[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)]
[Rules and Regulations]
[Pages 7739-7751]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4480]
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DEPARTMENT OF DEFENSE
48 CFR Parts 202, 204, 209, 213, 215, 216, 217, 223, 225, 228, 232,
235, 236, 242, 246, 252, 253, and Appendix G to Chapter 2
[Defense Acquisition Circular (DAC) 91-10]
Defense Federal Acquisition Regulation Supplement; Miscellaneous
Amendments
AGENCY: Department of Defense (DoD).
ACTION: Final rules.
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SUMMARY: Defense Acquisition Circular (DAC) 91-10 amends the Defense
Federal Acquisition Regulation Supplement (DFARS) to revise, finalize,
or add language on undefinitized contract actions; warranties;
institutions of higher education; should cost reviews; construction and
architect-engineer contracts; sensitive conventional arms, ammunition,
and explosives; international trade agreements; foreign offset
agreements; tank and automotive forging items; progress payment rates;
research and development contracting; contract administration; and
foreign military sales.
EFFECTIVE DATE: February 29, 1996.
FOR FURTHER INFORMATION CONTACT:
Mrs. Susan Buckmaster, OUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131. Telefax
(703) 602-0350.
SUPPLEMENTARY INFORMATION:
A. Background
This Defense Acquisition Circular (DAC) 91-10 includes 17 rules and
miscellaneous editorial amendments. Three of the rules in the DAC
(Items VII, X, and XVII) were published previously in the Federal
Register (61 FR 130, January 3, 1996; 61 FR 3600, February 1, 1996; and
February 26, 1996; respectively) and thus are not included as part of
this rulemaking notice. These three rules are being published in the
DAC to conform the loose-leaf edition of DFARS to the previously
published revisions.
B. Regulatory Flexibility Act
DAC 91-10, Items IV, XII, XIII, XIV, XV, and XVI
The Regulatory Flexibility Act does not apply because these rules
are not significant revisions within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq. However, comments from small
entities will be considered in accordance with Section 610 of the Act.
Please cite the applicable DFARS case number in correspondence.
DAC 91-10, Items I, III, V, VIII, IX, and XI
DoD certifies that these rules will not have a significant economic
impact on a substantial number of small entities within the meaning of
the Regulatory Flexibility Act because:
Item I--The rule primarily (1) pertains to internal Government
considerations regarding use of warranties; and (2) consolidates and
standardizes existing regulatory requirements pertaining to
undefinitized contract actions.
Item III--Contracts awarded to small entities normally are not
subject to program or overhead should-cost reviews.
Item V--The rule merely provides a standard method of implementing
security requirements which already exist under DoD 5100.76-M.
Item VIII--The rule retains the policy of acquiring tank and
automotive forging items from domestic sources to the maximum extent
practicable. The new exception only applies to forging items purchased
as tank and automotive spare parts, when the end use of the spare parts
is unknown.
Item IX--The rule merely clarifies the scope of offset
administrative costs that
[[Page 7740]]
contractors may recover under foreign military sales contracts. Also,
most companies involved in offset arrangements are not small
businesses.
Item XI--The reduction in the customary progress payment rate only
applies to large businesses. While the rule also precludes the use of
flexible progress payments for contracts resulting from solicitations
issued on or after November 30, 1993, this change is not expected to
have a significant economic impact on a substantial number of small
entities, because the customary progress payment rates for small and
small disadvantaged businesses generally are more favorable than a
flexible progress payment rate with its associated terms and
conditions.
DAC 91-10, Items II and VI
The Regulatory Flexibility Act applies. A final regulatory analysis
has been performed and is available by writing the Defense Acquisition
Regulations Council, OUSD(A&T)DP(DAR), 3062 Defense Pentagon,
Washington, DC 20301-3062
C. Paperwork Reduction Act
DAC 91-10, Items I, II, III, IV, VI, VIII, IX, XI, XII, XIII, XIV, XV,
and XVI
The Paperwork Reduction Act does not apply because these rules do
not impose any information collection requirements which require the
approval of OMB under 44 U.S.C. 3501 et seq.
DAC 91-10, Item V
The Paperwork Reduction Act applies. OMB has approved the
information collection requirement under OMB Control Number 0704-0385.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Defense Acquisition Circular (DAC) 91-10 amends the Defense Federal
Acquisition Regulation Supplement (DFARS) 1991 edition. The amendments
are summarized as follows:
Item I--Contract Award (DFARS Case 95-D702)
This final rule (1) amends DFARS Parts 216 and 217 to implement
Section 1505 of Pub. L. 103-355 and to clarify guidance on
undefinitized contract actions (UCAs); (2) amends the guidance on
warranties at 246.770 to implement Section 2402 of Pub. L. 103-355; and
(3) adds a new clause on definitization of UCAs at 252.217-7027. The
new clause is similar to, and will be used instead of, the clause as
FAR 52.216-25, Contract Definitization, which was designed for use in
letter contracts only.
