Federal Register, Volume 75 Issue 44 (Monday, March 8, 2010)

[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Rules and Regulations]
[Pages 10568-10628]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-4132]

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Part II

Department of Commerce

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48 CFR Chapter 13

Commerce Acquisition Regulation (CAR); Final Rule

Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Rules
and Regulations

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DEPARTMENT OF COMMERCE

48 CFR Chapter 13

[Document No. 080730954-0033-02]
RIN 0605-AA26

Commerce Acquisition Regulation (CAR)

AGENCY: Department of Commerce (DOC).

ACTION: Final rule.

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SUMMARY: We, the Department of Commerce, issue a final rule to bring
the Commerce Acquisition Regulation in alignment with the Federal
Acquisition Regulation (FAR) and to streamline DOC's internal policy
and guidance. This final rule updates the entire CAR through FAC 2005-
21.

DATES: This rule is effective April 7, 2010.

ADDRESSES: The final rule is available on the DOC Web site http://www.doc.gov, or http://www.regulations.gov, or by contacting the
Department of Commerce: Room 1854, 1401 Constitution Avenue, NW.,
Washington, DC 20230.

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

SUPPLEMENTARY INFORMATION:

Background

The Department of Commerce implements or supplements the Federal
Acquisition Regulations through its own regulations codified in 48 CFR
Chapter 13. Collectively, these regulations are known as the Commerce
Acquisition Regulation (CAR). The CAR was originally codified on March
30, 1984 and last updated on September 12, 1995 through a final rule
published in the Federal Register. The Department of Commerce publishes
this action to update the CAR to bring the Department of Commerce's
policies and procedures in alignment with the FAR through FAC 2005-21.
The following is a summary of the overall changes made to the CAR.
The Department amends the CAR to update the regulations since its
last revision on September 12, 1995. In order to bring the CAR in
alignment with the current provisions of the FAR, the Department added
several new provisions to address those instances where the FAR
indicates that agency procedures are required or need to be developed,
as well as provisions to define roles and responsibilities and provide
guidance on Department's policy and procedures for accountable personal
property, inherently governmental functions, emergency acquisitions,
small business programs, environmental programs, foreign acquisitions,
contract financing, protests, disputes, and appeals, major system
acquisitions, research and development contracting, security
processing, value engineering, and termination of contracts. Moreover,
the Department added numerous new clauses that correspond to the new
procedural requirements added to the CAR.
In making the updates referenced in this final rule, various
sections of the CAR have been renumbered and/or renamed to align with
the current structure of the FAR. This amendment facilitates readers in
locating the corresponding FAR section in the CAR. In addition, the
Department added many references to chapters of the Commerce
Acquisition Manual (CAM) to provide further information on the
delegation of authority for a specific provision. In particular, the
references to the CAM help clarify the roles and responsibilities
across the agency and within the Department of Commerce's 5 Operating
Units authorized to operate contracting offices (National Institute of
Standards and Technology (NIST), National Oceanic and Atmospheric
Administration (NOAA), Office of the Secretary, U.S. Census Bureau, and
Patent and Trademark Office (PTO)). Finally, the authority citations
for the CAR have been revised to correspond to current authority.
For a detailed description of the changes by CAR Part, see the
proposed rule published on October 13, 2009 in the Federal Register (74
FR 52541). The document is also available at http://www.Regulations.gov
under Docket Number: DOC-2009-0003-0001.

Request for Comments

On October 13, 2009, the Department published and requested public
comments on the proposed changes to the CAR. The comment period lasted
between October 13, 2009-December 14, 2009. No comments were received
from the public during this period. Therefore, the Department adopts
without change, the regulations as proposed on October 13, 2009.

Classification

Executive Order 12866: This rule has been determined to be not
significant for purposes of Executive Order 12866, Regulatory Planning
and Review.
Regulatory Flexibility Act: Under the Regulatory Flexibility Act (5
U.S.C. 601 et seq., as amended by the Small Business Regulatory
Enforcement Fairness Act of 1996), whenever an agency is required to
publish a notice of rulemaking for any proposed or final rule, it must
prepare and make available for public comment a regulatory flexibility
analysis that describes the effect of the rule on small entities (i.e.,
small businesses, small organizations, and small government
jurisdictions), unless the agency certifies that the rule will not have
a significant economic impact on a substantial number of small
entities. The Regulatory Flexibility Act requires Federal agencies to
provide a statement of the factual basis for certifying that a rule
will not have a significant economic impact on a substantial number of
small entities.
Pursuant to the Regulatory Flexibility Act, the Chief Counsel for
Regulation certified to the Chief Counsel for Advocacy of the Small
Business Administration that the proposed rule will not have a
significant economic impact on a substantial number of small entities.
The factual basis for this certification was published with the
proposed rule. No comments were received regarding the economic impact
of this rule. As a result, a Final Regulatory Flexibility Analysis is
not required.
Paperwork Reduction Act: This rule does not impose any new
information collections subject to review and approval by OMB under the
Paperwork Reduction Act. Notwithstanding any other provision of the
law, no person is required to respond to, nor shall any person be
subject to a penalty for failure to comply with, a collection of
information subject to the requirements of PRA, unless that collection
of information displays a currently valid OMB control number.

List of Subjects

48 CFR Part 1301

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

48 CFR Part 1302

Definitions, Government procurement, Terms.

48 CFR Part 1303

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

48 CFR Part 1304

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

[[Page 10569]]

48 CFR Part 1305

Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 1306

Government procurement, Justifications, Sole source acquisitions.

48 CFR Part 1307

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

48 CFR Part 1308

Government procurement, Printing.

48 CFR Part 1309

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

48 CFR Part 1311

Government procurement, Liquidated damages, Market acceptance.

48 CFR Part 1312

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

48 CFR Part 1313

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

48 CFR Part 1314

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

48 CFR Part 1315

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

48 CFR Part 1316

Government procurement, Ombudsman.

48 CFR Part 1317

Multi-year contract, Congressional notification, Interagency
agreement.

48 CFR Part 1318

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

48 CFR Part 1319

Partnership agreement, Set aside, Small business, SBA.

48 CFR Part 1322

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

48 CFR Part 1323

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

48 CFR Part 1324

Freedom of Information, Government procurement, privacy.

48 CFR Part 1325

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

48 CFR Part 1326

Disaster assistance, Government procurement.

48 CFR Part 1327

48 CFR Part 1328

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

48 CFR Part 1329

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

48 CFR Part 1330

Accounting, Government procurement, Reporting and recordkeeping
requirements.

48 CFR Part 1331

Accounting, Government procurement, Reporting and recordkeeping
requirements.

48 CFR Part 1332

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

48 CFR Part 1333

Administrative practice and procedure, Claims, Government
procurement.

48 CFR Part 1334

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

48 CFR Part 1335

FFRDC, Human subject.

48 CFR Part 1336

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

48 CFR Part 1337

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

48 CFR Part 1339

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

48 CFR Part 1341

Government procurement, Reporting and recordkeeping requirements,
Utilities.

48 CFR Part 1342

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

48 CFR Part 1344

Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 1345

Government procurement, Government property, Reporting and
recordkeeping requirements.

48 CFR Part 1346

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

48 CFR Part 1348

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

48 CFR Part 1349

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

48 CFR Part 1350

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

48 CFR Part 1352

Government procurement, Matrix, Reporting and recordkeeping
requirements.

48 CFR Part 1353

Government procurement, Reporting and recordkeeping requirements.

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48 CFR Part 1370

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

48 CFR Part 1371

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

Dated: February 22, 2010.
John F. Charles,
Deputy Assistant Secretary for Administration.

0
For the reasons stated in the preamble, the Department of Commerce
revises 48 CFR Chapter 13 to read as follows:

CHAPTER 13--DEPARTMENT OF COMMERCE

SUBCHAPTER A--GENERAL

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

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

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

SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES

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

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

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

SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS

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

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

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

SUBCHAPTER G--CONTRACT MANAGEMENT

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

SUBCHAPTER H--CLAUSES AND FORMS

1352 Solicitation provisions and contract clauses.
1353 Forms.

SUBCHAPTER I--DEPARTMENT SUPPLEMENTAL REGULATIONS

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

SUBCHAPTER A--GENERAL

PART 1301--DEPARTMENT OF COMMERCE ACQUISITION REGULATIONS SYSTEM

Sec.
1301.000 Scope of part.
Subpart 1301.1--Purpose, Authority, Issuance
1301.101 Purpose.
1301.103 Authority.
1301.104 Applicability.
1301.105 Issuance.
1301.105-1 Publication and code arrangement.
1301.105-2 Arrangement of regulations.
1301.105-3 Copies.
Subpart 1301.3--Agency Acquisition Regulations
1301.301 Policy.
1301.303 Publication and codification.
1301.304 Agency control and compliance procedures.
Subpart 1301.4--Deviations From the FAR
1301.403 Individual deviations.
1301.404 Class deviations.
Subpart 1301.6--Career Development, Contracting Authority, and
Responsibilities
1301.601 General.
1301.602 Contracting officers.
1301.602-1 Authority.
1301.602-170 Provisions and clauses.
1301.602-3 Ratification of unauthorized commitments.
1301.602-370 Ratification approval by Procurement Counsel.
1301.603 Selection, appointment, and termination of appointment.
1301.603-1 General.
1301.603-2 Selection.
1301.603-3 Appointment.
1301.603-4 Termination.
1301.670 Appointment of contracting officer's representative (COR).
1301.670-70 Provisions and clauses.
1301.671 Assignment of program and project managers.
Subpart 1301.7--Determinations and Findings
1301.707 Signatory authority.

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

1301.000 Scope of part.

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

Subpart 1301.1--Purpose, Authority, Issuance

1301.101 Purpose.

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

1301.103 Authority.

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

1301.104 Applicability.

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

1301.105 Issuance.

1301.105-1 Publication and code arrangement.

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

[[Page 10571]]

1301.105-2 Arrangement of regulations.

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

1301.105-3 Copies.

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

Subpart 1301.3--Agency Acquisition Regulations

1301.301 Policy.

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

1301.303 Publication and codification.

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

1301.304 Agency control and compliance procedures.

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

Subpart 1301.4--Deviations From the FAR

1301.403 Individual deviations.

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

1301.404 Class deviations.

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

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

1301.601 General.

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

1301.602 Contracting officers.

1301.602-1 Authority.

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

1301.602-170 Provisions and clauses.

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

1301.602-3 Ratification of unauthorized commitments.

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

1301-602-370 Ratification approval by Procurement Counsel.

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

1301.603 Selection, appointment, and termination of appointment.

1301.603-1 General.

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

1301.603-2 Selection.

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

1301.603-3 Appointment.

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

1301.603-4 Termination.

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

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

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

1301.670-70 Provisions and clauses.

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

1301.671 Assignment of program and project managers.

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

[[Page 10572]]

Subpart 1301.7--Determinations and Findings

1301.707 Signatory authority.

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

PART 1302--DEFINTIONS OF WORDS AND TERMS

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

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

Subpart 1302.1--Definitions

1302.101 Definitions.

Accountable Personal Property means all personal property for which
responsibility for control is formally assigned to an individual, and
official property records are maintained as set forth in DOC PPMM
Chapter 4.
Agency Head (or Head of Agency) (HA) means the Secretary of
Commerce, except, pursuant to Department Organization Order (DOO) 10-5,
Chief Financial Officer and Assistant Secretary for Administration, the
head of the agency for procurement matters shall be the Chief Financial
Officer and Assistant Secretary for Administration (CFO/ASA), unless a
statute provides that the authority of the Secretary is non-delegable.
Chief Acquisition Officer (CAO) means the Department's executive-
level non-career employee designated pursuant to the Services
Acquisition Reform Act to advise and assist the head of the agency and
other agency officials to ensure the mission of the agency is achieved
through the management of the agency's acquisition activities. The CFO/
ASA has been designated by the Head of the Agency as the Chief
Acquisition Officer for the Department of Commerce.
Civilian Agency Acquisition Council (CAAC) means the council that
assists the Administrator of General Services in developing and
maintaining the Federal Acquisition Regulation (FAR) System by
developing or reviewing all proposed changes to the FAR. The Council is
comprised of a representative designated by each of several Federal
departments and agencies, including the DOC. The CAAC coordinates its
activities with the Defense Acquisition Regulations Council (DARC). The
CAAC is authorized under 48 CFR 1.2.
Commerce Acquisition Manual (CAM) means non-regulatory uniform
policies and procedures for internal operations associated with
acquiring supplies and services within the Department that implements
and supplements the FAR and CAR.
Commerce Acquisition Regulation (CAR) means uniform acquisition
policies and procedures, which implement and supplement the FAR.
Contracting Activity means the operating units identified under the
definition of ``Operating Units'' below. Contracting activities may or
may not have authority to operate contracting offices (see definition
for Contracting Office).
Contracting Office means an office that awards or executes
contracts for supplies or services and performs post-award functions.
The operating units authorized to operate contracting offices are
identified in DAO 208-2.
Contracting Officer means an individual designated authority by the
Senior Bureau Procurement Official (BPO) to enter into, administer,
and/or terminate contracts and make related determinations and
findings. Only those individuals who have been certified as contracting
officers, through the issuance of a Certificate of Appointment
(Contracting Officer Warrant (SF 1402)), by the BPO in accordance with
the requirements and procedures of the CAR and the CAM may exercise the
authorities of contracting officers. However, by virtue of their
positions, the Head of the Agency, the Procurement Executive, and the
Heads of Operating Units are also designated as contracting officers.
Department or Departmental or DOC means the Department of Commerce.
Head of Agency (HA)--see definition for ``Agency Head.''
Head of Contracting Office (HCO) means those individuals designated
by the BPO to head the contracting offices within each operating unit
that has designated contracting authority to award and administer
contracts. In performing their duties, HCOs are empowered to the full
limits of the Department's contracting authority. The HCO must be a
procurement professional in the GS-1102 occupational series (or
equivalent OPM occupational designation). BPOs will issue each HCO a
Contracting Officer Warrant that delegates the authority to enter into,
administer, and/or terminate contracts and to make related
determinations and findings.
Head of the Contracting Activity (HCA) means, for purposes of
delegation of contracting authority, officials who are designated as
Heads of Operating Units (those who are assigned by the President or by
the Secretary to manage the primary or constituent operating units of
the DOC) in orders establishing the respective operating units, with
the exception of the Office of the Secretary. Such officials are
designated as the HCA for procurements initiated in support of the
procurement activities of that operating unit. The Chief Financial
Officer and Assistant Secretary for Administration has been designated
as the HCA for procurements initiated in support of the programs and
activities of the Office of the Secretary and all other Secretarial
Offices and Departmental Offices.
Office of Small and Disadvantaged Business Utilization (OSDBU), The
means the advocacy and advisory office responsible for promoting the
use of small, small disadvantaged, 8(a), women-owned, veteran-owned,
service-disabled veteran-owned, and HUBZone small businesses within the
Department acquisition process.
Office of the Assistant General Counsel for Administration,
Employment & Labor Law Division means the Department Legal Office that
provides advice and guidance to management regarding employment and
labor law issues, including the legal standards for taking adverse and
performance-based actions.
Office of the Assistant General Counsel for Administration, Ethics
Law and Program Division means the Department Legal Office that
provides advice and guidance regarding conflict of interest statutes,
ethics regulations, and related laws.
Operating Units are organizational entities outside the Office of
the Secretary charged with carrying out specified substantive functions
(i.e., programs) of the Department and are identified in DAO 208-2.
Procurement Counsel means, except for the Patent and Trademark
Office (PTO), the Office of the Assistant General Counsel for Finance &
Litigation, Contract Law Division, the office responsible for providing
legal review of applicable contract actions and procurement legal
advice to all operating units, and handling procurement-related
litigation. ``Procurement Counsel'' for all PTO procurement-related
actions means Office of General Law.
Procurement Executive (or Senior Procurement Executive (PE)) means
the official appointed pursuant to Executive Order 12931 and the
Services Acquisition Reform Act of 2003 to carry out the
responsibilities identified in both the Executive Order and the Act.
The Director for Acquisition Management is the Procurement Executive
for the Department of Commerce.

