[Title 48 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2014 Edition]
[From the U.S. Government Publishing Office]
[[Page i]]
Title 48
Federal Acquisition Regulations System
________________________
Chapters 15 to 28
Revised as of October 1, 2014
Containing a codification of documents of general
applicability and future effect
As of October 1, 2014
Published by the Office of the Federal Register
National Archives and Records Administration as a
Special Edition of the Federal Register
[[Page ii]]
U.S. GOVERNMENT OFFICIAL EDITION NOTICE
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[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 48:
Chapter 15--Environmental Protection Agency 3
Chapter 16--Office of Personnel Management Federal
Employees Health Benefits Acquisition Regulation 113
Chapter 17--Office of Personnel Management 175
Chapter 18--National Aeronautics and Space
Administration 179
Chapter 19--Broadcasting Board of Governors 349
Chapter 20--Nuclear Regulatory Commission 361
Chapter 21--Office of Personnel Management, Federal
Employees Group Life Insurance Federal Acquisition
Regulation 413
Chapter 23--Social Security Administration 451
Chapter 24--Department of Housing and Urban
Development 455
Chapter 25--National Science Foundation 515
Chapter 28--Department of Justice 525
Finding Aids:
Table of CFR Titles and Chapters........................ 567
Alphabetical List of Agencies Appearing in the CFR...... 587
List of CFR Sections Affected........................... 597
[[Page iv]]
----------------------------
Cite this Code: CFR
To cite the regulations in
this volume use title,
part and section number.
Thus, 48 CFR 1501.000
refers to title 48, part
1501, section 000.
----------------------------
[[Page v]]
EXPLANATION
The Code of Federal Regulations is a codification of the general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. The Code is divided
into 50 titles which represent broad areas subject to Federal
regulation. Each title is divided into chapters which usually bear the
name of the issuing agency. Each chapter is further subdivided into
parts covering specific regulatory areas.
Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
The appropriate revision date is printed on the cover of each
volume.
LEGAL STATUS
The contents of the Federal Register are required to be judicially
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie
evidence of the text of the original documents (44 U.S.C. 1510).
HOW TO USE THE CODE OF FEDERAL REGULATIONS
The Code of Federal Regulations is kept up to date by the individual
issues of the Federal Register. These two publications must be used
together to determine the latest version of any given rule.
To determine whether a Code volume has been amended since its
revision date (in this case, October 1, 2014), consult the ``List of CFR
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative
List of Parts Affected,'' which appears in the Reader Aids section of
the daily Federal Register. These two lists will identify the Federal
Register page number of the latest amendment of any given rule.
EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal
Register since the last revision of that volume of the Code. Source
citations for the regulations are referred to by volume number and page
number of the Federal Register and date of publication. Publication
dates and effective dates are usually not the same and care must be
exercised by the user in determining the actual effective date. In
instances where the effective date is beyond the cut-off date for the
Code a note has been inserted to reflect the future effective date. In
those instances where a regulation published in the Federal Register
states a date certain for expiration, an appropriate note will be
inserted following the text.
OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires
Federal agencies to display an OMB control number with their information
collection request.
[[Page vi]]
Many agencies have begun publishing numerous OMB control numbers as
amendments to existing regulations in the CFR. These OMB numbers are
placed as close as possible to the applicable recordkeeping or reporting
requirements.
PAST PROVISIONS OF THE CODE
Provisions of the Code that are no longer in force and effect as of
the revision date stated on the cover of each volume are not carried.
Code users may find the text of provisions in effect on any given date
in the past by using the appropriate List of CFR Sections Affected
(LSA). For the convenience of the reader, a ``List of CFR Sections
Affected'' is published at the end of each CFR volume. For changes to
the Code prior to the LSA listings at the end of the volume, consult
previous annual editions of the LSA. For changes to the Code prior to
2001, consult the List of CFR Sections Affected compilations, published
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.
``[RESERVED]'' TERMINOLOGY
The term ``[Reserved]'' is used as a place holder within the Code of
Federal Regulations. An agency may add regulatory information at a
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used
editorially to indicate that a portion of the CFR was left vacant and
not accidentally dropped due to a printing or computer error.
INCORPORATION BY REFERENCE
What is incorporation by reference? Incorporation by reference was
established by statute and allows Federal agencies to meet the
requirement to publish regulations in the Federal Register by referring
to materials already published elsewhere. For an incorporation to be
valid, the Director of the Federal Register must approve it. The legal
effect of incorporation by reference is that the material is treated as
if it were published in full in the Federal Register (5 U.S.C. 552(a)).
This material, like any other properly issued regulation, has the force
of law.
What is a proper incorporation by reference? The Director of the
Federal Register will approve an incorporation by reference only when
the requirements of 1 CFR part 51 are met. Some of the elements on which
approval is based are:
(a) The incorporation will substantially reduce the volume of
material published in the Federal Register.
(b) The matter incorporated is in fact available to the extent
necessary to afford fairness and uniformity in the administrative
process.
(c) The incorporating document is drafted and submitted for
publication in accordance with 1 CFR part 51.
What if the material incorporated by reference cannot be found? If
you have any problem locating or obtaining a copy of material listed as
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contacting the agency, you find the material is not available, please
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or call 202-741-6010.
CFR INDEXES AND TABULAR GUIDES
A subject index to the Code of Federal Regulations is contained in a
separate volume, revised annually as of January 1, entitled CFR Index
and Finding Aids. This volume contains the Parallel Table of Authorities
and Rules. A list of CFR titles, chapters, subchapters, and parts and an
alphabetical list of agencies publishing in the CFR are also included in
this volume.
[[Page vii]]
An index to the text of ``Title 3--The President'' is carried within
that volume.
The Federal Register Index is issued monthly in cumulative form.
This index is based on a consolidation of the ``Contents'' entries in
the daily Federal Register.
A List of CFR Sections Affected (LSA) is published monthly, keyed to
the revision dates of the 50 CFR titles.
REPUBLICATION OF MATERIAL
There are no restrictions on the republication of material appearing
in the Code of Federal Regulations.
INQUIRIES
For a legal interpretation or explanation of any regulation in this
volume, contact the issuing agency. The issuing agency's name appears at
the top of odd-numbered pages.
For inquiries concerning CFR reference assistance, call 202-741-6000
or write to the Director, Office of the Federal Register, National
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ELECTRONIC SERVICES
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The e-CFR is a regularly updated, unofficial editorial compilation
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of the Federal Register and the Government Printing Office. It is
available at www.ecfr.gov.
Charles A. Barth,
Director,
Office of the Federal Register.
October 1, 2014.
[[Page ix]]
THIS TITLE
Title 48--Federal Acquisition Regulations System is composed of
seven volumes. The chapters in these volumes are arranged as follows:
Chapter 1 (parts 1 to 51), chapter 1 (parts 52 to 99), chapter 2 (parts
201 to 299), chapters 3 to 6, chapters 7 to 14, chapters 15 to 28 and
chapter 29 to end. The contents of these volumes represent all current
regulations codified under this title of the CFR as of October 1, 2014.
The Federal acquisition regulations in chapter 1 are those
government-wide acquisition regulations jointly issued by the General
Services Administration, the Department of Defense, and the National
Aeronautics and Space Administration. Chapters 2 through 99 are
acquisition regulations issued by individual government agencies. Parts
1 to 69 in each of chapters 2 through 99 are reserved for agency
regulations implementing the Federal acquisition regulations in chapter
1 and are numerically keyed to them. Parts 70 to 99 in chapters 2
through 99 contain agency regulations supplementing the Federal
acquisition regulations.
The OMB control numbers for the Federal Acquisition Regulations
System appear in section 1.106 of chapter 1. For the convenience of the
user section 1.106 is reprinted in the Finding Aids section of the
second volume containing chapter 1 (parts 52 to 99).
For this volume, Robert J. Sheehan, III was Chief Editor. The Code
of Federal Regulations publication program is under the direction of
John Hyrum Martinez, assisted by Ann Worley.
[[Page 1]]
TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
(This book contains chapters 15 to 28)
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Part
chapter 15--Environmental Protection Agency................. 1501
chapter 16--Office of Personnel Management Federal Employees
Health Benefits Acquisition Regulation.................... 1601
chapter 17--Office of Personnel Management.................. 1733
chapter 18--National Aeronautics and Space Administration... 1801
chapter 19--Broadcasting Board of Governors................. 1901
chapter 20--Nuclear Regulatory Commission................... 2001
chapter 21--Office of Personnel Management, Federal
Employees Group Life Insurance Federal Acquisition
Regulation................................................ 2101
chapter 23--Social Security Administration.................. 2301
chapter 24--Department of Housing and Urban Development..... 2401
chapter 25--National Science Foundation..................... 2501
chapter 28--Department of Justice........................... 2801
[[Page 3]]
CHAPTER 15--ENVIRONMENTAL PROTECTION AGENCY
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Editorial Note: Nomenclature changes to chapter 15 appear at 65 FR
47325, Aug. 2, 2000.
SUBCHAPTER A--GENERAL
Part Page
1500
[Reserved]
1501 General..................................... 5
1502 Definition of words and terms............... 8
1503 Improper business practices and personal
conflicts of interest................... 8
1504 Administrative matters...................... 11
SUBCHAPTER B--ACQUISITION PLANNING
1505 Publicizing contract actions................ 12
1506 Competition requirements.................... 12
1508 Required sources of supply.................. 13
1509 Contractor qualifications................... 14
1511 Describing agency needs..................... 18
SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
1513 Simplified acquisition procedures........... 20
1514 Sealed bidding.............................. 20
1515 Contracting by negotiation.................. 21
1516 Types of contracts.......................... 28
1517 Special contracting methods................. 36
SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
1519 Small business programs..................... 38
1520 Labor surplus area concerns................. 41
1522 Application of labor laws to Government
acquisitions............................ 41
1523 Environmental, conservation, occupational
safety, and drug-free workplace......... 42
1524 Protection of privacy and freedom of
information............................. 43
[[Page 4]]
1525 Foreign acquisition......................... 43
SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
1527 Patents, data, and copyrights............... 44
1528 Bonds of insurance.......................... 44
1529 Taxes....................................... 44
1530 Cost accounting standards................... 45
1531 Contract cost principles and procedures..... 45
1532 Contract financing.......................... 45
1533 Protests, disputes and appeals.............. 47
SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
1535 Research and development contracting........ 48
1536 Construction and architect-engineer
contracts............................... 49
1537 Service contracting......................... 50
SUBCHAPTER G--CONTRACT MANAGEMENT
1542 Contract administration..................... 52
1545 Government property......................... 53
1546 Quality assurance........................... 53
1548
Value engineering [Reserved]
SUBCHAPTER H--CLAUSES AND FORMS
1552 Solicitation provisions and contract clauses 55
1553 Forms....................................... 110
1554-1599
[Reserved]
[[Page 5]]
SUBCHAPTER A_GENERAL
PART 1500 [RESERVED]
PART 1501_GENERAL--Table of Contents
Sec.
1501.000 Scope of part.
Subpart 1501.1_Purpose, Authority, Issuance
1501.101 Purpose.
1501.104 Applicability.
1501.105 Issuance.
1501.105-1 Publication and code arrangement.
1501.105-2 Arrangement of regulations.
1501.105-3 Copies.
Subpart 1501.3_Agency Acquisition Regulations
1501.301 Policy.
1501.370 OMB approvals under the Paperwork Reduction Act.
Subpart 1501.4_Deviations
1501.401 Definition.
1501.403 Individual deviations.
1501.404 Class deviations
Subpart 1501.6_Contracting Authority and Responsibilities
1501.602-3 Ratification of unauthorized commitments.
1501.603 Selection, appointment, and termination of appointment.
1501.603-1 General.
Authority: 5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 40
U.S.C. 486(c); and 41 U.S.C. 418b.
Source: 49 FR 8835, Mar. 8, 1984, unless otherwise noted.
1501.000 Scope of part.
The Federal Acquisition Regulation System brings together, in title
48 of the Code of Federal Regulations, the acquisition regulations
applicable to all executive agencies of the Government. This part
establishes a system of Environmental Protection Agency (EPA)
acquisition regulations, referred to as the EPAAR, for the codification
and publication of policies and procedures of EPA which implement and
supplement the Federal Acquisition Regulation (FAR).
Subpart 1501.1_Purpose, Authority, Issuance
1501.101 Purpose.
This subpart establishes Chapter 15, the Environmental Protection
Agency Acquisition Regulation (EPAAR), within Title 48, the Federal
Acquisition Regulations System.
[60 FR 38505, July 27, 1995]
1501.104 Applicability.
The FAR (48 CFR chapter 1) and the EPAAR (48 CFR chapter 15) apply
to all EPA acquisitions as defined in part 2 of the FAR, except where
expressly excluded.
[62 FR 33572, June 20, 1997]
1501.105 Issuance.
1501.105-1 Publication and code arrangement.
The EPAAR will be published in: (a) The Federal Register, (b)
cumulated form in the Code of Federal Regulations (CFR), and (c) a
separate loose-leaf form in a distinctive light blue color.
[49 FR 8835, Mar. 8, 1984. Redesignated at 62 FR 33572, June 20, 1997]
1501.105-2 Arrangement of regulations.
(a) References and citations. This regulation may be referred to as
the Environmental Protection Agency Acquisition Regulation or the EPAAR.
References to EPAAR materials shall be made in a manner similar to that
prescribed by FAR 1.105-2(c).
[49 FR 8835, Mar. 8, 1984. Redesignated and amended at 62 FR 33572,
June 20, 1997]
1501.105-3 Copies.
Copies of the EPAAR in Federal Register and CFR form may be
purchased from the Superintendent of Documents, Government Printing
Office (GPO), Washington, DC 20402. Copies of loose-leaf EPAAR are
distributed within EPA and may be obtained from
[[Page 6]]
the EPA Facilities and Support Services Division.
[49 FR 8835, Mar. 8, 1984. Redesignated at 62 FR 33572, June 20, 1997]
Subpart 1501.3_Agency Acquisition Regulations
1501.301 Policy.
The EPAAR is prescribed by the Director, Office of Acquisition
Management.
[49 FR 8835, Mar. 8, 1984, as amended at 59 FR 18976, Apr. 21, 1994]
1501.370 OMB approvals under the Paperwork Reduction Act.
The information collection activities contained in the EPAAR
sections listed below have been approved by the Office of Management and
Budget (OMB) and have been issued OMB numbers in accordance with section
3504(h) of the Paperwork Reduction Act of 1980, 44 U.S.C. 3501, et seq.
------------------------------------------------------------------------
OMB control
48 CFR citation No.
------------------------------------------------------------------------
Specification, Standards and other Purchase Descriptions
1510.011-70 through 1510.011-72............................ 2030-0005
1510.011-80 through 1510.011-81............................ 2030-0023
Contract delivery or performance 1512.104.................. 2030-0023
Small Purchase and Other Simplified Purchase Procedures
1513.505 through 1513.570.................................. 2030-0007
Contract Financing
1532.170(a)................................................ 2030-0016
Solicitation Provisions and Contract Clauses
1552.209-71................................................ 2030-0023
1552.209-73 through 1552.209-74............................ 2030-0023
1552.210-72................................................ 2030-0005
1552.210-80................................................ 2030-0023
1552.212-71................................................ 2030-0023
1552.215-72 through 1552.215-76............................ 2030-0006
1552.227-76................................................ 2030-0023
------------------------------------------------------------------------
[59 FR 18619, Apr. 19, 1994, as amended at 59 FR 32134, June 22, 1994;
61 FR 29316, June 10, 1996]
Subpart 1501.4_Deviations
1501.401 Definition.
A deviation to the EPAAR is defined in the same manner as a
deviation to the FAR (see FAR 1.401).
[49 FR 8835, Mar. 9, 1984; 49 FR 24734, June 15, 1984]
1501.403 Individual deviations.
Requests for individual deviations from the FAR and the EPAAR shall
be submitted to the Head of the Contracting Activity (HCA) for approval.
Requests submitted shall cite the specific part of the FAR or EPAAR from
which it is desired to deviate, shall set forth the nature of the
deviation(s), and shall give the reasons for the action requested.
[65 FR 37291, June 14, 2000]
1501.404 Class deviations.
Requests for class deviations to the FAR and the EPAAR shall be
submitted to the HCA for processing in accordance with FAR 1.404 and
this section. Requests shall include the same type of information
prescribed in 1501.403 for individual deviations.
[67 FR 5072, Feb. 4, 2002]
Subpart 1501.6_Contracting Authority and Responsibilities
1501.602-3 Ratification of unauthorized commitments.
(a) Applicability. The provisions of this section apply to all
unauthorized commitments, whether oral or written and without regard to
dollar value. Examples of unauthorized commitments are;
(1) Ordering supplies or services by an individual without
contracting authority;
(2) Unauthorized direction of work through assignment of orders or
tasks;
(3) Unauthorized addition of new work;
(4) Unauthorized direction of contractors to subcontract with
particular firms; or
(5) Any other unauthorized direction which changed the terms and
conditions of the contract.
(b)(1) Ratification Approval. The Chief of the Contracting Office
(CCO) is delegated authority to be the ratifying official. In order to
act as the ratifying official, a CCO must have delegated contracting
officer authority. A CCO cannot approve a ratification if he/she acted
as a contracting officer in preparing the determination and findings
[[Page 7]]
required under paragraph (c)(3) of this section.