Item II--Institutions of Higher Education (DFARS Case 94-D310)
The interim rule published as Item IX of DAC91-9 is revised and
finalized. The rule implements Section 558 of the Fiscal Year 1995
Defense Authorization Act (Pub. L. 103-337). Section 558 provides that
no funds available to DoD may be provided by grant or contract to any
institution of higher education that has a policy of denying, or which
effectively prevents the Secretary of Defense from obtaining for
military recruiting purposes, entry to campuses, access to students on
campuses, or access to directory information pertaining to students.
The final rule differs from the interim rule in that it makes
clarifying revisions at 209.470-1 and 252.209-7005, and adds language
at 209.470-1(c) to state that, when specific subordinate elements of an
institution of higher education, rather than the institution as a
whole, have a prohibited policy or practice, the prohibition on use of
DoD funds applies only to those subordinate elements.
Item III--Overhead Should Cost Reviews (DFARS Case 92-D010
This final rule revises DFARS 215.810 to specify when DoD
activities should consider performing an overhead should cost review of
a contractor business unit. This DFARS rule supplements the FAR rule
published as Item VIII of Federal Acquisition Circular 90-37 on January
26, 1996. Both the FAR and the DFARS rules become effective on March
26, 1996.
Item IV--Cost-Plus-Fixed-Fee Contracts for Military Construction (DFARS
Case 95-D024)
This final rule adds new sections at DFARS 216.306 and 232.703-70
and revises 236.271 to expand guidance on statutory restrictions
pertaining to the use of cost-plus-fixed-fee contracts for military
construction.
Item V--Safeguarding Sensitive Conventional Arms, Ammunition, and
Explosives (DFARS Case 95-D001)
This final rule adds a new subpart at DFARS 223.72 and a new
contract clause at 252.223-7007 to provide guidance on physical
security requirements for contracts involving sensitive conventional
arms, ammunition, and explosives. Section 204.202 is amended to specify
additional requirements for distribution of contracts containing the
clause at 252.223-7007.
Item VI--Applicability of Trade Agreements (DFARS Case 95-D022)
This final rule amends DFARS 225.402 to provide that the value of
an acquisition for purposes of determining the applicability of both
the North American Free Trade Agreement Act and the Trade Agreements
Act is the total value of all end products subject to the acts.
Item VII--Uruguay Round (1996 Agreement) (DFARS Case 95-D306)
This final rule was issued by Departmental Letter 95-019, effective
January 1, 1996. The rule amends DFARS 225.402 and the clause at
252.225-7007 to implement the DoD-unique requirements of the
renegotiated General Agreement on Tariffs and Trade (GATT) Government
Procurement Agreement (1996 Code) (Uruguay Round), which became
effective January 1, 1996. This agreement is implemented in statute by
the Uruguay Round Agreement Act, Pub. L. 103-465, which amends the
Trade Agreements Act of 1979.
Item VIII--Tank and Automotive Forging Items (DFARS Case 95-D003)
This final rule amends DFARS Subpart 225.71 to add an exception to
the foreign source restrictions on the acquisition of forgings. The
rule excludes forging purchases as tank and automotive spare parts from
foreign source restrictions, except when it is known that the parts are
for use in tanks only.
Item IX--Offset Implementation Costs (DFARS Case 95-D019)
This final rule amends DFARS 225.7303-2 to clarify that, under a
foreign military sales contract, a contractor may recover costs
incurred to implement its offset agreement with a foreign government or
international organization, if the foreign military sale Letter of
Offer and Acceptance is financed wholly with customer cash or repayable
foreign military finance credits.
Item X--Alternatives to Miller Act Bonds (DFARS Case 95-D305)
This interim rule was issued by Departmental Letter 96-001,
effective February 1, 1996. The rule revises the interim rule which was
published as Item XXIII of DAC 91-9 to provide alternative payment
protections for construction contracts between $25,000 and $100,000,
pending implementation of Section 4104(b)(2) of the Federal Acquisition
Streamlining Act of 1994 (Pub. L. 103-355) in the FAR. This interim
rule amends the guidance at
[[Page 7741]]
DFARS 228.171 to require the contracting officer to specify two or more
alternative payment protections when using the clause at 252.228-7007,
and to give particular consideration to use of an irrevocable letter of
credit as one of the specified alternatives. This rule also amends the
clause at 252.228-7007 to exclude payment bonds from the payment
protections under which the contracting officer may access funds.
