply. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.216-73</SECTNO>
              <SUBJECT>Distribution of award fee.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3016.406(e)(1)(iii), insert a clause substantially the same as the following:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Distribution of Award Fee (DEC 2003)</HD>

                <P>(a) The total amount of award fee available under this contract is assigned according to the following evaluation periods and amounts:
                </P>
                <FP SOURCE="FP-1">Evaluation Period:</FP>
                <FP SOURCE="FP-1">Available Award Fee:</FP>
                <FP SOURCE="FP-1">(<E T="03">insert appropriate information</E>)</FP>
                
                <P>(b) Payment of the base fee and award fee shall be made, provided that after payment of 85 percent of the base fee and potential award fee, the Government may withhold further payment of the base fee and award fee until a reserve is set aside in an amount that the Government considers necessary to protect its interest. This reserve shall not exceed 15 percent of the total base fee and potential award fee or $100,000, whichever is less.</P>
                <P>(c) In the event of contract termination, either in whole or in part, the amount of award fee available shall represent a pro rata distribution associated with evaluation period activities or events as determined by the Government.</P>
                <P>(d) The Government will promptly make payment of any award fee upon the submission by the contractor to the contracting officer's authorized representative, of a public voucher or invoice in the amount of the total fee earned for the period evaluated. Payment may be made without using a contract modification. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.216-74</SECTNO>
              <SUBJECT>Settlement of letter contract.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3016.603-4, insert a clause substantially the same as the following:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Settlement of Letter Contract (DEC 2003)</HD>

                <P>(a) This contract constitutes the definitive contract contemplated by letter contract ___ <E T="03">(insert number)</E> issued on ___ <E T="03">(insert effective date).</E> It supersedes the letter contract and its modification numbered__ <E T="03">(insert number(s)).</E> To the extent there are inconsistencies between the definitive contract and the letter contract, the former governs.</P>

                <P>(b) The cost(s) and fee(s), or price(s), established in this definitive contract represents full and complete settlement of letter contract ___ <E T="03">(insert number)</E> and modification numbered ___ <E T="03">(insert number(s)).</E> Payment of the fee agreed upon or profit withheld pending definitization of the letter contract, may start immediately at the rate and times stated within this contract.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-90</SECTNO>
              <SUBJECT>Delivery and Shifting of Vessel (USCG).</SUBJECT>
              <P>As prescribed in the USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Delivery and Shifting of Vessel (DEC 2003)</HD>

                <P>The Government shall deliver the vessel to the Contractor at his place of business. Upon completion of the work, the Government shall accept delivery of the vessel at the Contractor's place of business. The Contractor shall provide, at no additional charge, upon 24 hours' advance notice, a tug or tugs and docking pilot, acceptable to the Contracting Officer, to assist in handling the vessel between (to and from) the Contractor's plant and the nearest point in a waterway regularly navigated by vessels of equal or greater draft and length. While the vessel is in the hands of the Contractor, any necessary towage, cartage, or other transportation between ship and shop or elsewhere, which may be incident to the work herein <PRTPAGE P="110"/>specified, shall be furnished by the Contractor without additional charge to the Government.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-91</SECTNO>
              <SUBJECT>Performance (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Performance (DEC 2003)</HD>
                <P>(a) Upon the award of the contract, the Contractor shall promptly start the work specified and shall diligently prosecute the work to completion. The Contractor shall not start work until the contract has been awarded except in the case of emergency work ordered by the Contracting Officer in writing.</P>
                <P>(b) The Government shall deliver the vessel described in the contract at the time and location specified in the contract. Upon completion of the work, the Government shall accept delivery of the vessel at the time and location specified in the contract.</P>
                <P>(c) The Contractor shall without charge,—</P>
                <P>(1) Make available to personnel of the vessel while in dry dock or on a marine railway, sanitary lavatory and similar facilities at the plant acceptable to the Contracting Officer;</P>
                <P>(2) Supply and maintain suitable brows and gangways from the pier, dry dock, or marine railway to the vessel;</P>
                <P>(3) Treat salvage, scrap or other ship's material of the Government resulting from performance of the work as items of Government-furnished property, in accordance with the Government Property (Fixed Price Contracts) clause;</P>
                <P>(4) Perform, or pay the cost of, any repair, reconditioning or replacement made necessary as the result of the use by the Contractor of any of the vessel's machinery, equipment or fittings, including, but not limited to, winches, pumps, rigging, or pipe lines; and</P>
                <P>(5) Furnish suitable offices, office equipment and telephones at or near the site of the work for the Government's use.</P>
                <P>(d) The contract will state whether dock and sea trials are required to determine whether or not the Contractor has satisfactorily performed the work.</P>
                <P>(1) If dock and sea trials are required, the vessel shall be under the control of the vessel's commander and crew.</P>
                <P>(2) The Contractor shall not conduct dock and sea trials not specified in the contract without advance approval of the Contracting Officer. Dock and sea trials not specified in the contract shall be at the Contractor's expense and risk.</P>
                <P>(3) The Contractor shall provide and install all fittings and appliances necessary for dock and sea trials. The Contractor shall be responsible for care, installation, and removal of instruments and apparatus furnished by the Government for use in the trials.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-92</SECTNO>
              <SUBJECT>Inspection and manner of doing work (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Inspection and Manner of Doing Work (DEC 2003)</HD>
                <P>(a) The Contractor shall perform work in accordance with the contract, any drawings and specifications made a part of the job order, and any change or modification issued under the Changes clause.</P>
                <P>(b)(1) Except as provided in paragraph (b)(2) of this clause, and unless otherwise specifically provided in the contract, all operational practices of the Contractor and all workmanship, material, equipment, and articles used in the performance of work under this contract shall be in accordance with the best commercial marine practices and the rules and requirements of all appropriate regulatory bodies including, but not limited to the American Bureau of Shipping, the U.S. Coast Guard, and the Institute of Electrical and Electronic Engineers, in effect at the time of Contractor's submission of offer, and shall be intended and approved for marine use.</P>
                <P>(2) When Navy specifications are specified in the contract, the Contractor shall follow Navy standards of material and workmanship.</P>
                <P>(c) The Government may inspect and test all material and workmanship at any time during the Contractor's performance of the work.</P>
                <P>(1) If, prior to delivery, the Government finds any material or workmanship is defective or not in accordance with the contract, in addition to its rights under the Guarantee clause, the Government may reject the defective or nonconforming material or workmanship and require the Contractor to correct or replace it at the Contractor's expense.</P>
                <P>(2) If the Contractor fails to proceed promptly with the replacement or correction of the material or workmanship, the Government may replace or correct the defective or nonconforming material or workmanship and charge the Contractor the excess costs incurred.</P>
                <P>(3) As specified in the contract, the Contractor shall provide and maintain an inspection system acceptable to the Government.</P>