(2) The CCOs defined in 1502.100 for purposes of ratification
authority only must meet the following criteria:
(i) Must possess a contracting officer's warrant and be in the 1102
job series;
(ii) Are prohibited from re-delegating their ratification authority;
(iii) Must submit copies of ratification actions to the cognizant
Office of Acquisition Management Division Director at Headquarters; and
(iv) As with other ratifying officials, must abide by the other
limitations on ratification of unauthorized commitments set forth in FAR
1.602-3(c) and the EPAAR.
(c) Procedures. (1) The program office shall notify the cognizant
contracting office by memorandum of the circumstances surrounding an
unauthorized commitment. The notification shall include:
(i) All relevant documents and records;
(ii) Documentation of the necessity for the work and benefit derived
by the Government;
(iii) A statement of the delivery status of the supplies or services
associated with the unauthorized commitment;
(iv) A list of the procurement sources solicited (if any) and the
rationale for the source selected;
(v) If only one source was solicited, a justification for other than
full and open competition (JOFOC) as required by FAR 6.302, FAR 6.303,
and 1506.303, or for simplified acquisition procedures exceeding the
competition threshold in FAR 13.106, a sole source justification as
required by 1513.170;
(vi) A statement of steps taken or proposed to prevent reoccurrence
of any unauthorized commitment.
(2) The Division Director (or equivalent) of the responsible office
shall approve the memorandum. If expenditure of funds is involved, the
program office shall include a Procurement Request/Order, EPA Form 1900-
8, with funding sufficient to cover the action. The appropriation data
cited on the 1900-8 shall be valid for the period in which the
unauthorized commitment was made.
(3) Upon receiving the notification, the Contracting Officer shall
prepare a determination and findings regarding ratification of the
unauthorized commitment for the ratifying official. The determination
and findings shall include sufficient detail to support the recommended
action. If ratification of the unauthorized commitment is recommended,
the determination and findings shall include a determination that the
price is fair and reasonable. To document the determination, additional
information may be required from the Contractor. Concurrence by the
Office of General Counsel is not mandatory, but shall be sought in
difficult or unusual cases.
(4) The ratifying official may inform the Inspector General (IG) of
the action by memorandum through the Head of the Contracting Activity
(HCA). For ratification actions exceeding the small purchase limitation,
the ratifying official shall submit a memorandum to the Assistant
Administrator for Administration and Resources Management through the
HCA for transmittal to the Assistant, Associate, or Regional
Administrator (or equivalent level) of the person responsible for the
unauthorized commitment. This memorandum should contain a brief
description of the circumstances surrounding the unauthorized
commitment, recommend corrective action, and include a copy of any
memorandum sent to the IG. Submission of a memorandum to the appropriate
Assistant, Associate, or Regional Administrator for unauthorized
commitments at or below the small purchase limitation is optional and
may be accomplished at the discretion of the ratifying official.
(d) Paid Advertisements. (1) EPA is generally not authorized to
ratify improperly ordered paid advertisements. The ratifying official,
however, may determine payment is proper subject to the limitations in
FAR 1.602-3(c) if the individual responsible for the unauthorized
commitment acted in good faith to comply with Agency acquisition
policies and procedures.
(2) The paying office shall forward invoice claims received in its
office for improper paid advertisements to the
[[Page 8]]
cognizant ratifying official for a determination regarding ratification
of the action.
(3) If the ratifying official determines that an unauthorized
commitment cannot be ratified by the Agency, the ratifying official
shall instruct the submitter to present its claim to the General
Accounting Office in accordance with the instructions contained in 4 CFR
part 31, Claims Against the United States, General Procedures.
(e) Payment of Properly Ratified Claims. After the unauthorized
commitment is ratified, the Contractor must submit an invoice (or
resubmit an invoice if one was previously submitted) citing the
appropriate contract or purchase order number.
[55 FR 18340, May 2, 1990, as amended at 59 FR 18976, Apr. 21, 1994; 60
FR 38505, July 27, 1995; 61 FR 57337, Nov. 6, 1996; 62 FR 33572, June
20, 1997; 65 FR 37291, June 14, 2000; 65 FR 80792, Dec. 22, 2000; 67 FR
5072, Feb. 4, 2002]
1501.603 Selection, appointment, and termination of appointment.
1501.603-1 General.
EPA Contracting Officers shall be selected and appointed and their
appointments terminated in accordance with the Contracting Officer
warrant program specified in chapter 8 of the EPA ``Contracts Management
Manual.''
PART 1502_DEFINITION OF WORDS AND TERMS--Table of Contents
Authority: 5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 40
U.S.C. 486(c); and 41 U.S.C. 418b.
Subpart 1502.1_Definitions
1502.100 Definitions.
Chief of the Contracting Office (CCO) means the Office of
Acquisition Management Division Directors at Headquarters, Research
Triangle Park and Cincinnati. For purposes of ratification authority
only, CCO is also defined as Regional Contracting Officer Supervisors
and Office of Acquisition Management Service Center Managers. (See
1501.602-3(b)(2) for the criteria for this ratification authority).
Head of the Contracting Activity (HCA) means the Director, Office of
Acquisition Management.
Senior Procurement Executive (SPE) means the Director, Office of
Acquisition Management.
[67 FR 5072, Feb. 4, 2002]
PART 1503_IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST
--Table of Contents
Sec.
1503.000 Scope of part.
Subpart 1503.1_Safeguards
1503.101-370 Personal conflicts of interest.
1503.104-5 Disclosure, protection, and marking of contractor bid or
proposal information and source selection information.
Subpart 1503.2--Contractor Gratuities to Government Personnel [Reserved]
Subpart 1503.3--Reports of Suspected Antitrust Violations [Reserved]
Subpart 1503.4_Contingent Fees
1503.408 Evaluation of the SF 119.
Subpart 1503.5_Contractor Responsibility To Avoid Improper Business
Practices
1503.500-70 Policy.
1503.500-71 Procedures.
1503.500-72 Contract clause.
Subpart 1503.6_Contracts With Government Employees or Organizations
Owned or Controlled by Them
1503.600-70 Scope of subpart.
1503.600-71 Definitions.
1503.601 Policy.
1503.602 Exceptions.
1503.670 Solicitation disclosure provision.
Subpart 1503.9_Whistle Blower Protections for Contractor Employees
1503.905 Procedures for investigating complaints.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 49 FR 8837, Mar. 8, 1984, unless otherwise noted.
1503.000 Scope of part.
This part implements FAR part 3, cites EPA regulations on employee
responsibilities and conduct, establishes
[[Page 9]]
responsibility for reporting violations and related actions, and
provides for authorization of exceptions to policy.
Subpart 1503.1_Safeguards
Source: 64 FR 47410, Aug. 31, 1999, unless otherwise noted.
1503.101-370 Personal conflicts of interest.
(a) Each EPA employee (including special employees) engaged in
source evaluation and selection is required to be familiar with the
provisions of 40 CFR part 3 regarding personal conflicts of interest.
The employee shall inform the Source Selection Authority (SSA) in
writing if his/her participation in the source evaluation and selection
process could be interpreted as a possible or apparent conflict of
interest. The SSA will consult with appropriate Agency officials prior
to the SSA's determination. The SSA shall relieve any EPA employee who
has a conflict of interest of further duties in connection with the
evaluation and selection process.
(b) Each EPA employee (including special employees, as defined by
1503.600-71(b)) involved in source evaluation and selection is required
to comply with the Office of Government Ethics ethics provisions at 5
CFR part 2635.
1503.104-5 Disclosure, protection, and marking of contractor bid or
proposal information and source selection information.
(a)(1) The Chief of the Contracting Office (CCO) is the designated
official to make the decision whether support contractors are used in
proposal evaluation (as authorized at FAR 15.305(c) and as restricted at
FAR 37.203(d)).
(2) The following written certification and agreement shall be
obtained from the non-Government evaluator prior to the release of any
proposal to that evaluator:
``Certification on the Use and Disclosure of Proposals''
RFP :__________________________________________________________________
Offeror:________________________________________________________________
1. I hereby certify that to the best of my knowledge and belief, no
conflict of interest exists that may diminish my capacity to perform an
impartial, technically sound, objective review of this proposal(s) or
otherwise result in a biased opinion or unfair competitive advantage.
2. I agree to use any proposal information only for evaluation
purposes. I agree not to copy any information from the proposal(s), to
use my best effort to safeguard such information physically, and not to
disclose the contents of nor release any information relating to the
proposal(s) to anyone outside of the evaluation team assembled for this
acquisition or individuals designated by the contracting officer.
3. I agree to return to the Government all copies of proposals, as
well as any abstracts, upon completion of the evaluation.
________________________________________________________________________
Name and Organization)
________________________________________________________________________
(Date of Execution)
(End of certificate)
(b) Information contained in proposals will be protected and
disclosed to the extent permitted by law, and in accordance with FAR
3.104-5, 15.207, and Agency procedures at 40 CFR part 2.
Subpart 1503.2--Contractor Gratuities to Government Personnel [Reserved]
Subpart 1503.3--Reports of Suspected Antitrust Violations [Reserved]
Subpart 1503.4_Contingent Fees
1503.408 Evaluation of the SF 119.
Subpart 1503.5_Contractor Responsibility To Avoid Improper Business
Practices
Source: 65 FR 57103, Sept. 21, 2000, unless otherwise noted.
1503.500-70 Policy.
Government contractors must conduct themselves with the highest
degree of integrity and honesty. Contractors should have standards of
conduct and internal control systems that:
(a) Are suitable to the size of the company and the extent of their
involvement in Government contracting.
(b) Promote such standards.
[[Page 10]]
(c) Facilitate timely discovery and disclosure of improper conduct
in connection with Government contracts, and
(d) Ensure corrective measures are promptly instituted and carried
out.
1503.500-71 Procedures.
(a) A contractor's system of management controls should provide for:
(1) A written code of business ethics and conduct and an ethics
training program for all employees;
(2) Periodic reviews of company business practices, procedures,
policies and internal controls for compliance with standards of conduct
and the special requirements of Government contracting;
(3) A mechanism, such as a hotline, by which employees may support
suspected instances of improper conduct, and instructions that encourage
employees to make such reports;
(4) Internal and/or external audits, as appropriate.
(5) Disciplinary action for improper conduct;
(6) Timely reporting to appropriate Government officials of any
suspected or possible violation of law in connection with Government
contracts or any other irregularities in connection with such contracts;
and
(7) Full cooperation with any Government agencies responsible for
either investigation or corrective actions.
(b) Contractors who are awarded an EPA contract of $1 million or
more must display EPA Office of Inspector General Hotline Posters unless
the contractor has established an internal reporting mechanism and
program, as described in paragraph (a) of this section.
1503.500-72 Contract clause.
As required by EPAAR 1503.500-71(b), the contracting officer shall
insert the clause at 1552.203-71, Display of EPA Office of Inspector
General Hotline Poster, in all contracts valued at $1,000,000 or more,
including all contract options.
Subpart 1503.6_Contracts with Government Employees or Organizations
Owned or Controlled by Them
1503.600-70 Scope of subpart.
This subpart implements and supplements FAR subpart 3.6 and sets
forth EPA policy and procedures for identifying and dealing with
conflicts of interest and improper influence or favoritism in connection
with contracts involving current or former EPA employees. This subpart
does not apply to agreements with other departments or agencies of the
Federal Government, nor to contracts awarded to State or local units of
Government.
1503.600-71 Definitions.
(a) Regular employee means any officer or employee of EPA who is
employed or appointed, with or without compensation, to serve more than
130 days during any period of 365 consecutive days, including regular
officers of the Public Health Service Commissioned Corps and reserve
officers of the Public Health Service Commissioned Corps while on active
duty.
(b) Special employee means an officer or employee of EPA who is
retained, designated, appointed or employed to perform, with or without
compensation, temporary duties either on a full-time or intermittent
basis for not more that 130 days during any period of 365 consecutive
days and who actually served more than 60 days during such 365-day
period.
1503.601 Policy.
(a) No contract may be awarded without competition to a former
regular or special EPA employee (or to a business concern or other
organization owned or substantially owned or controlled by a former
employee) whose employment terminated within 365 calendar days before
submission of a proposal to EPA.
(b) No contract shall be awarded without competition to a firm which
employs, or proposes to employ, a current regular or special EPA
employee or a former EPA regular or special employee whose employment
terminated
[[Page 11]]
within 365 calendar days before submission of a proposal to EPA, if
either of the following conditions exits:
(1) The current or former EPA regular or special employee is or was
involved in development or negotiating the proposal for the prospective
contractor.
(2) The current or former EPA regular or special employee will be
involved directly or indirectly in the management, administration, or
performance of the contract.
1503.602 Exceptions.
The Assistant Administrator for Administration and Resources
Management may authorize an exception, in writing, to the policy in FAR
3.601 and 1503.601 for the reasons stated in FAR 3.602, if the exception
would not involve a violation of 18 U.S.C. 203, 18 U.S.C. 205, 18 U.S.C.
207, 18 U.S.C. 208, or EPA regulations at 40 CFR part 3. The Assistant
Administrator shall consult with the Designated Agency Ethics Official
before authorizing any exceptions.
[60 FR 38505, July 27, 1995]
1503.670 Solicitation of disclosure provision.
The Contracting Officer shall insert the provision at 1552.203-70,
Current/Former Agency Employee Involvement Certification, in all
solicitations for sole source acquisitions.
[50 FR 14357, Apr. 11, 1985]
Subpart 1503.9_Whistle Blower Protections for Contractor Employees
1503.905 Procedures for investigating complaints.
The Assistant Administrator for Administration and Resources
Management is designated as the recipient of the written report of
findings by the Inspector General. The Assistant Administrator shall
ensure that the report of findings is disseminated in accordance with
FAR 3.905(c).
[61 FR 57337, Nov. 6, 1996]
PART 1504_ADMINISTRATIVE MATTERS--Table of Contents
Subpart 1504.6_Contract Reporting
Sec.
1504.670 [Reserved]
Subpart 1504.8_Contract Files
1504.804 Closeout of contract files.
1504.804-5 Detailed procedures for closing out contract files.
Authority: 5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 40
U.S.C. 486(c); 41 U.S.C. 418b.
Source: 49 FR 28246, July 11, 1984, unless otherwise noted.
Subpart 1504.6_Contract Reporting
1504.670 [Reserved]
Subpart 1504.8_Contract Files
1504.804 Closeout of contract files.
1504.804-5 Detailed procedures for closing out contract files.
In addition to those procedures set forth in FAR 4.804-5, the
contracting office shall, before final payment is made under a cost
reimbursement type contract, verify the allowability, allocability, and
reasonableness of costs claimed. Verification of total costs incurred
should be obtained from the Office of Audit through the Financial
Analysis and Oversight Service Center in the form of a final audit
report. Similar verification of actual costs shall be made for other
contracts when cost incentives, price redeterminations, or cost-
reimbursement elements are involved. Termination settlement proposals
shall be submitted to the Financial Analysis and Oversight Service
Centerfor review by the Office of Audit as prescribed by FAR 49.107. All
such audits will be coordinated through the cost advisory group in the
contracting office. Exceptions to these procedures are the quick close-
out procedures as described in FAR 42.708 and Unit 42 of the EPA
Acquisition Handbook.
[49 FR 28246, July 11, 1984, as amended at 63 FR 46899, Sept. 3, 1998;
78 FR 46289, July 31, 2013]
[[Page 12]]
SUBCHAPTER B_ACQUISITION PLANNING
PART 1505_PUBLICIZING CONTRACT ACTIONS--Table of Contents
Sec.
1505.000 Scope of part.
Subpart 1505.2_Synopses of Proposed Contract Actions
1505.202 Exceptions.
1505.203 Publicizing and response time.
1505.271 [Reserved]
Subpart 1505.5--Paid Advertisement [Reserved]
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 49 FR 8838, Mar. 8, 1984, unless otherwise noted.
1505.000 Scope of part.
This part provides instructions on publicizing contract
opportunities and response time, instructions on information to include
in the synopses of proposed contracts, instructions on publicizing
orders under GSA schedule contracts, policy references relative to
release of information, and procedures for obtaining information on
previous Government contracts.
[50 FR 14357, Apr. 11, 1985]
Subpart 1505.2_Synopses of Proposed Contract Actions
1505.202 Exceptions.
The Contracting Officer need not submit the notice required by FAR
5.201 when the Contracting Officer determines in writing that the
contract is for the services of experts for use in preparing or
prosecuting a civil or criminal action under the Superfund Amendments
and Reauthorization Act of 1986.
[60 FR 38505, July 27, 1995]
1505.203 Publicizing and response time.
(a) The Contracting Officer may, at his/her discretion under certain
circumstances, elect to transmit a synopsis to the Commerce Business
Daily (CBD) of a proposed contract action that falls within an exception
to the synopsis requirement in FAR 5.202(a). For those contract actions,
the Contracting Officer may provide for a lesser time period than the 15
days required by FAR 5.203(a) and the 30 days required by FAR 5.203 (c)
or (d), and the 45 days required by FAR 5.203(e). The Contracting
Officer must identify the basis for the lesser time periods for response
in the synopsis.
(b) The authority for paragraph (a) does not extend to the synopsis
of contract actions falling within the exception in FAR 5.202(a)(7), if
to do so would disclose the originality of thought or innovativeness of
the proposed research.
[50 FR 14357, Apr. 11, 1985, as amended at 62 FR 33572, June 20, 1997]
1505.271 [Reserved]
Subpart 1505.5--Paid Advertisement [Reserved]
PART 1506_COMPETITION REQUIREMENTS--Table of Contents
Sec.