Item XI--Reduction in Progress Payment Rates (DFARS Case 93-D305)
The interim rule published as Item XXVII of DAC 91-6 is revised and
finalized. The rule implements Section 8155 of the Fiscal Year 1994
Defense Appropriations Act (Pub. L. 103-139). Section 8155 requires DoD
to reduce the customary progress payment rate for large business
concerns from 85 percent to 75 percent for contracts resulting from
solicitations issued on or after November 11, 1993. The final rule
differs from the interim rule in that it makes an editorial change in
the table at 232.502-1-71, and amends the clause at 252.232-7004 to
state that the 75 percent customary progress payment rate for large
business concerns also applies to progress payments made under
undefinitized contract actions.
Item XII--Streamlined Research and Development (R&D) Update (DFARS Case
95-D036)
This final rule amends DFARS Subpart 235.70 to update
administrative information pertaining to the streamlined R&D
contracting test program, and to revise the list of clauses in the
streamlined R&D contracting format to conform to FAR and DFARS
revisions which occurred since initiation of the test program.
Item XIII--Performance Evaluations for Construction and Architect-
Engineer Contracts (DFARS Case 95-D034)
This final rule amends DFARS 236.201 and 236.604 to prescribe use
of DD Forms 2626 and 2631 in lieu of Standard Forms 1420 and 1421,
respectively. The forms are used to document contractor performance
under construction and architect-engineer contracts. Copies of DD Forms
2626 and 2631 are added to Subpart 253.3.
Item XIV--Magnitude of Construction Projects (DFARS Case 95-D031)
This final rule adds a new section at DFARS 236.204 to provide
additional price ranges for identifying the magnitude of construction
projects in advance notices and solicitations.
Item XV--Flexible Contract Administration Services (DFARS Case 95-
D030)
This final rule amends DFARS 242.203 to expand the conditions under
which the Defense Contract Management Command may perform contract
administration services on a military installation.
Item XVI--Military Assistance Program Address (MAPAD) Codes (DFARS Case
95-D032)
This final rule amends DFARS 253./213-70 to clarify instructions
for inclusion of foreign military sale shipment information in Block 14
of DD Form 1155.
Item XVII--Allowability of Costs (DFARS Case 95-D309)
This interim rule was issued by Departmental Letter 96-002,
effective February 26, 1996. The rule adds language at DFARS 231.205-6
to implememt Section 8122 of the Fiscal Year 1996 Defense
Appropriations Act (Pub. L. 104-61). Section 8122 prohibits DoD from
using fiscal year 1996 funds to reimburse a contractor for costs paid
by the contractor to an employee for a bonus or other payment in excess
of the normal salary paid to the employee, when such payment is part of
restructuring costs associated with a business combination.
Item XVIII--Small Disadvantaged Business Utilization Program
(Information Item)
On October 23, 1995, the Under Secretary of Defense for Acquisition
and Technology suspended those sections of the DFARS which prescribe
set-aside of acquisitions for small disadvantaged businesses. This
suspension takes account of the Supreme Court's decision in Adarand
Constructors, Inc. v. Pena, 63 U.S.L.W. 4523 (U.S. June 12, 1995),
while an interagency Government-wide review of affirmative action
programs is conducted. The suspended DFARS sections are 219.501(S-70),
219.502-2-70, 219.502-4, 219.504(b)(i), 219.506, 219.508(e), 219.508-
70, and 252.219-7002. Although these sections, and references thereto,
still appear in the DFARS text, use of these sections is suspended
until further notice.
Item XIX--Editorial Revisions
(a) DFARS 202.101 and Appendix G are amended to update activity
names and addresses.
(b) DFARS Part 213 is amended to update statutory references and to
conform to revisions to FAR Part 13 published in Federal Acquisition
Circular 90-29.
(c) DFARS 228.106-4, 228.106-4-70, 228.106-6, and 252.228-7006 are
deleted. The guidance in these sections has been superseded by the
guidance in FAR 28.106-4(b), 28.106-6(d), and 52.228-12, published in
Federal Acquisition Circular 90-32.
(d) DFARS Part 253 is amended to update DD Forms 375, 375c, 428,
1659, 2222, 2222-2, and 2604. (This amendment is being made only in the
loose-leaf edition of the DFARS.)
Interim Rules Adopted as Final With Changes
PARTS 209 AND 252--[AMENDED]
The interim rule published at 60 FR 13073 on March 10, 1995, and
amended at 60 FR 61593 and 61600 on November 30, 1995, is adopted as
final with a revision at section 209.470-1 and amendments at section
252.209-7005.
PARTS 232 AND 252--[AMENDED]
The interim rule published at 58 FR 62045 on November 24, 1993, and
corrected at 58 FR 64363 on December 6, 1993, is adopted as final with
amendments at section 252.232-7004.