[[Page 10573]]

Senior Bureau Procurement Official (BPO) means the senior career
procurement official, within each operating unit that has been
delegated contracting authority, who is designated as the Senior Bureau
Procurement Official. The BPO must be a procurement professional who
has both experience and training in the area of Federal procurement and
contracting. HCAs may designate one BPO within their organization to
carry out the day-to-day functions of managing the contracting
activity. BPOs may also serve as the Head of Contracting Office. The
Procurement Executive will issue each BPO a Contracting Officer Warrant
which delegates the authority to enter into, administer, and/or
terminate contracts and to make related determinations and findings.

1302.170 Abbreviations

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

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

Subpart 1303.1--Safeguards
Sec.
1303.101 Standards of conduct.
1303.101-2 Solicitation and acceptance of gratuities by government
personnel.
1303.101-3 Agency regulations.
1303.104 Procurement integrity.
1303.104-4 Disclosure, protection and marking of contractor bid or
proposal information and source selection information.
1303.104-7 Violations or possible violations.
Subpart 1303.2--Contractor Gratuities to Government Personnel
1303.203 Reporting suspected violations of the gratuities clause.
1303.204 Treatment of violations.
Subpart 1303.3--Reports of Suspected Antitrust Violations
1303.303 Reporting suspected antitrust violations.
Subpart 1303.4--Contingent Fees
1303.405 Misrepresentations or violations of the covenant against
contingent fees.
Subpart 1303.5--Other Improper Business Practices
1303.502 Subcontractor kickbacks.
1303.502-2 Subcontractor kickbacks.
Subpart 1303.6--Contracts With Government Employees or Organizations
Owned or Controlled by Them
1303.602 Exceptions.
Subpart 1303.7--Voiding and Rescinding Contracts
1303.704 Policy.
1303.705 Procedures.
Subpart 1303.8--Limitation on the Payment of Funds To Influence Federal
Transactions
1303.804 Policy.
1303.806 Processing suspected violations.
Subpart 1303.9--Whistleblower Protections for Contractor Employees
1303.905 Procedures for investigating complaints.
1303.906 Remedies.

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

Subpart 1303.1--Safeguards

1303.101 Standards of conduct.

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

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

1303.101-3 Agency regulations.

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

1303.104 Procurement integrity.

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

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

1303.104-7 Violations or possible violations.

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

Subpart 1303.2--Contractor Gratuities to Government Personnel

1303.203 Reporting suspected violations of the gratuities clause.

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

1303.204 Treatment of violations.

(a) The designee authorized to determine violations of the
Gratuities clause is set forth in CAM 1301.70.
(b) Upon receipt of an allegation or evidence of a violation of the
Gratuities clause, the designee shall conduct a fact-finding. If there
is a basis for further action, a signed notice shall be prepared and
sent to the contractor by certified mail, return receipt requested, or
any other method that provides signed evidence of receipt. If a reply
is not received from the contractor within 45 calendar days of sending
the notice, a decision shall be made on the

[[Page 10574]]

appropriate action to be taken. If a reply is received from the
contractor within 45 calendar days of sending the notice, the
information in the reply must be considered before making a decision on
the appropriate action to be taken. Upon request of the contractor, the
contractor shall be provided an opportunity to appear in person to
present information concerning the matter. A report shall be prepared
following the presentation and the information must be considered when
making a decision. A decision shall be made on the basis of all
information available, including findings of fact and oral or written
information submitted by the contractor. All mitigating factors shall
be considered prior to making a final decision concerning what action
will be taken.

Subpart 1303.3--Reports of Suspected Antitrust Violations

1303.303 Reporting suspected antitrust violations.

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

Subpart 1303.4--Contingent Fees

1303.405 Misrepresentations or violations of the covenant against
contingent fees.

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

Subpart 1303.5--Other Improper Business Practices

1303.502 Subcontractor kickbacks.

1303.502-2 Subcontractor kickbacks.

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

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

1303.602 Exceptions.

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

Subpart 1303.7--Voiding and Rescinding Contracts

1303.704 Policy.

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

1303.705 Procedures.

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

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

1303.804 Policy.

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

1303.806 Processing suspected violations.

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

Subpart 1303.9--Whistleblower Protections for Contractor Employees

1303.905 Procedures for investigating complaints.

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

1303.906 Remedies.

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

PART 1304--ADMINISTRATIVE MATTERS

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

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

Subpart 1304.2--Contract Distribution

1301.201 Procedures.

1304.201-70 Accountable personal property.

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

Subpart 1304.6--Contract Reporting

1304.602 General.

1304.602-70 Federal Procurement Data System.

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

Subpart 1304.8--Government Contract Files

1304.804 Closeout of contract files.

1304.804-70 Contract closeout procedures.

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

[[Page 10575]]

1304.805 Storage, handling, and disposal of contract files.

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

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

Subpart 1304.13--Personal Identity Verification

1304.1301 Policy.

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

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

PART 1305--PUBLICIZING CONTRACT ACTIONS

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

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

Subpart 1305.2--Synopses of Proposed Contract Actions

1305.202 Exceptions.

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

Subpart 1305.4--Release of Information

1305.403 Requests from Members of Congress.

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

1305.404 Release of long-range acquisition estimates.

1305.404-1 Release procedures.

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

Subpart 1305.5--Paid Advertisements

1305.502 Authority.

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

PART 1306--COMPETITION REQUIREMENTS

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

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

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

1306.202 Establishing or maintaining alternative sources.

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

Subpart 1306.3--Other Than Full and Open Competition

1306.302 Circumstances permitting other than full and open
competition.

1306.302-5 Authorized or required by statute.

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

1306.303 Justifications.

1306.303-70 Documentation and legal review of justifications.

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

1306.304 Approval of the justification.

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

Subpart 1306.5--Competition Advocates

1306.501 Requirement.

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

PART 1307--ACQUISITION PLANNING

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

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

Subpart 1307.1--Acquisition Plans

1307.102 Policy.

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

1307.103 Agency-head responsibilities.

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

1307.105 Contents of written acquisition plans.

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

[[Page 10576]]

Subpart 1307.3--Contractor versus Government Performance

1307.302 Policy.

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

Subpart 1307.5--Inherently Governmental Functions

1307.503 Policy.

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

PART 1308--REQUIRED SOURCES OF SUPPLIES AND SERVICES

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

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

Subpart 1308.8--Acquisition of Printing and Related Supplies

1308.802 Policy.

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

1308.802-70 Printing.

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

PART 1309--CONTRACTOR QUALIFICATIONS

Subpart 1309.2--Qualifications Requirements
Sec.
1309.202 Policy.
1309.206 Acquisitions subject to qualification requirements.
1309.206-1 General.
Subpart 1309.4--Debarment, Suspension, and Ineligibility
1309.403 Definitions.
1309.405 Effect of listing.
1309.405-1 Continuation of current contracts.
1309.405-2 Restrictions on subcontracting.
1309.406 Debarment.
1309.406-1 General.
1309.406-3 Procedures.
1309.407 Suspension.
1309.407-1 General.
1309.407-3 Procedures.
Subpart 1309.5--Organizational and Consultant Conflicts of Interest
1309.503 Waiver.
1309.503-70 Waiver.
1309.506 Procedures.
1309.507 Solicitation provisions and contract clauses.
1309.507-1 Solicitation provisions.
1309.507-2 Contract clauses.

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

Subpart 1309.2--Qualifications Requirements

1309.202 Policy.

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

1309.206 Acquisitions subject to qualification requirements.

1309.206-1 General.

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

Subpart 1309.4--Debarment, Suspension, and Ineligibility

1309.403 Definitions.

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

1309.405 Effect of listing.

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

1309.405-1 Continuation of current contracts.

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

1309.405-2 Restrictions on subcontracting.

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

1309.406 Debarment.

1309.406-1 General.

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

1309.406-3 Procedures.

(a) Investigation and referral. DOC employees shall immediately
refer any cause that might serve as the basis for debarment through the
contracting officer to the debarring official.
(b) Decision-making process. (1) Procedures shall afford the
contractor, and any named affiliates, an opportunity to submit
information and argument in opposition to the proposed debarment. This
may be done in person, in writing or through a representative.
(2) In actions not based upon a conviction or civil judgment, where
the

[[Page 10577]]

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

1309.407 Suspension.

1309.407-1 General.

Suspensions shall be effective throughout the executive branch of
the Government, unless the designee set forth in CAM 1301.70 states in
writing compelling reasons for continuing to do business with a
suspended contractor.

1309.407-3 Procedures.

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

Subpart 1309.5--Organizational and Consultant Conflicts of Interest

1309.503 Waiver.

1309.503-70 Waiver.

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

1309.506 Procedures.

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

[[Page 10578]]

from the Senior Bureau Procurement Official.

1309.507 Solicitation provisions and contract clauses.

1309.507-1 Solicitation provisions.

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

1309.507-2 Contract clauses.

(a) In accordance with FAR 9.507-2, insert clause 1352.209-71,
Limitation of Future Contracting, substantially as written, when the
contractor's eligibility for future prime contract or subcontract
awards shall be restricted because of services being provided as stated
in FAR 9.505-1 through 9.505-4.
(1) Insert the basic clause when the contractor will be providing
systems engineering and/or technical direction. (See FAR 9.505-1)
(2) Insert the clause with its Alternate I when the contractor will
be preparing specifications or work statements. (See FAR 9.505-2)
(3) Insert the clause with its Alternate II when the contractor
will be providing technical evaluation or advisory and assistance
services. (See FAR 9.505-3)
(4) Insert the clause with its Alternate III when the contractor
will be obtaining access to proprietary information. (See FAR 9.505-4)
(5) Insert the clause with its Alternate IV when the contract is a
task order contract. The contracting officer may modify Alternate IV to
include a list of systems for which task orders may be issued and
indicate which organizational conflict of interest provision in
paragraph (a)(2) of this clause shall apply.
(6) Insert the clause with its Alternate V when the contract
provides for delivery orders. The contracting officer shall indicate in
each delivery order which organizational conflict of interest provision
in paragraph (a)(2) of this clause shall apply.
(7) Insert the language in Alternate VI when it is necessary to
have the restrictions of this clause included in all or some
subcontracts, teaming arrangements, and other agreements calling for
performance of work related to the contract.
(b) Insert clause 1352.209-72, Restrictions against Disclosure, in
service contracts, including architect-engineer contracts, and supply
and construction contracts requiring a restriction on the release of
information developed or obtained in connection with performance of the
contract.
(c) Insert the clause 1352.209-73, Compliance with the Laws, in all
solicitations and contracts.
(d) Insert the clause 1352.209-74, Organizational Conflict of
Interest, in all solicitations and contracts.
(e) Insert clause 1352.209-75, Title 13 and Non-Disclosure
Requirements, in all solicitations and contracts for services where the
contractor will have access to Title 13 data.

PART 1311--DESCRIBING AGENCY NEEDS

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

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

Subpart 1311.1--Selecting and Developing Requirements Documents

1311.103 Market acceptance.

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

Subpart 1311.5--Liquidated Damages

1311.501 Policy.

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

PART 1312--ACQUISITION OF COMMERCIAL ITEMS

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

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

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

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

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

SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES

PART 1313--SIMPLIFIED ACQUISITION PROCEDURES

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

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

Subpart 1313.1--Procedures

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

1313.106-2-70 Evaluation of solicitations.

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

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

1313.201 General.

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

Subpart 1313.3--Simplified Acquisitions Methods

1313.301 Governmentwide commercial purchase card.

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

[[Page 10579]]

1313.302 Purchase orders.

1313.302-1-70 Non-commercial purchase orders.

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

1313.302-3 Obtaining contractor acceptance and modifying purchase
orders.

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

1313.303 Blanket Purchase Agreements (BPAs).

1313.303-5 Purchases under BPAs.

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

1313.305 Imprest funds and third party drafts.

1313.305-1 General.

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

PART 1314--SEALED BIDDING

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

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

Subpart 1314.2--Solicitation of Bids

1314.201 Preparation of invitation for bids.

1314.201-7 Contract clauses.

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

Subpart 1314.4--Opening of Bids and Awards of Contracts

1314.404 Rejection of bids.

1314.404-1 Cancellation of invitations after opening.

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

1314.407 Mistakes in bids.

1314.407-3 Other mistakes disclosed before award.

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

1314.409 Information to bidders.

1314.409-1 Award of unclassified contracts.

Requests for records shall be governed by the procedures outlined
in DAO 205-14 and 15 CFR Part 4.

PART 1315--CONTRACTING BY NEGOTIATION

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

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

Subpart 1315.2--Solicitation and Receipt of Proposals and
Information

1315.204 Contract format.

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

1315.204-570 Part IV representations and instructions.

(a) Section L, Instructions, conditions, and notices to offerors or
respondents. (1) The contracting officer shall insert the provision
1352.215-70, Proposal Preparation, in all solicitations. Contracting
officers should tailor the provision to best meet the Government's
needs. Information requested from offerors in Volume II-Technical
Proposal, must correspond to the evaluation factors. Contracting
officers should not request information that will not be evaluated in
accord with the stated technical evaluation factors. Should electronic
submission be allowed by the CO, specific instructions must be added.
(2) Insert a provision similar to 1352.215-71, Instructions for
Oral Presentations, in solicitations when oral presentations will be
used. Contracting officers shall tailor the provision to suit their
acquisition.
(3) The contracting officer shall insert the provision 1352.215-72,
Inquiries, in solicitations as determined by the CO. This provision may
be modified to satisfy the needs of specific procurements.
(b) Section M, Evaluation factors for award. (1) The contracting
officer shall insert provision 1352.215-73, Evaluation Quantities-
Indefinite

[[Page 10580]]

Quantity Contract, in solicitations for indefinite quantity and
requirements contracts, as appropriate. This provision may be modified
to satisfy the needs of specific procurements.
(2) The contracting officer shall insert the provision similar to
1352.215-74, Best Value Evaluation, for competitive, best value
procurements, tailoring the language as appropriate. If clause
1352.215-74, Best Value Evaluation, is used, then clause 1352.215-75
Evaluation Criteria, must be used.
(3) The contracting officer shall insert a provision in all
solicitations similar to 1352.215-75, Evaluation Criteria, to specify
evaluation criteria, tailoring the language as appropriate. If the
basis for award is lowest price technically acceptable, this must be
stated.
(4) The contracting officer shall insert provision 1352.215-76,
Cost or Pricing Data, in all solicitations when cost or pricing data is
required under FAR subpart 15.4.

1315.209 Solicitation provisions and contract clauses.

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

Subpart 1315.3--Source Selection

1315.303 Responsibilities.

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

1315.305 Proposal evaluation.

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

Subpart 1315.4--Contract Pricing

1315.407 Special cost or pricing areas.

1315.407-4 Should-cost review.

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

Subpart 1315.6--Unsolicited Proposals

1315.602 Policy.

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

1315.603 General.

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

1315.604 Agency points of contact.

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

1315.606 Agency procedures.

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

1315.606-2 Evaluation.

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

PART 1316--TYPES OF CONTRACTS

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

[[Page 10581]]

1316.603-2 Application.
1316.603-3 Limitations.

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

Subpart 1316.1--Selecting Contract Types

1316.103 Negotiating contract type.

1316.103-70 Identifying contract type.

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

Subpart 1316.2--Fixed-Price Contracts

1316.203 Fixed-price contracts with economic price adjustment.

1316.203-4 Contract clauses.

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

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

1316.206-3 Limitations.

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

Subpart 1316.3--Cost-Reimbursement Contracts

1316.307 Contract clauses.

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

Subpart 1316.4--Incentive Contracts

1316.405 Cost-reimbursement incentive contracts.

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

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

1316.406 Contract clauses.

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

Subpart 1316.5--Indefinite-Delivery Contracts

1316.501-2-70 Task orders.

Insert clause 1352.216-74, Task Orders, or a substantially similar
clause in task order solicitations and contracts, making changes, as
appropriate. Contracting officers are encouraged to make appropriate
modifications to the time requirements and procedures to meet the
Government's needs.