1506.000 Scope of part.
Subpart 1506.2--Full and Open Competition After Exclusion of Sources
[Reserved]
Subpart 1506.3_Other Than Full and Open Competition
1506.302-5 Authorized or required by statute.
1506.303-2 Content.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 50 FR 14357, Apr. 11, 1985, unless otherwise noted.
1506.000 Scope of part.
This part implements FAR part 6. It prescribes the Environmental
Protection Agency policies and procedures in
[[Page 13]]
obtaining full and open competition in the acquisition process.
Subpart 1506.2--Full and Open Competition After Exclusion of Sources
[Reserved]
Subpart 1506.3_Other Than Full and Open Competition
1506.302-5 Authorized or required by statute.
(a) Authority. Section 109(e) of the Superfund Amendments and
Reauthorization Act of 1986 (SARA) is cited as authority.
(b) Application. (1) The contracting officer may use other than full
and open competition to acquire the services of experts for use in
preparing or prosecuting a civil or criminal action under SARA whether
or not the expert is expected to testify at trial. The contracting
officer need not prepare the written justification under FAR 6.303 when
acquiring expert services under the authority of section 109(e) of SARA.
The contracting officer shall document the official contract file when
using this authority.
(2) The contracting officer shall give notice to the Agency's
Competition Advocate whenever a contract award is made using other than
full and open competitition under this authority. The notice shall
contain a copy of the contract and the summary of negotiations.
[53 FR 31872, Aug. 22, 1988]
1506.303-2 Content.
The documentation requirements in this section apply only to
acquisitions processed using other than small purchase procedures.
(Refer to 1513.170 for documentation for small purchase acquisitions).
(a) The initiating office shall prepare a written justification for
other than full and open competition (JOFOC) that documents the facts
and circumstances substantiating the infeasibility of full and open
competition for each recommended limited sources or sole source
acquisition when required by FAR 6.302.
(b) The recommendation shall be entitled ``Justification for Other
Than Full and Open Competition'' and shall be signed at the programmatic
Division Director or comparable office level prior to submission with
the procurement request. The JOFOC shall contain the information
prescribed in FAR 6.303-2 (a) and (b).
(c) If unusual and compelling urgency (see FAR 6.303-2) is a basis
for the JOFOC, then the following applies. Explain the circumstances
that led to the need for an urgent contractual action. Explain why the
requirement could not have been processed in sufficient time to permit
full and open competition. It should be noted that the existence of
legislation, court order, or Presidential mandate is not, of itself, a
sufficient basis for a JOFOC. However, the circumstances necessitating
legislation, court order, or Presidential mandate may justify
contractual action on an other than full and open competition basis.
(d) If the proposed acquisition has been synopsized in accordance
with the applicable requirements in FAR subpart 5.2, the Contracting
Officer must incorporate the evaluation of responses to the synopsis in
the JOFOC. (See 1506.371(d) for contents of the evaluation document).
[50 FR 14357, Apr. 11, 1985; 50 FR 15425, Apr. 18, 1985]
PART 1508_REQUIRED SOURCES OF SUPPLY--Table of Contents
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Subpart 1508.8_Acquisition of Printing and Related Supplies
1508.870 Contract clause.
Contracting Officers shall insert the contract clause at 1552.208-
70, Printing, in all contracts which require printing, duplication,
binding, reproduction, and related services and are subject to the
provisions of the Government Printing and Binding Regulations published
by the Joint Committee on Printing, Congress of the United States.
[49 FR 8838, Mar. 8, 1984]
[[Page 14]]
PART 1509_CONTRACTOR QUALIFICATIONS--Table of Contents
Sec.
1509.000 Scope of part.
Subpart 1509.4_Debarment, Suspension and Ineligibility
1509.403 Definitions.
1509.406 Debarment.
1509.406-3 Procedures.
1509.407 Suspension.
1509.407-3 Procedures.
Subpart 1509.5_Organizational Conflicts of Interest
1509.500 Scope of subpart.
1509.502 Applicability.
1509.503 Waiver.
1509.505-4 Obtaining access to proprietary information.
1509.505-70 Information sources.
1509.507-1 Solicitation provisions.
1509.507-2 Contract clause.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 49 FR 8839, Mar. 8, 1984, unless otherwise noted.
1509.000 Scope of part.
This part implements FAR part 9 and provides policy and procedures
pertaining to contractor's responsibility; debarment, suspension, and
ineligibility; and organizational conflicts of interest.
Subpart 1509.4_Debarment, Suspension and Ineligibility
Source: 65 FR 37291, June 14, 2000, unless otherwise noted.
1509.403 Definitions.
The ``Debarring Official'' and the ``Suspending Official'' as
defined in FAR 9.403 is a designated individual located in the Office of
Grants and Debarment. This Agency official is authorized to make the
determinations and provide the notifications required under FAR subpart
9.4 or this subpart, except for the determinations required by FAR
9.405-1(a) which are to be made by the Head of the Contracting Activity.
All compelling reason determinations to be made by the Debarring or
Suspending Official under FAR subpart 9.4 or this subpart will be made
only after coordination and consultation with the Head of the
Contracting Activity. See also 2 CFR part 1532.
[65 FR 37291, June 14, 2000, as amended at 72 FR 2427, Jan. 19, 2007]
1509.406 Debarment.
1509.406-3 Procedures.
(a) Investigation and referral--(1) Contracting officer
responsibility. (i) When contracting personnel discover information
which indicates that a cause for debarment may exist, they shall
promptly report such information to the cognizant Chief of the
Contracting Office (CCO). Purchasing agents in simplified acquisition
activities which do not come under the direct cognizance of a CCO shall
report such information by memorandum, through their immediate
supervisor, and addressed to the cognizant CCO responsible for their
office's contract acquisitions.
(ii) Contracting officers shall review ``The List of Parties
Excluded from Federal Procurement and Nonprocurement Programs'' to
ensure that the Agency does not solicit offers from, award contracts to,
or consent to subcontracts with listed contractors.
(2) Chief of the Contracting Office responsibility. When the Chief
of the Contracting Office determines that sufficient information is
available to indicate that a cause for debarment may exist, such
information shall be promptly reported by memorandum to the HCA. The
memorandum provides the Chief of the Contracting Office's assessment of
the information, any investigative report or audit, and any additional
information he/she has discovered.
(3) HCA responsibility. Upon receipt of a report of a suspected
debarment situation, the HCA shall take the following actions:
(i) Notify the Director, Suspension and Debarment Division, that
investigation of a potential debarment has been initiated.
(ii) Review the reported information.
(iii) Investigate as necessary to verify or develop additional
information.
(iv) Refer the matter through the Suspension and Debarment Division
to
[[Page 15]]
the Debarring Official for consideration of debarment; request that the
Suspension and Debarment Division evaluate the information and, if
appropriate, refer the matter to the Debarring Official for
consideration of debarment; or recommend to the Suspension and Debarment
Division that the matter be closed without further action because the
facts do not warrant debarment.
(v) Obtain legal counsel's opinion on referrals or recommendations
made to the Debarring Official.
(vi) Notify EPA Contracting Officers of those Contractors who are
ineligible for solicitation, award, or subcontracting but who do not
appear on the GSA Consolidated List; e.g., those who are ineligible
based on a settlement reached by the Debarring Official under which the
Contractor has agreed to voluntarily exclude itself from participation
in Government contracting/subcontracting for a specified period or
because of a Notice of Proposal to Debar.
(4) Any official. When information is discovered which may indicate
potential criminal or civil fraud activity, such information must be
referred promptly to the EPA Office of Inspector General.
(5) Debarring Official's responsibility. The Debarring Official
shall:
(i) Review referrals from the HCA together with the HCA's
recommendations, if any, and determine whether further consideration by
the Debarring Official is warranted and take such actions as are
required by FAR subpart 9.4;
(ii) Obtain the HCA's recommendation prior to reaching a voluntary
exclusion settlement with a Contractor in lieu of debarment;
(iii) Promptly notify the HCA of Contractors with whom a settlement
in lieu of debarment has been reached under which the Contractor
voluntarily excludes itself from or restricts its participation in
Government contracting/subcontracting for a specified period; and of
Contractors who have received a Notice of Proposal to Debar.
(b) [Reserved]
1509.407 Suspension.
1509.407-3 Procedures.
The procedures prescribed in 1509.406-3(a) shall be followed under
conditions which appear to warrant suspension of a Contractor.
Subpart 1509.5_Organizational Conflicts of Interests
1509.500 Scope of subpart.
This subpart establishes EPA policy and procedures for identifying,
evaluating, and resolving organizational conflicts of interest. EPA's
policy is to avoid, neutralize, or mitigate organizational conflicts of
interest. If EPA is unable to neutralize or mitigate the effects of a
potential conflict of interest, EPA will disqualify the prospective
contractor or will terminate the contract when potential or actual
conflicts are identified after award.
[49 FR 8839, Mar. 8, 1984; 49 FR 24734, June 15, 1984]
1509.502 Applicability.
This subpart applies to all EPA contracts except agreements with
other Federal agencies. However, this subpart applies to contracts with
the Small Business Administration (SBA) under the 8(a) program.
1509.503 Waiver.
The Head of the Contracting Activity may waive any general rule or
procedure of this subpart by determining that its application in a
particular situation would not be in the Government's interest. Any
request for waiver must be in accordance with FAR 9.503. The Assistant
General Counsel for Contracts and Information Law shall be consulted on
such waiver requests.
[49 FR 8839, Mar. 8, 1984, as amended at 61 FR 29316, June 10, 1996]
1509.505-4 Obtaining access to proprietary information.
Contractors gaining access to confidential business information of
other companies in performing advisory services for EPA shall comply
with the special requirements of 40 CFR part 2 and
[[Page 16]]
the provisions of their contracts relating to the treatment of
confidential business information.
1509.505-70 Information sources.
(a) Disclosure. Prospective EPA Contractors responding to
solicitations or submitting unsolicited proposals shall provide
information to the Contracting Officer for use in identifying,
evaluating, or resolving potential organizational conflicts of interest.
The submittal may be a certification or a disclosure, pursuant to
paragraph (a) (1) or (2) of this section.
(1) If the prospective contractor is not aware of any information
bearing on the existence of any organizational conflict of interest, it
may so certify.
(2) Prospective contractors not certifying in accordance with
paragraph (a)(1) of this section must provide a disclosure statement
which describes concisely all relevant facts concerning any past,
present, or planned interests relating to the work to be performed and
bearing on whether they, including their chief executives, directors, or
any proposed consultant or subcontractor, may have a potential
organizational conflict of interest.
(b) Failure to disclose information. Any prospective contractor
failing to provide full disclosure, certification, or other required
information will not be eligible for award. Nondisclosure or
misrepresentation of any relevant information may also result in
disqualification from award, termination of the contract for default, or
debarment from Government contracts, as well as other legal action or
prosecution. In response to solicitations, EPA will consider any
inadvertent failure to provide disclosure certification as a ``minor
informality'' (as explained in FAR 14.405); however, the prospective
contractor must correct the omission promptly.
(c) Exception. Where the Contractor has previously submitted a
conflict of interest certification or disclosure for a contract, only an
update of such statement is required when the contract is modified.
[49 FR 8839, Mar. 8, 1994. Redesignated at 59 FR 18619, Apr. 19, 1994]
1509.507-1 Solicitation provisions.
(a) Advance notice of limitations. The Contracting Officer shall
alert prospective contractors by placing a notice in the solicitation
whenever a particular acquisition might create an organizational
conflict of interest. The notice will:
(1) Include the information prescribed in (FAR) 48 CFR 9.507-1;
(2) Refer prospective contractors to this subpart; and
(3) Require proposers to disclose relevant facts concerning any
past, present, or currently planned interests relating to the work
described in the solicitation.
(b) Required solicitation provision. The Contracting Officer shall
include the provisions at 1552.209-70 and 1552.209-72 in all
solicitations, except where the following applies:
(1) An Organizational Conflict of Interest provision is drafted for
a particular acquisition (see Section 1509.507-1(a));
(2) When the procurement is with another Federal agency (however,
the provision is included in solicitations issued under the Small
Business Administration's (SBA) 8(a) program); and
(3) When the procurement is accomplished through simplified
acquisition procedures, use of the provision is optional.
[49 FR 8839, Mar. 8, 1994. Redesignated and amended at 59 FR 18619, Apr.
19, 1994; 61 FR 57337, Nov. 6, 1996; 62 FR 33572, June 20, 1997]
1509.507-2 Contract clause.
(a) The Contracting Officer shall include the clause at 1552.209-71
in all contracts in excess of the simplified acquisition threshold and,
as appropriate, in simplified acquisition procedures. Contracts for
other than Superfund work shall include Alternate I in this clause in
lieu of paragraph (e).
(b) The Contracting Officer shall include the clause at 1552.209-73
in all solicitations and contracts for Superfund work in excess of the
simplified acquisition threshold and, as appropriate, in small purchases
for Superfund work.
(c) The Contracting Officer shall include the clause at 1552.209-74
or its alternates in the following solicitations and contracts for
Superfund work in
[[Page 17]]
excess of the simplified acquisition threshold and, as appropriate, in
simplified acquisition procedures for Superfund work. The Contracting
Officer shall include the clause at 1552.209-74 in all Response Action
Contract (RAC) solicitations and contracts, except Site Specific
solicitations and contracts. The term ``RAC'' in the Limitation of
Future Contracting clauses includes not only RAC solicitations and
contracts but other long term response action solicitations and
contracts that provide professional architect/engineer, technical, and
management services to EPA to support remedial response, enforcement
oversight and non-time critical removal activities under the
Comprehensive Environmental Response Compensation and Liability Act of
1980, as amended by the Superfund Amendments Reauthorization Act of
1986; and the Robert T. Stafford Natural Disaster Act pursuant to the
Federal Response Plan and other laws to help address and/or mitigate
endangerment to the public health, welfare or environment during
emergencies and natural disasters, and to support States and communities
in preparing for the responses to releases of hazardous substances.
(1) Alternate I shall be used in all Emergency and Rapid Response
Services (ERRS) solicitations and contracts, except site specific
solicitations and contracts. The term ``ERRS'' in the Limitation of
Future Contracting clauses includes not only ERRS solicitations and
contracts but other emergency response type solicitations and contracts
that provide fast responsive environmental cleanup services for
hazardous substances/wastes/contaminants/material and petroleum
products/oil. Environmental cleanup response to natural disasters and
terrorist activities may also be required. ERRS pilot scale studies are
included in the term ``treatability studies.''
(2) Alternate II shall be used in all Superfund Technical Assistance
and Removal Team (START) solicitations and contracts. The term ``START''
in the Limitation of Future Contracting clauses include not only START
solicitations and contracts but other site removal and technical support
solicitations and contracts that include activities related to technical
analyses in determining the nature and extent of contamination at a site
and making recommendations regarding response technologies.
(3) Alternate III shall be used in all Environmental Services
Assistance Team (ESAT) solicitations and contracts.
(4) Alternate IV shall be used in all Enforcement Support Services
(ESS) solicitations and contracts. The term ``ESS'' in the Limitation of
Future Contracting clauses not only includes ESS solicitation and
contracts but other enforcement support type solicitations and contracts
that involve removal actions, mandatory notices to Potentially
Responsible Parties (PRPs), penalty assessments, public comment periods,
negotiations with PRPs, and statutes of limitations for pursuing cost
recovery. The enforcement support services required under the contract
may be conducted to support EPA enforcement actions under any
environmental statute.
(5) Alternate V shall be used in all Superfund Headquarters Support
solicitations and contracts. The Contracting Officer is authorized to
modify paragraph (c) of Alternate V to reflect any unique limitations
applicable to the program requirements.
(6) Alternate VI shall be used in all Site Specific solicitations
and contracts.
(d) The Contracting Officer shall insert the clause at 1552.209-75
in Superfund solicitations and contracts in excess of the simplified
acquisition threshold, where the solicitation or contract does not
include (EPAAR) 48 CFR 1552.211-74, Work Assignments, Alternate I, or a
similar clause requiring conflict of interest certifications during
contract performance. This clause requires an annual conflict of
interest certification from contractors when the contract does not
require the submission of other conflict of interest certifications
during contract performance. Contracts requiring annual certifications
include: Site Specific contracts, the Contract Laboratory Program (CLP),
and the Sample Management Office (SMO) contracts. The annual
certification requires a contractor
[[Page 18]]
to certify that all organizational conflicts of interest have been
reported, and that its personnel performing work under EPA contracts or
relating to EPA contracts have been informed of their obligation to
report personal and organizational conflicts of interest to the
Contractor. The annual certification shall cover the one-year period
from the date of contract award for the initial certification, and a
one-year period starting from the previous certification for subsequent
certifications. The certification must be received by the Contracting
Officer no later than 45 days after the close of the certification
period covered.
[59 FR 18619, Apr. 19, 1994, as amended at 61 FR 57337, Nov. 6, 1996;
70 FR 61569, Oct. 25, 2005]
PART 1511_DESCRIBING AGENCY NEEDS--Table of Contents
Sec.
1511.000 Scope of part.
1511.011 Solicitation Provisions and Contract Clauses.
1511.011-70 Reports of work.
1511.011-71 [Reserved]
1511.011-72 Monthly progress report.
1511.011-73 Level of effort.
1511.011-74 Work assignments.