                <P>(4) The Contractor shall maintain complete records of all inspection work and shall make them available to the Government <PRTPAGE P="111"/>during performance of the contract and for 90 days after the completion of all work required.</P>
                <P>(d) The Contractor shall not permit any welder to work on a vessel unless the welder is, at the time of the work, qualified to the standards established by the U.S. Coast Guard, American Bureau of Shipping, or Department of the Navy for the type of welding being performed. Qualifications of a welder shall be as specified in the contract.</P>
                <P>(e) The Contractor shall—</P>
                <P>(1) Exercise reasonable care to protect the vessel from fire;</P>
                <P>(2) Maintain a reasonable system of inspection over activities taking place in the vicinity of the vessel's magazines, fuel oil tanks, or storerooms containing flammable materials.</P>
                <P>(3) Maintain a reasonable number of hose lines ready for immediate use on the vessel at all times while the vessel is berthed alongside the Contractor's pier or in dry dock or on a marine railway;</P>
                <P>(4) Unless otherwise provided in the contract, provide sufficient security patrols to reasonably maintain a fire watch for protection of the vessel when it is in the Contractor's custody;</P>
                <P>(5) To the extent necessary, clean, wash, and steam out or otherwise make safe, all tanks under alteration or repair.</P>
                <P>(6) Furnish the Contracting Officer a “gas-free” or “safe-for-hotwork” certificate before any hot work is done on a tank;</P>
                <P>(7) Treat the contents of any tank as Government property in accordance with the Government Property (Fixed-Price Contracts) clause; and</P>
                <P>(8) Dispose of the contents of any tank only at the direction, or with the concurrence, of the Contracting Officer.</P>
                <P>(9) Be responsible for the proper closing of all openings to the vessel's underwater structure upon which work has been performed. The contractor additionally must advise the COTR of the status of all valves closures and openings for which the contractor's workers were responsible.</P>
                <P>(f) Except as otherwise provided in the contract, when the vessel is in the custody of the Contractor or in dry dock or on a marine railway and the temperature is expected to go as low as 35 Fahrenheit, the Contractor shall take all necessary steps to—</P>
                <P>(1) Keep all hose pipe lines, fixtures, traps, tanks, and other receptacles on the vessel from freezing; and</P>
                <P>(2) Protect the stern tube and propeller hubs from frost damage.</P>
                <P>(g) The Contractor shall, whenever practicable—</P>
                <P>(1) Perform the required work in a manner that will not interfere with the berthing and messing of Government personnel attached to the vessel; and</P>
                <P>(2) Provide Government personnel attached to the vessel access to the vessel at all times.</P>
                <P>(h) Government personnel attached to the vessel shall not interfere with the Contractor's work or workers.</P>
                <P>(i)(1) The Government does not guarantee the correctness of the dimensions, sizes, and shapes set forth in any contract, sketches, drawings, plans, or specifications prepared or furnished by the Government, unless the contract requires that the Contractor perform the work prior to any opportunity to inspect.</P>
                <P>(2) Except as stated in paragraph (i)(1) of this clause, and other than those parts furnished by the Government, and the Contractor shall be responsible for the correctness of the dimensions, sizes, and shapes of parts furnished under this agreement.</P>
                <P>(j) The Contractor shall at all times keep the site of the work on the vessel free from accumulation of waste material or rubbish caused by its employees or the work. At the completion of the work, unless the contract specifies otherwise, the Contractor shall remove all rubbish from the site of the work and leave the immediate vicinity of the work area “broom clean.”</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-93</SECTNO>
              <SUBJECT>Subcontracts (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Subcontracts (DEC 2003)</HD>
                <P>(a) Nothing contained in the contract shall be construed as creating any contractual relationship between any subcontractor and the Government. The divisions or sections of the specifications are not intended to control the Contractor in dividing the work among subcontractors or to limit the work performed by any trade.</P>
                <P>(b) The Contractor shall be responsible to the Government for acts and omissions of its own employees, and of subcontractors and their employees. The Contractor shall also be responsible for the coordination of the work of the trades, subcontractors, and material men.</P>
                <P>(c) The Contractor shall, without additional expense to the Government, employ specialty subcontractors where required by the specifications.</P>
                <P>(d) The Government or its representatives will not undertake to settle any differences between the Contractor and its subcontractors, or between subcontractors.</P>
              </EXTRACT>
              <PRTPAGE P="112"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-94</SECTNO>
              <SUBJECT>Lay days (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Lay Days (DEC 2003)</HD>
                <P>(a) Lay day time will be paid by the Government at the Contractor's stipulated bid price for this item of the contract when the vessel remains on the dry dock or marine railway as a result of any change that involves work in addition to that required under the basic contract.</P>
                <P>(b) No lay day time shall be paid until all items of the basic contract for which a price was established by the Contractor and for which docking of the vessel was required have been satisfactorily completed and accepted.</P>
                <P>(c) Days of hauling out and floating, whatever the hour, shall not be paid as lay day time, and days when no work is performed by the Contractor shall not be paid as lay day time.</P>
                <P>(d) Payment of lay day time shall constitute complete compensation for all costs, direct and indirect, to reimburse the Contractor for use of dry dock or marine railway.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-95</SECTNO>
              <SUBJECT>Liability and insurance (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Liability and Insurance (DEC 2003)</HD>
                <P>(a) The Contractor shall exercise its best efforts to prevent accidents, injury, or damage to all employees, persons, and property, in and about the work, and to the vessel or part of the vessel upon which work is done.</P>
                <P>(b) Loss or damage to the vessel, materials, or equipment. (1) Unless otherwise directed or approved in writing by the Contracting Officer, the Contractor shall not carry insurance against any form of loss or damage to the vessel(s) or to the materials or equipment to which the Government has title or which have been furnished by the Government for installation by the Contractor. The Government assumes the risks of loss of and damage to that property.</P>
                <P>(2) The Government does not assume any risk with respect to loss or damage compensated for by insurance or otherwise or resulting from risks with respect to which the Contractor has failed to maintain insurance, if available, as required or approved by the Contracting Officer.</P>
                <P>(3) The Government does not assume risk of and will not pay for any costs of the following:</P>
                <P>(i) Inspection, repair, replacement, or renewal of any defects in the vessel(s) or material and equipment due to—</P>
                <P>(A) Defective workmanship performed by the Contractor or its subcontractors;</P>
                <P>(B) Defective materials or equipment furnished by the Contractor or its subcontractors; or</P>
                <P>(C) Workmanship, materials, or equipment which do not conform to the requirements of the contract, whether or not the defect is latent or whether or not the nonconformance is the result of negligence.</P>
                <P>(ii) Loss, damage, liability, or expense caused by, resulting from, or incurred as a consequence of any delay or disruption, willful misconduct or lack of good faith by the Contractor or any of its representatives that have supervision or direction of—</P>
                <P>(A) All or substantially all of the Contractor's business; or</P>
                <P>(B) All or substantially all of the Contractor's operation at any one plant.</P>
                <P>(4) As to any risk that is assumed by the Government, the Government shall be subrogated to any claim, demand or cause of action against third parties that exists in favor of the Contractor. If required by the Contracting Officer, the Contractor shall execute a formal assignment or transfer of the claim, demand, or cause of action.</P>
                <P>(5) No party other than the Contractor shall have any right to proceed directly against the Government or join the Government as a codefendant in any action.</P>
                <P>(6) Notwithstanding the foregoing, the Contractor shall bear the first $5,000 of loss or damage from each occurrence or incident, the risk of which the Government would have assumed under the provision of this paragraph (b).</P>
                <P>(c) <E T="03">Indemnification.</E> The Contractor indemnifies the Government and the vessel and its owners against all claims, demands, or causes of action to which the Government, the vessel or its owner(s) might be subject as a result of damage or injury (including death) to the property or person of anyone other than the Government or its employees, or the vessel or its owner, arising in whole or in part from the negligence or other wrongful act of the Contractor, or its agents or employees, or any subcontractor, or its agents or employees.</P>
                <P>(1) The Contractor's obligation to indemnify under this paragraph shall not exceed the sum of $300,000 as a consequence of any single occurrence with respect to any one vessel.</P>