List of Subjects in 48 CFR Parts 202, 204, 209, 213, 215, 216, 217,
223, 225, 228, 232, 235, 236, 242, 246, 252, 253, and Appendix G to
Chapter 2
Government procurement.
Amendments to 48 CFR Chapter 2 (Defense Federal Acquisition Regulation
Supplement)
48 CFR Chapter 2 (the Defense Federal Acquisition Regulation
Supplement) is amended as set forth below.
1. The authority for 48 CFR Parts 202, 204, 209, 213, 215, 216,
217, 223, 225, 228, 232, 235, 236, 242, 246, 252, 253, and Appendix G
to Chapter 2 continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 202--DEFINITIONS OF WORDS AND TERMS
202.101 [Amended]
2. Section 202.101 is amended in the definition entitled
``Contracting activity'' under the heading ``NAVY,'' by removing the
two entries ``Ships Parts Control Center'' and ``Navy Aviation Supply
Office'', by adding the entry ``Naval Inventory Control Point'' after
the entry ``Naval Facilities Engineering Command''; and by revising the
entry ``U.S. Marine Corps Research, Development, and Acquisition
Command'' to read ``Marine Corps Systems Command''.
[[Page 7742]]
PART 204--ADMINISTRATIVE MATTERS
3. Section 204.202 is amended by removing in paragraph (1)(iii) the
word ``and''; by removing in paragraph (1)(iv) the period and adding
``; and''; and by adding a new paragraph (1)(v) to read as follows:
204.202 Agency distribution requirements.
(1) * * *
(v) One copy, or an extract of the pertinent information, to the
cognizant Defense Investigative Service office listed in DoD 5100.76-M,
Physical Security of Sensitive Conventional Arms, Ammunition, and
Explosives, when the clause at 252.223-7007, Safeguarding Sensitive
Conventional Arms, Ammunition, and Explosives, is included in the
contract.
* * * * *
PART 209--CONTRACTOR QUALIFICATIONS
4. Section 209.470-1 is revised to read as follows:
209.470-1 Policy.
(a) Section 558 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337) provides that no funds available
to DoD may be provided by grant or contract to any institution of
higher education that has a policy of denying or that effectively
prevents the Secretary of Defense from obtaining for military
recruiting purposes--
(1) Entry to campuses or access to students on campuses; or
(2) Access to directory information pertaining to students.
(b) Institutions of higher education that are determined under 32
CFR part 216 to have the policy or practice in paragraph (a) of this
subsection shall be listed as ineligible on the List of Parties
Excluded from Federal Procurement Programs published by the General
Services Administration (see FAR 9.404).
(c) In cases where a determination is made under 32 CFR part 216
that specific subordinate elements of an institution of higher
education, rather than the institution as a whole, have the policy or
practice in paragraph (a) of this subsection, 32 CFR part 216 provides
that the prohibition on use of DoD funds applies only to those
subordinate elements.
5. Part 213 heading is revised to read as follows:
PART 213--SIMPLIFIED ACQUISITION PROCEDURES
213.000 [Amended]
6. Section 213.000 is amended by revising the words ``small
purchase'' to read ``simplified acquisition'' and by revising the
threshold ``$100,000'' to read ``$200,000''.
7. Section 213.101 is amended by revising the introductory text; by
adding a comma in paragraph (1) between the word ``operations'' and the
word ``or''; and by revising paragraph (2). The revisions read as
follows:
213.101 Definitions.
Contingency operation is defined in 10 U.S.C. 101(a)(13) as a
military operation that--
* * * * *
(2) Results in the call or order to, or retention on, active duty
of members of the uniformed services under section 688, 12301(a),
12302, 12304, 12305, or 12406 of Title 10, chapter 15 of Title 10, or
any other provision of law during a war or during a national emergency
declared by the President or Congress.
213.204 [Amended]
8. Section 213.204 is amended by revising in paragraph (b) the
phrase ``above the dollar threshold at FAR 13.000'' to read ``not using
simplified acquisition procedures.''
213.402 [Amended]
9. Section 213.402 is redesignated as 213.401.
213.403 [Amended]
10. Section 213.403 is redesignated as 213.402.
213.404 [Amended]
11. Section 213.404 is redesignated as 213.403. Newly designated
Section 213.403 is amended by adding a period at the end of paragraph
(c)(i)(B); and by revising in paragraph (c)(ii) the words ``small
purchases'' to read ``simplified acquisitions.''