1511.011-75 Working files.
1511.011-76 Legal analysis.
1511.011-77 Final reports.
1511.011-78 Advisory and assistance services.
1511.011-79 Information resources management.
Authority: Sec. 205(c), 63 Sta. 390, as amended, 40 U.S.C. 486(c).
Source: 61 FR 57337, Nov. 6, 1996, unless otherwise noted.
1511.000 Scope of part.
This part implements FAR part 11 and provides policy and procedures
for describing Agency needs.
1511.011 Solicitation Provisions and Contract Clauses.
1511.011-70 Reports of work.
Contracting officers shall insert one of the contract clauses at
1552.211-70 when the contract requires the delivery of reports,
including plans, evaluations, studies, analyses and manuals. The basic
clause should be used when reports are specified in a contract
attachment. Alternate I is used to specify reports in the contract
schedule.
[78 FR 46290, July 31, 2013]
1511.011-71 [Reserved]
1511.011-72 Monthly progress report.
Contracting Officers shall insert a contract clause substantially
the same as the clause at 1552.211-72 when monthly progress reports are
required.
1511.011-73 Level of effort.
The Contracting Officer shall insert the clause at 1552.211-73,
Level of Effort-Cost Reimbursement Term Contract, in cost-reimbursement
term contracts including cost contracts without fee, cost-sharing
contracts, cost-plus-fixed-fee (CPFF) contracts, cost-plus-incentive-fee
contracts (CPIF), and cost-plus-award-fee contracts (CPAF).
[78 FR 46290, July 31, 2013]
1511.011-74 Work assignments.
(a) Policy. When issuing work assignments, the independent
government cost estimate shall not be released to the contractor. In
most cases the Contracting Officer (CO) should authorize the contractor
to expend only the estimated labor hours necessary to develop the work
plan and to initiate preliminary tasks which must be performed before
work plan approval can be made. However, in cases where the
uncertainties involved in the effort are of such a magnitude that there
is no reasonable expectation that the contractor can estimate the level
of effort required by the tasks, objectives, or outcomes of the
requirement, the CO may provide a ceiling level of effort for the entire
work assignment at the time of its issuance. In such cases, the specific
uncertainties precluding reasonable estimation of the required level of
effort on the contractor's part must be documented in the contract file.
(b) Contract clause. The CO shall insert the contract clause at
1552.211.74, Work Assignments, in cost-reimbursement type term form
contracts when work assignments are used. For Superfund contracts,
except for contracts
[[Page 19]]
which require annual conflict of interest certificates (e.g. Site
Specific contracts, the Contract Laboratory Program (CLP), and Sample
Management Office (SMO) contracts), the CO shall use the clause with
either Alternate I or Alternate II. Alternate I shall be used for
contractors who have at least three (3) years of records that may be
searched for certification purposes. Alternate II shall be used for
contractors who do not have at least three (3) years of records that may
be searched.
[77 FR 8175, Feb. 14, 2012, as amended at 78 FR 46290, July 31, 2013]
1511.011-75 Working files.
Contracting Officers shall insert the contract clause at 1552.211-75
in all applicable EPA contracts where accurate working files on all work
documentation is required in the performance of the contract.
1511.011-76 Legal analysis.
Contracting Officers shall insert the clause at 1552.211-76 when it
is determined that the contract involves legal analysis.
1511.011-77 Final reports.
Contracting Officers shall insert the contract clause at 1552.211-77
when a contract requires both a draft and a final report.
1511.011-78 Advisory and assistance services.
Contracting Officers shall insert the contract clause at 1552.211-78
in all contracts for advisory and assistance services.
1511.011-79 Information resources management.
The Contracting Officer shall insert the clause at 1552.211-79,
Compliance with EPA Policies for Information Resource Management, in all
solicitations and contracts.
[[Page 20]]
SUBCHAPTER C_CONTRACTING METHODS AND CONTRACT TYPES
PART 1513_SIMPLIFIED ACQUISITION PROCEDURES--Table of Contents
Sec.
1513.000 Scope of part.
Subpart 1513.1_General
1513.170 Competition exceptions and justification for sole source
simplified acquisition procedures.
1513.170-1 Contents of sole source justifications.
Subpart 1513.4--Imprest Fund [Reserved]
Subpart 1513.5_Purchase Orders
1513.505 Purchase order and related forms.
1513.507 Clauses.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 61 FR 57338, Nov. 6, 1996, unless otherwise noted.
1513.000 Scope of part.
This part prescribes EPA policies and procedures for the acquisition
of supplies, nonpersonal services, and construction from commercial
sources, the aggregate amount of which does not exceed the simplified
acquisition threshold.
Subpart 1513.1_General
1513.170 Competition exceptions and justification for sole source
simplified acquisition procedures.
1513.170-1 Contents of sole source justifications.
The program office submitting the procurement request must submit,
as a separate attachment, a brief written statement in support of sole
source acquisitions exceeding the micro-purchase threshold. The
statement must cite one or more of the circumstances in FAR 6.302 and
the necessary facts to support each circumstance. Although program
offices may not cite the authority in FAR 6.302-7, the public interest
may be used as a basis to support a sole source acquisition. If the
acquisition has been synopsized as a notice of proposed sole source
acquisition, the statement must include the results of the evaluation of
responses to the synopsis.
Subpart 1513.4--Imprest Fund [Reserved]
Subpart 1513.5_Purchase Orders
1513.505 Purchase order and related forms.
Contracting Officers may use the EPA Form 1900-8, Procurement
Request/Order, in lieu of Optional Forms 347 and 348 for individual
purchases prepared in accordance with the instructions printed on the
reverse thereof (see 1553.213-70).
[61 FR 57338, Nov. 6, 1996. Redesignated at 62 FR 33572, June 20, 1997]
1513.507 Clauses.
(a) It is the general policy of the Environmental Protection Agency
that Contractor or vendor prescribed leases or maintenance agreements
for equipment shall not be executed.
(b) The Contracting Officer shall, where appropriate, insert the
clause at 1552.213-70, Notice to Suppliers of Equipment, in orders for
purchases or leases of automatic data processing equipment, word
processing, and similar types of commercially available equipment for
which vendors, as a matter of routine commercial practice, have
developed their own leases and/or customer service maintenance
agreements.
PART 1514_SEALED BIDDING--Table of Contents
Subpart 1514.2_Solicitation of Bids
Sec.
1514.201 Preparation of invitations for bids.
1514.201-6 Solicitation provisions.
1514.201-7 Contract clauses.
1514.205 Solicitation mailing lists.
Subpart 1514.4_Opening of Bids and Award of Contract
1514.404 Rejection of bids.
[[Page 21]]
1514.406 Mistakes in bids.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 49 FR 8843, Mar. 8, 1984, unless otherwise noted.
Subpart 1514.2_Solicitation of Bids
1514.201 Preparation of invitations for bids.
1514.201-6 Solicitation provisions.
The Contracting Officer shall insert the solicitation provision at
1552.214-71, Contract Award-Other Factors-Sealed Bidding, in invitations
for bids when it is appropriate to describe other factors that will be
used in evaluating bids for award.
[50 FR 14359, Apr. 11, 1985, as amended at 61 FR 55118, Oct. 24, 1996]
1514.201-7 Contract clauses.
The CCO is authorized to waive the inclusion of the clauses at FAR
52.214-27 and 52.214-28, in accordance with FAR 14.201-7.
[55 FR 24579, June 18, 1990, as amended at 58 FR 18976, Apr. 21, 1994]
1514.205 Solicitation mailing lists.
When a solicitation and all amendments are posted on the Internet
with a synopsis providing information as to how to access the
solicitation and all amendments, the CO will need to maintain a mailing
list of only those individuals requesting paper copies from the contract
service center/branch. When possible, the CO should also build an
electronic ``mailing list'' of companies downloading the solicitation
from the Internet.
[49 FR 8843, Mar. 8, 1984, as amended at 62 FR 37148, July 11, 1997]
Subpart 1514.4_Opening of Bids and Award of Contract
1514.404 Rejection of bids.
1514.406 Mistakes in bids.
PART 1515_CONTRACTING BY NEGOTIATION--Table of Contents
Sec.
1515.000 Scope of part.
Subpart 1515.2_Solicitation and Receipt of Proposals and Information
1515.209 Solicitation provisions and contract clauses.
Subpart 1515.3_Source Selection
1515.302 Applicability.
1515.303 Responsibilities.
1515.305 Proposal evaluation.
1515.305-70 Scoring plans.
1515.305-71 Documentation of proposal evaluation.
1515.305-72 Release of cost information.
Subpart 1515.4_Contract Pricing
1515.404-4 Profit.
1515.404-470 Policy.
1515.404-471 EPA structured approach for developing profit or fee
objectives.
1515.404-472 Other methods.
1515.404-473 Limitations.
1515.404-474 Waivers.
1515.404-475 Cost realism.
1515.408 Solicitation provisions and contract clauses.
Subpart 1515.6_Unsolicited Proposals
1515.604 Agency points of contact.
1515.606-70 Contracting methods.
Authority: 5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 40
U.S.C. 486(c); and 41 U.S.C. 418b.
Source: 64 FR 47410, Aug. 31, 1999, unless otherwise noted.
1515.000 Scope of part.
This part implements and supplements FAR part 15. It prescribes the
Environmental Protection Agency policies and procedures for contracting
for supplies and services by negotiation.
[[Page 22]]
Subpart 1515.2_Solicitation and Receipt of Proposals and Information
1515.209 Solicitation provisions and contract clauses.
In addition to those provisions prescribed at FAR 15.209 and in
accordance with FAR 15.203(a)(4), the contracting officer shall identify
and include the evaluation factors that will be considered in making the
source selection and their relative importance in each solicitation.
(a) The contracting officer shall insert the provisions at 1552.215-
70, ``EPA Source Evaluation and Selection Procedures--Negotiated
Procurement'' and either: the provision at 1552.215-71, ``Evaluation
Factors for Award,'' where all evaluation factors other than cost or
price when combined are significantly more important than cost or price;
or the provision in Alternate I to 1552.215-71, where all evaluation
factors other than cost or price when combined are significantly less
important than cost or price; or the provision in Alternate II to
1552.215-71, where all evaluation factors other than cost or price when
combined are approximately equal to cost or price; or Alternate III to
1552.215-71 where award will be made to the offeror with the lowest-
evaluated cost or price whose proposal meets or exceeds the
acceptability standards for non-cost factors.
(b) Evaluation factors and significant subfactors should be prepared
in accordance with FAR 15.305 and inserted into paragraph (b) of the
provision at 1552.215-71, Alternate I, Alternate II, and if used, in
Alternate III.
(c) The contracting officer shall insert the clause at 1552.215-75,
Past Performance Information, or a clause substantially the same as
1552.215-75, in all competitively negotiated acquisitions with an
estimated value in excess of $100,000.
[64 FR 47410, Aug. 31, 1999, as amended at 65 FR 58923, Oct. 3, 2000]
Subpart 1515.3_Source Selection
1515.302 Applicability.
FAR subpart 15.3 and this subpart apply to the selection of source
or sources in competitive negotiation acquisitions in excess of the
simplified acquisition threshold, except architect-engineering services
which are covered in 1536.6.
1515.303 Responsibilities.
The Source Selection Authority (SSA) is established as follows:
(a) Acquisitions having a potential value of $25,000,000 or more:
Service Center Manager (SCM). This authority is not redelegable.
(b) Acquisitions having a potential value of less than $25,000,000,
but more than $10,000,000: SCM, who has the authority to redelegate SSA
authority to a warranted 1102. If redelegated, review by another
warranted 1102 designated by the SCM is also required. A Regional
Contracting Officer Supervisor may act as the SSA, as determined on a
case-by-case basis, by the Director, Superfund/RCRA Regional Procurement
Operations Division (SRRPOD).
(c) Acquisitions having a potential value of $10,000,000 or less:
The contracting officer.
[67 FR 5072, Feb. 4, 2002]
1515.305 Proposal evaluation.
1515.305-70 Scoring plans.
When trade-offs are performed (in accordance with FAR 15.101-1), the
evaluation of technical and past performance shall be accomplished using
the following scoring plan or one specifically developed for the
solicitation, e.g., other numeric, adjectival, color rating systems,
etc.
Scoring Plan
------------------------------------------------------------------------
Value Descriptive statement
------------------------------------------------------------------------
0............................ The factor is not addressed, or is
totally deficient and without merit.
[[Page 23]]
1............................ The factor is addressed, but contains
deficiencies and/or weaknesses that can
be corrected only by major or
significant changes to relevant portions
of the proposal, or the factor is
addressed so minimally or vaguely that
there are widespread information gaps.
In addition, because of the
deficiencies, weaknesses, and/or
information gaps, serious concerns exist
on the part of the technical evaluation
team about the offeror's ability to
perform the required work.
2............................ Information related to the factor is
incomplete, unclear, or indicates an
inadequate approach to, or understanding
of the factor. The technical evaluation
team believes there is question as to
whether the offeror would be able to
perform satisfactorily.
3............................ The response to the factor is adequate.
Overall, it meets the specifications and
requirements, such that the technical
evaluation team believes that the
offeror could perform to meet the
Government's minimum requirements.
4............................ The response to the factor is good with
some superior features. Information
provided is generally clear, and the
demonstrated ability to accomplish the
technical requirements is acceptable
with the possibility of more than
adequate performance.
5............................ The response to the factor is superior in
most features.
------------------------------------------------------------------------
1515.305-71 Documentation of proposal evaluation.
In addition to the information required by FAR 15.305(a)(3), the
technical evaluation documentation shall include:
(a) Score sheets prepared by each individual team member must be
made available upon the contracting officer's request. For contracts
valued at $10,000,000 or less, the technical evaluation may be recorded
on the short form technical evaluation format (EPA Form 1900-61) or
another form specifically developed for the solicitation; and
(b) A statement that the respective team members are free from
actual or potential personal conflicts of interest, and are in
compliance with the Office of Government Ethics ethics provisions at 5
CFR part 2635.
(c) Any information which might reveal that an offeror has an actual
or potential organizational conflict of interest.
(d) Any documentation related to exchanges with individual offerors.
1515.305-72 Release of cost information.
(a) In accordance with FAR 15.305(a)(4), the contracting officer may
release the cost/price proposals to those members of the evaluation team
who are evaluating proposals at his/her discretion.
(b) These individuals would then use this information to perform a
cost realism analysis as described in FAR 15.404-1(d). Any
inconsistencies between the proposals and the solicitation requirements
and/or any inconsistencies between the cost/price and other than cost/
price proposals should be identified.
Subpart 1515.4_Contract Pricing
1515.404-4 Profit.
This section implements FAR 15.404-4 and prescribes the EPA
structured approach for establishing profit or fee prenegotiation
objectives.
1515.404-470 Policy.
(a) The Agency's policy is to utilize profit to attract contractors
who possess talents and skills necessary to the accomplishment of the
objectives of the Agency, and to stimulate efficient contract
performance. In negotiating profit/fee, it is necessary that all
relevant factors be considered, and that fair and reasonable amounts be
negotiated which give the contractor a profit objective commensurate
with the nature of the work to be performed, the contractor's input to
the total performance, and the risks assumed by the contractor.
(b) The purpose of EPA's structured approach is:
(1) To provide a standard method of evaluation;
(2) To ensure consideration of all relevant factors;
(3) To provide a basis for documentation and explanation of the
profit or fee negotiation objective; and
[[Page 24]]
(4) To allow contractors to earn profits commensurate with the
assumption of risk.
(c) The profit-analysis factors prescribed in the EPA structured
approach for analyzing profit or fee include those prescribed by FAR
15.404(d)(1), and additional factors authorized by FAR 15.404(d)(2) to
foster achievement of program objectives. These profit or fee factors
are prescribed in 1515.404-471.
1515.404-471 EPA structured approach for developing profit or fee
objectives.
(a) General. To properly reflect differences among contracts, and to
select an appropriate relative profit/fee in consideration of these
differences, weightings have been developed for application by the
contracting officer to standard measurement bases representative of the
prescribed profit factors cited in FAR 15.404(d) and EPAAR 1515.404-
471(b)(1). Each profit factor or subfactor, or its components, has been
assigned weights relative to their value to the contract's overall
effort, and the range of weights to be applied to each profit factor.
(b)(1) Profit/fee factors. The factors set forth in this paragraph,
and the weighted ranges listed after each factor, shall be used in all
instances where the profit/fee is negotiated.
Contractor's Input to Total Performance
------------------------------------------------------------------------
Weight Range (Percent)
------------------------------------------------------------------------
Direct material............................ 1 to 4.
Professional/technical labor............... 8 to 15.
Professional/technical overhead............ 6 to 9.
General labor.............................. 5 to 9.
General overhead........................... 4 to 7.
Subcontractors............................. 1 to 4.
Other direct costs......................... 1 to 3.
General and administrative expenses........ 5 to 8.
Contractor's assumption of contract cost 0 to 6.
risk.
------------------------------------------------------------------------
(2) The contracting officer shall first measure the ``Contractor's
Input to Total Performance'' by the assignment of a profit percentage
within the designated weight ranges to each element of contract cost.
Such costs are multiplied by the specific percentages to arrive at a
specific dollar profit or fee.
(3) The amount calculated for facilities capital cost of money
(FCCM) shall not be included as part of the cost base for computation of
profit or fee. The profit or fee objective shall be reduced by an amount
equal to the amount of facilities capital cost of money allowed. A
complete discussion of the determination of facilities capital cost of
money and its application and administration is set forth in FAR 31.205-
10, and the appendix to the FAR (see 48 CFR 9904.414).