1316.505 Ordering.

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

1316.506 Solicitation provisions and contract clauses.

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

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

1316.601 Time-and-materials contracts.

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

1316.601-70 Contract clauses.

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

1316.602 Labor-hour contracts.

1316.602-70 Contract clauses.

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

1316.603 Letter contracts.

1316.603-2 Application.

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

1316.603-3 Limitations.

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

PART 1317--SPECIAL CONTRACTING METHODS

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

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

Subpart 1317.1--Multi-Year Contracting

1317.104 General.

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

1317.105 Policy.

1317.105-1 Uses.

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

1317.108 Congressional notification.

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

Subpart 1317.2--Options

1317.203 Solicitations.

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

Subpart 1317.5--Interagency Acquisitions Under the Economy Act

1317.502 General.

1317.502-70 Policy.

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

PART 1318--EMERGENCY ACQUISITIONS

Subpart 1318.2--Emergency Acquisition Flexibilities
Sec.
1318.201 Contingency operation.
1318.202 Defense or recovery from certain attacks.
1318.270 Emergency acquisition flexibilities.

[[Page 10582]]

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

Subpart 1318.2--Emergency Acquisition Flexibilities

1318.201 Contingency operation.

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

1318.202 Defense or recovery from certain attacks.

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

1318.270 Emergency acquisition flexibilities.

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

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

PART 1319--SMALL BUSINESS PROGRAMS

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

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

Subpart 1319.2--Policies.

1319.201 General policy.

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

1319.202 Specific policies.

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

1319.202-70 Small business set-aside review form.

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

Subpart 1319.5--Set-Asides for Small Business

1319.502 Setting aside acquisitions.

1319.502-3 Partial set-asides.

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

1319.505 Rejecting Small Business Administration recommendations.

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

Subpart 1319.6--Certificates of Competency and Determination of
Responsibility

1319.602 Procedures.

1319.602-1 Referral.

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

Subpart 1319.7--The Small Business Subcontracting Program

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

1319.705-4 Reviewing the subcontracting plan.

The prime contractor's proposed subcontracting plan shall be
reviewed

[[Page 10583]]

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

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

1319.800 General.

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

1319.811 Preparing the contracts.

1319.811-3 Contract clauses.

(a) The contracting officer shall insert the clause 1352.219-70,
Section 8(a) Direct Award (Deviation), in direct contracts and purchase
orders processed under the Partnership Agreement. The clauses at FAR
52.219-11, Special 8(a) Contract Conditions, 52.219-12, Special 8(a)
Subcontract Conditions, and 52.219-17, Section 8(a) Award, shall not be
used.
(b) The contracting officer shall insert the clause 1352.219-71,
Notification to Delay Performance (Deviation), in solicitations and
purchase orders issued under the Partnership Agreement.
(c) The contracting officer shall insert the clause 1352.219-72,
Notification of Competition Limited to Eligible 8(a) Concerns,
Alternate III (Deviation), when the acquisition is processed under the
Partnership Agreement.

1319.812 Contract administration.

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

PART 1322--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

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

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

Subpart 1322.1--Basic Labor Policies

1322.101 Labor relations.

1322.101-1 General.

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

1322.101-3 Reporting labor disputes.

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

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

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

1322.103 Overtime.

1322.103-4 Approvals.

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

Subpart 1322.3--Contract Work Hours and Safety Standards Act

1322.302 Liquidated damages and overtime pay.

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

Subpart 1322.4--Labor Standards for Contracts Involving
Construction

1322.404 Davis-Bacon Act wage determination.

1322.404-6 Modification of wage determination.

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

1322.406 Administration and enforcement.

1322.406-8 Investigations.

The designee authorized to process a contracting officer's report
on labor

[[Page 10584]]

standards investigations is set forth in CAM 1301.70.

Subpart 1322.6--Walsh-Healey Public Contracts Act

1322.604 Exemptions.

1322.604-2 Regulatory exemptions.

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

Subpart 1322.8--Equal Employment Opportunity

1322.805 Procedures.

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

1322.807 Exemptions.

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

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

1322.1001 Definitions.

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

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

1322.1305 Waivers.

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

Subpart 1322.14--Employment of Workers With Disabilities

1322.1403 Waivers.

(a) The designee authorized to waive any or all terms of the clause
at FAR 52.222-36 is set forth in CAM 1301.70.
(b) The designee authorized, with the concurrence of the Deputy
Assistant Secretary of Labor, to waive any requirement of FAR Subpart
22.14 when it is determined that the contract is essential to the
national security, is set forth in CAM 1301.70.
(c) The contracting officer must submit requests for waivers to the
designee authorized under 48 CFR 1322.1403 (a) and (b). The request
shall include a justification for the waiver and be available in
electronic format.

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

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

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

Subpart 1323.2--Energy and Water Efficiency and Renewable Energy

1323.204 Procurement exemptions.

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

Subpart 1323.4--Use of Recovered Materials

1323.404 Agency affirmative procurement programs.

1323.404-70 DOC affirmative procurement program.

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

Subpart 1323.5--Drug-Free Workplace

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

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

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

1323.705 Electronic products environmental assessment tool.

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

PART 1324--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

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

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

Subpart 1324.1--Protection of Individual Privacy

1324.103 Procedures.

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

Subpart 1324.2--Freedom of Information Act

1324.203 Policy.

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

PART 1325--FOREIGN ACQUISITION

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

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

Subpart 1325.1--Buy American Act--Supplies

1325.103 Exceptions.

(a) The designee authorized to make a determination that domestic
preference would be inconsistent with the public interest in a case
where the DOC has an agreement with a foreign government providing a
blanket

[[Page 10585]]

exception to the Buy America Act is set forth in CAM 1301.70.
(b)(1) The contracting officer shall submit documentation
supporting a nonavailability determination to the DOC's representative
to the Civilian Agency Acquisition Council (CAAC). The DOC
representative shall forward the documentation to the CAAC for possible
removal of the product from the product nonavailablity list at FAR
25.104.
(2) The contracting officer shall submit documentation supporting a
determination that nonavailabilty of an article is likely to affect
future acquisitions to the DOC's representative to the CAAC for
possible addition to the product nonavailability list at FAR 25.104.

1325.105 Determining reasonableness of cost.

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

Subpart 1325.2--Buy American Act--Construction Materials

1325.204 Evaluating offers of foreign construction material.

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

Subpart 1325.10--Additional Foreign Acquisition Regulations

1325.1001 Waiver of right to examination of records.

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

PART 1326--OTHER SOCIOECONOMIC PROGRAMS

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

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

Subpart 1326.2--Disaster or Emergency Assistance Activities

1326.203 Transition of work.

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

SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS

PART 1327--PATENTS, DATA, AND COPYRIGHTS

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

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

Subpart 1327.2--Patents and Copyrights

1327.201 Patent and copyright infringement liability.

1327.201-2 Contract clauses.

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

Subpart 1327.3--Patent Rights Under Government Contracts

1327.303 Contract clauses.

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

1327.304 Procedures.

1327.304-4 Appeals.

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

1327.305 Administration of patent rights clauses.

1327.305-2 Administration by the Government.

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

Subpart 1327.4--Rights in Data and Copyrights

1327.404 Basic rights in data clause.

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

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

1327.404-5 Unauthorized, omitted, or incorrect markings.

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

PART 1328--BONDS AND INSURANCE

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

[[Page 10586]]

1328.310 Contract clause for work on a Government installation.
1328.310-70 Solicitation provisions and contract clauses.

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

Subpart 1328.1--Bonds and Other Financial Protections

1328.101 Bid guarantees.

1328.101-1 Policy on use.

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

1328.105 Other types of bonds.

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

1328.106 Administration.

1328.106-2 Substitution of surety bonds.

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

1328.106-6 Furnishing information.

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

Subpart 1328.2--Sureties and Other Security for Bonds

1328.203 Acceptability of individual sureties.

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

1328.203-7 Exclusion of individual sureties.

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

Subpart 1328.3--Insurance

1328.305 Overseas workers' compensation and war-hazard insurance.

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

1328.310 Contract clause for work on a Government installation.

1328.310-70 Solicitation provisions and contract clauses.

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

PART 1329--TAXES

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

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

Subpart 1329.1--General

1329.101 Resolving tax problems.

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

Subpart 1329.2--Federal Excise Taxes

1329.203 Other Federal tax exemptions.

1329.203-70 DOC Federal tax exemption.

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

[[Page 10587]]

Subpart 1329.3--State and Local Taxes

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

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

PART 1330--COST ACCOUNTING STANDARDS ADMINISTRATION

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

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

Subpart 1330.2--CAS Program Requirements

1330.201 Contract requirements.

1330.201-5 Waiver.

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

1330.202 Disclosure requirements.

1330.202-2 Impracticality of submission.

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

PART 1331--CONTRACT COST PRINCIPLES AND PROCEDURES

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

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

Subpart 1331.1--Applicability

1331.101 Objectives.

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

Subpart 1331.2--Contracts With Commercial Organizations

1331.205 Selected costs.

1331.205-6 Compensation for personal services.

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

1331.205-32 Precontract costs.

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

1331.205-70 Duplication of effort.

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

PART 1332--CONTRACT FINANCING

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

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

1332.003 Simplified acquisition procedures financing.

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

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

1332.006-1 General.

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

1332.006-3 Responsibilities.

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

1332.006-4 Procedures.

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

1332.006-5 Reporting.

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

Subpart 1332.1--Non-Commercial Item Purchase Financing

1332.114 Unusual contract financing.

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

Subpart 1332.2--Commercial Item Purchase Financing

1332.201 Statutory authority.

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

[[Page 10588]]

1332.202 General.

1332.202-1 Policy.

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

Subpart 1332.4--Advance Payments for Non-Commercial Items

1332.402 General.

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

1332.404 Exclusions.

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

1332.407 Interest.

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

Subpart 1332.5--Progress Payments Based on Costs

1332.501 General.

1332.501-2 Unusual progress payments.

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

Subpart 1332.7--Contract Funding

1332.702 Policy.

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

1332.702-70 Forms.

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

Subpart 1332.8--Assignment of Claims

1332.802 Conditions.

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

Subpart 1332.9--Prompt Payment

1332.903 Responsibilities.

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

1332.906 Making payments.

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

Subpart 1332.11--Electronic Funds Transfer

1332.1108 Payment by Governmentwide commercial purchase card.

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

PART 1333--PROTESTS, DISPUTES, AND APPEALS

Subpart 1333.1--Protests

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

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

Subpart 1333.1--Protests

1333.101 Definitions.

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

1333.102 General.

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

1333.103 Protests to the agency.

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

1333.104 Protests to GAO.

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

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

Subpart 1333.2--Disputes and Appeals

1333.203 Applicability.

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

1333.206 Initiation of a claim.

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

1333.211 Contracting officer's decision.

All contracting officer decisions on claims shall be reviewed by

[[Page 10589]]

Procurement Counsel before submission to the contractor.

1333.212 Contracting officer's duties upon appeals.

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

1333.215 Contract clauses.

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

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

PART 1334--MAJOR SYSTEM ACQUISITION

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

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

Subpart 1334.0--General

1334.003 Responsibilities.

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

1334.005 General requirements.

1334.005-6 Full production.

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

Subpart 1334.2--Earned Value Management System

1334.201 Policy.

1334.201-70 Policy.

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

1334.202 Integrated baseline reviews.

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

PART 1335--RESEARCH AND DEVELOPMENT CONTRACTING

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

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

1335.001 Definitions.

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

1335.006 Contracting methods and contract type.

(a) Insert provision 1352.235-70, Protection of Human Subjects, in
all solicitations where research services under the contract might
involve the use of human subjects. The provision is mandatory where
human subjects may be used in performance of the award and may not be
modified without consultation with Program Counsel.
(b) Insert clause 1352.235-71, Protection of Human Subjects--
Exemption, in all contracts where the agency has determined based on
documentation submitted by the offeror in response to provision
1352.235-70, Protection of Human Subjects, that the research involving
human subjects is exempt from the requirements of 15 CFR Part 27 and
does not require

[[Page 10590]]

Institutional Review Board (IRB) review. The provision is mandatory
where an appropriate agency official has determined that the research
involving human subjects to be carried out in performance of the award
is exempt from15 CFR Part 27, and may not be modified without
consultation with Program Counsel.
(c) Insert clause 1352.235-72, Protection of Human Subjects--
Institutional Approval, in all contracts where the agency has
determined based on documentation submitted by the offeror in response
to provision 1352.235-70, Protection of Human Subjects, that the
research involving human subjects is not exempt from the requirements
of 15 CFR Part 27 and requires review by a cognizant Institutional
Review Board (IRB). The provision is mandatory where an appropriate
Agency official has determined that the research involving human
subjects to be carried out in performance of the award is not exempt
from15 CFR Part 27 and requires review by a cognizant IRB, and may not
be modified without consultation with Program Counsel.
(d) Insert clause 1352.235-73, Protection of Human Subjects--After
Initial Contract Award, in all contracts where at the time of award no
research involving human subjects is anticipated, but where decisions
made in the course of the research may necessitate the addition of
research involving human subjects to the work performed. The provision
is mandatory where it is possible that the use of human subjects may be
required in performance of the award but is not anticipated at the time
of award, and may not be modified without consultation with Program
Counsel.

1335.014 Government property and title.

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

1335.016 Broad agency announcement.

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

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

1335.017 Federal funded research and development centers.

1335.017-2 Establishing or changing an FFRDC.

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

1335.017-4 Reviewing FFRDCs.

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

PART 1336--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

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

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

Subpart 1336.2--Special Aspects of Contracting for Construction

1336.203 Government estimate of construction costs.

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

1336.270 Special requirements for ship construction

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

Subpart 1336.6--Architect-Engineer Services

1336.602 Selection of firms for architect-engineer contracts.

1336.602-2 Evaluation boards.

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

1336.602-4 Selection authority.

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

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

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

1336.605 Government cost estimate for architect-engineer work.

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

1336.609 Contract clauses.

1336.609-1 Design within funding limitations.

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

PART 1337--SERVICE CONTRACTING

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

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

[[Page 10591]]

Subpart 1337.1--Service Contracts--General

1337.110 Solicitation provisions and contract clauses.

1337.110-70 Personnel security processing requirements.

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

1337.110-71 Additional DOC clauses related to service contracting.

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

Subpart 1337.2--Advisory and Assistance Services

1337.204 Guidelines for determining availability of personnel.

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

PART 1339--ACQUISITION OF INFORMATION TECHNOLOGY

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

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

Subpart 1339.1--General

1339.107 Contract clauses.

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

1339.107-70 Information security.

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

Subpart 1339.2--Electronic and Information Technology

1339.270 Solicitation provisions and contract clauses.

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

PART 1341--ACQUISITION OF UTILITY SERVICES

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

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

Subpart 1341.2--Acquiring Utility Services

1341.201 Policy.

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

1341.202 Procedures.

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

1341.204 GSA areawide Contracts.

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

SUBCHAPTER G--CONTRACT MANAGEMENT

PART 1342--CONTRACT ADMINISTRATION

Subpart 1342.1--Contract Audit Services
Sec.
1342.102 Assignment of contract audit services.
1342.102-70 Interagency contract administration and audit services.
Subpart 1342.2--Contract Administration Services
1342.202 Assignment of contract administration.

[[Page 10592]]

Subpart 1342.5--Postaward Orientation
1342.503 Postaward conferences.
1342.503-70 Notice of postaward conference.
Subpart 1342.6--Corporate Administrative Contracting Officer
1342.602 Assignment and location.
Subpart 1342.7--Indirect Cost Rates
1342.703 General.
1342.703-2 Certificate of indirect costs.

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

Subpart 1342.1--Contract Audit Services

1342.102 Assignment of contract audit services.

1342.102-70 Interagency contract administration and audit services.

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

Subpart 1342.2--Contract Administration Services

1342.202 Assignment of contract administration.

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

Subpart 1342.5--Postaward Orientation

1342.503 Postaward conferences.

1342.503-70 Notice of postaward conference.

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

Subpart 1342.6--Corporate Administrative Contracting Officer

1342.602 Assignment and location.

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

Subpart 1342.7--Indirect Cost Rates

1342.703 General.

1342.703-2 Certificate of indirect costs.