213.502-2 [Amended]
12. Section 213.502-2 is redesignated as Section 213.505-1. Newly
designated Section 213.505-1 is amended by revising the heading to read
``Optional Form (OF) 347, Order for Supplies or Services, and Optional
Form 348, Order for Supplies or Services Schedule-Continuation.''; by
removing in the introductory text the hyphen between the words
``Services'' and ``Schedule''; by adding a hyphen between the words
``Schedule'' and ``Continuation'', by revising in paragraph (b)(i) the
words ``small purchase'' to read ``simplified acquisition''; and by
revising the sentence in paragraph (b)(i)(F)(3) to read ``A purchase
order for acquisitions using simplified acquisition procedures.''
13. Section 213.505-3 is amended by revising paragraph (b)(1)
introductory text to read as follows:
213.505-3 Standard Form 44, Purchase Order-Invoice-Voucher.
(b)(1) The micro-purchase limitation applies to all purchasers
except that purchases up to the simplified acquisition threshold may be
made for--
* * * * *
14. Section 213.507 is amended by revising the heading; and by
revising paragraph (a)(i) to read as follows:
213.507 Provisions and clauses.
(a) * * *
(i) Unilateral purchase orders--
(A) FAR 52.252-2, Clauses Incorporated by Reference (required only
if other clauses are incorporated by reference);
(B) FAR 52.203-3, Gratuities;
(C) FAR 52.211-16, Variation in Quantity;
(D) FAR 52.222-3, Convict Labor (unless the order will be subject
to the Walsh-Healey Public Contracts Act (see FAR subpart 22.6));
(E) FAR 52.222-26, Equal Opportunity (unless exempt under FAR
22.807);
(F) FAR 52.225-3, Buy American Act-Supplies;
(G) FAR 52.232,-1, Payments;
(H) FAR 52.232-25, Prompt Payment;
(I) FAR 52.232-28, Electronic Funds Transfer Payment Methods;
(J) FAR 52.233-1, Disputes;
(K) FAR 52.246-1, Contractor Inspection Requirements (except when
an alternate level of quality assurance is necessary (see FAR 46.203
and 46.204)); and
(L) FAR 52.246-16, Responsibility for Supplies.
* * * * *
PART 215--CONTRACTING BY NEGOTIATION
15. Section 215.810 is revised to read as follows:
215.810 Should-cost review.
16. Section 215.810-2 is added to read as follows:
215.810-2 Program should-cost review.
(b) DoD contracting activities should consider performing a program
should-cost review before award of a definitive major systems contract
exceeding $100 million.
17. Section 215.810-3 is added to read as follows:
[[Page 7743]]
215.810-3 Overhead should-cost review.
(a) Contact the DCMC/DLA Overhead Center, Fort Belvoir, VA 22060-
6221, at (703) 767-3387, for questions on overhead should-cost
analysis.
(b)(i) The Defense Contract Management Command/Defense Logistics
Agency (DCMC/DLA), or the military department responsible for
performing contract administration functions (e.g., Navy SUPSHIP),
should consider, based on risk assessment, performing an overhead
should-cost review of a contractor business unit (as defined in FAR
31.001) when all of the following conditions exist:
(A) Projected annual sales to DoD exceed $1 billion.
(B) Projected DoD versus total business exceeds 30 percent;
(C) Level of sole-source DoD contracts is high;
(D) Significant volume of proposal activity is anticipated;
(E) Production or development of a major weapon system or program
is anticipated; and
(F) Contractor cost control/reduction initiatives appear
inadequate.
(ii) The head of the contracting activity may request an overhead
should-cost review for a business unit which does not meet the criteria
in paragraph (b)(i) of this subsection.
(iii) Overhead should-cost reviews are labor intensive. These
reviews generally involve participation by the contracting, contract
administration, and contract audit elements. The extent of availability
of military department, contract administration, and contract audit
resources to support DCMC/DLA-led teams should be considered when
determining whether a review will be conducted. Overhead should-cost
reviews generally shall not be conducted at a contractor business
segment more frequently than every three years.
PART 216--TYPES OF CONTRACTS
18. Section 216.306 is added to read as follows:
216.306 Cost-plus-fixed-fee contracts.
(c) Limitations.
(i) Annual military construction appropriations acts restrict the
use of cost-plus-fixed-fee contracts that--
(A) Are funded by a military construction appropriations act:
(B) Are estimated to exceed $25,000; and
(C) Will be performed within the United States, except Alaska.
(ii) The Secretaries of the military departments are authorized to
approve contracts described in paragraph (c)(i) of this section that
are for environmental work only, provided the environmental work is not
classified as construction, as defined by 10 U.S.C 2801.
(iii) The Secretary of Defense or designee must specifically
approve contracts described in paragraph (c)(i) of this section that
are not environmental work only.
19. Section 216.603-4 is revised to read as follows:
216.603-4 Contract clauses.
(b)(2) See 217.7406(a) for additional guidance regarding use of the
clause at FAR 52.216-24, Limitation of Government Liability.