(4) After computing a total dollar profit or fee for the
Contractor's Input to Total Performance, the contracting officer shall
calculate the specific profit dollars assigned for cost risk and
performance. This is accomplished by multiplying the total Government
cost objective, exclusive of any FCCM, by the specific weight assigned
to cost risk and performance. The contracting officer shall then
determine the profit or fee objective by adding the total profit dollars
for the Contractor's Input to Total Performance to the specific dollar
profits assigned to cost risk and performance. The contracting officer
shall use EPA Form 1900-2 in hardcopy or electronic copy equivalent to
facilitate the calculation of the profit or fee objective.
(5) The weight factors discussed in this section are designed for
arriving at profit or fee objectives for other than nonprofit and not-
for-profit organizations. Nonprofit and not-for-profit organizations are
addressed as follows:
(i) Nonprofit and not-for-profit organizations are defined as those
business entities organized and operated:
(A) Exclusively for charitable, scientific, or educational purposes;
(B) Where no part of the net earnings inure to the benefit of any
private shareholder or individual;
(C) Where no substantial part of the activities is for propaganda or
otherwise attempting to influence legislation or participating in any
political campaign on behalf of any candidate for public office; and
(D) Which are exempt from Federal income taxation under Section 51
of the Internal Revenue Code. (26 U.S.C.)
(ii) For contracts with nonprofit and not-for-profit organizations
where fees are involved, special factor of -3 percent shall be assigned
in all cases.
(c) Assignment of values to specific factors--(1) General. In making
a judgment
[[Page 25]]
on the value of each factor, the contracting officer should be governed
by the definition, description, and purpose of the factors, together
with considerations for evaluation set forth in this paragraph.
(2) Contractor's input to total performance. This factor is a
measure of how much the contractor is expected to contribute to the
overall effort necessary to meet the contract performance requirements
in an efficient manner. This factor, which is separate from the
contractor's responsibility for contract performance, takes into account
what resources are necessary, and the creativity and ingenuity needed
for the contractor to perform the statement of work successfully. This
is a recognition that within a given performance output, or within a
given sales dollar figure, necessary efforts on the part of individual
contractors can vary widely in both value, quantity, and quality, and
that the profit or fee objective should reflect the extent and nature of
the contractor's contribution to total performance. Greater profit
opportunity should be provided under contracts requiring a high degree
of professional and managerial skill and to prospective contractors
whose skills, facilities, and technical assets can be expected to lead
to efficient and economical contract performance. The evaluation of this
factor requires an analysis of the cost content of the proposed contract
as follows:
(i) Direct material (purchased parts and other material). (A)
Analysis of these cost items shall include an evaluation of the
managerial and technical effort necessary to obtain the required
material. This evaluation shall include consideration of the number of
orders and suppliers, and whether established sources are available or
new sources must be developed. The contracting officer shall also
determine whether the contractor will, for example, obtain the materials
by routine orders or readily available supplies (particularly those of
substantial value in relation to the total contract costs), or by
detailed subcontracts for which the prime contractor will be required to
develop complex specifications involving creative design.
(B) Consideration should be given to the managerial and technical
efforts necessary for the prime contractor to administer subcontracts,
and to select subcontractors, including efforts to break out
subcontracts from sole sources, through the introduction of competition.
(C) Recognized costs proposed as direct material costs such as scrap
charges shall be treated as material for profit evaluation.
(D) If intracompany transfers are accepted at price, in accordance
with FAR 31.205-26(e), they should be excluded from the profit or fee
computation. Other intracompany transfers shall be evaluated by
individual components of cost, i.e., material, labor, and overhead.
(ii) Professional/technical and general labor. Analysis of labor
should include evaluation of the comparative quality and level of the
talents and experience to be employed. In evaluating labor for the
purpose of assigning profit dollars, consideration should be given to
the amount of notable scientific talent or unusual or scarce talent
needed, in contrast to journeyman effort or supporting personnel. The
diversity, or lack thereof, of scientific and engineering specialties
required for contract performance, and the corresponding need for
supervision and coordination, should also be evaluated.
(iii) Overhead and general and administrative expenses. (A) Where
practicable, analysis of these overhead items of cost should include the
evaluation of the individual elements of these expenses, and how much
they contribute to contract performance. This analysis should include a
determination of the amount of labor within these overhead pools, and
how this labor would be treated if it were considered as direct labor
under the contract. The allocable labor elements should be given the
same profit consideration as if they were direct labor. The other
elements of indirect cost pools should be evaluated to determine whether
they are routine expenses such as utilities, depreciation, and
maintenance, and therefore given less profit consideration.
(B) The contractor's accounting system need not break down its
overhead
[[Page 26]]
expenses within the classification of professional/technical overhead,
general overhead and general and administrative expenses.
(iv) Subcontractors. (A) Subcontract costs should be analyzed from
the standpoint of the talents and skills of the subcontractors. The
analysis should consider if the prime contractor normally should be
expected to have people with comparable expertise employed as full-time
staff, or if the contract requires skills not normally available in an
employer-employee relationship. Where the prime contractor is using
subcontractors to perform labor which would normally be expected to be
done in-house, the rating factor should generally be at or near 1
percent. Where exceptional expertise is retained, or the prime
contractor is participating in the mentor-prot[eacute]g[eacute] program,
the assigned weight should be nearer to the high end of the range.
(v) Other direct costs. The analysis of these costs should be
similar to the analysis of direct material.
(3) Contractor's assumption of contract cost risk. (i) The risk of
contract costs should be shifted to the fullest extent practicable to
contractors, and the Government should assign a rating that reflects the
degree of risk assumption. Evaluation of this risk requires a
determination of the degree of cost responsibility the contractor
assumes, the reliability of the cost estimates in relation to the task
assumed, and the chance of the contractor's success or failure. This
factor is specifically limited to the risk of contract costs. Thus, such
risks of losing potential profits in other fields are not within the
scope of this factor.
(ii) The first determination of the degree of cost responsibility
assumed by the contractor is related to the sharing of total risk of
contract cost by the Government and the contractor, depending on
selection of contract type. The extremes are a cost-plus-fixed-fee
contract requiring only that the contractor use its best efforts to
perform a task, and a firm-fixed-price contract for a complex item. A
cost-plus-fixed-fee contract would reflect a minimum assumption of cost
responsibility by the contractor, whereas a firm-fixed-price contract
would reflect a complete assumption of cost responsibility by the
contractor. Therefore, in the first step of determining the value given
for the contractor's assumption of contract cost risk, a lower rating
would be assigned to a proposed cost-plus-fixed-fee best efforts
contract, and a higher rating would be assigned to a firm-fixed-price
contract.
(iii) The second determination is that of the reliability of the
cost estimates. Sound price negotiation requires well-defined contract
objectives and reliable cost estimates. An excessive cost estimate
reduces the possibility that the cost of performance will exceed the
contract price, thereby reducing the contractor's assumption of contract
cost risk.
(iv) The third determination is that of the difficulty of the
contractor's task. The contractor's task may be difficult or easy,
regardless of the type of contract.
(v) Contractors are likely to assume greater cost risks only if the
contracting officer objectively analyzes the risk incident to the
proposed contract, and is willing to compensate contractors for it.
Generally, a cost-plus-fixed-fee contract would not justify a reward for
risk in excess of 1 percent, nor would a firm-fixed-price contract
normally justify a reward of less than 4 percent. Where proper contract
type selection has been made, the reward for risk by contract type would
usually fall into the following percentage ranges:
------------------------------------------------------------------------
Type of contract Percentage ranges
------------------------------------------------------------------------
Cost-plus-fixed-fee........................ 0 to 1.
Prospective price determination............ 4 to 5.
Firm-fixed-price........................... 4 to 6.
------------------------------------------------------------------------
(A) These ranges may not be appropriate for all acquisitions. The
contracting officer might determine that a basis exists for high
confidence in the reasonableness of the estimate, and that little
opportunity exists for cost reduction without extraordinary efforts. The
contractor's willingness to accept ceilings on their burden rates should
be considered as a risk factor for cost-plus-fixed-fee contracts.
[[Page 27]]
(B) In making a contract cost risk evaluation in an acquisition that
involves definitization of a letter contract, consideration should be
given to the effect on total contract cost risk as a result of partial
performance under a letter contract. Under some circumstances, the total
amount of cost risk may have been effectively reduced by the existence
of a letter contract. Under other circumstances, it may be apparent that
the contractor's cost risk remained substantially as great as though a
letter contract had not been used. Where a contractor has begun work
under an anticipatory cost letter, the risk assumed is greater than
normal. To be equitable, the determination of a profit weight for
application to the total of all recognized costs, both those incurred
and those yet to be expended, must be made with consideration to all
relevant circumstances, not just to the portion of costs incurred or
percentage of work completed prior to definitization.
1515.404-472 Other methods.
(a) Contracting officers may use methods other than those prescribed
in 1515.404-470 for establishing profit or fee objectives under the
following types of contracts and circumstances:
(1) Architect-engineering contracts;
(2) Personal service contracts;
(3) Management contracts, e.g., for maintenance or operation of
Government facilities;
(4) Termination settlements;
(5) Services under labor-hour and time and material contracts which
provide for payment on an hourly, daily, or monthly basis, and where the
contractor's contribution constitutes the furnishing of personnel.
(6) Construction contracts; and
(7) Cost-plus-award-fee contracts.
(b) Generally, it is expected that such methods will:
(1) Provide the contracting officer with a technique that will
ensure consideration of the relative value of the appropriate profit
factors described under ``Profit Factors,'' in FAR 15.404-4(d) and
(2) Serve as a basis for documentation of the profit or fee
objective.
1515.404-473 Limitations.
(a) In addition to the limitations established by statute (see FAR
15.404-4(b)(4)(i)), no administrative ceilings on profits or fees shall
be established, except those identified in EPAAR (48 CFR) 1516.404-
273(b).
(b) The contracting officer shall not consider any known
subcontractor profit/fee as part of the basis for determining the
contractor profit/fee.
1515.404-474 Waivers.
Under unusual circumstances, the SCM may specifically waive the
requirement for the use of the guidelines. Such exceptions shall be
justified in writing, and authorized only in situations where the
guidelines method is unsuitable.
[64 FR 47410, Aug. 31, 1999, as amended at 67 FR 5072, Feb. 4, 2002]
1515.404-475 Cost realism.
The EPA structured approach is not required when the contracting
officer is evaluating cost realism in a competitive acquisition.
1515.408 Solicitation provisions and contract clauses.
(a) In addition to those provisions and clauses prescribed in FAR
15.408, when an exception to FAR 15.403-1 does not apply and no other
means available can be used to ascertain whether a fair and reasonable
price can be determined, the contracting officer may insert in
negotiated solicitations the provisions at--
(1) 1552.215-72 when requesting information other than cost or
pricing data, for cost-reimbursable, level-of-effort-contracts. Use
Alternate I for cost-reimbursable, level-of-effort contracts when the
Government's requirement is for fully dedicated staff for a twelve month
period(s) of performance and performance is on a Government facility;
Alternate II for acquisitions for cost-reimbursable, level-of-effort
contracts when the Government's requirement is for fully dedicated staff
for a twelve month period(s) of performance and performance is not on a
Government facility; and Alternate III if the Government's requirement
is for the acquisition of supplies or equipment.
[[Page 28]]
The contracting officer may make revisions, deletions, or additions to
1552.215-72 and its Alternates I-III as needed to fit an individual
acquisition, and
(2) 1552.215-73, General Financial and Organizational Information.
(b) If uncompensated overtime is proposed, the resultant contract
shall include the provisions at FAR 52.237-10 and include the provision
at 1552.215-74. The contracting officer may use provisions substantially
the same as 1552.215-74 without requesting a deviation to the EPAAR.
Subpart 1515.6_Unsolicited Proposals
1515.604 Agency points of contact.
The Director, Grants Administration Division (3903R), EPA, 1200
Pennsylvania Ave., NW., Washington, DC 20460, is the Agency contact
point established to coordinate the receipt and handling of unsolicited
proposals.
[64 FR 47410, Aug. 31, 1999, 65 FR 47325, Aug. 2, 2000]
1515.606-70 Contracting methods.
The Department of Housing and Urban Development-Independent Agencies
Appropriation Act contains a requirement that none of the funds provided
in the Act may be used for payment through grants or contracts to
recipients that do not share in the cost of conducting research
resulting from proposals that are not specifically solicited by the
Government. Accordingly, contracts for research which result from
unsolicited proposals shall provide for the contractor to bear a portion
of the cost of performance for work subject to the Act. The extent of
the cost sharing shall reflect the mutuality of interest of the
contractor and the Government. Therefore, where there is no measurable
gain to the performing organization, cost sharing is not required.
PART 1516_TYPES OF CONTRACTS--Table of Contents
Subpart 1516.3_Cost-Reimbursement Contracts
Sec.
1516.301-70 Payment of fee.
1516.303 Cost-sharing contracts.
1516.303-71 Definition.
1516.303-72 Policy.
1516.303-73 Types of cost-sharing.
1516.303-74 Determining the value of in-kind contributions.
1516.303-75 Amount of cost-sharing.
1516.303-76 Fee on cost-sharing contracts by subcontractors.
1516.303-77 Administrative requirements.
1516.307 Contract clauses.
1516.370 Solicitation provision.
Subpart 1516.4_Incentive Contracts
1516.401-1 General.
1516.401-70 Award term incentives.
1516.401-270 Definition.
1516.405-2 Cost-plus-award-fee contracts.
1516.405-270 Definitions.
1516.405-271 Limitations.
1516.405-272 Waiver.
1516.406 Contract clauses.
Subpart 1516.5_Indefinite-Delivery Contracts
1516.505 Contract clauses.
Subpart 1516.6_Time-and-Materials, Labor-Hour, and Letter Contracts
1516.603 Letter Contracts.
1516.603-1 What is a Notice to Proceed?
1516.603-2 What are the requirements for use of an NTP?
1516.603-3 Limitations.
Authority: The provisions of this regulation are issued under 5
U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c); and
41 U.S.C. 418b.
Source: 49 FR 8852, Mar. 8, 1984, unless otherwise noted.
Subpart 1516.3_Cost-Reimbursement Contracts
1516.301-70 Payment of fee.
The policy of EPA for cost-reimbursement, term form contracts is to
make provisional payment of fee (i.e. the fixed fee on cost-plus-fixed-
fee type contracts or the base fee on cost-plus-award-fee type
contracts) on a percentage of work completed basis, when such a method
will not prove detrimental to proper contract performance. Percentage of
work completed is the ratio of the direct labor hours performed in
relation to the direct labor hours set forth in the contract in clause
1552.212-
[[Page 29]]
70, ``Level of Effort--Cost Reimbursement Term Contract.'' Provisional
payment of fee will remain subject to withholding provisions, such as 48
CFR 52.216-8, Fixed Fee.
[56 FR 43711, Sept. 4, 1991]
1516.303 Cost-sharing contracts.
1516.303-71 Definition.
Cost-sharing is a generic term denoting any situation where the
Government does not fully reimburse a contractor for all allowable costs
necessary to accomplish the project under the contract. This term
encompasses cost-matching and cost-limitations, in addition to cost-
sharing. Cost-sharing does not include usual contractual limitations
such as indirect cost ceilings in accordance with FAR 42.707, or
ceilings on travel or other direct costs. Cost-sharing contracts may be
required as a result of Congressional mandate.
[61 FR 14504, Apr. 2, 1996]
1516.303-72 Policy.
(a) The Agency shall use cost-sharing contracts where the principal
purpose is ultimate commercialization and utilization of technologies by
the private sector. There should also be a reasonable expectation of
future economic benefits for the contractor and the Government beyond
the Government's contract.
(b) Cost-sharing may be accomplished by a contribution to either
direct or indirect costs, provided such costs are reasonable, allocable
and allowable in accordance with the cost principles of the contract.
Allowable costs which are absorbed by the contractor as its share of
contract costs may not be charged directly or indirectly to the Agency
or the Federal Government.
(c) Unsolicited proposals will be considered on a case-by-case basis
by the Contracting Officer as to the appropriateness of cost-sharing.
[61 FR 14504, Apr. 2, 1996]
1516.303-73 Types of cost-sharing.
(a) Cost-sharing may be accomplished in various forms or
combinations. These include, but are not limited to: cash outlays, real
property or interest therein, personal property or services, cost
matching, or other in-kind contributions.
(b) In-kind contributions represent non-cash contributions provided
by the performing contractor which would normally be a charge against
the contract. While in-kind contributions are an acceptable method of
cost-sharing, should the booked costs of property appear unrealistic,
the fair market value of the property shall be determined pursuant to
1516.303-74 of this chapter.
(c) In-kind contributions may be in the form of personal property
(equipment or supplies) or services which are directly beneficial,
specifically identifiable and necessary for the performance of the
contract. In-kind contributions must meet all of the following criteria
before acceptance.
(1) Be verifiable from the contractor's books and records;
(2) Not be included as contributions under any other Federal
contract;
(3) Be necessary to accomplish project objectives;
(4) Provide for types of charges that would otherwise be allowable
under applicable Federal cost principles appropriate to the contractor's
organization; and
(5) Not be paid for by the Federal Government under any contract,
agreement or grant.