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

PART 1344--SUBCONTRACTING POLICIES AND PROCEDURES

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

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

Subpart 1344.3--Contractors' Purchasing Systems Reviews

Sec. 1344.302 Requirements.

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

PART 1345--GOVERNMENT PROPERTY

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

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

Subpart 1345.1--General

1345.107 Contract clauses.

1345.107-70 Government furnished property.

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

Subpart 1345.6--Reporting, Reutilization, and Disposal

Sec. 1345.604 Disposal of surplus property.

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

PART 1346--QUALITY ASSURANCE

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

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

Subpart 1346.4--Government Contract Quality Assurance

1346.401 General.

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

Subpart 1346.5--Acceptance

1346.503 Place of acceptance.

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

Subpart 1346.6--Material Inspection and Receiving Reports

1346.601 General.

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

[[Page 10593]]

Subpart 1346.7--Warranties

1346.704 Authority for use of warranties.

Contracting officers are authorized to approve the use of
warranties.

1346.705 Limitations.

Warranties in cost reimbursement contracts are authorized.

1346.710 Contract clauses.

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

PART 1348--VALUE ENGINEERING

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

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

Subpart 1348.1--Policies and Procedures

1348.102 Policies.

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

Subpart 1348.2--Contract Clauses

1348.201 Clauses for supply or service contracts.

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

PART 1349--TERMINATION OF CONTRACTS

Subpart 1349.1--General Principles

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

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

Subpart 1349.1--General Principles

1349.106 Fraud or other criminal conduct.

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

Subpart 1349.4--Termination for Default

1349.402 Termination of fixed-price contracts for default.

1349.402-3 Procedure for default

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

PART 1350--EXTRAORDINARY CONTRACTUAL ACTIONS

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

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

Subpart 1350.1--Extraordinary Contractual Actions

1350.102 Delegation of and limitation on exercise of authority.

1350.102-1 Delegation of authority.

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

SUBCHAPTER H--CLAUSES AND FORMS

PART 1352--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Sec.
1352.000 Scope of part.
Subpart 1352.1--Instructions for Using Provisions and Clauses
1352.102 Incorporating provisions and clauses.
Subpart 1352.2--Text of Provisions and Clauses
1352.200 Scope of subpart.
1352.201-70 Contracting officer's authority.
1352.201-71 Ratification release.
1352.201-72 Contracting officer's representative (COR).
1352.208-70 Restrictions on printing and duplicating.
1352.209-70 Potential organizational conflict of interest.
1352.209-71 Limitation of future contracting.
1352.209-72 Restrictions against disclosure.
1352.209-73 Compliance with the laws.
1352.209-74 Organizational conflict of interest.
1352.209-75 Title 13 and non-disclosure requirements.
1352.213-70 Evaluation utilizing simplified acquisition procedures.
1352.213-71 Instructions for submitting quotations under the
simplified acquisition threshold--non-commercial.
1352.215-70 Proposal preparation.
1352.215-71 Instructions for oral presentations.
1352.215-72 Inquiries.
1352.215-73 Evaluation quantities-indefinite quantity contract.
1352.215-74 Best value evaluation.
1352.215-75 Evaluation criteria.
1352.215-76 Cost or pricing data.
1352.216-70 Estimated and allowable costs.
1352.216-71 Level of effort (cost-plus-fixed-fee, term contract).
1352.216-72 Determination of award fee.
1352.216-73 Distribution of award fee.
1352.216-74 Task orders.
1352.216-75 Minimum and maximum contract amounts.
1352.216-76 Placement of orders.
1352.216-77 Ceiling price.
1352.219-70 Section 8(a) direct award (Deviation).
1352.219-71 Notification to delay performance (Deviation).
1352.219-72 Notification of competition limited to eligible 8(a)
concerns, Alternate III (Deviation).
1352.227-70 Rights in data, assignment of copyright.
1352.228-70 Insurance coverage.
1352.228-71 Deductibles under required insurance coverage--cost
reimbursement.
1352.228-72 Deductibles under required insurance coverage--fixed
price.
1352.228-73 Loss of or damage to leased aircraft.
1352.228-74 Fair market value of aircraft.

[[Page 10594]]

1352.228-75 Risk and indemnities.
1352.228-76 Approval of group insurance plans.
1352.231-70 Precontract costs.
1352.231-71 Duplication of effort.
1352.233-70 Agency protests.
1352.233-71 GAO and Court of Federal Claims protests.
1352.235-70 Protection of human subjects.
1352.235-71 Protection of human subjects--exemption.
1352.235-72 Protection of human subjects--institutional approval.
1352.235-73 Research involving human subjects--after initial
contract award.
1352.237-70 Security processing requirements--high or moderate risk
contracts.
1352.237-71 Security processing requirements--low risk contracts.
1352.237-72 Security processing requirements--national security
contracts.
1352.237-73 Foreign national visitor and guest access to
departmental resources.
1352.237-74 Progress reports.
1352.237-75 Key personnel.
1352.239-70 Software license addendum.
1352.239-71 Electronic and information technology.
1352.239-72 Security requirements for information technology
resources.
1352.242-70 Postaward conference.
1352.245-70 Government furnished property.
1352.246-70 Place of acceptance.
1352.270-70 Period of performance.
1352.270-71 Pre-bid/pre-proposal conference and site visit.
1352.271-70 Inspection and manner of doing work.
1352.271-71 Method of payment and invoicing instructions for ship
repair.
1352.271-72 Additional item requirements (AIR)--growth work.
1352.271-73 Schedule of work.
1352.271-74 Foreseeable cost factors pertaining to different
shipyard locations.
1352.271-75 Delivery and shifting of the vessel.
1352.271-76 Performance.
1352.271-77 Delays.
1352.271-78 Minimization of delay due to Government furnished
property.
1352.271-79 Liability and insurance.
1352.271-80 Title.
1352.271-81 Discharge of liens.
1352.271-82 Department of Labor occupational safety and health
standards for ship repair.
1352.271-83 Government review, comment, acceptance and approval.
1352.271-84 Access to the vessel.
1352.271-85 Documentation of requests for equitable adjustment.
1352.271-86 Lay days.
1352.271-87 Changes--ship repair.
1352.271-88 Guarantees.
1352.271-89 Temporary services.
1352.271-90 Insurance requirements.

Subpart 1352.3--Provisions and Clauses Matrix

1352.301 Solicitation provisions and contract clauses (Matrix).

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

1352.000 Scope of part.

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

Subpart 1352.1--Instructions for Using Provisions and Clauses

1352.102 Incorporating provisions and clauses.

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

Subpart 1352.2--Text of Provisions and Clauses

1352.200 Scope of subpart.

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

1352.201-70 Contracting Officer's Authority.

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

CONTRACTING OFFICER'S AUTHORITY.

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

(End of clause)

1352.201-71 Ratification release.

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

RATIFICATION RELEASE (DATE)

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

(End of clause)

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

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

CONTRACTING OFFICER'S REPRESENTATIVE (COR) (DATE)

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

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

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

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

(b) The responsibilities and limitations of the COR are as
follows:
(1) The COR is responsible for the technical aspects of the
contract and serves as technical liaison with the contractor. The
COR is also responsible for the final inspection and acceptance of
all deliverables and such other responsibilities as may be specified
in the contract.
(2) The COR is not authorized to make any commitments or
otherwise obligate the Government or authorize any changes which
affect the contract price, terms or conditions. Any contractor
request for changes shall be

[[Page 10595]]

referred to the Contracting Officer directly or through the COR. No
such changes shall be made without the express written prior
authorization of the Contracting Officer. The Contracting Officer
may designate assistant or alternate COR(s) to act for the COR by
naming such assistant/alternate(s) in writing and transmitting a
copy of such designation to the contractor.

(End of clause)

1352.208-70 Restrictions on printing and duplicating.

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

RESTRICTIONS ON PRINTING AND DUPLICATING (DATE)

(a) The contractor is authorized to duplicate or copy production
units provided the requirement does not exceed 5,000 production
units of any one page or 25,000 production units in the aggregate of
multiple pages. Such pages may not exceed a maximum image size of
10\3/4\ by 14\1/4\ inches. A ``production unit'' is one sheet, size
8\1/2\ x 11 inches (215 x 280 mm), one side only, and one color ink.
Production unit requirements are outlined in the Government Printing
and Binding Regulations.
(b) This clause does not preclude writing, editing, preparation
of manuscript copy, or preparation of related illustrative material
as a part of this contract, or administrative duplicating/copying
(for example, necessary forms and instructional materials used by
the contractor to respond to the terms of the contract).
(c) Costs associated with printing, duplicating, or copying in
excess of the limits in paragraph (a) of this clause are unallowable
without prior written approval of the Contracting Officer. If the
contractor has reason to believe that any activity required in
fulfillment of the contract will necessitate any printing or
substantial duplicating or copying, it shall immediately provide
written notice to the Contracting Officer and request approval prior
to proceeding with the activity. Requests will be processed by the
Contracting Officer in accordance with FAR 8.802.
(d) The contractor shall include in each subcontract which may
involve a requirement for any printing, duplicating, and copying in
excess of the limits specified in paragraph (a) of this clause, a
provision substantially the same as this clause, including this
paragraph (d).

(End of clause)

1352.209-70 Potential organizational conflict of interest.

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

POTENTIAL ORGANIZATIONAL CONFLICT OF INTEREST (DATE)

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

(End of clause)

1352.209-71 Limitation of future contracting.

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

LIMITATION OF FUTURE CONTRACTING (DATE)

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

[[Page 10596]]

Alternate III (DATE). As prescribed in 48 CFR 1309.507-2(a)(4),
add the following paragraph (b) to the basic clause:
(b) The contractor may gain access to proprietary information of
other companies during contract performance. The contractor agrees
to enter into company-to-company agreements to protect another
company's information from unauthorized use or disclosure for as
long as it is considered proprietary by the other company, and to
refrain from using the information for any purpose other than that
for which it was furnished. For information purposes, the contractor
shall furnish copies of these agreements to the Contracting Officer.
These agreements are not intended to protect information which is
available to the Government or to the contractor from other sources
and information furnished voluntarily without restriction.
Alternate IV (DATE). As prescribed in 48 CFR 1309.507-2(a)(5),
add the following paragraph (b) to the basic clause substantially as
written. If Alternate III is also used, designate this paragraph
(c).
(b) The contractor agrees to accept and to complete all issued
task orders, and to not contract with Government prime contractors
or first-tier subcontractors in such a way as to create an
organizational conflict of interest.
Alternate V (DATE). As prescribed in 48 CRF 1309.507-2(a)(6),
add the following paragraph (b) to the basic clause. If more than
one Alternate is used, redesignate this paragraph accordingly.
(b) The contractor agrees to accept and to complete issued
delivery orders, provided that no new organizational conflicts of
interest are created by the acceptance of such orders. The
Contracting Officer shall identify any and all organizational
conflicts of interest in each order. The contractor shall not
contract with Government prime contractors or first-tier
subcontractors in such a way as to create an organizational conflict
of interest.
Alternative VI (DATE). As prescribed in 48 CFR 1309.507-2(a)(7),
add the following paragraph (b) to the basic clause. If either
Alternate III or IV or both are used, redesignate this paragraph
accordingly.
(b) The above restrictions shall be included in all
subcontracts, teaming arrangements, and other agreements calling for
performance of work which is subject to the organizational conflict
of interest restrictions identified in this clause, unless excused
in writing by the Contracting Officer.

(End of clause)

1352.209-72 Restrictions against disclosure.

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

RESTRICTIONS AGAINST DISCLOSURE (DATE)

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

(End of clause)

1352.209-73 Compliance with the laws.

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

COMPLIANCE WITH THE LAWS (DATE)

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

(End of clause)

1352.209-74 Organizational conflict of interest.

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

ORGANIZATIONAL CONFLICT OF INTEREST (DATE)

(a) Purpose. The purpose of this clause is to ensure that the
contractor and its subcontractors:
(1) Are not biased because of their financial, contractual,
organizational, or other interests which relate to the work under
this contract, and
(2) Do not obtain any unfair competitive advantage over other
parties by virtue of their performance of this contract.
(b) Scope. The restrictions described herein shall apply to
performance or participation by the contractor, its parents,
affiliates, divisions and subsidiaries, and successors in interest
(hereinafter collectively referred to as ``contractor'') in the
activities covered by this clause as a prime contractor,
subcontractor, co-sponsor, joint venturer, consultant, or in any
similar capacity. For the purpose of this clause, affiliation occurs
when a business concern is controlled by or has the power to control
another or when a third party has the power to control both.
(c) Warrant and Disclosure. The warrant and disclosure
requirements of this paragraph apply with full force to both the
contractor and all subcontractors. The contractor warrants that, to
the best of the contractor's knowledge and belief, there are no
relevant facts or circumstances which would give rise to an
organizational conflict of interest, as defined in FAR Subpart 9.5,
and that the contractor has disclosed all relevant information
regarding any actual or potential conflict. The contractor agrees it
shall make an immediate and full disclosure, in writing, to the
Contracting Officer of any potential or actual organizational
conflict of interest or the existence of any facts that may cause a
reasonably prudent person to question the contractor's impartiality
because of the appearance or existence of bias or an unfair
competitive advantage. Such disclosure shall include a description
of the actions the contractor has taken or proposes to take in order
to avoid, neutralize, or mitigate any resulting conflict of
interest.
(d) Remedies. The Contracting Officer may terminate this
contract for convenience, in whole or in part, if the Contracting
Officer deems such termination necessary to avoid, neutralize or
mitigate an actual or apparent organizational conflict of interest.
If the contractor fails to disclose facts pertaining to the
existence of a potential or actual organizational conflict of
interest or misrepresents relevant information to the Contracting
Officer, the Government may terminate the contract for default,
suspend or debar the contractor from Government contracting, or
pursue such other remedies as may be permitted by law or this
contract.
(e) Subcontracts. The contractor shall include a clause
substantially similar to this clause, including paragraphs (f) and
(g), in any subcontract or consultant agreement at any tier expected
to exceed the simplified acquisition threshold. The terms
``contract,'' ``contractor,'' and ``Contracting Officer'' shall be
appropriately modified to preserve the Government's rights.
(f) Prime Contractor Responsibilities. The contractor shall
obtain from its subcontractors or consultants the disclosure
required in FAR Part 9.507-1, and shall determine in writing whether
the interests disclosed present an actual, or significant potential
for, an organizational conflict of interest. The contractor shall
identify and avoid, neutralize, or mitigate any subcontractor
organizational conflict prior to award of the contract to the
satisfaction of the Contracting Officer. If the subcontractor's
organizational conflict cannot be avoided, neutralized, or
mitigated, the contractor must obtain the written approval of the
Contracting Officer prior to entering into the subcontract. If the
contractor becomes aware of a subcontractor's potential or actual
organizational conflict of interest after contract award, the
contractor agrees that the Contractor may be required to eliminate
the subcontractor from its team, at the contractor's own risk.
(g) Waiver. The parties recognize that this clause has potential
effects which will survive the performance of this contract and that
it is impossible to foresee each circumstance to which it might be
applied in the future. Accordingly, the contractor may at any time
seek a waiver from the Head of the Contracting Activity by
submitting such waiver request to the Contracting Officer, including
a full written description of the requested waiver and the reasons
in support thereof.

[[Page 10597]]

(End of clause)

1352.209-75 Title 13 and non-disclosure requirements.

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

TITLE 13 AND NON-DISCLOSURE REQUIREMENTS (DATE)

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

(End of clause)

1352.213-70 Evaluation utilizing simplified acquisition procedures.

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

EVALUATION UTILIZING SIMPLIFIED ACQUISITION PROCEDURES (DATE)

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

(End of clause)

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

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

INSTRUCTIONS FOR SUBMITTING QUOTATIONS UNDER THE SIMPLIFIED ACQUISITION
THRESHOLD--NON-COMMERCIAL (DATE)

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

(End of clause)

1352.215-70 Proposal preparation.