(3) Use the clause at 252.217-7027, Contract Definitization, in
accordance with its prescription at 217.7406(b), instead of the clause
at FAR 52.216-25, Contract Definitization.
20. Section 216.703 is amended by revising paragraph (c) to read as
follows:
216.703 Basic ordering agreements
(c) Limitations. The period during which orders may be placed
against a basis ordering agreement may not exceed three years. The
contracting officer, with the approval of the chief of the contracting
office, may grant extensions for up to two years. No single extension
shall exceed one year. See subpart 217.74 for additional limitations on
the use of undefinitized orders under basic ordering agreements.
* * * * *
PART 217--SPECIAL CONTRACTING METHODS
21. Section 217.202 is amended by adding paragraph (3) to read as
follows:
217.202 Use of options.
* * * * *
(3) See subpart 217.74 for limitations on the use of undefinitized
options.
22. Section 217.7402 is amended by revising in the introductory
text the term ``UCA's'' to read ``UCAs'' and by revising paragraph (b)
to read as follows:
217.7402 Exceptions.
* * * * *
(a) * * *
(b) Purchases at or below the simplified acquisition threshold;
* * * * *
217.7404-3 [Amended]
23. Section 217.7404-3 is amended by revising in the introductory
text of paragraph (a) the word ``earliest'' to read ``earlier.''
24. Section 217.7406 is revised to read as follows:
217.7406 Contract clauses.
(a) Use the clause at FAR 52.216-24, Limitation of Government
Liability, in all UCAs, solicitations associated with UCAs, basic
ordering agreements, indefinite delivery contracts, and any other type
of contract providing for the use of UCAs.
(b) Use the clause at 252.217-7027, Contract Definitization, in all
UCAs, solicitations associated with UCAs, basic ordering agreements,
indefinite delivery contracts, and any other type of contract providing
for the use of UCAs. Insert the applicable information in paragraphs
(a), (b), and (d) of the clause. If, at the time of entering into the
UCA, the contracting officer knows that the definitive contract action
will meet the criteria of FAR 15.804-1 for not requiring submission of
cost or pricing data, the words ``and cost or pricing data'' may be
deleted from paragraph (a) of the clause.
PART 223--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-
FREE WORKPLACE
25. A new Subpart 223.72 is added to read as follows:
Subpart 223.72--Safeguarding Sensitive Conventional Arms, Ammunition,
and Explosives
Sec.
223.7200 Definition.
223.7201 Policy.
223.7202 Preaward responsibilities.
223.7203 Contract clause.
Subpart 223.72--Safeguarding Sensitive Conventional Arms,
Ammunition, and Explosives
223.7200 Definition.
``Arms, ammunition, and explosives (AA&E),'' as used in this
subpart, means those items within the scope (chapter 1, paragraph B) of
DoD 5100.76-M, Physical Security of Sensitive Conventional Arms,
Ammunition, and Explosives.
223.7201 Policy.
(a) The requirements of DoD 5100.76-M, Physical Security of
Sensitive Conventional Arms, Ammunition, and Explosives, shall be
applied to contracts when--
(1) AA&E will be provided to the contractor or subcontractor as
Government-furnished property; or
(2) The principal development, production, manufacture, or purchase
of AA&E is for DoD use.
(b) The requirements of DoD 5100.76-M need not be applied to
contracts when--
[[Page 7744]]
(1) The AA&E to be acquired under the contract is a commercial item
within the meaning of FAR 2.101; or
(2) The contract will be performed in a Government-owned
contractor-operated ammunition production facility. However, if
subcontracts issued under such a contract will meet the criteria of
paragraph (a) of this section, the requirements of DoD 5100.76-M shall
apply.
223.7202 Preaward responsibilities.
When an acquisition involves AA&E, technical or requirements
personnel shall specify in the purchase request--
(a) That AA&E is involved; and
(b) Which physical security requirements of DoD 5100.76-M apply.
223.7203 Contract clause.
Under the clause at 252.223-7007, Safeguarding Sensitive
Conventional Arms, Ammunition, and Explosives, in all solicitations and
contracts to which DoD 5100.76-M applies, in accordance with the policy
at 223.7201. Complete paragraph (b) of the clause based on information
provided by cognizant technical or requirements personnel.
PART 225--FOREIGN ACQUISITION
26. Section 225.402 is amended by revising paragraph (a) to read as
follows:
225.402 Policy.
(a) To estimate the value of the acquisition, use the total
estimated value of end products subject to trade agreement acts (see
225.403-70).
(1) See 225.105 for evaluation of eligible products and U.S. made
end products.