                <P>(2) The indemnity includes, without limitation, suits, actions, claims, costs, or demands of any kind, resulting from death, personal injury, or property damage occurring during the period of performance of <PRTPAGE P="113"/>work on the vessel or within 90 days after redelivery of the vessel. For any claim, etc., made after 90 days, the rights of the parties shall be as determined by other provisions of this contract and by law. The indemnity does apply to death occurring after 90 days where the injury was received during the period covered by the indemnity.</P>
                <P>(d) <E T="03">Insurance.</E> (1) The Contractor shall, at its own expense, obtain and maintain the following insurance—</P>
                <P>(i) Casualty, accident, and liability insurance, as approved by the Contracting Officer, insuring the performance of its obligations under paragraph (c) of this clause.</P>
                <P>(ii) Workers Compensation Insurance (or its equivalent) covering the employees engaged on the work.</P>
                <P>(2) The Contractor shall ensure that all subcontractors engaged on the work obtain and maintain the insurance required in paragraph (d)(1) of this clause.</P>
                <P>(3) Upon request of the Contracting Officer, the Contractor shall provide evidence of the insurance required by paragraph (d) of this clause.</P>
                <P>(e) The Contractor shall not make any allowance in the contract price for the inclusion of any premium expense or charge for any reserve made on account of self-insurance for coverage against any risk assumed by the Government under this clause.</P>
                <P>(f) The Contractor shall give the Contracting Officer written notice as soon as practicable after the occurrence of a loss or damage for which the Government has assumed the risk.</P>
                <P>(1) The notice shall contain full details of the loss or damage.</P>
                <P>(2) If a claim or suit is later filed against the Contractor as a result of the event, the Contractor shall immediately deliver to the Government every demand, notice, summons, or other process received by the Contractor or its employees or representatives.</P>
                <P>(3) The Contractor shall cooperate with the Government and, upon request, shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses, and in the conduct of suits. The Government shall reimburse the Contractor for expenses incurred in this effort, other than the cost of maintaining the Contractor's usual organization.</P>
                <P>(4) The Contractor shall not, except at its own expense, voluntarily make any payments, assume any obligation, or incur any expense other than what would be imperative for the protection of the vessel(s) at the time of the event.</P>
                <P>(g) In the event of loss of or damage to any vessel(s), material, or equipment which may result in a claim against the Government under the insurance provisions of this contract, the Contractor shall promptly notify the Contracting Officer of the loss or damage. The Contracting Officer may, without prejudice to any right of the Government, either—</P>
                <P>(1) Order the Contractor to proceed with replacement or repair, in which event the Contractor shall effect the replacement or repair;</P>
                <P>(i) The Contractor shall submit to the Contracting Officer a request for reimbursement of the cost of the replacement or repair together with whatever supporting documentation the Contracting Officer may reasonably require, and shall identify the request as being submitted under the Insurance clause of this contract.</P>
                <P>(ii) If the Government determines that the risk of the loss or damage is within the scope of the risks assumed by the Government under this clause, the Government will reimburse the Contractor for the reasonable allowable cost of the replacement or repair, plus a reasonable profit (if the work or replacement or repair was performed by the Contractor) less the deductible amount specified in paragraph (b) of this clause.</P>
                <P>(iii) Payments by the Government to the Contractor under this clause are outside the scope of and shall not affect the pricing structure of the contract, and are additional to the compensation otherwise payable to the Contractor under this contract; or</P>
                <P>(2) Decide that the loss or damage shall not be replaced or repaired and in that event, the Contracting Officer shall—</P>
                <P>(i) Modify the contract appropriately, consistent with the reduced requirements reflected by the unreplaced or unrepaired loss or damage; or</P>
                <P>(ii) Terminate the repair of any part or all of the vessel(s) under the Termination for Convenience of the Government clause of this contract. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-96</SECTNO>
              <SUBJECT>Title (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Title (DED 2003)</HD>
                <P>(a) Unless otherwise provided, title to all materials and equipment to be incorporated in a vessel in the performance of this contract shall vest in the Government upon delivery at the location specified for the performance of the work.</P>

                <P>(b) Upon completion of the contract, or with the approval of the Contracting Officer during performance of the contract, all Contractor-furnished materials and equipment not incorporated in, or placed on, any vessel, shall become the property of the Contractor, unless the Government has reimbursed the Contractor for the cost of the materials and equipments.<PRTPAGE P="114"/>
                </P>
                <P>(c) The vessel, its equipment, movable stores, cargo, or other ship's materials shall not be considered Government-furnished property. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-97</SECTNO>
              <SUBJECT>Discharge of liens (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Discharge of Liens (DEC 2003)</HD>

                <P>(a) The Contractor shall immediately discharge or cause to be discharged, any lien or right <E T="03">in rem</E> of any kind, other than in favor of the Government, that exists or arises in connection with work done or materials furnished under this contract.</P>
                <P>(b) If any such lien or right <E T="03">in rem</E> is not immediately discharged, the Government, at the expense of the Contractor, may discharge, or cause to be discharged, the lien or right. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-98</SECTNO>
              <SUBJECT>Delays (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Delays (DEC 2003)</HD>
                <P>When during the performance of this contract the Contractor is required to delay work on a vessel temporarily, due to orders or actions of the Government respecting stoppage of work to permit shifting the vessel, stoppage of hot work to permit bunkering, stoppage of work due to embarking or debarking passengers and loading or discharging cargo, and the Contractor is not given sufficient advance notice or is otherwise unable to avoid incurring additional costs on account thereof, an equitable adjustment shall be made in the price of the contract pursuant to the “Changes” clause.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-99</SECTNO>
              <SUBJECT>Department of Labor safety and health regulations for ship repairing (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Department of Labor Safety and Health Regulations for Ship Repair (DEC 2003)</HD>
                <P>Nothing contained in this contract shall relieve the Contractor of any obligations it may have to comply with—</P>