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

PROPOSAL PREPARATION (DATE)

(a) General Instructions. Proposals are expected to conform to
solicitation provisions and be prepared in accordance with this
section. To aid in evaluation, the proposal shall be clearly and
concisely written, neatly presented, indexed (cross-indexed as
appropriate), and logically assembled. All pages of each part shall
be appropriately numbered and identified with the name of the
offeror, the date of the offer, and the solicitation number. Each
volume shall be clearly marked by volume number and title.
(b) Overall Arrangement of Proposal. (1) VOLUME I--BUSINESS
PROPOSAL
(i) Volume I, Business Proposal, consists of the actual offer to
enter into a contract to perform the desired work. It also includes
required representations, certifications, and acknowledgments, if
applicable; justifications for noncompetitive proposed subcontracts;
identification of technical data to be withheld; and any other
required administrative information.
(ii) Format and Content. Volume I, Business Proposal, shall
include the following documents (in the order listed):
(A) Proposal Form:
(1) Use of the Form--The Proposal Form (Standard Form 33 or
1449), is to be executed fully and used as the cover sheet (or first
page) of Volume I. Include three (3) original signed copies of the
form in the original Volume I.
(2) Acceptance Period--The acceptance period entered on the
Proposal Form by the offeror shall not be less than that prescribed
in the solicitation, which shall apply if no other period is
offered.
(3) Signature Authority--The person signing the Proposal Form
must have the authority to commit the offeror to all of the
provisions of the proposal, fully recognizing that the Government
has the right, by terms of the Solicitation, to make an award
without discussion if it so elects.
(B) Other documentation identified in Section (A) above. The
offeror shall submit one original of Volume I, marked as such.
(2) VOLUME II--TECHNICAL PROPOSAL
(i) General. (A) Volume II, technical proposal, consists of the
offeror's proposal delineating its capabilities and how it intends
to perform contract requirements. The Technical proposal will be
evaluated in accord with the criteria contained in Section M.
(B) In order that the technical proposal may be evaluated
strictly on the merit of the material submitted, no contractual
price information is to be included in Volume II. However, the type
and quantity of labor and materials is to be included in the
Technical Proposal, without any associated cost information.
(C) The technical proposal must be typed, double-spaced, with
one inch margins, using elite font, 12 pitch type (or equivalent)
and printed, unreduced in size, on 8\1/2\'' by 11'' paper, not
exceeding ---- pages, single-sided, exclusive of resumes and related
corporate experience documentation. Any pages in excess of ---- will
be disregarded, and will not be included in the proposal evaluation.
Failure of the offeror to comply with the page limitations,
resulting in the excess pages not being evaluated, shall not
constitute grounds for a protest.
(ii) Format and Content. Volume II, Technical Proposal, shall
include the following contents:
(A) Table of Contents
(B) List of Tables and Figures
(C) Summary of Technical Proposal
(D) Technical Proposal
(E) Exceptions and Deviations. These major headings may be
subdivided or supplemented by the offeror as appropriate.
(1) Summary. This section shall provide a summary that addresses
each of the technical evaluation factors set out in Section M.
(2) Technical Proposal. The offeror shall clearly address each
of the technical evaluation criteria in Section M, and, at a
minimum, cover each subfactor.
(3) Exceptions and Deviations. This section shall identify and
explain any exceptions or

[[Page 10598]]

deviations taken to any part of the solicitation or conditional
assumptions made with respect to the technical requirements of the
solicitation. Offerors should note that taking exceptions to the
Government's requirements may indicate an unwillingness or inability
to perform the contract, and the proposal may be evaluated as such.
(iii) Specific areas to be addressed:
[This section is to be tailored to conform to the technical
evaluation factors. Text is provided as an example. Provide
instructions concerning what information is required in order to
evaluate proposals in accord with the evaluation factors. Do not
request information that is not covered in an evaluation factor.]
Evaluation Factor 1--Technical Approach. Provide information on
how the project is to be organized, staffed, and managed that
demonstrates the offeror's understanding and effective management of
important events or tasks. If applicable, the offeror shall (i)
describe the facilities and equipment which will be used in the
performance of the contract, and (ii) how the management and
coordination of consultant and subcontractor efforts will be
accomplished. Fully discuss how the contract requirements will be
met and the means used to accomplish them. Merely repeating the
contract requirements and stating that they will be accomplished,
without discussing how the offeror will accomplish them, is not
acceptable.
Evaluation Factor 2--Experience. In a general fashion, describe
the offeror's experience and qualifications to perform the contract
requirements. Explain how the experience provides confidence that
the offeror can perform all contract requirements.
Evaluation Factor 3--Key Personnel. Provide the names, titles,
and a description of the duties of those individuals proposed as key
personnel to be assigned to the contract. For each key person,
submit a resume that provides information concerning their
education, background, recent work experience, and accomplishments.
Specify the approximate percentage of time each individual will be
available for this project, and, if necessary, explain why the key
person possesses the qualifications to perform the proposed
position.
Evaluation Factor 4--Past Performance. Complete the Past
Performance Questionnaire (Attachment X) for all contracts
containing requirements similar in scope those in the Statement of
Work performed in whole or part over the last ---- years. References
can include both Government and commercial contracts and
subcontracts.
The offeror shall submit one original of Volume II, marked as
such, and -------- copies.

(3) Volume III--Price/cost proposal
(i) Price/Cost proposals must generally adhere to the pricing
structure established in Section B, Schedule of Prices. The offeror
shall submit one original of Volume III, marked as such, and ------
-- copies.

[INSERT FOR COST TYPE CONTRACTS:]
(ii) The offeror must also submit the following detailed
information to support its proposed costs, as applicable:
(A) Direct Labor: Breakdown of direct labor cost by named person
or labor category including number of labor-hours and current actual
average hourly rates based on a work year of 2,080 hours. Indicate
whether current rates or escalated rates are used. If escalation is
included, state the degree (percent) and methodology. Direct labor
or levels of effort are to be identified as labor-hours and not as a
percentage of an individual's time. Indicate fringe benefit rate, if
separate from indirect cost rate.
(B) Other Direct Costs: Specify the amount proposed for
duplication/reproduction, meetings and conferences, postage,
communication and any other applicable items. Travel, subsistence
and local transportation shall be supported with a breakdown, which
shall include: number of trips anticipated, number of person days,
cost-per-trip-per person, destination(s) proposed, number of
person(s) scheduled for travel, mode of transportation, and mileage
allowances, if privately-owned vehicles will be used.
(C) Materials: Cost breakdown of materials or equipment must be
supported with the methodology used and vendor quotations supplied
as applicable.
(D) Consultants: If consultants are proposed, state the total
estimated price of the services to be required and the consultant's
quoted daily or hourly rate. Include Consulting Agreements entered
into between consultant(s) and the offeror, or invoices submitted by
consultant(s) for similar services previously provided to the
offeror.
(E) Subcontracts: If proposed, cost information for each
subcontractor shall be furnished in the same format and level of
detail as prescribed for the prime offeror. Additionally, in
relation to such subcontracts, the offeror shall submit the
following information:
(1) A description of the items to be furnished by the
subcontractor;
(2) Identification of the proposed subcontractor and an
explanation of why and how the proposed subcontractor was selected,
including the extent of competition;
(3) The proposed subcontract price and cost detail and
performance/delivery schedule; and
(4) Identification of the type of subcontract to be used.
(F) Indirect Rates: Offerors lacking Government-approved
indirect cost rates must provide detailed background data indicating
the cost elements included in the applicable pool and a statement
that such treatment is in accordance with the company's established
accounting practice. Offerors with established rate agreements with
cognizant Federal agencies shall submit one copy of such agreements.
(G) Profit: Specify the profit proposed and the rationale
justifying the amount of profit.

[INSERT FOR FIXED-PRICE TYPE CONTRACTS:]
(iii) Each offeror's price proposal must be based on the
offeror's own technical proposal, the Government's specifications,
and other contractual requirements. If the prices to be used are
based on a published price list or catalog, the offeror shall so
state, and provide a copy of the document with its price proposal.
If the prices are to be based on established market prices, not
otherwise published, or are prices applicable only to the proposed
contract, the offeror shall so state.
(iv) The Government expects that this contract will be awarded
based upon adequate price competition. However, in order to
determine that offered prices are fair and reasonable, the
Government reserves the right to request that the offeror to provide
cost breakdowns to support proposed prices. Information to support
unit prices should include, but not be limited to, the following:
(A) Salary/wage information with associated payroll expenses,
for personnel to be used in performance of the contract;
(B) Cost for equipment, supplies, and consumable materials;
(C) A breakout of related support costs, such as equipment
maintenance, rental, transportation, etc.;
(D) Overhead costs;
(E) General Administrative expenses; and
(F) Profit

(End of clause)

1352.215-71 Instructions for oral presentations.

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

INSTRUCTIONS FOR ORAL PRESENTATIONS (DATE)

The Government intends to conduct oral presentations with the
offerors in the competitive range as part of the evaluation process.
Oral presentations will be conducted at the following location:

[INSERT LOCATION]
The Contracting Officer will determine the order of oral
presentations and the schedule. The Contracting Officer will contact
each offeror to schedule the date and time for oral presentations
and provide detailed instructions. Once a presentation date and time
are confirmed, rescheduling is at the discretion of the Contracting
Officer.

(End of clause)

1352.215-72 Inquiries.

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

INQUIRIES (DATE)

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

(End of clause)

1352.215-73 Evaluation quantities--indefinite quantity contract.

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

[[Page 10599]]

EVALUATION QUANTITIES--INDEFINITE QUANTITY CONTRACT (DATE)

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

(End of clause)

1352.215-74 Best value evaluation.

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

BEST VALUE EVALUATION (DATE)

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

(End of clause)

1352.215-75 Evaluation criteria.

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

EVALUATION CRITERIA (DATE)

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

(End of clause)

1352.215-76 Cost or pricing data.

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

COST OR PRICING DATA

Additional Instructions for Preparation of Cost/Price Proposals

(a) General. In addition to the information required by CAR
1352.215-70, the cost/price proposal must contain an explanation of
the offeror's and proposed subcontractors' fully burdened rates,
including direct salary rates, overhead rates, and profit; and
information regarding other direct costs.
(b) Specific Requirements. (1) Direct Salary Rates: The offeror
shall list the categories of professional or technical personnel
required to perform the Statement of Work. A brief definition of the
education and experience requirements which qualify an employee for
inclusion in a listed category should be provided. Further, if some
proposed labor categories are classified by multiple grades within a
given discipline (e.g., Architect I and II, or Senior and Junior
Engineer), a brief explanation as to how they are differentiated
shall be provided.
(2) The offeror, and major subcontractors, should provide
individual rates for key personnel. Designation of an individual as
a key person is subject to agreement of the parties. Where no key
personnel are listed, category average rates are appropriate. Rates
should be provided by year for the life of the contract. If rates
are escalated, the degree (percent) and methodology must be shown.
Escalation increases should reflect recent experience or established
personnel policy. Types of salary increases given--merit, cost of
living, etc.--should be discussed.
(3) Overhead Costs. Generally, the offeror's accounting system
and estimating practices will determine the method used to allocate
overhead costs. The offeror's established practices, if in
accordance with generally accepted accounting principles, will be
accepted. Proposed overhead rates should represent the offeror's
best estimate of the rates to be experienced during the contract
period as projected by company budgets or by recent experience
adjusted for factors which will influence trends. A narrative
statement outlining the offeror's policies and practices for
accumulating overhead costs and the method used to compute the

[[Page 10600]]

proposed rate or rates is required. In the case of multi-branch
firms, joint ventures or affiliates, it is expected that overhead
costs applicable to the specific location(s) where work is to be
performed will be proposed. Company-wide, joint venture, or
affiliate rate averages may not be appropriate. The rates should be
tailored to the work location(s).
(4) Profit. (i) A fair and reasonable provision for profit
cannot be made by simply applying a certain predetermined percentage
to the total estimated cost. Rather, profit should be established as
a percentage/dollar amount after considering such factors as:
(A) Degree of risk;
(B) Nature of the work to be performed;
(C) Joint venture responsibilities;
(D) Extent of offeror's investment;
(E) Subcontracting of work; and
(F) Other criteria discussed in FAR 15.404-4.
(ii) Separate percentage rates for profit are also required for
major subcontractors.
(5) Markup. The offeror may request a markup on subcontract
labor. If it does so, it should state the percentage and provide a
justification for that figure.
(6) Other Direct Costs. The offeror shall briefly describe the
following:
(i) Travel/Subsistence costs;
(ii) Subcontractor costs; and
(iii) How subcontracting costs were analyzed.
(c) Audit Reports. If the offeror or any subcontractor has been
audited by a Government agency within the last two years, or has
approved indirect cost rates, provide a copy of the audit report,
or, if not available, the name, address, and telephone number of the
audit office. Similarly, information on any Government-approved
indirect cost rates should be provided.

(End of clause)

1352.216-70 Estimated and allowable costs.

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

ESTIMATED AND ALLOWABLE COSTS (DATE)

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

(End of clause)

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

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

LEVEL OF EFFORT (COST-PLUS-FIXED-FEE, TERM CONTRACT) (DATE)

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

----------------------------------------------------------------------------------------------------------------
Option period Option period Option period
Labor category Base period I II III
----------------------------------------------------------------------------------------------------------------
xxxxxxxxxx.................................. xxxx xxxx xxxx xxxx
xxxxxxxxxx.................................. xxxx xxxx xxxx xxxx
Total Direct Labor...................... xxxx xxxx xxxx xxxx
----------------------------------------------------------------------------------------------------------------

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

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

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

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

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

(End of clause)

1352.216-72 Determination of award fee.

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

DETERMINATION OF AWARD FEE (DATE)

Based upon the quality of its performance and the results of the
Government's performance evaluation, the contractor may earn an
award fee.
(a) The total amount of award fee available under this contract
is assigned according to the following:
[Insert appropriate information]
(b) A Performance Evaluation Plan shall be unilaterally
established by the Government as part of the contract and used for
the determination of award fees. This plan shall include the
criteria that will be used to evaluate the contractor's performance
and to determine the percentage of award fee (if any) available for
each performance period.
(c) The criteria contained within the Performance Evaluation
Plan may relate to:
(1) Quality of performance of the contract requirements;
(2) Effective management of the contract; and
(3) Cost controls.
(d) The Performance Evaluation Plan may be revised unilaterally
by the Government at any time during the period of performance,
however unless mutually-agreed to a revision shall not affect the
current evaluation period. Notification of such changes shall be
provided to the contractor [insert number] calendar days prior to
the start of the evaluation period to which the change will apply.
(e) At the conclusion of each evaluation period, and in
accordance with the performance evaluation plan, a determination of
the amount of the award fee earned shall be made in writing to the
contractor by the Government Fee Determination Official (FDO). The
FDO's unilateral determination of the amount of award fee earned in
any evaluation period or a determination that no fee was earned
shall be conclusive.
(f) The contractor may submit a self-evaluation of its
performance in an evaluation period. The FDO shall consider

[[Page 10601]]

the self-evaluation, as the FDO deems appropriate.
(g) The contractor shall submit a voucher for payment of any
earned award fee.

(End of clause)

1352.216-73 Distribution of award fee.

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

DISTRIBUTION OF AWARD FEE (DATE)

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

(End of clause)

1352.216-74 Task orders.

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

TASK ORDERS (DATE)

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

(End of Clause)

1352.216-75 Minimum and maximum contract amounts.

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

MINIMUM AND MAXIMUM CONTRACT AMOUNTS (DATE)

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

(End of clause)

1352.216-76 Placement of orders.

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

PLACEMENT OF ORDERS (DATE)

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

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

(End of clause)

1352.216-77 Ceiling price.

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

CEILING PRICE (DATE)

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

(End of clause)

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

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

SECTION 8(A) DIRECT AWARD (DEVIATION) (DATE)

(a) This contract is issued as a direct award between the
contracting activity and the 8(a) contractor pursuant to a
Partnership Agreement between the Small Business Administration
(SBA) and the Department of Commerce (DOC). Accordingly, the SBA,
even if not identified in Section A of this contract, is the prime
contractor and retains responsibility for 8(a) certification, 8(a)
eligibility determinations and related issues, and providing
counseling and assistance to the 8(a) contractor under the 8(a)
program. The cognizant SBA district office is:
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------

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

(End of Clause)]

1352.219-71 Notification to delay performance (Deviation).