[61 FR 14504, Apr. 2, 1996]
1516.303-74 Determining the value of in-kind contributions.
In-kind contributions accepted from a contractor will be addressed
on a case-by-case basis provided the established values do not exceed
fair market values.
(a) Where the Agency receives title to donated land, building,
equipment or supplies and the property is not fully consumed during
performance of the contract, the Contracting Officer should establish
the property's value based on the contractor's booked costs (i.e.,
acquisition cost less depreciation, if any) at the time of donation. If
the booked costs reflect unrealistic values when compared to current
market conditions, the Contracting Officer may establish another
appropriate value if supported by an independent appraisal of the fair
market value of the donated
[[Page 30]]
property or property in similar condition and circumstances.
(b) The Contracting Officer will monitor reports of in-kind costs as
they are incurred or recognized during the contract period of
performance to determine that the value of in-kind services does not
exceed fair market values.
(c) The value of any services or the use of personal or real
property donated by a contractor should be established when necessary in
accordance with generally accepted accounting policies and Federal cost
principles.
[61 FR 14505, Apr. 2, 1996]
1516.303-75 Amount of cost-sharing.
(a) Contractors should contribute a reasonable amount of the total
project cost covered under the contract. The ratio of cost participation
should correlate to the apparent advantages available to performers and
the proximity of implementing commercialization, i.e., the higher the
potential for future profits, the higher the contractor's share should
be.
(b) Fee will not be paid to the contractor or any member of the
contractor team (subcontractors and consultants) which has a substantial
and direct interest in the contract, or is in a position to gain long
term benefits from the contract. A vulnerability the Contracting Officer
should consider in reviewing a prime contractor's request for consent to
subcontract is whether subcontractors under prime cost-sharing contracts
have a significant direct interest in the contract to gain long-term
benefits from the contract.
(c) The Contracting Officer, with the input of technical experts,
may consider the following factors in determining reasonable levels of
cost sharing:
(1) The availability of the technology to competitors;
(2) Improvements in the contractor's market share position;
(3) The time and risk necessary to achieve success;
(4) If the results of the project involve patent rights which could
be sold or licensed;
(5) If the contractor has non-Federal sources of funds to include as
cost participation; and
(6) If the contractor has the production and other capabilities to
capitalize the results of the project.
(d) A contractor's cost participation can be provided by other
subcontractors with which it has contractual arrangements to perform the
contract as long as the contractor's cost-sharing goal is met.
[61 FR 14505, Apr. 2, 1996]
1516.303-76 Fee on cost-sharing contracts by subcontractors.
(a) Subcontractors under prime cost-sharing contracts who do not
have a significant direct interest in the contract or who are not in a
position to gain long-term benefits from the contract may earn a fee.
(b) Contracting Officers should be alert to a potential
vulnerability for the Government under cost-sharing contracts when
evaluating proposed subcontractors or consenting to a subcontract during
contract administration, where the subcontractor is a wholly-owned
subsidiary of the prime. The vulnerability consists of the subsidiary
earning a large amount of fee, which could be returned to the prime
through stock dividends or other intercompany transactions. This could
circumvent the objective of a cost-sharing contract.
[61 FR 14505, Apr. 2, 1996]
1516.303-77 Administrative requirements.
(a) The initial Procurement Request shall reflect the total
estimated cost of the cost-sharing contract. The face page of the
contract award shall indicate the total estimated cost of the contract,
the Contractor's share of the cost, and the Government's share of the
cost.
(b) The manner of cost-sharing and how it is to be accomplished
shall be set forth in the contract. Additionally, contracts which
provide for cost-sharing shall require the contractor to maintain
records adequate to reflect the nature and extent of their cost-sharing
as well as those costs charged the Agency. Such records may be subject
to an Agency audit.
[61 FR 14505, Apr. 2, 1996]
[[Page 31]]
1516.307 Contract clauses.
(a) The Contracting Officer shall insert the clause in 1552.216-71,
Date of Incurrence of Cost, in cost-reimbursement contracts when an
anticipatory cost letter has been issued on the project.
(b) The Contracting Officer shall insert the clause at 1552.216-74,
Payment of Fee, in solicitations and contracts where a cost-
reimbursement term form contract is contemplated, unless the Contracting
Officer determines that such a provision would be detrimental to
ensuring proper contract performance.
(c) The Contracting Officer shall insert a clause substantially the
same as 48 CFR 1552.216-76, Estimated Cost and Cost-Sharing, in
solicitations and contracts where the total incurred costs are shared by
the contractor on a straight percentage basis. The Contracting Officer
may develop other clauses, as appropriate, following the same approach,
but reflecting different cost-sharing arrangements negotiated on
specific contract actions.
[49 FR 8852, Mar. 8, 1984, as amended at 56 FR 43711, Sept. 4, 1991; 61
FR 14505, Apr. 2, 1996; 61 FR 57338, Nov. 6, 1996]
1516.370 Solicitation provision.
The solicitation document shall state whether any cost-sharing is
required, and may set forth a target level of cost-sharing. Although
technical considerations are normally most important, the degree of
cost-sharing may be considered in a selection decision when cost becomes
a determinative factor in a selection decision.
[61 FR 14505, Apr. 2, 1996]
Subpart 1516.4_Incentive Contracts
1516.401-1 General.
1516.401-70 Award term incentives.
(a) Award term incentives enable a contractor to become eligible for
additional periods of performance under a current contract by achieving
prescribed performance measures under that contract.
(b) Award term incentives are designed to motivate contractors to
superior performance. Accordingly, the prescribed performance measures,
i.e., acceptable quality levels (AQL) which must be achieved by a
contractor to become eligible for an award term typically will be in
excess of the AQLs necessary for Government acceptance of contract
deliverables.
(c) The Award Term Incentive Plan sets forth the evaluation process,
including the evaluation criteria and performance measures, and serves
as the basis for award term decisions. The Award Term Incentive Plan may
be unilaterally revised by the Government.
(d) Award term incentives may be used in conjunction with options.
The Federal Acquisition Regulation does not prescribe a level of
performance for the exercise of options, as contrasted with award term
incentives, which should require superior performance as discussed in
paragraph (b) of this subsection. Award term incentive periods will
follow any option periods.
(e)(1) The Government has the unilateral right not to grant or to
cancel award term incentive periods and the associated award term
incentive plans if--
(i) The Contracting Officer has failed to initiate an award term
incentive period, regardless of whether the contractor's performance
permitted the Contracting Officer to consider initiating the award term
incentive period; or
(ii) The contractor has failed to achieve the performance measures
for the corresponding evaluation period; or
(iii) The Government notifies the contractor in writing it does not
have funds available for the award term; or
(iv) The Government no longer has a need for the award term
incentive period at or before the time an award term incentive period is
to commence.
(2) When an award term incentive period is not granted or cancelled,
any--
(i) Prior award term incentive periods for which the contractor
remains otherwise eligible are unaffected.
(ii) Subsequent award term incentive periods are thereby also
cancelled.
(f) Award term incentives may be appropriate for any type of service
contract.
[73 FR 1980, Jan. 11, 2008]
[[Page 32]]
1516.401-270 Definition.
Acceptable quality level (AQL) as used in this subpart means the
minimum percent of deliverables which are compliant with a given
performance standard that would permit a contractor to become eligible
for an award term incentive. Because the performance necessary for
eligibility for the award term incentive may be in excess of that
necessary for the Government acceptance of contract deliverables, the
AQLs associated with the award term incentive may exceed the AQLs
associated with the acceptance of contract deliverables. For example,
under contract X, acceptable performance is 75 percent of reports
submitted to the Government within five days. However, to be eligible
for an award term incentive, 85 percent of reports must be submitted to
the Government within five days.
[73 FR 1980, Jan. 11, 2008]
1516.405-2 Cost-plus-award-fee contracts.
1516.405-270 Definitions.
(a) Performance Evaluation Board (PEB). Group of Government
officials responsible for assessing the quality of contract performance
and recommending the appropriate fee.
(b) Fee Determination Official. Individual responsible for reviewing
the recommendations of the PEB and making the final determination of the
amount of award fee to be awarded to the contractor.
[60 FR 43404, Aug. 21, 1995. Redesignated at 73 FR 1981, Jan. 11, 2008]
1516.405-271 Limitations.
(a) No award fee may be earned if the Fee Determination Official
determines that contractor performance has been satisfactory or less
than satisfactory. A contractor may earn award fee only for performance
rated above satisfactory or excellent. All award fee plans shall
disclose to offerors the numerical rating necessary to be deemed ``above
satisfactory'' or ``excellent'' for award fee purposes.
(b) The base fee shall not exceed three percent of the estimated
cost of the contract, exclusive of the fee.
(c) Unearned award fee may not be carried forward from one
performance period into a subsequent performance period unless approved
by the FDO.
(d) The payment of award fee on a provisional basis is not
authorized.
[60 FR 43404, Aug. 21, 1995. Redesignated at 73 FR 1981, Jan. 11, 2008]
1516.405-272 Waiver.
The Chief of the Contracting Office may waive the limitations in
paragraphs (a), (b), and (d) of 1516.404-273 on a case-by-case basis
when unusual or compelling circumstances exist. The waiver shall be
supported by a justification and coordinated with the Acquisition Policy
and Training Service Center in the Office of Acquisition Management.
[60 FR 43404, Aug. 21, 1995. Redesignated at 73 FR 1981, Jan. 11, 2008,
as amended at 78 FR 46290, July 31, 2013]
1516.406 Contract clauses.
(a) The Contracting Officer shall insert the clause at 1552.216-70,
Award fee (MAY 2000), in solicitations and contracts where a cost-plus-
award-fee contract is contemplated.
(b) The Contracting Officer shall insert the clause at 1552.216-75,
Base Fee and Award Fee Proposal (SEP 1995), in all solicitations which
contemplate the award of cost-plus-award-fee contracts. The Contracting
Officer shall insert the appropriate percentages.
(c) The Contracting Officer shall insert the clauses at 1552.216-77,
Award Term Incentive, 1552.216-78, Award Term Incentive Plan, and
1552.216-79 Award Term Availability of Funds in solicitations and
contracts when award term incentives are contemplated. The clauses at
1552.216-77 and 1552.216-78 may be used on substantially the same basis.
(d) If the Contracting Officer wishes to use the ratings set forth
in the Department of Defense Contractor Performance Assessment Reporting
System on the contract at hand as the basis for contractor eligibility
for an award term incentive, the Contracting
[[Page 33]]
Officer shall insert the clause at 1552.216-78 with its Alternate I.
[60 FR 43404, Aug. 21, 1995, as amended at 64 FR 3876, Jan. 26, 1999; 65
FR 31500, May 18, 2000. Redesignated and amended at 73 FR 1981, Jan. 11,
2008; 78 FR 46290, July 31, 2013]
Subpart 1516.5_Indefinite-Delivery Contracts
1516.505 Contract clauses.
(a) The Contracting Officer shall insert the clause in 1552.216-72,
Ordering--By Designated Ordering Officers, or a clause substantially
similar to the subject clause, in indefinite delivery/indefinite
quantity type solicitations and contracts. The Contracting Officer shall
insert Alternate I when formal input from the Contractor will not be
obtained prior to order issuance.
(b) The Contracting Officer shall insert the clause in 1552.216-73,
Fixed Rates for Services--Indefinite Delivery/Indefinite Quantity
Contract, in solicitations and contracts to specify fixed rates for
services.
[49 FR 8852, Mar. 8, 1984, as amended at 79 FR 37960, July 3, 2014]
Subpart 1516.6_Time-and-Materials, Labor-Hour, and Letter Contracts
1516.603 Letter Contracts.
1516.603-1 What is a Notice to Proceed?
(a) A Notice to Proceed (NTP) is a type of letter contract issued
pursuant to FAR 16.603 under which an EPA Federal Classification Series
1102 (FCS) contracting officer or a duly authorized EPA on-scene
coordinator with delegated procurement authority may initiate, in
certain defined situations and subject to certain limitations and
conditions, contracting actions to respond to certain situations as
described in CERCLA section 104(a)(1) (42 U.S.C. 9604(a)(1)) and the
Clean Water Act sections 311(c)(2) and (e)(1)(B) (33 U.S.C. 1321(c)(2)
and (e)(1)(B)). An NTP may be utilized as a contractual instrument for
certain--
(1) Actions that EPA is authorized to undertake under CERCLA section
104(a)(1), 42 U.S.C. 9604(a)(1), and the National Oil and Hazardous
Substances Pollution Contingency Plan (40 CFR part 300), to respond to
situations where any hazardous substance has been released or there is a
substantial threat of such a release into the environment, or there is a
release or substantial threat of release into the environment of any
pollutant or contaminant which may present an imminent and substantial
danger to the public health or welfare, and
(2) Actions that EPA is authorized to undertake under sections
311(c)(2) and (e)(1)(B) of the Clean Water Act, 33 U.S.C. 1321(c)(2) and
(e)(1)(B), and the National Oil and Hazardous Substances Pollution
Contingency Plan (40 CFR part 300), to respond when there is a
discharge, or a substantial threat of a discharge (to or upon navigable
waters, adjoining shorelines, the contiguous zone, or natural resources
belonging to, appertaining to, or under the exclusive management of the
United States), of oil or a hazardous substance from a vessel, onshore
facility, or offshore facility that is a substantial threat to the
public health or welfare. Pursuant to a class Justification For Other
Than Full and Open Competition executed under the authority of FAR
6.302-2 and 6.303-1(c), an NTP may be issued on a non-competitive basis.
(b) What do subsections 1516.603-1 and 1516.603-2 cover? EPAAR
1516.603-1 and 1516.603-2 contain information and procedures relating to
issuance and definitization of an NTP. An NTP is subject to, and must
comply with, the applicable requirements for letter contracts in FAR
16.603 and the requirements in this section, and be definitized by an
EPA FCS 1102 contracting officer.
[66 FR 12900, Mar. 1, 2001]
1516.603-2 What are the requirements for use of an NTP?
(a) An EPA FCS 1102 contracting officer or a duly authorized EPA on-
scene coordinator with a delegation of procurement authority may issue
an NTP so long as it does not exceed the limits of his or her
procurement authority and only when all of the following conditions have
been met:
[[Page 34]]
(1) A written determination has been made by the Federal on-scene
coordinator that--
(i) As authorized by and consistent with CERCLA section 104(a)(1),
42 U.S.C. 9604(a)(1), and the National Oil and Hazardous Substances
Pollution Contingency Plan (40 CFR part 300), the EPA must take action
to respond to a hazardous substance release or substantial threat of
such a release into the environment, or a release or substantial threat
of a release into the environment of any pollutant or contaminant which
may present an imminent and substantial danger to the public health or
welfare, or
(ii) As authorized by and consistent with the Clean Water Act
sections 311(c)(2) and (e)(1)(B), 33 U.S.C. 1321(c)(2) and (e)(1)(B),
and the National Oil and Hazardous Substances Pollution Contingency Plan
(40 CFR part 300), the EPA must take action to respond to a discharge,
or a substantial threat of a discharge (to or upon navigable waters,
adjoining shorelines, the contiguous zone, or natural resources
belonging to, appertaining to, or under the exclusive management of the
United States), of oil or a hazardous substance from a vessel, offshore
facility, or onshore facility that is of such a size and character as to
pose a substantial threat to the public health or welfare of the United
States; and
(2) Before a duly authorized EPA on-scene coordinator with a
delegation of procurement authority may issue an NTP, he or she must
confirm that an EPA FCS 1102 contracting officer is not available to
provide the required contracting support by the time the Federal on-
scene coordinator requires the response action to be undertaken; and
(3) A written determination is made by an EPA FCS 1102 contracting
officer or a duly authorized EPA on-scene coordinator with a delegation
of procurement authority that there is no other existing contracting
mechanism available to provide the required contracting support by the
time required, including the inability of an existing emergency response
contractor or other existing contract vehicle to respond in the required
time frame. These conditions, as well as any other requirements
applicable to NTPs or letter contracts contained in the FAR or EPAAR ,
must be met before an NTP can be issued by an EPA FCS 1102 contracting
officer or a duly authorized EPA on-scene coordinator with a delegation
of procurement authority.
(b) What should be included in an NTP? (1) Since an NTP is a type of
letter contract, it is subject to the requirements of FAR 16.603. All of
the relevant requirements of FAR 16.603 apply to NTP's including FAR
16.603-2, 16.603-3, and 16.603-4, and an NTP will include all
appropriate FAR and EPAAR contract clauses. An NTP should also include
an overall price ceiling and be as complete and definite as possible
under the circumstances. To the extent NTPs require modification of any
FAR or EPAAR prescribed procedures or clauses, an appropriate FAR or
EPAAR deviation will be prepared.
(2) The EPA FCS 1102 contracting officer or duly authorized EPA on-
scene coordinator with a delegation of procurement authority shall
include in each NTP the clauses required by the FAR or EPAAR for the
type of definitive contract contemplated and any additional clauses
known to be appropriate for it. In addition, the following clauses must
be inserted in the solicitation (if one is issued) and the NTP when an
NTP is used:
(i) The clause at FAR 52.216-23, Execution and Commencement of Work,
except that the term on-scene coordinator may be used in place of the
term contracting officer;
(ii) The clause at FAR 52.216-24, Limitation of Government
Liability, with dollar amounts completed in a manner consistent with FAR
16.603-2(d); and
(iii) The clause at FAR 52.216-25, Contract Definitization, with its
paragraph (b) completed in a manner consistent with FAR 16.603-2(c) or
any applicable FAR deviation. The clause at FAR 52.216-26, Payment of
Allowable Costs Before Definitization, shall also be included in a
solicitation (if one is issued) and NTPs if a cost-reimbursement
definitive contract is contemplated.