                <P>(a) The Occupational Safety and Health Act of 1970 (29 U.S.C. 651, <E T="03">et seq.</E>);</P>
                <P>(b) The Safety and Health Regulations for Ship Repairing (29 CFR part 1915); or</P>
                <P>(c) Any other applicable Federal, State, and local laws, codes, ordinances, and regulations.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.217-100</SECTNO>
              <SUBJECT>Guarantee (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3017.9000(c), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Guarantee (DEC 2003)</HD>
                <P>(a) In the event any work performed or materials furnished by the contractor prove defective or deficient within 60 days from the date of redelivery of the vessel(s), the Contractor, as directed by the Contracting Officer and at its own expense, shall correct and repair the deficiency to the satisfaction of the Contracting Officer.</P>
                <P>(b) If the Contractor or any subcontractor has a guarantee for work performed or materials furnished that exceeds the 60 day period, the Government shall be entitled to rely upon the longer guarantee until its expiration.</P>
                <P>(c) With respect to any individual work item identified as incomplete at the time of redelivery of the vessel(s), the guarantee period shall run from the date the item is completed.</P>
                <P>(d) If practicable, the Government shall give the Contractor an opportunity to correct the deficiency.</P>
                <P>(1) If the Contracting Officer determines it is not practicable or is otherwise not advisable to return the vessel(s) to the Contractor, or the Contractor fails to proceed with the repairs promptly, the Contracting Officer may direct that the repairs be performed elsewhere, at the Contractor's expense.</P>
                <P>(2) If correction and repairs are performed by other than the Contractor, the Contracting Officer may discharge the Contractor's liability by making an equitable deduction in the price of the contract.</P>
                <P>(e) The Contractor's liability shall extend for an additional 90-day guarantee period on those defects or deficiencies that the Contractor corrected.</P>
                <P>(f) At the option of the Contracting officer, defects and deficiencies may be left uncorrected. In that event, the Contractor and Contracting Officer shall negotiate an equitable reduction in the contract price. Failure to agree upon an equitable reduction shall constitute a dispute under the Disputes clause of this contract. </P>
              </EXTRACT>
              <PRTPAGE P="115"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.219-70</SECTNO>
              <SUBJECT>Small Business subcontracting program reporting.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3019.708-70(a), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">The Small Business Subcontracting Program Reporting (DEC 2003)</HD>
                <P>(a) The Contractor shall submit the Summary Subcontract Report (Standard Form 295 (SF-295)) to the Department of Homeland Security, Office of Small and Disadvantaged Business Utilization, Washington, DC, 20528.</P>
                <P>(b) The Contractor shall include this clause in all subcontracts that include the clause at (FAR) 48 CFR 52.219-9. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.219-71</SECTNO>
              <SUBJECT>DHS mentor-protégé program.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3019.708-70(b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">DHS Mentor-Protégé Program (DEC 2003)</HD>
                <P>(a) Large businesses are encouraged to participate in the DHS Mentor-Protégé program for the purpose of providing developmental assistance to eligible small business protégé entities to enhance their capabilities and increase their participation in DHS contracts.</P>
                <P>(b) The program consists of:</P>
                <P>(1) Mentor firms, which are large prime contractors capable of providing developmental assistance;</P>
                <P>(2) Protégé firms, which are small businesses, veteran-owned small businesses, service-disabled veteran-owned small businesses, HUBZone small businesses, small disadvantaged businesses, and women-owned small business concerns; and</P>
                <P>(3) Mentor-Protégé agreements, approved by the DHS OSDBU.</P>
                <P>(c) Mentor participation in the program means providing business developmental assistance to aid Protégés in developing the requisite expertise to effectively compete for and successfully perform DHS contracts and subcontracts.</P>
                <P>(d) Large business prime contractors, serving as mentors in the DHS mentor-protégé program, are eligible for a post-award incentive for subcontracting plan credit by recognizing costs incurred by a mentor firm in providing assistance to a protégé firm and using this credit for purposes of determining whether the mentor firm attains a subcontracting plan participation goal applicable to the mentor firm under a DHS contract. The amount of credit given to a mentor firm for these protégé developmental assistance costs shall be calculated on a dollar for dollar basis and reported via the SF-295; for example, the mentor/large business prime contractor reports a $10,000 subcontract to the protégé/small business subcontractor and $5,000 of developmental assistance to the protégé/small business subcontractor as $15,000 ($10,000 traditional subcontract plus $5,000 in developmental assistance for a total of $15,000).</P>
                <P>(e) Contractors interested in participating in the program are encouraged to contact the DHS OSDBU for more information.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.219-72</SECTNO>
              <SUBJECT>Evaluation of prime contractor participation in the DHS mentor-protégé program.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3019.708-70(c), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Evaluation of Prime Contractor Participation in the DHS Mentor-Protégé Program (DEC 2003)</HD>
                <P>This solicitation contains a source selection factor or subfactor regarding participation in the DHS Mentor-Protégé Program. In order to receive credit under the source selection factor or subfactor, the offeror shall provide a signed letter of mentor-protégé agreement approval from the DHS OSDBU.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.222-70</SECTNO>
              <SUBJECT>Strikes or picketing affecting timely completion of the contract work.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3022.101-71(a), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Strikes or Picketing Affecting Timely Completion of the Contract Work (DED 2003)</HD>
                <P>Notwithstanding any other provision hereof, the Contractor is responsible for delays arising out of labor disputes, including but not limited to strikes, if such strikes are reasonably avoidable. A delay caused by a strike or by picketing which constitutes an unfair labor practice is not excusable unless the Contractor takes all reasonable and appropriate action to end such a strike or picketing, such as the filing of a charge with the National Labor Relations Board, the use of other available Government procedures, and the use of private boards or organizations for the settlement of disputes. </P>
              </EXTRACT>
              <PRTPAGE P="116"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.222-71</SECTNO>
              <SUBJECT>Strikes or picketing affecting access to a DHS facility.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3022.101-71(b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Strikes or Picketing Affecting Access to a DHS Facility (DEC 2003)</HD>
                <P>If the Contracting Officer notifies the Contractor in writing that a strike or picketing: (a) is directed at the Contractor or subcontractor or any employee of either; and (b) impedes or threatens to impede access by any person to a DHS facility where the site of the work is located, the Contractor shall take all appropriate action to end such strike or picketing, including, if necessary, the filing of a charge of unfair labor practice with the National Labor Relations Board or the use of other available judicial or administrative remedies. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.222-90</SECTNO>
              <SUBJECT>Local hire (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3022.9001, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Local Hire (DEC 2003)</HD>
                <P>(a) When performing a contract in a State with an unemployment rate in excess of the national average determined by the Secretary of Labor, the Contractor shall employ individuals who are local residents and who, in the case of any craft or trade, possess or would be able to acquire promptly, the necessary skills.</P>
                <P>(b) Local resident defined. As used in this section, “local resident” means a resident of, or an individual who commutes daily to a State described in subsection (a).</P>
                <P>(c) The Secretary of Homeland Security may waive the requirements of this subsection in the interest of national security or economic efficiency.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.223-70</SECTNO>
              <SUBJECT>Removal or disposal of hazardous substances—applicable licenses and permits.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3023.303, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Removal or Disposal of Hazardous Substances—Applicable Licenses and Permits (DEC 2003)</HD>
                <P>The Contractor certifies that it has __ does not have __ all licenses and permits required by Federal, State, and local laws to perform hazardous substance(s) removal or disposal services. If the Contractor does not currently possess these documents, it shall obtain all requisite licenses and permits within __ days after date of award. The Contractor shall provide evidence of said documents to the Contracting Officer or designated Government representative prior to commencement of work under the contract.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.223-90</SECTNO>
              <SUBJECT>Accident and fire reporting (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3023.9000(a), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Accident and Fire Reporting (DEC 2003)</HD>
                <P>(a) The Contractor shall report to the Contracting Officer any accident or fire occurring at the site of the work that causes:</P>
                <P>(1) A fatality or the loss of at least one lost workday on the part of any employee of the Contractor or subcontractor at any tier;</P>
                <P>(2) Damage of $1,000 or more to Federal real or personal property; either real or personal;</P>
                <P>(3) Damage of $1,000 or more to Contractor or subcontractor owned or leased motor vehicles or mobile equipment; or</P>
                <P>(4) Damage for which a contract time extension may be requested.</P>
                <P>(b) Accident and fire reports required by paragraph (a) above shall be accomplished by the following means:</P>
                <P>(1) Accidents or fires resulting in a death, hospitalization of five or more persons, or destruction of Federal real or personal property, the total value of which is estimated at $100,000 or more, shall be reported immediately by telephone to the Contracting Officer or his/her authorized representative and shall be confirmed by telegram, facsimile or e-mail transmission within 24 hours to the Contracting Officer. Such telegram or facsimile transmission shall state all known facts as to extent of injury and damage and as to cause of the accident or fire.</P>
                <P>(2) Other accident and fire reports required by paragraph (a) above may be reported by the Contractor using a state, private insurance carrier, or Contractor accident report form which provides for the statement of:</P>
                <P>(i) The extent of injury; and</P>
                <P>(ii) The damage and cause of the accident or fire.</P>
                <P>Such report shall be mailed or otherwise delivered to the Contracting Officer within 48 hours of the occurrence of the accident or fire.</P>
                <P>(c) The Contractor shall assure compliance by subcontractors at all tiers with the requirements of this clause.</P>
              </EXTRACT>
              <PRTPAGE P="117"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.228-70</SECTNO>
              <SUBJECT>Insurance.</SUBJECT>

              <P>As prescribed in (HSAR) 48 CFR 3028.310-70 and 3028.311-1, insert a clause substantially the same as follows. The contracting officer may specify additional kinds (<E T="03">e.g.,</E> aircraft public and passenger liability, vessel liability) or increased amounts of insurance.</P>
              <EXTRACT>
                <HD SOURCE="HD1">Insurance (DEC 2003)</HD>