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

[[Page 10602]]

NOTIFICATION TO DELAY PERFORMANCE (DEVIATION) (DATE)

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

(End of clause)

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

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

NOTIFICATION OF COMPETITION LIMITED TO ELIGIBLE 8(a) CONCERNS,
ALTERNATE III (DEVIATION) (DATE)

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

(End of clause)

1352.227-70 Rights in data, assignment of copyright.

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

RIGHTS IN DATA, ASSIGNMENT OF COPYRIGHT (DATE)

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

(End of clause)

1352.228-70 Insurance coverage.

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

INSURANCE COVERAGE (DATE)

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

(End of clause)

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

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

DEDUCTIBLES UNDER REQUIRED INSURANCE COVERAGE--COST REIMBURSEMENT
(DATE)

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

(End of clause)

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

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

DEDUCTIBLES UNDER REQUIRED INSURANCE COVERAGE--FIXED PRICE (DATE)

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

(End of clause)

1352.228-73 Loss of or damage to leased aircraft

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

LOSS OF OR DAMAGE TO LEASED AIRCRAFT (DATE)

(a) The Government assumes all risk of loss of, or damage
(except normal wear and tear) to, the leased aircraft during the
term of this lease while the aircraft is in the possession of the
Government.
(b) In the event of damage to the aircraft, the Government, at
its option, shall make the necessary repairs with its own facilities
or by contract, or pay the contractor the reasonable cost of repair
of the aircraft.
(c) In the event the aircraft is lost or damaged beyond repair,
the Government shall pay the contractor a sum equal to the

[[Page 10603]]

fair market value of the aircraft at the time of such loss or
damage, which value may be specifically agreed to in clause
1252.228-74, Fair Market Value of Aircraft, less the salvage value
of the aircraft. However, the Government may retain the damaged
aircraft or dispose of it as it wishes. In that event, the
contractor will be paid the fair market value of the aircraft as
stated in the clause.
(d) The contractor agrees that the contract price does not
include any cost attributable to hull insurance or to any reserve
fund it has established to protect its interest in the aircraft. If,
in the event of loss or damage to the leased aircraft, the
contractor receives compensation for such loss or damage in any form
from any source, the amount of such compensation shall be:
(1) Credited to the Government in determining the amount of the
Government's liability; or
(2) For an increment of value of the aircraft beyond the value
for which the Government is responsible.
(e) In the event of loss of or damage to the aircraft, the
Government shall be subrogated to all rights of recovery by the
contractor against third parties for such loss or damage and the
contractor shall promptly assign such rights in writing to the
Government.

(End of clause)

1352.228-74 Fair market value of aircraft.

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

FAIR MARKET VALUE OF AIRCRAFT (DATE)

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

(End of clause)

1352.228-75 Risk and indemnities.

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

RISK AND INDEMNITIES (DATE)

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

1352.228-76 Approval of group insurance plans.

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

APPROVAL OF GROUP INSURANCE PLANS (DATE)

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

(End of clause)

352.231-70 Precontract costs.

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

PRECONTRACT COSTS (DATE)

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

(End of clause)

1352.231-71 Duplication of effort.

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

DUPLICATION OF EFFORT (DATE)

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

(End of clause)

1352.233-70 Agency protests.

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

AGENCY PROTESTS (DATE)

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

(End of clause)

1352.233-71 GAO and Court of Federal Claims protests.

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

GAO AND COURT OF FEDERAL CLAIMS PROTESTS (DATE)

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

(End of clause)

1352.235-70 Protection of human subjects.

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

PROTECTION OF HUMAN SUBJECTS (DATE)

(a) Research involving human subjects is not permitted under
this award unless expressly authorized in writing by the Contracting
Officer. Such authorization will specify the details of the approved
research involving human subjects and will be incorporated by
reference into this contract.
(b) The Federal Policy for the Protection of Human Subjects (the
``Common Rule''), adopted by the Department of Commerce at 15 CFR
Part 27, requires contractors to maintain appropriate policies and
procedures for the protection of human subjects in research. The
Common Rule defines a

[[Page 10604]]

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

(End of provision)

1352.235-71 Protection of human subjects--exemption.

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

PROTECTION OF HUMAN SUBJECTS (DATE)

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

(End of clause)

[[Page 10605]]

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

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

PROTECTION OF HUMAN SUBJECTS--INSTITUTIONAL APPROVAL (DATE)

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

Name of IRB:-----------------------------------------------------------
(IRB --------)
Title of IRB Protocol:-------------------------------------------------
Recruiting Letter Approval Date (if appropriate):----------------------
Consent Form Approval Date:--------------------------------------------
Assurance of Compliance Number:----------------------------------------

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

(End of clause)

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

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

RESEARCH INVOLVING HUMAN SUBJECTS--AFTER INITIAL CONTRACT AWARD (DATE)

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

(End of clause)

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

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

[[Page 10606]]

SECURITY PROCESSING REQUIREMENTS--HIGH OR MODERATE RISK CONTRACTS
(DATE)

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

(End of clause)

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

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

SECURITY PROCESSING REQUIREMENTS--LOW RISK CONTRACTS (DATE)

(a) Investigative Requirements for Low Risk Contracts. All
contractor (and subcontractor) personnel proposed to be employed
under a Low Risk contract shall undergo security processing by the
Department's Office of Security before being eligible to work on the
premises of any Department of Commerce owned, leased, or controlled
facility in the United States or overseas, or to obtain access to a
Department of Commerce IT system. All Department of Commerce
security processing pertinent to this contract will be conducted at
no cost to the contractor.
(b) Investigative requirements for Non-IT Service Contracts are:
(1) Contracts more than 180 days--National Agency Check and
Inquiries (NACI).
(2) Contracts less than 180 days--Special Agency Check (SAC).
(c) Investigative requirements for IT Service Contracts are:
(1) Contracts more than 180 days--National Agency Check and
Inquiries (NACI).
(2) Contracts less than 180 days--National Agency Check and
Inquiries (NACI).
(d) In addition to the investigations noted above, non-U.S.
citizens must have a background check that includes an Immigration
and Customs Enforcement agency check.
(e) Additional Requirements for Foreign Nationals (Non-U.S.
Citizens). Non-U.S. citizens (lawful permanent residents) to be
employed under this contract within the United States must have:
(1) Official legal status in the United States;
(2) Continuously resided in the United States for the last two
years; and
(3) Obtained advance approval from the servicing Security
Officer in consultation with the Office of Security headquarters.
(f) DOC Security Processing Requirements for Low Risk Non-IT
Service Contracts. Processing requirements for Low Risk non-IT
Service Contracts are as follows:
(1) Processing of a NACI is required for all contract employees
employed in Low Risk non-IT service contracts for more than 180
days. The Contracting Officer's Representative (COR) will invite the
prospective contractor into e-QIP to complete the SF-85. The
contract employee must also complete fingerprinting.
(2) Contract employees employed in Low Risk non-IT service
contracts for less than 180 days require processing of Form OFI-86C
Special Agreement Check (SAC), to be processed. The Sponsor will
forward a completed Form OFI-86C, FD-258, Fingerprint Chart, and
Credit Release Authorization to the servicing Security Officer, who
will send the investigative packet to the Office of Personnel
Management for processing.
(3) Any contract employee with a favorable SAC who remains on
the contract over 180 days will be required to have a NACI conducted
to continue working on the job site.
(4) For Low Risk non-IT service contracts, the scope of the SAC
will include checks of the Security/Suitability Investigations Index
(SII), other agency files (INVA), Defense Clearance Investigations
Index (DCII), FBI Fingerprint (FBIF), and the FBI Information
Management Division (FBIN).
(5) In addition, for those individuals who are not U.S. citizens
(lawful permanent residents), the Sponsor may request a Customs
Enforcement SAC on Form OFI-86C, by checking Block 7, Item
I. In Block 13, the Sponsor should enter the employee's Alien
Registration Receipt Card number to aid in verification.
(6) Copies of the appropriate forms can be obtained from the
Sponsor or the Office of Security. Upon receipt of the required
forms, the Sponsor will forward the forms to the servicing Security
Officer. The Security

[[Page 10607]]

Officer will process the forms and advise the Sponsor and the
Contracting Officer whether the contract employee can commence work
prior to completion of the suitability determination based on the
type of work and risk to the facility (i.e., adequate controls and
restrictions are in place). The Sponsor will notify the contractor
of favorable or unfavorable findings of the suitability
determinations. The Contracting Officer will notify the contractor
of an approved contract start date.
(g) Security Processing Requirements for Low Risk IT Service
Contracts. Processing of a NACI is required for all contract
employees employed under Low Risk IT service contracts.
(1) Contract employees employed in all Low Risk IT service
contracts will require a National Agency Check and Inquiries (NACI)
to be processed. The Contracting Officer's Representative (COR) will
invite the prospective contractor into e-QIP to complete the SF-85.
Fingerprints and a Credit Release Authorization must be completed
within three working days from start of work, and provided to the
Servicing Security Officer, who will forward the investigative
package to OPM.
(2) For Low Risk IT service contracts, individuals who are not
U.S. citizens (lawful permanent residents) must undergo a NACI that
includes an agency check conducted by the Immigration and Customs
Enforcement Service. The Sponsor must request the ICE check as a
part of the NAC.
(h) Notification of Disqualifying Information. If the Office of
Security receives disqualifying information on a contract employee,
the Sponsor and Contracting Officer will be notified. The Sponsor
shall coordinate with the Contracting Officer for the immediate
removal of the employee from duty requiring access to Departmental
facilities or IT systems. Contract employees may be barred from
working on the premises of a facility for any of the following
reasons:
(1) Conviction of a felony crime of violence or of a misdemeanor
involving moral turpitude.
(2) Falsification of information entered on security screening
forms or of other documents submitted to the Department.
(3) Improper conduct once performing on the contract, including
criminal, infamous, dishonest, immoral, or notoriously disgraceful
conduct or other conduct prejudicial to the Government regardless of
whether the conduct was directly related to the contract.
(4) Any behavior judged to pose a potential threat to
Departmental information systems, personnel, property, or other
assets.
(i) Failure to comply with security processing requirements may
result in termination of the contract or removal of contract
employees from Department of Commerce facilities or denial of access
to IT systems.
(j) Access to National Security Information. Compliance with
these requirements shall not be construed as providing a contract
employee clearance to have access to national security information.
(k) The contractor shall include the substance of this clause,
including this paragraph, in all subcontracts.

(End of clause)

1352.237-72 Security processing requirements--national security
contracts.

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

SECURITY PROCESSING REQUIREMENTS--NATIONAL SECURITY CONTRACTS (DATE)

(a) Security Investigative Requirements for National Security
Contracts. National Security Contracts require contractor employees
to gain access to national security information in the performance
of their work. Regardless of the contractor employees' location,
appropriate security access and fulfillment of cleared facility
requirements, as determined by the National Industrial Security
Program (NISP) Operation Manual must be met. All contractors are
subject to the appropriate investigations indicated below and may be
granted appropriate security access by the Office of Security based
on favorable results. No national security material or documents
shall be removed from a Department of Commerce facility. The
circumstances of the work performance must allow the Department of
Commerce to retain control over national security information and
keep the number of contract personnel with access to the information
to a minimum.
(b) All employees working on Special or Critical Sensitive
contracts require an updated personnel security background
investigation every five (5) years. Employees on Non-Critical
Sensitive contracts will require an updated personnel security
background investigation every ten (10) years.
(c) Security Procedures. Position sensitivity/risk assessments
must be conducted on all functions that are performed under the
contract. Risk assessments for contractor employees are determined
in the same manner as assessment of those functions performed by
government employees. The Contracting Officer and Contracting
Officer's Representative should determine the level of sensitivity
or risk with the assistance of the servicing Security Officer.
(1) Contractor employees working on National Security Contracts
must have a completed investigation and be granted an appropriate
security level clearance by the Office of Security before start of
work.
(2) The Contracting Officer's Representative must send the
contract employee's existing security clearance information, if
applicable, or appropriate investigative request package, to the
servicing Security Officer, who will review and forward it to the
Office of Security.
(3) The Office of Security must confirm that contract employees
have the appropriate security clearance before starting any work
under a National Security Contract.
(d) Security Forms Required. For Critical-Sensitive positions
with Top Secret access, Critical-Sensitive positions with Secret
access, and Non-Critical Sensitive positions with Secret or
Confidential access, the following forms are required:
(1) Form SF-86, Questionnaire for National Security Positions,
marked ``CON'' in Block 1, Position Title, to distinguish it as a
contractor case;
(2) Form FD-258, Fingerprint Chart, with OPM's designation in
the ORI Block; and
(3) Credit Release Authorization Form.
(e) Contracting Officer's Representative Responsibilities are:
(1) Coordinate submission of a proper investigative request
package with the servicing Security Officer, the Contracting
Officer, and the contractor.
(2) Review the request package for completeness, ensuring that
the subject of each package is identified as a contract employee,
the name of the contractor is identified, and that each package
clearly indicates the contract sensitivity designation.
(3) Send the request package to the servicing Security Officer
for investigative processing.
(f) Servicing Security Officer Responsibilities are:
(1) Review the package for completeness.
(2) Ensure that the forms are complete and contain all the
pertinent information necessary to request the background
investigation.
(3) Forward the request for investigation to the Defense
Investigative Service Coordinating Office (DISCO).
(4) Maintain records of contractor personnel in their units
subject to the NISP.
(5) Ensure that all contractor personnel have been briefed on
the appropriate procedures for handling and safeguarding national
security information.
(g) The contractor shall include the substance of this clause,
including this paragraph, in all subcontracts.

(End of clause)

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

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

FOREIGN NATIONAL VISITOR AND GUEST ACCESS TO DEPARTMENTAL RESOURCES
(DATE)

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

(End of clause)

[[Page 10608]]

1352.237-74 Progress reports.

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

PROGRESS REPORTS (DATE)

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

(End of clause)

1352.237-75 Key personnel.

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

KEY PERSONNEL (DATE)

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

(End of clause)

1352.239-70 Software license addendum.

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

SOFTWARE LICENSE ADDENDUM (DATE)

(a) This Addendum incorporates certain terms and conditions
relating to Federal procurement actions. The terms and conditions of
this Addendum take precedence over the terms and conditions
contained in any license agreement or other contract documents
entered into between the parties.
(b) Governing Law: Federal procurement law and regulations,
including the Contract Disputes Act, 41 U.S.C. Section 601 et. seq.,
and the Federal Acquisition Regulation (FAR), govern the agreement
between the parties. Litigation arising out of this contract may be
filed only in those fora that have jurisdiction over Federal
procurement matters.
(c) Attorney's Fees: Attorney's fees are payable by the Federal
government in any action arising under this contract only pursuant
to the Equal Access in Justice Act, 5 U.S.C. Section 504.
(d) No Indemnification: The Federal government will not be
liable for any claim for indemnification; such payments may violate
the Anti-Deficiency Act, 31 U.S.C. Section 1341(a).
(e) Assignment: Payments may only be assigned in accordance with
the Assignment of Claims Act, 31 U.S.C. Section 3727, and FAR
Subpart 32.8, ``Assignment of Claims.''
(f) Invoices: Invoices will be handled in accordance with the
Prompt Payment Act (31 U.S.C. Section 3903) and Office of Management
and Budget (OMB) Circular A-125, Prompt Payment.
(g) Patent and Copyright Infringement: Patent or copyright
infringement suits brought against the United States as a party may
only be defended by the U.S. Department of Justice (28 U.S.C.
Section 516).
(h) Renewal of Support after Expiration of this Award: Service
will not automatically renew after expiration of the initial term of
this agreement.
(i) Renewal may only occur in accord with (1) the mutual
agreement of the parties; or (2) an option renewal clause allowing
the Government to unilaterally exercise one or more options to
extend the term of the agreement.

(End of clause)

1352.239-71 Electronic and information technology.