* * * * *
27. Section 225.7102 is amended by revising the introductory text
to read as follows:
225.7102 Policy.
DoD requirements for the following, including acquisitions for
items containing the following, shall be acquired from domestic sources
(as described in the clause at 252.225-7025) to the maximum extent
practicable--
* * * * *
28. Section 225.7103 is amended by revising paragraph (e)(1);
redesignating paragraph (e)(2) as (e)(3); and adding paragraph (e)(2)
to read as follows:
225.7103 Exceptions.
* * * * *
(e) * * *
(1) Used for commercial vehicles or noncombat support military
vehicles;
(2) Purchased as tank and automotive spare parts (except when it is
known that the spare parts are for use in tanks only); or
* * * * *
29. Section 225.7303-2 is amended by revising paragraph (a)(3) to
read as follows:
225.7303-2 Cost of doing business with a foreign government or an
international organization.
(a) * * *
(3) Offset implementation costs.
(i) A U.S. defense contractor may recover costs incurred to
implement its offset agreement with a foreign government or
international organization if the foreign military sale Letter of Offer
and Acceptance is financed wholly with customer cash or repayable
foreign military finance credits.
(ii) The U.S. Government assumes no obligation to satisfy or
administer the offset requirement or to bear any of the associated
costs.
* * * * *
PART 228--BONDS AND INSURANCE
228.106-4, 228.106-4-70, and 228.106-6 [Removed]
30. Sections 228.106-4, 228.106-4-70, and 228.106-6 are removed.
PART 232--CONTRACT FINANCING
31. Section 232.703-70 is added to read as follows:
232.703-70 Military construction appropriations act restriction.
Annual military construction appropriations acts restrict the use
of funds appropriated by the acts for payments under cost-plus-fixed-
fee contracts (see 216.306(c)).
PART 235--RESEARCH AND DEVELOPMENT CONTRACTING
32. Section 235.7003 is amended by adding a new paragraph (c)(6) to
read as follows:
235.7003 Reporting requirements.
* * * * *
(c) * * *
(6) Number of actions removed from the test due to inability to
comply with RDSS/C procedures, with a brief description of the
reasons(s) for the inability to comply.
* * * * *
33. Section 235.7004-3(d) is amended by revising ``Alternate III''
to read ``Alternate II.''
34. Section 235.7006, Exhibit--Research and Development Streamlined
Contracting Format, Part I--The Schedule, Section H, Special Contract
Requirements, is amended by revising the designation ``(H.4)*'' to read
``(H.4)'' and by revising the address in (H.4) and by adding (H.6)* to
read as follows:
235.7006-- The research and development streamlined contracting
format.
Exhibit--Research and Development Streamlined Contracting format
Part I--The Schedule
Section H * * *
(H.4) * * * Defense Technical Information Center, Attn:
Registration Section (DTIC-BCS), 8725 John J. Kingman Road, Suite
0944, Fort Belvoir, VA 22060-6218,(703) 767-8273, or 1-800-CAL-DITC
(225-3842), menu selection 2.
* * * * *
*(H.6) (Insert nonstandard clause approved in accordance with
235.7006(c), if applicable.)
* * * * *
35. Section 235.7006, Exhibit--Research and Development Streamlined
Contracting Format, Part II--Contract Clauses, and Part IV,
Representations and Instructions, are revised to read as follows:
Part II--Contract Clauses
Section I, Contract Clauses
(I.1)............................ 52.252-2................................... Clauses Incorporated by
Reference.
(I.2)............................ 52.202-1................................... Definitions.
(I.3)............................ Reserved...................................
(I.4)............................ 52.203-3................................... Gratuities.
(I.5)............................ 52.203-5................................... Covenant Against Contingent
Fees.
(I.6)............................ 52.203-7................................... Anti-Kickback Procedures.
(I.7)............................ 52.203-10.................................. Price or Fee Adjustment for
Illegal or Improper Activity.
(Except educational
institutions.)
(I.8)............................ 52.209-6................................... Protecting the Government's
Interest When Subcontracting
with Contractors Debarred,
Suspended, or Proposed for
Debarment.
(I.9)............................ Reserved...................................
(I.10)........................... Reserved...................................
[[Page 7745]]
(I.11)........................... Reserved...................................
(I.12)........................... 52.215-26.................................. Integrity of Unit Prices.
(I.13)........................... 52.215-33.................................. Order of Precedence.
(I.14)........................... 52.216-7................................... Allowable Cost and Payment.
(Modified in accordance with
16.307 as applicable.)
(I.15)........................... Reserved...................................
(I.16)........................... Reserved...................................
(I.17)........................... Reserved...................................
(I.18)........................... Reserved...................................
(I.19)........................... 52.222-3................................... Convict Labor.
(I.20)........................... 52.222-26.................................. Equal Opportunity.