                <P>In accordance with the clause entitled “Insurance—Work on a Government Installation” [<E T="03">or Insurance—Liability to Third Persons</E>] in Section I, insurance of the following kinds and minimum amounts shall be provided and maintained during the period of performance of this contract:</P>
                <P>(a) Worker's compensation and employer's liability. The contractor shall, as a minimum, meet the requirements specified at (FAR) 48 CFR 28.307-2(a).</P>
                <P>(b) General liability. The contractor shall, as a minimum, meet the requirements specified at (FAR) 48 CFR 28.307-2(b).</P>
                <P>(c) Automobile liability. The contractor shall, as a minimum, meet the requirements specified at (FAR) 48 CFR 28.307-2(c). </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.228-90</SECTNO>
              <SUBJECT>Notification of Miller Act payment bond protection (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3028.106-490, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Notification of Miller Act Payment Bond Protection (DEC 2003)</HD>
                <P>This notice clause shall be inserted by first tier subcontractors in all their subcontracts and shall contain information pertaining to the surety that provided the payment bond under the prime contract.</P>
                <P>(a) The prime contract is subject to the Miller Act (40 U.S.C. 270), under which the prime contractor has obtained a payment bond. This payment bond may provide certain unpaid employees, suppliers, and subcontractors a right to sue the bonding surety under the Miller Act for amounts owned for work performed and materials delivery under the prime contract.</P>
                <P>(b) Persons believing that they have legal remedies under the Miller Act should consult their legal advisor regarding the proper steps to take to obtain these remedies. This notice clause does not provide any party any rights against the Federal Government, or create any relationship, contractual or otherwise, between the Federal Government and any private party.</P>
                <P>(c) The surety which has provided the payment bond under the prime contract is:</P>
                <FP SOURCE="FP-DASH"/>
                <FP>(Name)</FP>
                <FP SOURCE="FP-DASH"/>
                <FP>(Street Address)</FP>
                <FP SOURCE="FP-DASH"/>
                <FP>(City, State, Zip Code)</FP>
                <FP SOURCE="FP-DASH"/>
                <FP>(Contact &amp; Tel. No.)</FP>
                <FP SOURCE="FP-DASH"/>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.228-91</SECTNO>
              <SUBJECT>Loss of or damage to leased aircraft (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3028.306-90(a) and (b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Loss of or Damage to Leased Aircraft (DEC 2003)</HD>
                <P>(a) The Government assumes all risk of loss of, or damage (except normal wear and tear) to, the leased aircraft during the term of this lease while the aircraft is in the possession of the Government.</P>
                <P>(b) In the event of damage to the aircraft, the Government, at its option, shall make the necessary repairs with its own facilities or by contract, or pay the Contractor the reasonable cost of repair of the aircraft.</P>
                <P>(c) In the event the aircraft is lost or damaged beyond repair, the Government shall pay the Contractor a sum equal to the fair market value of the aircraft at the time of such loss or damage, which value may be specifically agreed to in clause 3052.228-92, “Fair Market Value of Aircraft,” less the salvage value of the aircraft. However, the Government may retain the damaged aircraft or dispose of it as it wishes. In that event, the Contractor will be paid the fair market value of the aircraft as stated in the clause.</P>
                <P>(d) The Contractor agrees that the contract price does not include any cost attributable to hull insurance or to any reserve fund it has established to protect its interest in the aircraft. If, in the event of loss or damage to the leased aircraft, the Contractor receives compensation for such loss or damage in any form from any source, the amount of such compensation shall be:</P>
                <P>(1) Credited to the Government in determining the amount of the Government's liability; or</P>
                <P>(2) For an increment of value of the aircraft beyond the value for which the Government is responsible.</P>
                <P>(e) In the event of loss of or damage to the aircraft, the Government shall be subrogated to all rights of recovery by the Contractor against third parties for such loss or damage and the Contractor shall promptly assign such rights in writing to the Government. </P>
              </EXTRACT>
              <PRTPAGE P="118"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.228-92</SECTNO>
              <SUBJECT>Fair market value of aircraft (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3028.306-90(a) and (c), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Fair Market Value of Aircraft (DEC 2003)</HD>
                <P>For purposes of the clause entitled “Loss of or Damage to Leased Aircraft,” the fair market value of the aircraft to be used in the performance of this contract shall be the lesser of the two values set out in paragraphs (a) and (b) below:</P>
                <P>(a) $___; or</P>
                <P>(b) If the contractor has insured the same aircraft against loss or destruction in connection with other operations, the amount of such insurance coverage on the date of the loss or damage for which the Government may be responsible under this contract. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.228-93</SECTNO>
              <SUBJECT>Risk and indemnities (USCG).</SUBJECT>
              <P>As prescribed in USCG guidance at (HSAR) 48 CFR 3028.306-90(a) and (d), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Risk and Indemnities (DEC 2003)</HD>
                <P>The Contractor hereby agrees to indemnify and hold harmless the Government, its officers and employees from and against all claims, demands, damages, liabilities, losses, suits and judgments (including all costs and expenses incident thereto) which may be suffered by, accrue against, be charged to or recoverable from the Government, its officers and employees by reason of injury to or death of any person other than officers, agents, or employees of the Government or by reason of damage to property of others of whatsoever kind (other than the property of the Government, its officers, agents or employees) arising out of the operation of the aircraft. In the event the Contractor holds or obtains insurance in support of this covenant, evidence of insurance shall be delivered to the Contracting Officer. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.231-70</SECTNO>
              <SUBJECT>Precontract costs.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3031.205-32, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Precontract Costs (DEC 2003)</HD>
                <P>The Contractor shall be entitled to reimbursement for pre-contract costs incurred on or after ___ in an amount not to exceed $___ that, if incurred after this contract had been entered into, would have been reimbursable under this contract. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.236-70</SECTNO>
              <SUBJECT>Special precautions for work at operating airports.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3036.570, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Special Precautions for Work at Operating Airports (DEC 2003)</HD>
                <P>(a) When work is to be performed at an operating airport, the Contractor must arrange its work schedule so as not to interfere with flight operations. Such operations will take precedence over construction convenience. Any operations of the Contractor which would otherwise interfere with or endanger the operations of aircraft shall be performed only at times and in the manner directed by the Contracting Officer. The Government will make every effort to reduce the disruption of the Contractor's operation.</P>
                <P>(b) Unless otherwise specified by local regulations, all areas in which construction operations are underway shall be marked by yellow flags during daylight hours and by red lights at other times. The red lights along the edge of the construction areas within the existing aprons shall be the electric type of not less than 100 watts intensity placed and supported as required. All other construction markings on roads and adjacent parking lots may be either electric or battery type lights. These lights and flags shall be placed so as to outline the construction areas and the distance between any two flags or lights shall not be greater than 25 feet. The Contractor shall provide adequate watch to maintain the lights in working condition at all times other than daylight hours. The hour of beginning and the hour of ending of daylight will be determined by the Contracting Officer.</P>
                <P>(c) All equipment and material in the construction areas or when moved outside the construction area shall be marked with airport safety flags during the day and when directed by the Contracting Officer, with red obstruction lights at nights. All equipment operating on the apron, taxiway, runway, and intermediate areas after darkness hours shall have clearance lights in conformance with instructions from the Contracting Officer. No construction equipment shall operate within 50 feet of aircraft undergoing fuel operations. Open flames are not allowed on the ramp except at times authorized by the Contracting Officer.</P>

                <P>(d) Trucks and other motorized equipment entering the airport or construction area shall do so only over routes determined by the Contracting Officer. Use of runways, aprons, taxiways, or parking areas as truck or equipment routes will not be permitted <PRTPAGE P="119"/>unless specifically authorized for such use. Flag personnel shall be furnished by the Contractor at points on apron and taxiway for safe guidance of its equipment over these areas to assure right of way to aircraft. Areas and routes used during the contract must be returned to their original condition by the Contractor. Airport management shall establish the maximum speed allowed at the airport. Vehicles shall be operated so as to be under safe control at all times, weather and traffic conditions considered. Vehicles must be equipped with head and taillights during the hours of darkness. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.237-70</SECTNO>
              <SUBJECT>Qualifications of contractor employees.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3037.110-70(a), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Qualifications of Contractor Employees (DEC 2003)</HD>
                <P>(a) “Sensitive Information” is any information or proprietary data which if subject to unauthorized access, modification, loss, or misuse could adversely affect the national interest, the conduct of Federal programs, or the privacy to which individuals are entitled under 5 U.S.C. 552a (The Privacy Act), but that has not been specifically authorized under criteria established by an Executive Order or an Act of Congress to be kept classified in the interest of national defense or foreign policy.</P>
                <P>(b) Work under this contract may involve access to sensitive information. Therefore, the Contractor shall not disclose, orally or in writing, any sensitive information to any person unless authorized in writing by the Contracting Officer. For those contractor employees authorized access to sensitive information, the contractor shall ensure that these persons receive training concerning the protection and disclosure of sensitive information both during and after contract performance.</P>
                <P>(c) Contractor employees working on this contract must complete such forms, as may be necessary for security or other reasons, including the conduct of background investigations to determine suitability. Completed forms shall be submitted as directed by the Contracting Officer. Upon the Contracting Officer's request, the Contractor's employees shall be fingerprinted, or subject to other investigations as required.</P>
                <P>(d) The Contracting Officer may require dismissal from work those employees deemed incompetent, careless, insubordinate, or otherwise objectionable, or whose continued employment is deemed contrary to the public interest or inconsistent with the best interest of national security.</P>
                <P>(e) Each employee of the Contractor shall be a citizen of the United States of America, or an alien who has been lawfully admitted for permanent residence as evidenced by an Alien Registration Receipt Card Form I-151. An alien authorized to work shall present evidence from the Bureau of Citizenship and Immigration Services that employment will not affect his or her immigration status.</P>
                <P>(f) The Contractor shall include the substance of this clause in all subcontracts at any tier where the subcontractor may have access to Government facilities, sensitive information, or resources. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.237-71</SECTNO>
              <SUBJECT>Information technology systems access for contractors.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3037.110-70(a) and (b), insert a clause substantially as follows. The contracting officer may specify additional IT security requirements unique to an OE.</P>
              <EXTRACT>
                <HD SOURCE="HD1">Information Technology Systems Access for Contractors (DEC 2003)</HD>
                <P>(a) No contractor personnel shall start work under this contract that involves actual or potential access to sensitive information until (1) approved for access, (2) they have received a security briefing, or current refresher, about Information Technology (IT) security, from the appropriate Organizational Element (OE) Information Systems Security Officer (ISSO); and (3) have signed a non-disclosure agreement form. This user security agreement is provided as an Attachment to this solicitation. By signing the user security agreement, the individual will be acknowledging their responsibility to properly use and safeguard all DHS OE information technology resources and information related thereto. The Contracting Officer Technical Representative (COTR) for this contract shall arrange the aforementioned security briefing. The ISSO is responsible for retaining the non-disclosure documents signed and submitted by the contractor employees as well evidence of security training.</P>