(3) Each NTP shall, as required by the clause at FAR 52.216-25,
Contract Definitization, contain a negotiated definitization schedule
that includes:
[[Page 35]]
(i) Dates for submission of the contractor's price proposal,
required cost and pricing data, and if required, make-or-buy and
subcontracting plans;
(ii) The date for the start of negotiations; and
(iii) A target date for definitization which shall be the earliest
practicable date for definitization (an NTP must be definitized by an
EPA FCS 1102 contracting officer). The schedule will provide for
definitization of the NTP within 90 calendar days after the date of the
NTP award. However, the EPA FCS 1102 contracting officer may, in extreme
cases and according to agency procedures, authorize an additional
period. If, after exhausting all reasonable efforts, the EPA FCS 1102
contracting officer and the contractor cannot negotiate a definitive
contract because of failure to reach agreement as to price or fee, the
clause at 52.216-25 requires the contractor to proceed with the work and
provides that the contracting officer may, with the approval of the head
of the contracting activity, determine a reasonable price or fee in
accordance with subpart 15.4 and part 31 of the FAR, subject to appeal
as provided in the Disputes clause.
(4) The maximum liability of the Government inserted in the clause
at 52.216-24, Limitation of Government Liability, shall, as approved by
the official who authorized the NTP, be the estimated amount necessary
to cover the contractor's requirements for funds to complete the work to
be performed under the NTP. However, it shall not exceed the estimated
cost of the definitive contract.
(c) Are there any financial or monetary limitations on the use of an
NTP? In addition to the requirements for issuance of an NTP set forth
elsewhere in this subpart--
(1) The total definitized dollar value of an individual NTP shall
not exceed $200,000.00, and
(2) The applicable Program Office must commit and make available
appropriate funding for the emergency response action taken under the
NTP prior to NTP issuance.
(d) Are there any other procedural requirements for issuance of an
NTP? An NTP must be issued in writing by the EPA FCS 1102 contracting
officer or the duly authorized EPA on-scene coordinator with a
delegation of procurement authority using a Standard Form 33. In
addition, the EPA FCS 1102 contracting officer or the EPA on-scene
coordinator awarding the NTP must ensure that the NTP complies with all
applicable requirements for letter contracts set forth in the FAR and
the requirements of this section, includes all relevant provisions and
clauses, and that all actual or potential conflict of interest or other
contracting issues are identified and resolved prior to NTP issuance. To
assist the EPA on-scene coordinator and EPA FCS 1102 contracting officer
in their responsibilities regarding NTP award, an NTP checklist will be
completed by the EPA FCS 1102 contracting officer or EPA on-scene
coordinator prior to issuance of the NTP.
(e) What happens after an NTP is awarded to a contractor? (1) If an
NTP is issued by a duly authorized EPA on-scene coordinator with a
delegation of procurement authority, he or she must notify the cognizant
EPA FCS 1102 contracting officer of the NTP award, and provide the NTP
checklist to the contracting officer, as soon as possible but in no
event later than the next working day after NTP issuance.
(2) Within 5 working days of the EPA on-scene coordinator's award of
an NTP, the on-scene coordinator shall provide to the cognizant EPA FCS
1102 contracting officer all NTP documents, materials, and information
necessary for the contracting officer to definitize the contract, and
should retain a copy for his/her records. An EPA FCS 1102 contracting
officer will be responsible for definitization of the NTP consistent
with the definitization procedures set forth in this subpart. During the
process of definitizing the NTP, the EPA FCS 1102 contracting officer
will send the contractor the ``Representations, Certifications, and
Other Statements of Offerors'' for completion. The contractor will
complete this information, and any other required information, and
submit it to the EPA FCS 1102 contracting officer prior to
definitization of the NTP.
(f) The CCO, who is authorized by EPAAR 1516.603-3 to make the
determination to use a letter contract, shall
[[Page 36]]
make a class determination and findings authorizing EPA FCS 1102
contracting officers and duly authorized EPA on-scene coordinators with
delegations of procurement authority to award NTPs pursuant to the
conditions set forth in this subpart.
[66 FR 12900, Mar. 1, 2001]
1516.603-3 Limitations.
The CCO is authorized to make the determination in FAR 16.603-3.
[55 FR 24580, June 18, 1990, as amended at 59 FR 18976, Apr. 21, 1994]
PART 1517_SPECIAL CONTRACTING METHODS--Table of Contents
Subpart 1517.2_Options
Sec.
1517.204 Contracts.
1517.207 Exercise of options.
1517.208 Solicitation provisions and contract clauses.
Authority: 5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 40
U.S.C. 486(c); and 41 U.S.C. 418b.
Source: 49 FR 8854, Mar. 8, 1984, unless otherwise noted.
Subpart 1517.2_Options
1517.204 Contracts.
The SCM may approve a contract with a base contract period and
option periods which total in excess of five (5) years, unless otherwise
prohibited by statute.
[60 FR 12713, Mar. 8, 1995, as amended at 67 FR 5072, Feb. 4, 2002]
1517.207 Exercise of options.
(a) Unless otherwise approved by the Chief of the Contracting
Office, contracts for services employing option periods shall require
that a preliminary written notice of the Government's intention to
exercise the option be furnished to the Contractor a minimum of sixty
(60) calendar days prior to the date for the exercise of the option.
Failure to provide such preliminary notice within the timeframe
established in the contract waives the Government's right to
unilaterally exercise the option and requires the negotiation of a
bilateral contract modification in order to extend the period of
performance, where such an extension is authorized.
(b) When the term of the service contract coincides with the fiscal
year and delays in receipt of authority to obligate funds for the new
fiscal year are anticipated, the Contracting Officer, if the contract so
provides (see FAR 17.204(d)), may, within 60 days after the end of the
fiscal year, unilaterally exercise an option to extend the term of the
contract. The option may be exercised only if funds become available
within the 60-day period. In the event that sufficient funding is not
available within the 60 day period, the Government waives the right to
exercise the option, thereby rendering any additional requirements
subject to full and open competition requirements.
(c) The Contracting Officer, if the contract so provides, may,
subject to the conditions in FAR 17.204(d), 32.703-2, and 32.705-1(a),
exercise an option contingent upon the availability of funds. To
exercise such an option, the contract must contain the clause in FAR
52.232-18, Availability of Funds. Under no circumstances shall any
action be taken which could be construed as creating a legal liability
on the part of the Government until a formal notice of availability of
funds in the form of a contract modification has been issued by the
Contracting Officer.
[49 FR 8854, Mar. 8, 1984, as amended at 50 FR 14359, Apr. 11, 1985]
1517.208 Solicitation provisions and contract clauses.
(a) The Contracting Officer shall insert the clause at 1552.217-71,
Option To Extend the Term of the Contract--Cost-Type Contract, when
applicable.
(b) The Contracting Officer shall insert the clause at 1552.217-72,
Option To Extend the Term of the Contract--Cost-Plus-Award-Fee Contract,
when applicable.
(c) The Contracting Officer shall insert the clause at 1552.217-73,
Option for Increased Quantity--Cost-Type Contract, when applicable.
(d) The Contracting Officer shall insert the clause at 1552.217-74,
Option for Increased Quantity--Cost-Plus-Award-Fee Contract, when
applicable.
[[Page 37]]
(e) The Contracting Officer shall insert the clause at 1552.217-75,
Option To Extend the Effective Period of the Contract--Time and
Materials or Labor Hour Contract, when applicable.
(f) The Contracting Officer shall insert the clause at 1552.217-76,
Option To Extend the Effective Period of the Contract--Indefinite
Delivery/Indefinite Quantity Contract, when applicable.
(g) The Contracting officer shall insert the clause at 1552.217-77,
Option to Extend the Term of the Contract--Fixed Price, when applicable.
[49 FR 8854, Mar. 8, 1984, as amended at 65 FR 58923, Oct. 3, 2000]
[[Page 38]]
SUBCHAPTER D_SOCIOECONOMIC PROGRAMS
PART 1519_SMALL BUSINESS PROGRAMS--Table of Contents
Subpart 1519.2_Policies
Sec.
1519.201 Policy.
1519.201-71 Director of Small and Disadvantaged Business Utilization.
1519.201-72 Small and disadvantaged business utilization specialists.
1519.202-5 Data collection and reporting requirements.
1519.203 Mentor-protege.
1519.204 Small disadvantaged business participation.
Subpart 1519.5_Set-Asides for Small Business
1519.501 Review of acquisitions.
1519.503 Class set-aside for construction.
Subpart 1519.6--Certificates of Competency and Determinations of
Eligibility [Reserved]
Subpart 1519.7_Subcontracting with Small Business and Small
Disadvantaged Business Concerns
1519.705-2 Determining the need for a subcontract plan.
1519.705-4 Reviewing the subcontracting plan.
1519.705-70 Synopsis of contracts containing Pub. L. 95-507
subcontracting plans and goals.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 49 FR 8855, Mar. 8, 1984, unless otherwise noted.
Editorial Note: Nomenclature changes to part 1519 appear at 61 FR
57338, Nov. 6, 1996.
Subpart 1519.2_Policies
1519.201 Policy.
Each program's Assistant or Associate Administrator shall be
responsible for developing its socioeconomic goals on a fiscal year
basis. The goals shall be developed in collaboration with the supporting
Chiefs of Contracting Offices and the local Small Business Specialist
(SBS), and the Office of Small and Disadvantaged Business Utilization
(OSDBU). The goals will be based on advance procurement plans and past
performance. The goals shall be submitted to the Director, OSDBU, at
least thirty (30) days prior to the start of the fiscal year.
[49 FR 8855, Mar. 8, 1984, as amended at 61 FR 57338, 57339, Nov. 6,
1996]
1519.201-71 Director of Small and Disadvantaged Business Utilization.
The Director, OSDBU, provides guidance and advice, as appropriate,
to Agency program and contracts officials on small and small
disadvantaged business programs. The Director, OSDBU, is the central
point of contact for inquiries concerning the small and disadvantaged
business programs from industry, the Small Business Administration
(SBA), and the Congress, and shall advise the Administrator and staff of
such inquiries as required. The Director, OSDBU, shall represent the
Agency in the negotiations with the other Government agencies on small
and small disadvantaged business matters.
[49 FR 8855, Mar. 8, 1984. Redesignated at 62 FR 57338, 57339, Nov. 6,
1997]
1519.201-72 Small and disadvantaged business utilization specialists.
(a) Small Business Specialists (SBS) shall be appointed in writing
for each contracting office. The SBS will normally be appointed from
members of staffs of the appointing authority. The SBS is
administratively responsible directly to the appointing authority and,
on matters relating to small and small disadvantaged business program
activities, receives technical guidance from the Director, OSDBU. The
appointing authorities are the Chiefs of the Contracting Offices.
(b) A copy of each appointment and termination of all SBS
specialists shall be forwarded to the Director, OSDBU. In addition to
performing the duties outlined in paragraph (c) of this section that are
normally performed in the activity to which assigned, the SBS shall
perform such additional functions as may be prescribed from time to time
in furtherance of overall small and
[[Page 39]]
small disadvantaged business utilization program goals. The SBS may be
appointed on either a full- or part-time basis; however, when appointed
on a part-time basis, the small business duty shall take precedence over
collateral responsibilities.
(c) The SBS appointed pursuant to paragraph (a) of this section,
shall perform the following duties as appropriate:
(1) Maintain a program designed to locate capable small business
sources for current and future acquisitions;
(2) Coordinate inquiries and requests for advice from small and
small disadvantaged business concerns on acquisition matters;
(3) Review all proposed solicitations in excess of the simplified
acquisition threshold, assure that small business concerns will be
afforded an equitable opportunity to compete, and, as appropriate,
initiate recommendations for small business set-asides, or offers of
requirements to the SBA for the 8(a) program, and complete EPA Form
1900-37, ``Record of Procurement Request Review,'' as appropriate:
(4) Take action to assure the availability of adequate
specifications and drawings, when necessary, to obtain small business
participation in an acquisition. When small business concerns cannot be
given an opportunity on a current acquisition, initiate action, in
writing, with appropriate technical and contracting personnel to ensure
that necessary specifications and/or drawings for future acquisitions
are available.
(5) Review proposed contracts for possible breakout of items or
services suitable for acquisition from small business and small
disadvantaged business concerns;
(6) Advise small businesses with respect to the financial assistance
available under existing laws and regulations and assist such concerns
in applying for financial assistance;
(7) Participate in the evaluation of a prime contractor's small
business subcontracting programs;
(8) Assure that adequate records are maintained, and accurate
reports prepared, concerning small business participation in acquisition
programs (see 1519.202-5);
(9) Make available to SBA copies of solicitations when so requested;
(10) Act as liaison with the appropriate SBA office or
representative in connection with set-asides, certificates of
competency, size classification, and any other matter concerning the
small or small disadvantaged business programs.
[49 FR 8855, Mar. 8, 1984, as amended at 55 FR 24579, June 18, 1990.
Redesignated and amended at 61 FR 57338, 57339, Nov. 6, 1996]
1519.202-5 Data collection and reporting requirements.
(a) As required, monthly reports of factual information, covering
acquisition actions and dollars awarded to small businesses, small
disadvantaged businesses, women-owned small businesses, the Small
Business Administration under the authority of section 8(a) of the Small
Business Act, and information on actions and dollars made under small
business set-asides shall be submitted by the Procurement and Contracts
Management Division, to the Director, OSDBU.
(b) The Financial Management Division will submit to the Director,
OSDBU, a copy of the Small Purchase Activity Report that shows by each
EPA purchasing activity the following information (cumulative monthly)
for small purchases:
(1) Total actions and dollar value of awards;
(2) Total actions and dollar value of awards to all businesses;
(3) Total actions and dollar value of awards to small businesses;
(4) Total actions and dollar value of construction awards to small
businesses made by set-aside;
(5) Total actions and dollar value of small business awards made by
set-asides, excluding set-asides for construction;
(6) Total actions and dollar value of awards made to the Small
Business Administration pursuant to section 8(a) of the Small Business
Act; and
(7) Total actions and dollar value of awards made to small
disadvantaged businesses.
(c) The reports identified in paragraphs (a) and (b) of this section
are to be submitted to the Director, OSDBU, no later than the 20th day
following
[[Page 40]]
the end of the reporting period with the exception of the last report of
the fiscal year which shall be submitted no later than the 30th day
following the end of the fiscal year.
1519.203 Mentor-protege.
(a) The Contracting officer shall insert the clause at 1552.219-70,
Mentor-Protege Program, in all contracts under which the Contractor has
been approved to participate in the EPA Mentor-Protege Program.
(b) The Contracting officer shall insert the provision at 1552.219-
71, Procedures for Participation in the EPA Mentor-Protege Program, in
all solicitations valued at $500,000 or more which will be cost-plus-
award-fee or cost-plus fixed-fee contracts.
[65 FR 58923, Oct. 3, 2000]
1519.204 Small disadvantaged business participation.
(a) The Contracting officer shall insert the provision at 1552.219-
72, Small Disadvantaged Business Participation Program, or a provision
substantially the same as 1552.219-72, in solicitations for acquisitions
subject to FAR 19.12 that will evaluate the extent of the participation
of Small Disadvantaged Business (SDB) concerns in the performance of a
resulting contract.
(b) The Contracting officer shall insert the clause at 1552.219-73,
Small Disadvantaged Business Targets, or one substantially the same as
1552.219-73, in solicitations and contracts for acquisitions subject to
FAR 19.12 that evaluate the extent of participation of SDB concerns in
the performance of the contract and which included solicitation
provision 1552.219-72.
(c) The Contracting officer shall insert the evaluation provision at
1552.219-74, Small Disadvantaged Business Participation Evaluation
Factor, (and assign a value to it), or one substantially the same as
1552.219-74, in solicitations for acquisitions subject to FAR 19.12 that
include the provision at 1552.219-72 and will evaluate the extent of
participation of SDB concerns in the performance of the contract.
[65 FR 58923, Oct. 3, 2000]
Subpart 1519.5_Set-Asides for Small Business
1519.501 Review of acquisitions.
(a) If no Small Business Administration (SBA) representative is
available, the Small Business Specialist (SBS) shall initiate
recommendations to the Contracting Officer for small business set-asides
with respect to individual acquisitions or classes of acquisitions or
portions thereof.
(b) When the SBS has recommended that all, or a portion, of an
individual acquisition or class of acquisitions be set aside for small
business, the Contracting Officer shall promptly either: (1) Concur in
the recommendation or (2) disapprove the recommendation, stating in
writing the reasons for disapproval. If the Contracting Officer
disapproves the recommendation of the SBS, the SBS may appeal to the
appropriate appointing authority, whose decision shall be final.
[49 FR 8855, Mar. 8, 1984, as amended at 61 FR 57338, 57339, Nov. 6,
1996]
1519.503 Class set-aside for construction.
(a) Each proposed acquisition for construction estimated to cost
between $10,000 and $1,000,000 shall be set-aside for exclusive small
business participation. Such set-asides shall be considered to be
unilateral small business set-asides, and shall be withdrawn in
accordance with the procedure of FAR 19.506 only if found not to serve
the best interest of the Government.