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

ELECTRONIC AND INFORMATION TECHNOLOGY (DATE)

(a) To be considered eligible for award, offerors must propose
electronic and information technology (EIT) that meet the applicable
Access Board accessibility standards at 36 CFR 1194 designated
below:

------ 1194.21 Software applications and operating systems
------ 1194.22 Web-based intranet and internet information and
applications
------ 1194.23 Telecommunications products
------ 1194.24 Video and multimedia products
------ 1194.25 Self-contained, closed products
------ 1194.26 Desktop and portable computers
------ 1194.31 Functional performance criteria
------ 1194.41 Information, documentation and support

(b) The standards do not require the installation of specific
accessibility-related software or the attachment of an assistive
technology device, but merely require that the EIT be compatible
with such software and devices so that it can be made accessible if
so required by the agency in the future.
(c) Alternatively, offerors may propose products and services
that provide equivalent facilitation. Such offers will be considered
to have met the provisions of the Access Board standards for the
feature or components providing equivalent facilitation. If none of
the offers that meet all applicable provisions of the standards
could be accepted without imposing an undue burden on the agency or
component, or if none of the offerors propose products or services
that fully meet all of the applicable Access Board's provisions,
those offerors whose products or services meet some of the
applicable provisions will be considered eligible for award. Awards
will not be made to an offeror meeting all or some of the applicable
Access Board provisions if award would impose an undue burden upon
the agency.
(d) Offerors must submit representation information concerning
their products by completing the VPAT template at http://www.Section508.gov.

(End of clause)

1352.239-72 Security requirements for information technology
resources.

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

SECURITY REQUIREMENTS FOR INFORMATION TECHNOLOGY RESOURCES (DATE)

(a) Applicability. This clause is applicable to all contracts
that require contractor electronic access to Department of Commerce
sensitive non-national security or national security information
contained in systems, or administrative control of systems by a
contractor that process or store information that directly supports
the mission of the Agency.
(b) Definitions. For purposes of this clause, the term
``Sensitive'' is defined by the guidance set forth in the Computer
Security Act of 1987 (Pub. L. 100-235), including the following
definition of the term:
(1) Sensitive information is `` * * * any information, the loss,
misuse, or unauthorized access to, or modification of which could
adversely affect the national interest or the, conduct of Federal
programs, or the privacy to which individuals are entitled under
section 552a of title 5, United States Code (The Privacy Act), but
which has not been specifically authorized under criteria
established by an Executive Order or an Act of Congress to be kept
secret in the interest of national defense or foreign policy.''
(2) For purposes of this clause, the term ``National Security''
is defined by the guidance set forth in:
(i) The DOC IT Security Program Policy and Minimum
Implementation Standards, Section 4.3.
(ii) The DOC Security Manual, Chapter 18.
(iii) Executive Order 12958, as amended, Classified National
Security Information.

[[Page 10609]]

Classified or national security information is information that has
been specifically authorized to be protected from unauthorized
disclosure in the interest of national defense or foreign policy
under an Executive Order or Act of Congress.
(3) Information technology resources include, but are not
limited to, hardware, application software, system software, and
information (data). Information technology services include, but are
not limited to, the management, operation (including input,
processing, transmission, and output), maintenance, programming, and
system administration of computer systems, networks, and
telecommunications systems.
(c) The contractor shall be responsible for implementing
sufficient Information Technology security, to reasonably prevent
the compromise of DOC IT resources for all of the contractor's
systems that are interconnected with a DOC network or DOC systems
that are operated by the contractor.
(d) All contractor personnel performing under this contract and
contractor equipment used to process or store DOC data, or to
connect to DOC networks, must comply with the requirements contained
in the DOC Information Technology Management Handbook (see DOC,
Office of the Chief Information Officer Web site), or equivalent/
more specific agency or operating unit counsel guidance as specified
immediately hereafter [insert agency or operating unit counsel
specific guidance, if applicable].
(e) Contractor personnel requiring a user account for access to
systems operated by the contractor for DOC or interconnected to a
DOC network to perform contract services shall be screened at an
appropriate level in accordance with Commerce Acquisition Manual
1337.70, Security Processing Requirements for Service Contracts.
(f) Within 5 days after contract award, the contractor shall
certify in writing to the COR that its employees, in performance of
the contract, have completed initial IT security orientation
training in DOC IT Security policies, procedures, computer ethics,
and best practices, in accordance with DOC IT Security Program
Policy, chapter 15, section 15.3. The COR will inform the contractor
of any other available DOC training resources. Annually thereafter
the contractor shall certify in writing to the COR that its
employees, in performance of the contract, have completed annual
refresher training as required by section 15.4 of the DOC IT
Security Program Policy.
(g) Within 5 days of contract award, the contractor shall
provide the COR with signed acknowledgement of the provisions as
contained in Commerce Acquisition Regulation (CAR), 1352.209-72,
Restrictions Against Disclosures.
(h) The contractor shall afford DOC, including the Office of
Inspector General, access to the contractor's and subcontractor's
facilities, installations, operations, documentation, databases, and
personnel used in performance of the contract. Access shall be
provided to the extent required to carry out a program of IT
inspection, investigation, and audit to safeguard against threats
and hazards to the integrity, availability, and confidentiality of
DOC data or to the function of computer systems operated on behalf
of DOC, and to preserve evidence of computer crime.
(i) For all contractor-owned systems for which performance of
the contract requires interconnection with a DOC network on which
DOC data will be stored or processed, the contractor shall provide,
implement, and maintain a System Accreditation Package in accordance
with the DOC IT Security Program Policy. Specifically, the
contractor shall:
(1) Within 14 days after contract award, submit for DOC approval
a System Certification Work Plan, including project management
information (at a minimum the tasks, resources, and milestones) for
the certification effort, in accordance with DOC IT Security Program
Policy and [Insert agency or operating unit counsel specific
guidance, if applicable]. The Certification Work Plan, approved by
the COR, in consultation with the DOC IT Security Officer, or
Agency/operating unit counsel IT Security Manager/Officer, shall be
incorporated as part of the contract and used by the COR to monitor
performance of certification activities by the contractor of the
system that will process DOC data or connect to DOC networks.
Failure to submit and receive approval of the Certification Work
Plan may result in termination of the contract.
(2) Upon approval, follow the work plan schedule to complete
system certification activities in accordance with DOC IT Security
Program Policy Section 6.2, and provide the COR with the completed
System Security Plan and Certification Documentation Package
portions of the System Accreditation Package for approval and system
accreditation by an appointed DOC official.
(3) Upon receipt of the Security Assessment Report and
Authorizing Official's written accreditation decision from the COR,
maintain the approved level of system security as documented in the
Security Accreditation Package, and assist the COR in annual
assessments of control effectiveness in accordance with DOC IT
Security Program Policy, Section 6.3.1.1.
(j) The contractor shall incorporate this clause in all
subcontracts that meet the conditions in paragraph (a) of this
clause.

(End of clause)

1352.242-70 Postaward conference.

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

POSTAWARD CONFERENCE (DATE)

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

(End of clause)

1352.245-70 Government furnished property.

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

GOVERNMENT FURNISHED PROPERTY (DATE)

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

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

(End of clause)

1352.246-70 Place of acceptance.

As prescribed in 1346.503, insert the following clause:

PLACE OF ACCEPTANCE (DATE)

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

(End of clause)

1352.270-70 Period of performance.

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

PERIOD OF PERFORMANCE (DATE)

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

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

(End of clause)

[[Page 10610]]

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

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

PRE-BID/PRE-PROPOSAL CONFERENCE AND SITE VISIT (DATE)

(a) The Government is planning a pre-proposal conference, during
which potential contractors may obtain a better understanding of the
work required.
(b) Offerors are encouraged to submit all questions in writing
at least [----] days prior to the conference. Questions will be
considered at any time prior to, or during, the conference; however,
offerors will be asked to confirm verbal questions in writing.
Subsequent to the conference, an amendment to the solicitation
containing an abstract of the questions and the Government's
answers, and a list of attendees, will be made publicly available.
(c) In order to facilitate conference preparations, contact the
person identified in [Block --] on Standard Form [--] of this
solicitation to make arrangements for security processing for entry
of attendees into the Government facility.
(d) In no event shall failure to attend the pre-proposal
conference constitute grounds supporting a protest or contract
claim.
(e) Offerors are cautioned that, notwithstanding any remarks,
clarifications, or responses provided at the conference, all terms
and conditions of the solicitation remain unchanged unless they are
changed by written amendment. It is the responsibility of each
offeror, prior to submitting a proposal, to seek clarification of
any perceived ambiguity in the solicitation or created by an
amendment of the solicitation.

(f) The pre-proposal conference will be held:

Date:------------------------------------------------------------------
Time:------------------------------------------------------------------
Location:--------------------------------------------------------------

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

(End of clause)

1352.271-70 Inspection and manner of doing work.

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

INSPECTION AND MANNER OF DOING WORK (DATE)

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

[[Page 10611]]

offeror to verify the dimensions, sizes, and shapes in materials
provided by the Government. Where practical, the Government will
make the vessel available for inspection prior to bid opening or the
date for receipt of proposals. If the contractor, as a result of
inspection or otherwise, discovers any error in the sketches,
drawings, plans or specifications, it shall immediately inform the
Contracting Officer of the error and proceed in accord with
instructions received from the Contracting Officer. The Government
is not liable for any claims or charges resulting from additional
work performed by the contractor as a result of a patent ambiguity
in the sketches, drawings, plans or specifications that was not
brought to the attention of the Contracting Officer. The contractor
shall be responsible for the correctness of the shape, sizes and
dimensions of parts furnished by the contractor under the contract.
(j) The contractor shall at all times keep the site of the work
on the vessel free from accumulation of waste material or rubbish
caused by contractor employees or the work, and at the completion of
the work shall remove all rubbish from and about the site of the
work and shall leave the work and its immediate vicinity ``broom-
clean'' unless more exactly specified in this contract.
(k) While in drydock or on a marine railway, the contractor
shall be responsible for the closing, before the end of working
hours, of all valves and openings upon which work is being done by
its workers when such closing is practicable. The contractor shall
establish a list and keep the COR cognizant of the closure status of
all valves and openings upon which the contractor's workers have
been working.
(l) Without additional expense to the Government, the contractor
shall employ specialty subcontractors where required by the
specifications or when necessary for satisfactory performance of the
work.
(m)(1) Unless otherwise stated in the contract, the contractor
shall notify the COR at least 72 hours in advance:
(i) Prior to starting inspections or tests; and
(ii) When supplies will be ready for Government inspection.
(2) Such notification shall be provided either verbally or in
writing at the discretion of the COR.

(End of clause)

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

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

METHOD OF PAYMENT AND INVOICING INSTRUCTIONS FOR SHIP REPAIR (DATE)

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

(End of clause)

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

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

ADDITIONAL ITEM REQUIREMENTS (AIR)--GROWTH WORK (DATE)

(a) This clause applies to Additional Item Requirements (AIR),
also known as growth and emergent work ordered by the Contracting
Officer pursuant to the Changes--Ship Repair clause or mutually
agreed upon by the parties. The contractor shall perform AIR at the
labor billing rates designated in the Schedule, as described in
paragraph (c) of this clause. The AIR handling fee designated in the
Schedule shall be the sole fee used for direct material purchases
and subcontractor handling. The estimated quantity of labor hours
and handling fees represent the Government's best estimate for
growth that may be required throughout the contract performance
period. All growth work shall be paid at the prices stated in the
Schedule.
(b) The contractor shall take into account the potential for
ordering all estimated AIR quantities in developing the Production
Schedule. The ordering of any portion of the AIR quantities does not
in itself warrant an extension to the original contract completion
date; however, for planning purposes, the Government anticipates
ordering AIR in accordance with the following schedule:
(1) No more than 75% of the hours during the first half of the
contract period of performance.
(2) No more than 50% of the hours during the third quarter of
the contract period of performance.
(3) No more than 30% of the hours during the fourth quarter of
the contract period of performance.
(c) The AIR labor rate shall be a flat, hourly rate to cover the
entire effort and shall be burdened to include:
(1) Direct production labor hour functions only. Direct
production labor hours are hours of skilled labor at the journeyman
level expended in direct production. Direct production is defined as
work performed by a qualified craftsman that is directly related to
the alteration, modification, or repair of the item or system
identified as needing alteration, modification, or repair. The
following functions are identified as direct production: Abrasive
Cleaning/Water Blasting, Tank Cleaning, Welding, Burning, Brazing,
Blacksmithing, Machining (inside and outside), Carpentry,
Electrical/Electronic Work, Crane Operation, Shipfitting, Lagging/
Insulating, Painting, Boilermaking, Pipe Fitting, Engineering
(Production), Sheetmetal Work, Staging/Scaffolding, and Rigging.
(2) Non-production labor hours (whether charged directly or
indirectly by contractor's accounting system) shall be for labor in
support of production functions. For purposes of this clause,
support functions are defined as functions that do not directly
contribute to the alteration, modification, or repair of the item or
system identified as needing alteration, modification, or repair.
Necessary support functions should be priced into the burdened rate
for production labor hours. Examples of support functions include:
Testing, Quality Assurance (inspection), Engineering (support),
Planning (including involvement of craft foreman/journeyman in
planning a task), Estimating (including determination of necessary
materials and equipment needed to perform a task), Material
Handling, Set-up (moving tools and equipment from shop to ship to
perform a task), Fire Watch, General Labor (including general
support of journeyman tasks), Cleaning (including debris pickup and
removal), Surveying, Security, Transportation, Supervision, and
Lofting (sail/pattern making).
(d) Additional Item Requirements do not include replacement work
performed pursuant to the Inspection and Manner of Doing Work or
Guarantees clauses.
(e) It is the Government's intention to award any growth work
identified during the repair to the contractor, if a fair and
reasonable price can be negotiated for such

[[Page 10612]]

work, based upon Schedule rates. If a fair and reasonable price
cannot be negotiated, the Government may, at its discretion, obtain
services outside of the contract. Such services may be performed
while the ship is undergoing repair in the contractor's facility
pursuant to the Access to Vessels clause.
(f) The contractor shall submit to the Contracting Officer the
following information in all AIR proposals:
(1) Number of labor hours estimated; broken down by specific
direct production labor category.
(2) Material estimates, individually broken out and priced. When
requested by the Contracting Officer, material quotes shall be
provided.
(3) Subcontractor estimates, individually broken out and priced
along with the actual subcontractor quotes. The requirement to
submit subcontractor quotes may be waived if deemed appropriate by
the Contracting Officer.
(4) Material/subcontractor handling fee and the basis for the
fee.
(g) The contractor shall not be entitled to payment for any
hours ordered pursuant to this clause until such time as a written
contract modification is executed.

(End of clause)

1352.271-73 Schedule of work.

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

SCHEDULE OF WORK (DATE)

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

(End of clause)

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

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

FORESEEABLE COST FACTORS PERTAINING TO DIFFERENT SHIPYARD LOCATIONS
(DATE)

(a) The Contracting Officer will evaluate certain foreseeable
costs that will vary with the location of the commercial shipyard to
be used by bidders/offerors under this solicitation. Costs will be
calculated based on the bidder's/offeror's shipyard location and
these costs will be added, for the purposes of evaluation only, to
the bidder's/offeror's overall price.
(b) These elements of foreseeable costs consist of the
following:
(1) Vessel Transit: (i) Vessel delivery costs will be based on
one round trip from the vessel's homeport of ---------------- to the
contractor's facility at a cruising speed of ---- knots. Distances
will be based on the NOAA publication, ``Distance Between U.S.
Ports''.
(ii) Daily vessel operational cost to navigate the vessel
between its homeport and the contractor's offered place of
performance is $-------- per day. The number of days to transit to
the contractor's offered place of performance from the vessel's
homeport will be multiplied by the per-day operational cost.
(iii) No operational costs will be applied if the ship can be
delivered to the contractor's facility from its homeport within
eight (8) hours port-to-port. If the delivery time exceeds eight (8)
hours, but is less than 24 hours, it will be considered one full
day. Any fraction of subsequent day(s) will be considered as a full
day.
(2) Shore Leave Costs: If the contractor's facility is outside
of a 50-mile radius of the vessel's homeport--
(i) An assessment of $-------- for each 15-day period or portion
thereof, beginning with the vessel's departure from the homeport and
concluding with the vessel's return to homeport.
(ii) There will be an additional transportation cost for ------
vessel crew members for one (1) round trip(s) between the
contractor's offered place of performance and the vessel's homeport
at the cost of coach-type airfare.
(3) Travel and Per Diem Costs: If the contractor's facility is
outside of a 50-mile radius of the vessel's homeport--
(i) There will be a transportation cost for one (1) Contracting
Officer's Representative (COR) for ---- round trip(s) between the
contractor's offered place of performance and the COR's official
duty station at the cost of coach-type airfare.
(ii) There will be a per diem expense for ---- calendar days to
support one (1) COR while in the city of the place of contract
performance, to be determined in accordance with the Joint Federal
Travel Regulations (JFTR). The cost of car rental for the estimated
performance period will also be included.
(iii) There will be a transportation cost for one (1)
Contracting Officer for ---- round trip(s) between the Contracting
Officer's official duty station and the contractor's offered place
of performance at the cost of coach-type airfare, plus per diem
expenses and a rental car.