                <P>(b) The contractor shall have access only to those areas of DHS OE information technology resources explicitly stated in this contract or approved by the COTR in writing as necessary for performance of the work under this contract. Information technology assets includes computer equipment, networking equipment, telecommunications equipment, cabling, network drives, computer drives, network software, computer software, software programs, intranet sites, and Internet sites. Any attempts by contractor personnel to gain access to any information technology resources not expressly <PRTPAGE P="120"/>authorized by the statement of work, other terms and conditions in this contract, or as approved in writing by the COTR, is strictly prohibited. In the event of violation of this provision, DHS will take appropriate actions with regard to the contract.</P>
                <P>(c) Contractor access to DHS networks from a remote location is a temporary privilege for mutual convenience while the contractor performs business for the DHS OE. It is not a right, a guarantee of access, a condition of the contract, nor is it Government Furnished Equipment (GFE).</P>
                <P>(d) Contractor access will be terminated for unauthorized use. The contractor agrees to hold and save DHS harmless from any unauthorized use and agrees not to request additional time or money under the contract for any delays resulting from unauthorized use or access. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.237-72</SECTNO>
              <SUBJECT>Contractor personnel screening for unclassified information technology access.</SUBJECT>
              <P>As prescribed in 3037.110-70(a) and (b), insert a clause substantially as follows:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Contractor Personnel Screening for Unclassified Information Technology Access (DEC 2003)</HD>
                <P>(a) Contractor personnel requiring privileged access or limited risk assessment level. Guidance for selecting the appropriate level of screening is based on the risk of adverse impact to DHS missions, as indicated in FIPS PUB 199, Standards for Security Categorization of Federal Information and Information Systems (Initial Public Draft).</P>
                <P>(b) The Contractor shall afford DHS, including the Office of Inspector General, access to the Contractor's and subcontractors' facilities, installations, operations, documentation, databases and personnel used in performance of the contract. Access shall be provided to the extent required to carry out a program of IT inspection, investigation and audit to safeguard against threats and hazards to the integrity, availability and confidentiality of DHS data or to the function of computer systems operated on behalf of DHS, and to preserve evidence of computer crime.</P>
                <P>(c) The Contractor shall incorporate the substance of this clause in all subcontracts that meet the conditions in paragraph (a) of this clause. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.242-70</SECTNO>
              <SUBJECT>Dissemination of information—educational institutions.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3042.203-70(a), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Dissemination of Information—Educational Institutions (DEC 2003)</HD>
                <P>(a) The Department of Homeland Security (DHS) desires widespread dissemination of the results of funded non-sensitive research. The Contractor, therefore, may publish (subject to the provisions of the “Data Rights” and “Patent Rights” clauses of the contract) research results in professional journals, books, trade publications, or other appropriate media (a thesis or collection of theses should not be used to distribute results because dissemination will not be sufficiently widespread). All costs of publication pursuant to this clause shall be borne by the Contractor and shall not be charged to the Government under this or any other Federal contract.</P>
                <P>(b) Any copy of material published under this clause shall contain acknowledgment of DHS's sponsorship of the research effort and a disclaimer stating that the published material represents the position of the author(s) and not necessarily that of DHS. Articles for publication or papers to be presented to professional societies do not require the authorization of the Contracting Officer prior to release. However, a printed or electronic copy of each article shall be transmitted to the Contracting Officer at least two weeks prior to release or publication.</P>
                <P>(c) Press releases concerning the results or conclusions from the research under this contract shall not be made or otherwise distributed to the public without prior written approval of the Contracting Officer.</P>
                <P>(d) Publication under the terms of this clause does not release the Contractor from the obligation of preparing and submitting to the Contracting Officer a final report containing the findings and results of research, as set forth in the schedule of the contract. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.242-71</SECTNO>
              <SUBJECT>Dissemination of contract information.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3042.203-70(b), insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Dissemination of Contract Information (DEC 2003)</HD>

                <P>The Contractor shall not publish, permit to be published, or distribute for public consumption, any information, oral or written, <PRTPAGE P="121"/>concerning the results or conclusions made pursuant to the performance of this contract, without the prior written consent of the Contracting Officer. An electronic or printed copy of any material proposed to be published or distributed shall be submitted to the Contracting Officer.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.242-72</SECTNO>
              <SUBJECT>Contracting officer's technical representative.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3042.7000, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Contracting Officer's Technical Representative (DEC 2003)</HD>
                <P>(a) The Contracting Officer may designate Government personnel to act as the Contracting Officer's Technical Representative (COTR) to perform functions under the contract such as review or inspection and acceptance of supplies, services, including construction, and other functions of a technical nature. The Contracting Officer will provide a written notice of such designation to the Contractor within five working days after contract award or for construction, not less than five working days prior to giving the contractor the notice to proceed. The designation letter will set forth the authorities and limitations of the COTR under the contract.</P>
                <P>(b) The Contracting Officer cannot authorize the COTR or any other representative to sign documents, such as contracts, contract modifications, etc., that require the signature of the Contracting Officer.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.245-70</SECTNO>
              <SUBJECT>Government property reports.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3045.505-70, insert the following clause:</P>
              <EXTRACT>
                <HD SOURCE="HD1">Government Property Reports (DEC 2003)</HD>
                <P>(a) The Contractor shall prepare an annual report of Government property in its possession and the possession of its subcontractors.</P>
                <P>(b) The report shall be submitted to the Contracting Officer not later than September 15 of each calendar year on Form DHS F 4220.43, Contractor Report of Government Property. </P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.247-70</SECTNO>
              <SUBJECT>F.o.b. origin information.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3047.305-70(a), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">F.O.B. Origin Information (DEC 2003)</HD>
                <P>The offeror shall furnish information with the offer:</P>
                <P>(a) Location of the offeror's actual shipping point(s) (street address, city, state, and zip code) from which supplies will be delivered to the Government;</P>
                <P>(b) Whether the offered shipping point has a private railroad siding, and the name of the rail carrier serving it;</P>
                <P>(c) When the offered shipping point does not have a private siding, the names and addresses of the nearest public rail siding and of the carrier serving it; and</P>
                <P>(d) The quantity of supplies to be shipped from each shipping point.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
              <EXTRACT>
                <HD SOURCE="HD1">Alternate I (DEC 2003)</HD>
                <P>If delivery is “f.o.b. origin, contractor's facility,” and the designated facility is not covered by the line-haul transportation rate, add the following paragraph to the basic provision:</P>
                <P>(e) The charges required to deliver the shipment to the point where the line-haul rate is applicable.</P>
                <HD SOURCE="HD1">Alternate II (Dec. 2003)</HD>
                <P>When delivery is “f.o.b. origin, freight allowed,” add the following paragraph to the basic provision:</P>
                <P>(e) The basis on which transportation charges will be allowed, including the origin and destination from and to which transportation charges will be allowed.</P>
              </EXTRACT>
            </SECTION>
            <SECTION>
              <SECTNO>3052.247-71</SECTNO>
              <SUBJECT>F.o.b. origin only.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3047.305-70(b), insert the following provision:</P>
              <EXTRACT>
                <HD SOURCE="HD1">F.O.B. Origin Only (DEC 2003)</HD>
                <P>Offers are invited on the basis of f.o.b. origin only. Offers submitted on any other basis will be rejected as nonresponsive.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </SECTION>
            <SECTION>
              <SECTNO>3052.247-72</SECTNO>
              <SUBJECT>F.o.b. destination only.</SUBJECT>
              <P>As prescribed in (HSAR) 48 CFR 3047.305-70(c), insert the following provision:</P>
              <EXTRACT>
                <FP SOURCE="FP-1">F.O.B. Destination Only (DEC 2003)</FP>
                <P>Offers are invited on the basis of f.o.b. destination only. Offers submitted on any other basis will be rejected as nonresponsive.</P>
              </EXTRACT>
            </SECTION>
          </SUBPART>
        </PART>
        <PART>
          <PRTPAGE P="122"/>
          <EAR>Pt. 3053</EAR>
          <HD SOURCE="HED">PART 3053—FORMS</HD>
          <CONTENTS>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3053.1—General</HD>
              <SECHD>Sec.</SECHD>
              <SECTNO>3053.101</SECTNO>
              <SUBJECT>Requirements for use of forms.</SUBJECT>
              <SECTNO>3053.103</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3053.2—Prescription of Forms</HD>
              <SECTNO>3053.204-70</SECTNO>
              <SUBJECT>Administrative matters.</SUBJECT>
              <SECTNO>3053.222-70</SECTNO>
              <SUBJECT>Application of labor laws to Government acquisitions.</SUBJECT>
              <SECTNO>3053.227-70</SECTNO>
              <SUBJECT>Conveyance of invention rights acquired by the Government.</SUBJECT>
              <SECTNO>3053.245-70</SECTNO>
              <SUBJECT>Contractor report of government property.</SUBJECT>
            </SUBPART>
            <SUBPART>
              <HD SOURCE="HED">Subpart 3053.3—Illustrations of Forms</HD>
              <SECTNO>3053.303</SECTNO>
              <SUBJECT>Agency forms.</SUBJECT>
            </SUBPART>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>41 U.S.C. 418b (a) and (b).</P>
          </AUTH>
          <SOURCE>
            <HD SOURCE="HED">Source:</HD>
            <P>68 FR 67871, Dec. 4, 2003, unless otherwise note.</P>
          </SOURCE>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3053.1—General</HD>
            <SECTION>
              <SECTNO>3053.101</SECTNO>
              <SUBJECT>Requirements for use of forms.</SUBJECT>
              <P>Unless excepted, forms prescribed in (FAR) 48 CFR part 53 and (HSAR) 48 CFR part 3053 are required for use by all OEs.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3053.103</SECTNO>
              <SUBJECT>Exceptions.</SUBJECT>
              <P>Requests for exceptions to forms contained in (FAR) 48 CFR part 53 and to DHS forms in (HSAR) 48 CFR part 3053 shall be submitted, as prescribed in (FAR) 48 CFR 53.103, to the CPO.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3053.2—Prescription of Forms</HD>
            <SECTION>
              <SECTNO>3053.204-70</SECTNO>
              <SUBJECT>Administrative matters.</SUBJECT>
              <P>The following forms are prescribed for use in the closeout of applicable contracts, as specified in (HSAR) 48 CFR 3004.804-570:</P>
              <P>(a) DHS Form 0700-01, Cumulative Claim and Reconciliation Statement. (See (HSAR) 48 CFR 3004.804-570(a)(1).)</P>
              <P>(b) DHS Form 0700-02, Contractor's Assignment of Refunds, Rebates, Credits and Other Amounts. (See (HSAR) 48 CFR 3004.570(a)(2).)</P>
              <P>(c) DHS Form 0700-03, Contractor Release. (See (HSAR) 48 CFR 3004.804-570(a)(3).)</P>
            </SECTION>
            <SECTION>
              <SECTNO>3053.222-70</SECTNO>
              <SUBJECT>Application of labor laws to Government acquisitions.</SUBJECT>
              <P>The following form is prescribed for use in connection with the application of labor laws, as specified in (HSAR) 48 CFR 3022.406-9: DHS Form 0070-04, Employee's Claim for Wage Restitution.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3053.227-70</SECTNO>
              <SUBJECT>Conveyance of invention rights acquired by the Government.</SUBJECT>
              <P>The following form is prescribed for including a means for contractors to report inventions made in the course of contract performance, as specified in (HSAR) 48 CFR 3027.305-4: DD Form 882, Report of Inventions and Subcontracts.</P>
            </SECTION>
            <SECTION>
              <SECTNO>3053.245-70</SECTNO>
              <SUBJECT>Report of Government property.</SUBJECT>
              <P>The following form is prescribed for use by contractors to report Government property, as specified in (HSAR) 48 CFR 3045.505-14: DHS Form 0070-05, Contractor's Report of Government Property.</P>
            </SECTION>
          </SUBPART>
          <SUBPART>
            <HD SOURCE="HED">Subpart 3053.3—Illustrations of Forms</HD>
            <SECTION>
              <SECTNO>3053.303</SECTNO>
              <SUBJECT>Agency forms.</SUBJECT>