(b) Small business set-aside preferences for construction
acquisitions in excess of $1,000,000 shall be considered on a case-by-
case basis.
Subpart 1519.6--Certificates of Competency and Determinations of
Eligibility [Reserved]
[[Page 41]]
Subpart 1519.7_Subcontracting With Small Business and Small
Disadvantaged Business Concerns
1519.705-2 Determining the need for a subcontract plan.
One copy of the determination required by FAR 19.705-2(c) shall be
placed in the contract file and one copy provided the Director, Office
of Small and Disadvantaged Business Utilization (OSDBU).
1519.705-4 Reviewing the subcontracting plan.
In determining the acceptability of a proposed subcontracting plan,
the Contracting Officer shall obtain advice and recommendations from the
OSDBU, which shall in turn coordinate review by the Small Business
Administration Procurement Center Representative (if any).
1519.705-70 Synopsis of contracts containing Pub. L. 95-507
subcontracting plans and goals.
The synopsis of contract award, where applicable, shall include a
statement identifying the contract as one containing Pub. L. 95-507
subcontracting plans and goals.
[49 FR 8855, Mar. 8, 1984; 49 FR 24734, June 15, 1984]
PART 1520_LABOR SURPLUS AREA CONCERNS--Table of Contents
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Subpart 1520.1--General [Reserved]
Subpart 1520.3--Labor Surplus Area Subcontracting Program [Reserved]
PART 1522_APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
--Table of Contents
Subpart 1522.8_Equal Employment Opportunity
Sec.
1522.803 Responsibilities.
1522.804 Affirmative action programs.
1522.804-2 Construction.
Subpart 1522.10--Service Contract Act of 1965 [Reserved]
Subpart 1522.13--Special Disabled and Vietnam Era Veterans [Reserved]
Subpart 1522.14--Employment of the Handicapped [Reserved]
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 49 FR 8857, June 15, 1984, unless otherwise noted.
Subpart 1522.8_Equal Employment Opportunity
1522.803 Responsibilities.
If the applicability of E.O. 11246 and implementing regulations are
questioned, the Contracting Officer shall route the matter through the
CCO to the EPA Office of Civil Rights.
[49 FR 8857, June 15, 1984, as amended at 55 FR 24579, June 18, 1990; 59
FR 18976, Apr. 21, 1994]
1522.804 Affirmative action programs.
1522.804-2 Construction.
Each contracting office having construction contract responsibility
shall maintain a list of geographical areas subject to affirmative
action requirements. The list can be obtained from the Office of Federal
Contract Compliance Programs, U.S. Department of Labor.
[49 FR 8857, Mar. 8, 1984; 49 FR 24734, June 15, 1984, as amended at 78
FR 46290, July 31, 2013]
[[Page 42]]
Subpart 1522.10--Service Contract Act of 1965 [Reserved]
Subpart 1522.13--Special Disabled and Vietnam Era Veterans [Reserved]
Subpart 1522.14--Employment of the Handicapped [Reserved]
PART 1523_ENVIRONMENTAL, CONSERVATION, OCCUPATIONAL SAFETY, AND
DRUG-FREE WORKPLACE--Table of Contents
Subpart 1523.3_Hazardous Material and Material Safety Data
Sec.
1523.303 Contract clause.
1523.303-70 Protection of human subjects.
1523.303-71 Decontamination of Government-furnished property.
1523.303-72 Care of laboratory animals.
Subpart 1523.7_Contracting for Environmentally Preferable Products and
Services
1523.703 Policies and procedures.
1523.703-1 Acquisition of environmentally preferable meeting and
conference services.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 49 FR 8857, Mar. 8, 1984, unless otherwise noted.
Subpart 1523.3_Hazardous Material and Material Safety Data
1523.303 Contract clause.
1523.303-70 Protection of human subjects.
Contracting Officers shall insert the contract clause at 1552.223-70
when the contract involves human test subjects.
1523.303-71 Decontamination of Government-furnished property.
Contracting Officers shall insert the contract clause at 1552.245-
70, Decontamination of Government-Furnished Property, when it is
anticipated that a Contractor will use Government-furnished or
Contractor-acquired property in the clean-up of hazardous or toxic
substances in the environment.
1523.303-72 Care of laboratory animals.
Contracting officers shall insert the clause at 1552.223-72, Care of
Laboratory Animals, in all contracts involving the use of experimental
animals.
[65 FR 58923, Oct. 3, 2000]
Subpart 1523.7_Contracting for Environmentally Preferable Products and
Services
Source: 72 FR 18403, May 1, 2007, unless otherwise noted.
1523.703 Policies and procedures.
1523.703-1 Acquisition of environmentally preferable meeting and
conference services.
(a) Scope. This section establishes policy and procedures for
acquiring environmentally preferable meeting and conference services.
For purposes of this section, the term ``contracting officer'' refers to
any EPA employee with purchasing authority. For the purposes of this
section, the term ``meeting and conference services'' refers to any
purchase by an EPA employee of the use of off-site commercial facilities
for an EPA event, whether the event is a meeting, conference, training
session, or other purpose.
(b) Policy. Contracting officers must purchase environmentally
preferable meeting and conference services to the greatest extent
practicable. Environmental preferability is defined at FAR 2.101.
Environmental preferability shall be considered in all purchases of
meeting and conference services.
(c) Procedures for micropurchases. The contracting officer shall
request information on environmentally preferable features and practices
from each meeting and conference services vendor solicited using the
provision or language substantially the same as the provision at
1552.223-71.
(d) Procedures for purchases exceeding micropurchase threshold. The
contracting officer shall request information on environmentally
preferable features and practices from each meeting and conference
services vendor using the provision or language substantially the same
as the provision at 1552.223-71,
[[Page 43]]
and shall notify vendors that basis for award will be best value with
price and other factors considered. Environmental preferability must be
considered among the other factors. The contracting officer shall
determine the relative importance of price and other factors as
appropriate to the acquisition.
(e) Contractor support for meetings and conferences. A contract,
order, work assignment or purchasing agreement that includes contractor
support for meeting and conference planning and logistics must include a
green meeting and conference requirement. The contracting officer shall
ensure language is included in the tasking document work statement that
requires the contractor to use the provision at 1552.223-71, or language
approved by the contracting officer that is substantially the same as
the provision, when soliciting quotes or offers for meeting and
conference services on behalf of the EPA.
(f) Solicitation Provision. The contracting officer shall insert the
provision or language substantially the same as the provision at
1552.223-71, EPA Green Meetings and Conferences, in solicitations for
meeting and conference services. Contracting officers issuing an oral
solicitation must also use the provision, though it may be provided to
the vendor orally or electronically. Contractors soliciting quotes or
offers for meeting and conference services on behalf of EPA shall use
the provision, or language approved by the contracting officer that is
substantially the same as the provision.
PART 1524_PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION
--Table of Contents
Subpart 1524.1_Protection of Individual Privacy
Sec.
1524.104 Solicitation provisions.
Subpart 1524.2--Freedom of Information Act [Reserved]
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Subpart 1524.1_Protection of Individual Privacy
1524.104 Solicitation provisions.
The Contracting Officer shall insert the provision at 1552.224-70,
Social Security Numbers of Consultants and Certain Sole Proprietors and
Privacy Act Statement, in all solicitations.
[49 FR 8858, Mar. 8, 1984]
Subpart 1524.2--Freedom of Information Act [Reserved]
PART 1525_FOREIGN ACQUISITION--Table of Contents
Subpart 1525.1--Buy American Act--Supplies [Reserved]
[[Page 44]]
SUBCHAPTER E_GENERAL CONTRACTING REQUIREMENTS
PART 1527_PATENTS, DATA, AND COPYRIGHTS--Table of Contents
Subpart 1527.4_Rights in Data and Copyrights
Sec.
1527.404 Basic rights in data clause.
1527.409 Solicitation provisions and contract clauses.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Subpart 1527.4_Rights in Data and Copyrights
1527.404 Basic rights in data clause.
The Contracting Officer shall insert in the Limited Rights Notice
when using Alternate II of FAR 52.227-14 the following purposes for
disclosure of limited data outside the Government.
(a) Use (except for manufacture) by support service contractors;
(b) Evaluation by nongovernment evaluators;
(c) Use (except for manufacture) by other contractors participating
in the Government's program of which the specific contract is a part,
for information and use in connection with the work performed under each
contract;
(d) Emergency repairs or overhaul work;
(e) Release to a foreign government, or instrumentality thereof, as
the interests of the United States Government may require, for
information or evaluation, or for emergency repair or overhaul work by
such government.
[55 FR 48623, Nov. 21, 1990]
1527.409 Solicitation provisions and contract clauses.
The Contracting Officer shall insert the clause in 1552.227-76 in
all Superfund solicitations and contracts in excess of the simplified
acquisition threshold and, as appropriate, in simplified acquisition
procedures. The clause may be used in other contracts if considered
necessary by the Contracting Officer.
[59 FR 18620, Apr. 19, 1994, as amended at 61 FR 57339, Nov. 6, 1996]
PART 1528_BONDS OF INSURANCE--Table of Contents
Subpart 1528.3_Insurance
1528.301 Insurance liability to third persons.
Contracting officers shall insert the clause at 1552.228-70,
Insurance Liability to Third Persons, in cost-reimbursement
solicitations and contracts, except those for construction and
architect-engineer services.
Note: This clause may be used in contracts awarded utilizing
architect-engineer services such as requirements for Superfund cleanups
(e.g., response action contracts). The clause does not apply to
Superfund indemnification for third party pollution liability or
coverage for commercial pollution liability insurance as prescribed by
section 119 of CERCLA as amended by SARA.
[65 FR 58923, Oct. 3, 2000. Redesignated and amended at 78 FR 46290,
July 31, 2013]
PART 1529_TAXES--Table of Contents
Subpart 1529.3_State and Local Taxes
Sec.
1529.303 Application of State and local taxes to Government contractors
and subcontractors.
Subpart 1529.4_Contract Clauses
1529.401 Domestic contracts.
1529.401-70 [Reserved]
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 54 FR 49998, Dec. 4, 1989, unless otherwise noted.
Subpart 1529.3_State and Local Taxes
1529.303 Application of State and local taxes to Government
contractors and subcontractors.
Contractors are responsible for determining the availability of
State and local tax exemptions and obtaining such exemptions, if
available, unless the Contracting Officer determines
[[Page 45]]
under FAR 31.205-41(b)(3) that the administrative burden outweighs the
corresponding benefit. Contractors are responsible for ensuring that
subcontractors also seek and obtain such exemptions, if available.
Subpart 1529.4_Contract Clauses
1529.401 Domestic contracts.
1529.401-70 [Reserved]
PART 1530_COST ACCOUNTING STANDARDS--Table of Contents
Subpart 1530.3--CAS Contract Requirements [Reserved]
PART 1531_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents
Subpart 1531.1--Applicability [Reserved]
PART 1532_CONTRACT FINANCING--Table of Contents
Sec.
1532.003 Simplified acquisition procedures financing.
1532.006 Reduction or suspension of contract payments upon finding of
fraud.
1532.006-1 General.
1532.006-2 Definitions.
1532.006-3 Responsibilities.
Subpart 1532.1_General
1532.102 Description of contract financing methods.
1532.111 Contract clauses.
1532.170 Forms.
Subpart 1532.2_Commercial Item Purchase Financing
1532.201 Statutory authority.
Subpart 1532.4--Advance Payments [Reserved]
Subpart 1532.8_Assignment of Claims
1532.805 Procedure.
1532.805-70 Forms.
Subpart 1532.9_Prompt Payment
1532.908 Contract clauses.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 49 FR 8858, Mar. 8, 1984, unless otherwise noted.
1532.003 Simplified acquisition procedures financing.
(a) Scope. This subpart provides for authorization of advance and
interim payments on commercial item orders not exceeding the simplified
acquisition threshold. Advance payments are payments that are made prior
to performance. Interim payments are payments that are made during the
order period according to a payment schedule.
(b) Procedures for micropurchases. Contracting officers may
authorize advance and interim payments on orders for commercial items
only at or below the micropurchase threshold.
(c) Procedures for purchases exceeding micropurchase threshold.
Contracting officers must secure approval at one level above the
contracting officer, on a case-by-case basis, for advance and interim
payments on orders for commercial items exceeding the micropurchase
threshold and not exceeding the simplified acquisition threshold. The
contracting officer shall submit a recommendation for approval of
financing terms, along with the supporting rationale for the action, to
one level above the contracting officer. Remote simplified acquisition
contracting officers (SACO) without one level above contracting officers
at their locations shall forward recommendations through their OAM
Advisors to secure one level above approval.
(d) Supporting rationale. Regardless of dollar value, the
contracting officer shall document the file with supporting rationale
demonstrating that the purchase meets the conditions of FAR 32.202-
1(b)(1), (3) and (4).
(e) Administration. Regardless of dollar value, the contracting
officer is responsible for ensuring that supplies or services have been
delivered. The contracting officer shall document the file with evidence
of receipt of supplies or services throughout the order period as
appropriate to the acquisition.
(f) Clause. The contracting officer shall insert the clause at
1552.232-74, Payments--Simplified Acquisition Procedures Financing, in
solicitations and
[[Page 46]]
orders that will provide simplified acquisition procedures financing.
[71 FR 32283, June 5, 2006]
1532.006 Reduction or suspension of contract payments upon finding of fraud.
1532.006-1 General.
(a)-(b) [Reserved]
(c) Agency responsibilities and determinations under FAR 32.006 are,
consistent with FAR 32.006-1(c), delegated to the Head of the
Contracting Activity, if that individual is not below Level IV of the
Executive Schedule. If the Head of the Contracting Activity is below
Level IV of the Executive Schedule, then Agency responsibilities and
determinations under FAR 32.006 are delegated to the Assistant
Administrator for Administration and Resources Management.
[65 FR 37292, June 14, 2000]
1532.006-2 Definitions.
The Remedy Coordination Official for EPA is the Assistant Inspector
General for Investigations.
[65 FR 37292, June 14, 2000]
1532.006-3 Responsibilities.
(a) EPA shall use the procedures in FAR 32.006-4 when determining
whether to reduce or suspend further payments to a contractor when there
is a report from the Remedy Coordination Official finding substantial
evidence that the contractor's request for advance, partial or progress
payments is based on fraud and recommending that the Agency reduce or
suspend such payments to the contractor.
(b) [Reserved]
[65 FR 37292, June 14, 2000]
Subpart 1532.1_General
1532.102 Description of contract financing methods.
Progress payments based on a percentage or stage of completion are
authorized for use as a payment method under EPA contracts or
subcontracts for construction and alteration or repair of buildings,
structures, or other real property.
[60 FR 38505, July 27, 1995]
1532.111 Contract clauses.
The Contracting Officer shall insert the clause at 1552.232-73,
Payments--Fixed Rate Services Contract, in solicitations and indefinite
delivery/indefinite quantity contracts when services are being acquired
on a fixed-rate basis.
1532.170 Forms.
(a) EPA Form 1900-10 Contractor's Cumulative Claim and
Reconciliation, at 1553.232-74, shall be used for an accounting of the
cumulative charges and costs for cost-reimbursement contracts from
inception of the contract to completion. It shall be submitted by the
Contractor upon submission of the completion voucher.
(b) EPA Form 1900-68, Notice of Contract Costs Suspended and/or
Disallowed, at 1553.232-75, shall be inserted in all cost-reimbursement
type and fixed-rate type contracts.
[49 FR 8858, Mar. 8, 1984, as amended at 61 FR 29317, June 10, 1996]
Subpart 1532.2_Commercial Item Purchase Financing
1532.201 Statutory authority.
Authority for making the determination under FAR 32.201 is delegated
to a level above the Contracting Officer.
[61 FR 57339, Nov. 6, 1996]
Subpart 1532.4--Advance Payments [Reserved]
Subpart 1532.8_Assignment of Claims
1532.805 Procedure.
1532.805-70 Forms.
(a) EPA Form 1900-3, Assignee's Release, at 1553.232-70 is required
to be submitted by the assignee for cost-reimbursement contracts prior
to final payment under the contract.
(b) EPA Form 1900-4, Assignee's Assignment of Refunds, Rebates,
Credits, and Other Amounts, at 1553.232-71 must
[[Page 47]]
accompany the assignee's release prior to final payment under cost-
reimbursement contracts.
(c) EPA Form 1900-5, Contractor's Assignment of Refunds, Rebates and
Credits, at 1553.232-72 must be prepared by the Contractor prior to
final payment under cost-reimbursement contracts and must accompany the
Contractor's Release.
(d) EPA Form 1900-6, Contractor's Release, at 1553.232-73 must be
submitted by the Contractor prior to final payment under cost-
reimbursement contracts.
Subpart 1532.9_Prompt Payment
1532.908 Contract clauses.
The Contracting Officer shall insert a clause substantially the same
as that at 1552.232-70 in all solicitations and contracts for cost
reimbursable acquisitions. If a fixed-rate type contract is
contemplated, the Contracting Officer shall use the clause with its
Alternate I.
[61 FR 29317, June 10, 1996]
PART 1533_PROTESTS, DISPUTES AND APPEALS--Table of Contents
Subpart 1533.1_Protests
Sec.
1533.103 Protests to the Agency.
Subpart 1533.2_Disputes and Appeals
1533.203 Applicability.
Authority: 5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 40
U.S.C. 486(c); and 41 U.S.C. 418b.
Source: 50 FR 14359, Apr. 11, 1985, unless otherwise noted.