(End of clause)

1352.271-75 Delivery and shifting of the vessel.

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

DELIVERY AND SHIFTING OF THE VESSEL (DATE)

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

(End of clause)

1352.271-76 Performance.

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

PERFORMANCE (DATE)

(a) The contractor shall not commence work until a notice to
proceed has been issued by the Contracting Officer.
(b) The Government shall deliver the vessel described in the
contract at such time and location as may be specified in the
contract. Upon completion of the work, the Government shall accept
delivery of the vessel at such time and location as may be specified
in the contract.
(c) Without additional charge to the Government, and without
specific requirement in the contract, the contractor shall:
(1) Make available, at the facility, to personnel of the vessel
while in drydock or on a marine railway, sanitary facilities
adequate for the number of personnel using them and acceptable to
the Contracting Officer;
(2) Supply and maintain, in such condition as the Contracting
Officer may reasonably require, suitable brows and gangways from the
pier, drydock or marine railway to the vessel;
(3) Perform, or pay the cost of, any repair, reconditioning or
replacement made necessary as the result of the use by the
contractor of any of the vessel's machinery,

[[Page 10613]]

equipment or fittings, including, but not limited to, winches,
pumps, riggings, or pipe lines; and
(4) Furnish suitable offices, office equipment and telephones at
or near the site of the work as the Contracting Officer reasonably
requires for personnel designated by the Government.
(d) Except as otherwise provided in the contract, the contractor
shall furnish all necessary material, labor, supervision, services,
equipment, tools, supplies, power, accessories, facilities, and
other things and services necessary for accomplishing the work.
(e) The contractor shall conduct dock and sea trials of the
vessel as required by the contract. Unless otherwise expressly
provided in the contract, during the conduct of these trials the
vessel shall be under the control of the vessel's commander and crew
with representatives of the contractor and the Government on board
to determine whether the work provided by the contractor has been
satisfactorily performed. Dock and sea trials not specified which
the contractor requires for its own benefit shall not be undertaken
by the contractor without prior notice to and approval of the
Contracting Officer; any such dock or sea trial shall be conducted
at the risk and expense of the contractor. The contractor shall
provide and install all fittings and appliances which may be
necessary for the dock and sea trials to enable the representatives
of the Government to determine whether the requirements of the
contract plans and specifications have been met. The contractor
shall also be responsible for the care, installation and removal of
any instruments and apparatus furnished by the Government for such
trials.

(End of clause)

1352.271-77 Delays.

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

DELAYS (DATE)

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

(End of clause)

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

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

MINIMIZATION OF DELAY DUE TO GOVERNMENT FURNISHED PROPERTY (DATE)

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

(End of clause)

1352.271-79 Liability and insurance.

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

LIABILITY AND INSURANCE (DATE)

(a) The contractor shall exercise reasonable care and use its
best efforts to prevent accidents, injury or damage to all
employees, persons and property, in and about the work, and to the
vessel or part thereof upon which work is done.
(b) The contractor shall be responsible for and make good at its
own cost and expense any and all loss of or damage of whatsoever
nature to the vessel (or part thereof), its equipment, movable
stores and cargo, and Government-owned material and equipment for
the repair, completion, alteration of or addition to the vessel in
the possession of the contractor, whether at the plant or elsewhere,
arising or growing out of the performance of the work, except where
the contractor can affirmatively show that such loss or damage was
due to causes beyond the contractor's control, was proximately
caused by the fault or negligence of agents or employees of the
Government, or which loss or damage the contractor by exercise of
reasonable care was unable to prevent. However, the contractor shall
not be responsible for any such loss or damage discovered after
redelivery of the vessel unless the loss or damage is discovered
within 90 days after redelivery of the vessel and loss or damage is
affirmatively shown to be the result of the fault or negligence of
the contractor. To induce the contractor to perform the work for the
compensation provided, it is specifically agreed that the
contractor's aggregate liability on account of loss of or damage to
the vessel (or part thereof), its equipment, movable stores and
cargo and Government-owned materials and equipment, shall in no
event exceed the sum of $1,000,000.00. As to the contractor, the
Government assumes the risk of loss or damage to the Government-
owned vessel (or part thereof), its equipment, movable stores and
cargo and said Government-owned materials and equipment in excess of
$1,000,000.00. This assumption of risk includes but is not limited
to loss or damage from negligence of whatsoever degree of the
contractor's servants, employees, agents or subcontractors, but
specifically excludes loss or damage from willful misconduct or lack
of good faith on the part of contractor's personnel, who have
supervision or direction of all or substantially all of the
contractor's business, or all or substantially all of the
contractor's operation at any one plant. However, as to such risk
assumed and borne by the Government, the Government shall be
subrogated to any claim, demand or cause of action against third
persons which exists in favor of the contractor, and the contractor
shall, if required, execute a formal assignment or transfer of
claims, demands or causes of action. Nothing contained in this
paragraph shall create or give rise to any right, privilege or power
in any person except the contractor, nor shall any person (except
the contractor) be or become entitled thereby to proceed directly
against the Government, or join the Government as a co-defendant in
any action against the contractor brought to determine the
contractor's liability, or for any other purpose.
(c) The contractor indemnifies and holds harmless the
Government, its agencies and instrumentalities, and the vessel
against all suits, actions, claims, costs or demands (including
without limitation, suits, actions, claims, costs or demands
resulting from death, personal injury and property damage) to which
the Government, its agencies and instrumentalities, or the vessel
may be subject or put by reason of damage or injury (including
death) to the property or person of

[[Page 10614]]

anyone other than the Government, its agencies, instrumentalities
and personnel, or the vessel, arising or resulting in whole or in
part from the fault, negligence, wrongful act or wrongful omission
of the contractor, or any subcontractor, its or their servants,
agents or employees; provided that the contractor's obligation to
indemnify under this paragraph (c) shall not exceed the sum of
$1,000,000.00 on account of any one accident or occurrence in
respect of any one vessel. Such indemnity shall include, without
limitation, suits, actions, claims, costs or demands of any kind
whatsoever, resulting from death, personal injury or property damage
occurring during the period of performance of work on the vessel or
within 90 days after redelivery of the vessel. Any new equipment
warranties that extend beyond the 90 days after redelivery of the
vessel shall be assigned to the Government upon redelivery of the
vessel. With respect to any such suits, actions, claims, costs or
demands resulting from death, personal injury or property damage
occurring after the expiration of such period, the rights and
liabilities of the Government and the contractor shall be as
determined by other provisions of this contract and by law; provided
that such indemnity shall apply to death occurring after such period
which results from any personal injury received during the period
covered by the contractor's indemnity as provided herein.
(d) The contractor shall, at its own expense, procure, and
thereafter maintain such casualty, accident and liability insurance,
in such forms and amounts as may be approved by the Contracting
Officer, insuring the performance of its obligations under paragraph
(c) of this clause. In addition, the contractor shall at its own
expense procure and thereafter maintain such ship repairer's legal
liability insurance as may be necessary to insure the contractor
against its liability as ship repairer in the amount of
$1,000,000.00, or the value of the vessel as determined by the
Contracting Officer, whichever is the lesser, with respect to each
vessel on which work is performed. The contractor shall cause the
Government to be named as an additional insured under any and all
liability insurance policies, however, at the discretion of the
Contracting Officer, such insurance need not be procured whenever
the job order requires work on parts of a vessel only and the work
is to be performed at a plant other than the site of the vessel.
Further, the contractor shall procure and maintain in force Worker's
Compensation Insurance (or its equivalent) covering its employees
engaged in the work and shall ensure the procurement and maintenance
of such insurance by all subcontractors engaged in the work. The
contractor shall provide evidence of insurance as required by the
Government.
(e) The contractor shall receive no allowance in the contract
price for inclusion of any premium expense or charge for any reserve
made on account of self-insurance for coverage against any risk
assumed by the Government under this clause.
(f) As soon as practicable after the occurrence of any loss or
damage, the risk of which the Government has assumed, written notice
of the damage shall be given by the contractor to the Contracting
Officer. The notice shall contain full particulars of the loss or
damage. If claim is made or suit is brought thereafter against the
contractor as the result or because of such event, the contractor
shall immediately deliver to the Government every demand, notice,
summons or other process received by it or its representatives. The
contractor shall cooperate with the Government, and, upon the
Government's request, shall assist in effecting settlements,
securing and giving evidence; obtaining the attendance of witnesses,
and other assistance required in the conduct of suits. The
Government shall pay to the contractor the expense, other than the
cost of maintaining the contractor's usual organization, incurred in
this assistance. Except at its own cost, the contractor shall not
voluntarily make any payment, assume any obligation or incur any
expense not imperative for the protection of the vessel or vessels
at the time of the event.

(End of clause)

1352.271-80 Title.

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

TITLE (DATE)

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

(End of clause)

1352.271-81 Discharge of liens.

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

DISCHARGE OF LIENS (DATE)

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

(End of clause)

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

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

DEPARTMENT OF LABOR OCCUPATIONAL SAFETY AND HEALTH STANDARDS FOR SHIP
REPAIR (DATE)

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

(End of clause)

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

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

GOVERNMENT REVIEW, COMMENT, ACCEPTANCE AND APPROVAL (DATE)

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

(End of clause)

1352.271-84 Access to the vessel.

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

ACCESS TO THE VESSEL (DATE)

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

[[Page 10615]]

(End of clause)

1352.271-85 Documentation of requests for equitable adjustment.

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

DOCUMENTATION OF REQUESTS FOR EQUITABLE ADJUSTMENT (DATE)

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

(End of clause)

1352.271-86 Lay days.

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

LAY DAYS (DATE)

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

(End of clause)

1352.271-87 Changes--ship repair.

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

CHANGES--SHIP REPAIR (DATE)

(a) The Contracting Officer may, at any time, by written order,
and without notice to the sureties, if any, make changes within the
general scope of this contract, in any one or more of the following:
(1) Drawings, designs, or specifications, when the supplies to
be furnished are to be specially manufactured for the Government in
accordance with the drawings, designs, or specifications;
(2) Method of shipment or packing;
(3) Place of performance of the work;
(4) Time of commencement or completion of the work; and
(5) Other requirements within the general scope of the contract.
(b) If any such change causes an increase or decrease in the
cost of, or the time required for, performance of any part of the
work under this contract, whether changed or not changed by the
order, the Contracting Officer shall make an equitable adjustment in
the contract price, the delivery schedule, or both, and shall modify
the contract accordingly.
(c) The contractor must submit any proposal for adjustment under
this clause within 5 days from the date of receipt of the written
order. At the Contracting Officer's discretion, the 5-day period may
be shortened. However, if the Contracting Officer decides that the
facts justify it, the Contracting Officer may receive and act upon a
proposal submitted before final payment of the contract.
(d) If the contractor's proposal includes the cost of property
rendered obsolete or excess by the change, the Contracting Officer
shall have the right to prescribe the manner of the disposition of
the property.
(e) Failure to agree to any adjustment shall be a dispute under
the Disputes clause. However, nothing in this clause shall excuse
the contractor from proceeding with the contract as changed.

(End of clause)

1352.271-88 Guarantees.

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

GUARANTEES (DATE)

(a) In the event any work performed or materials furnished by
the contractor under this contract prove defective or deficient
within ---- days from the date of redelivery of the vessel, the
contractor, as directed by the Contracting Officer and at its own
expense, shall correct and repair the deficiency to the satisfaction
of the Contracting Officer.
(b) The Government shall be entitled to rely upon any guarantee
secured by the contractor or any sub-contractor covering work done
or materials furnished which

[[Page 10616]]

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

(End of clause)

1352.271-89 Temporary services.

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

TEMPORARY SERVICES (DATE)

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

(End of clause)

1352.271-90 Insurance requirements.

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

INSURANCE REQUIREMENTS (DATE)

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

(End of clause)

Subpart 1352.3--Provisions and Clauses Matrix

1352.301 Solicitation provisions and contract clauses (Matrix).

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PART 1353--FORMS

Subpart 1353.1--General

Sec.
1353.100 Scope of subpart.
1353.107 Obtaining forms.

Subpart 1353.2--Prescription of Forms

1353.200 Scope of subpart.
1353.206 Competition requirements.

Subpart 1353.3--Illustration of Forms

353.300 Scope of subpart.

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

Subpart 1353.1--General

1353.100 Scope of subpart.

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

1353.107 Obtaining forms.

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

Subpart 1353.2--Prescription of Forms

1353.200 Scope of subpart.

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

1353.206 Competition requirements.

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

1353.219 Small business programs.

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

Subpart 1353.3--Illustration of Forms

1353.300 Scope of subpart.

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

SUBCHAPTER I--DEPARTMENT SUPPLEMENTAL REGULATIONS

PART 1370--UNIVERSAL SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Subpart 1370.1--Provisions and Clauses

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

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

Subpart 1370.1--Provisions and Clauses

1370.101 Period of performance.

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

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

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

PART 1371--ACQUISITIONS INVOLVING SHIP CONSTRUCTION AND SHIP REPAIR

Subpart 1371.1--Provisions and Clauses

Sec.
1371.101 Inspection and manner of doing work.
1371.102 Method of payment and invoicing instructions for ship
repair.
1371.103 Additional item requirements (AIR)--growth work.
1371.104 Schedule of work.
1371.105 Foreseeable cost factors pertaining to different shipyard
locations.
1371.106 Delivery and shifting of the vessel.
1371.107 Performance.
1371.108 Delays.
1371.109 Minimization of delay due to government furnished property.
1371.110 Liability and insurance.
1371.111 Title.
1371.112 Discharge of liens.
1371.113 Department of Labor occupational safety and health
standards for ship repair.
1371.114 Government review, comment, acceptance, and approval.
1371.115 Access to the vessel.
1371.116 Documentation of requests for equitable adjustment.
1371.117 Lay days.
1371.118 Changes--ship repair.
1371.119 Guarantees.
1371.120 Temporary services.
1371.121 Insurance requirements.

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

Subpart 1371.1--Provisions and Clauses

1371.101 Inspection and manner of doing work.

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

1371.102 Method of payment and invoicing instructions for ship repair.

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

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

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

1371.104 Schedule of work.

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

1371.105 Foreseeable cost factors pertaining to different shipyard
locations.

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

1371.106 Delivery and shifting of the vessel.

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

1371.107 Performance.

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

1371.108 Delays.

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

1371.109 Minimization of delay due to Government furnished property.

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

1371.110 Liability and insurance.

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

1371.111 Title.

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

[[Page 10628]]

1371.112 Discharge of liens.

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

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

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

1371.114 Government review, comment, acceptance, and approval.

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

1371.115 Access to the vessel.

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

1371.116 Documentation of requests for equitable adjustment.

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

1371.117 Lay days.

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

1371.118 Changes--ship repair.

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

1371.119 Guarantees.

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

1371.120 Temporary services.

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

1371.121 Insurance requirements.

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

[FR Doc. 2010-4132 Filed 3-5-10; 8:45 am]
BILLING CODE 3510-03-P