              <P>This section illustrates agency-specified forms. To access these forms go to: <E T="03">http://www.dhs.gov/dhspublic/display?theme=37.</E>
              </P>
              <GPOTABLE CDEF="s100,xs75" COLS="2" OPTS="L2">
                <BOXHD>
                  <CHED H="1">Form name</CHED>
                  <CHED H="1">Form No.</CHED>
                </BOXHD>
                <ROW>
                  <ENT I="01">Cumulative Claim and Reconciliation Statement</ENT>
                  <ENT>DHS Form 0070-01</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Contractor's Assignment of Refunds, Rebates, Credits and Other Amounts</ENT>
                  <ENT>DHS Form 0070-02</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Contractor Release</ENT>
                  <ENT>DHS Form 0070-03</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Employee's Claim for Wage Restitution</ENT>
                  <ENT>DHS Form 0070-04</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Contractor's Report of Government Property</ENT>
                  <ENT>DHS Form 0070-05</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Report of Inventions and Subcontract</ENT>
                  <ENT>DD 882</ENT>
                </ROW>
              </GPOTABLE>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 34 (10-1-04 Edition)</LRH>
      <RRH>Department of Education</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="123"/>
          <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>125</PG>
          <PT>3402</PT>
          <SUBJECT>Definitions of words and terms</SUBJECT>
          <PG>126</PG>
          <PT>3403</PT>
          <SUBJECT>Improper business practices and personal conflicts of interest</SUBJECT>
          <PG>126</PG>
          <PT>3404</PT>
          <SUBJECT>Administrative matters</SUBJECT>
          <PG>127</PG>
          <PT>3405</PT>
          <SUBJECT>Publicizing contract actions</SUBJECT>
          <PG>127</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>129</PG>
          <PT>3409</PT>
          <SUBJECT>Contractor qualifications</SUBJECT>
          <PG>129</PG>
          <PT>3410</PT>
          <SUBJECT>Specification standards and other purchase descriptions</SUBJECT>
          <PG>129</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>131</PG>
          <PT>3414</PT>
          <SUBJECT>Sealed bidding</SUBJECT>
          <PG>131</PG>
          <PT>3415</PT>
          <SUBJECT>Contracting by negotiation</SUBJECT>
          <PG>131</PG>
          <PT>3416</PT>
          <SUBJECT>Types of contracts</SUBJECT>
          <PG>132</PG>
          <PT>3417</PT>
          <SUBJECT>Special contracting methods</SUBJECT>
          <PG>133</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>134</PG>
          <PT>3424</PT>
          <SUBJECT>Protection of privacy and freedom of informa-tion</SUBJECT>
          <PG>135</PG>
          <PT>3425</PT>
          <SUBJECT>Foreign acquisition</SUBJECT>
          <PG>135</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3427</PT>
          <SUBJECT>Patents, data, and copyrights</SUBJECT>
          <PG>137</PG>
          <PT>3428</PT>
          <SUBJECT>Bonds and insurance</SUBJECT>
          <PG>137<PRTPAGE P="124"/>
          </PG>
          <PT>3432</PT>
          <SUBJECT>Contract financing</SUBJECT>
          <PG>137</PG>
          <PT>3433</PT>
          <SUBJECT>Protests, disputes, and appeals</SUBJECT>
          <PG>138</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3437</PT>
          <SUBJECT>Service contracting</SUBJECT>
          <PG>140</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3442</PT>
          <SUBJECT>Contract administration</SUBJECT>
          <PG>141</PG>
          <PT>3443</PT>
          <SUBJECT>Contract modifications</SUBJECT>
          <PG>141</PG>
          <PT>3445</PT>
          <SUBJECT>Government property</SUBJECT>
          <PG>141</PG>
          <PT>3447</PT>
          <SUBJECT>Transportation</SUBJECT>
          <PG>142</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>143</PG>
        </CHAPTI>
      </TOC>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="125"/>
        <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="126"/>
            <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="127"/>
            <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="128"/>
            <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="129"/>
        <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="130"/>
            <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="131"/>
        <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="132"/>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="133"/>
            <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="134"/>
        <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="135"/>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="136"/>
            <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="137"/>
        <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="138"/>
              </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="139"/>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="140"/>
        <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.</P>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
      <SUBCHAP TYPE="P">
        <PRTPAGE P="141"/>
        <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="142"/>
            <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="143"/>
        <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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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="144"/>
                <HD SOURCE="HD1">Organizational Conflict of Interest (Oct 1987)</HD>
                <P>The offeror certifies that it (_) is (_) 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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1987)</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.</P>
              </EXTRACT>
              <PRTPAGE P="145"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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 _____. 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.”</P>
              </EXTRACT>
              <PRTPAGE P="146"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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="147"/>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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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="148"/>
                </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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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.</P>
              </EXTRACT>
              <PRTPAGE P="149"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1987)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </SECTION>
          </SUBPART>
        </PART>
      </SUBCHAP>
    </CHAPTER>
    <CHAPTER>
      <LRH>48 CFR Ch. 35 (10-1-04 Edition)</LRH>
      <RRH>Panama Canal Commission</RRH>
      <TOC>
        <TOCHD>
          <PRTPAGE P="151"/>
          <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>153</PG>
          <PT>3502</PT>
          <SUBJECT>Definitions of words and terms</SUBJECT>
          <PG>159</PG>
          <PT>3503</PT>
          <SUBJECT>Improper business practices and personal conflicts of interest</SUBJECT>
          <PG>160</PG>
          <PT>3504</PT>
          <SUBJECT>Administrative matters</SUBJECT>
          <PG>163</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3505</PT>
          <SUBJECT>Publicizing contract actions</SUBJECT>
          <PG>164</PG>
          <PT>3506</PT>
          <SUBJECT>Competition requirements</SUBJECT>
          <PG>164</PG>
          <PT>3507</PT>
          <SUBJECT>Acquisition planning</SUBJECT>
          <PG>166</PG>
          <PT>3508</PT>
          <SUBJECT>Required sources of supplies and services</SUBJECT>
          <PG>167</PG>
          <PT>3509</PT>
          <SUBJECT>Contractor qualifications</SUBJECT>
          <PG>168</PG>
          <PT>3510</PT>
          <SUBJECT>Specifications, standards, and other purchase descriptions</SUBJECT>
          <PG>175</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>178</PG>
          <PT>3514</PT>
          <SUBJECT>Sealed bidding</SUBJECT>
          <PG>181</PG>
          <PT>3515</PT>
          <SUBJECT>Contracting by negotiation</SUBJECT>
          <PG>182</PG>
          <PT>3516</PT>
          <SUBJECT>Types of contracts</SUBJECT>
          <PG>185</PG>
          <PT>3517</PT>
          <SUBJECT>Special contracting methods</SUBJECT>
          <PG>187</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>189</PG>
          <PT>3520</PT>
          <SUBJECT>Labor surplus area concerns</SUBJECT>
          <PG>189</PG>
          <PT>3522</PT>
          <SUBJECT>Application of labor laws to Government acquisitions</SUBJECT>
          <PG>190</PG>
          <PT>3524</PT>
          <SUBJECT>Protection of privacy and freedom of information</SUBJECT>
          <PG>193<PRTPAGE P="152"/>
          </PG>
          <PT>3525</PT>
          <SUBJECT>Foreign acquisition</SUBJECT>
          <PG>193</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3527</PT>
          <SUBJECT>Patents, data and copyrights</SUBJECT>
          <PG>198</PG>
          <PT>3528</PT>
          <SUBJECT>Bonds and insurance</SUBJECT>
          <PG>198</PG>
          <PT>3529</PT>
          <SUBJECT>Taxes</SUBJECT>
          <PG>200</PG>
          <PT>3531</PT>
          <SUBJECT>Contract cost principles and procedures</SUBJECT>
          <PG>201</PG>
          <PT>3532</PT>
          <SUBJECT>Contract financing</SUBJECT>
          <PG>201</PG>
          <PT>3533</PT>
          <SUBJECT>Protests, disputes, and appeals</SUBJECT>
          <PG>204</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>205</PG>
          <PT>3537</PT>
          <SUBJECT>Service contracting</SUBJECT>
          <PG>210</PG>
        </CHAPTI>
        <SUBCHAP>
          <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
        </SUBCHAP>
        <CHAPTI>
          <PT>3542</PT>
          <SUBJECT>Contract administration</SUBJECT>
          <PG>213</PG>
          <PT>3543</PT>
          <SUBJECT>Contract modifications</SUBJECT>
          <PG>213</PG>
          <PT>3547</PT>
          <SUBJECT>Transportation</SUBJECT>
          <PG>213</PG>
          <PT>3551</PT>
          <SUBJECT>Use of Government sources by contractors</SUBJECT>
          <PG>213</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>215</PG>
          <PT>3553</PT>
          <SUBJECT>Forms</SUBJECT>
          <PG>230</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>233</PG>
        </CHAPTI>
      </TOC>
      <SUBCHAP TYPE="N">
        <PRTPAGE P="153"/>
        <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="154"/>
              </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="155"/>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="156"/>
              <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="157"/>
              </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="158"/>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="159"/>
              <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 United States, any state thereof, or the District of Columbia, and which are <PRTPAGE P="160"/>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 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>
              <PRTPAGE P="161"/>
              <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 Commission policy and procedures for identifying and dealing with conflicts of interest and improper influence or <PRTPAGE P="162"/>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 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 <PRTPAGE P="163"/>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="164"/>
        <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="165"/>
            <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="166"/>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="167"/>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="168"/>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="169"/>
              </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="170"/>
              <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="171"/>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="172"/>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="173"/>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="174"/>
            <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="175"/>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="176"/>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>
            </EXTRACT>
            <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>
            

            <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="177"/>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="178"/>
        <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="179"/>
              </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 be used by the Motor Transportation <PRTPAGE P="180"/>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="181"/>
          <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="182"/>
            <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="183"/>
            <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="184"/>
              <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="185"/>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="186"/>
            <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 ($____) (if contract is CPFF type, insert, (“plus a fixed fee of ($____) which is __ 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="187"/>
              </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 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>
              <PRTPAGE P="188"/>
              <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="189"/>
        <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="190"/>
          <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="191"/>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="192"/>
              <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="193"/>
              <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="194"/>
            <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="195"/>
              </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="196"/>
              </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="197"/>
              </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="198"/>
        <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="199"/>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>
            <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 <PRTPAGE P="200"/>(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>
              <SECHD>Sec.</SECHD>
              <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>
                <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 <PRTPAGE P="201"/>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="202"/>
              <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="203"/>
              <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="204"/>
          <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="205"/>
        <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="206"/>
              </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="207"/>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="208"/>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="209"/>
              </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="210"/>
              <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="211"/>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="212"/>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="213"/>
        <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="214"/>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="215"/>
        <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 1990)</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 <PRTPAGE P="216"/>shall not receive an award unless the conflict 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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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.<PRTPAGE P="217"/>
                </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.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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 <PRTPAGE P="218"/>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.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
              <P>
                <E T="03">Alternate I</E> (Jan 1990) If the construction work is not estimated to exceed $10,000, substitute the following text in place of the basic text:
              </P>
              <EXTRACT>
                <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>
              </EXTRACT>
              
              <P>
                <E T="03">Alternate II</E> (Jan 1990) 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>
              <EXTRACT>
                <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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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>
              </EXTRACT>
              <PRTPAGE P="219"/>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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 1990)</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 any translation thereof into another language, the English language meaning shall control.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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>
                <PRTPAGE P="220"/>
                <HD SOURCE="HD1">Government Rights (Jan 1990)</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.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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.<PRTPAGE P="221"/>
                </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.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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 <PRTPAGE P="222"/>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 effect during the life of the contract and during all warranty periods stipulated in the contract.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <PRTPAGE P="223"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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 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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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>
                <PRTPAGE P="224"/>
                <HD SOURCE="HD1">Additive Items (Jan 1990)</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 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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
              <P>
                <E T="03">Alternate I</E> (Jan 1990) 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>
              <EXTRACT>
                <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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of provision)</HD>
            </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>
                <PRTPAGE P="225"/>
                <HD SOURCE="HD1">Scope of Work (Jan 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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>
                <HD SOURCE="HD1">Work Sites, Yards, Shows, and Offices (Jan 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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 <PRTPAGE P="226"/>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 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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
              <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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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 <PRTPAGE P="227"/>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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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. Upon completion of the work, all toilet facilities shall be removed by the Contractor.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</HD>
                <P>Unless otherwise noted, the Contractor shall provide suitable drinking water and sanitary dispensing facilities for the Contractor's employees.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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 <PRTPAGE P="228"/>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 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>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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>
              </EXTRACT>
              <PRTPAGE P="229"/>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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 the contract drawings shall be shown so that they stand out against the unchanged items in the drawing.</P>
              </EXTRACT>
              <HD SOURCE="HD3">(End of clause)</HD>
            </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 1990)</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 t