(I.21)........................... 52.222-35.................................. Affirmative Action for Special
Disabled and Vietnam Era
Veterans.
(I.22)........................... 52.222-36.................................. Affirmative Action for
Handicapped Workers.
(I.23)........................... 52.222-37.................................. Employment Reports on Special
Disabled Veterans and Veterans
of the Vietnam Era.
(I.24)........................... 52.223-6................................... Drug-Free Workplace.
(I.25)........................... 52.225-11.................................. Restrictions on Certain Foreign
Purchases.
(I.26)........................... 52.227-1................................... Authorization and Consent--
Alternate I.
(I.27)........................... 52.227-2................................... Notice and Assistance Regarding
Patent and Copyright
Infringement.
(I.28)........................... 52.228-7................................... Insurance--Liability to Third
Persons.
(I.29)........................... 52.232-9................................... Limitation on Withholding of
Payments.
(I.30)........................... 52.232-23.................................. Assignment of Claims.
(I.31)........................... 52.232-25.................................. Prompt Payment.
(I.32)........................... 52.232-28.................................. Electronic Funds Transfer
Payment Methods.
(I.33)........................... 52.233-1................................... Disputes.
(I.34)........................... 52.233-3................................... Protest After Award--Alternate
I.
(I.35)........................... 52.242-1................................... Notice of Intent to Disallow
Costs.
(I.36)........................... 52.242-13.................................. Bankruptcy.
(I.37)........................... 52.244-2................................... Subcontracts (Cost-Reimbursement
and Letter Contracts) Alternate
I.
(I.38)........................... 52.244-5................................... Competition in Subcontracting.
(I.39)........................... 52.247-1................................... Commercial Bill of Lading
Notations.
(I.40)........................... 52.249-14.................................. Excusable Delays.
(I.41)........................... 52.253-1................................... Computer-Generated Forms.
*(I.42).......................... 52.203-9................................... Requirement for Certificate of
Procurement Integrity-
Modification.
*(I.43).......................... 52.203-12.................................. Limitation on Payments to
Influence Certain Federal
Transactions.
*(I.44).......................... 52.204-2................................... Security Requirements.
*(I.45).......................... 52.204-2................................... Security Requirements-Alternate
I. (For educational
institutions.)
*(I.46).......................... 52.215-22.................................. Price Reduction for Defective
Cost or Pricing Data.
*(I.47).......................... 52.215-23.................................. Price Reduction for Defective
Cost or Pricing Data
Modications.
*(I.48).......................... 52.215-24.................................. Subcontractor Cost or Pricing
Data.
*(I.49).......................... 52.215-25.................................. Subcontractor Cost or Pricing
Data-Modifications.
*(I.50).......................... 52.215-27.................................. Termination of Defined Benefit
Pension Plans. (Except
educational institutions.)
*(I.51).......................... 52.215-31.................................. Waiver of Facilities Capital
Cost of Money. (Except
educational institutions.)
*(I.52).......................... 52.215-39.................................. Reversion or Adjustment of Plans
for Postretirement Benefits
Other than Pension (PRB).
*(I.53).......................... 52.216-8................................... Fixed Fee.
*(I.54).......................... 52.216-10.................................. Incentive Fee.
*(I.55).......................... 52.216-11.................................. Cost Contract--No Fee.
*(I.56).......................... 52.216-11.................................. Cost Contract--No Fee-Alternate
I.
*(I.57).......................... 52.216-12.................................. Cost-Sharing Contract--No Fee.
*(I.58).......................... 52.216-12.................................. Cost-Sharing Contract--No Fee-
Alternate I.
*(I.59).......................... 52.216-15.................................. Predetermined Indirect Cost
Rates.
*(I.59A)......................... 252.216-7002............................... Alternate. (For educational
institutions only.)
*(I.60).......................... 52.219-6................................... Notice of Total Small Business
Set-Aside.
*(I.61).......................... 52.219-6................................... Notice of Total Small Business
Set-Aside--Alternate I.
(I.63)........................... Reserved...................................
*(I.64).......................... 52.219-14.................................. Limitations on Subcontracting.
*(I.65).......................... 52.219-16.................................. Liquidated Damages--Small
Business Subcontracting Plan.
(I.66)........................... Reserved...................................
*(I.67).......................... 52.222-1................................... Notice to the Government of
Labor Disputes.
*(I.68).......................... 52.222-2................................... Payment for Overtime Premiums.
*(I.69).......................... 52.222-28.................................. Equal Opportunity Preaward
Clearance of Subcontracts.
*(I.70).......................... 52.223-2................................... Clean Air and Water.
*(I.71).......................... 52.223-3................................... Hazardous Material
Identification and Material
Safety Data.
*(I.72).......................... 52.223-7................................... Notice of Radioactive Materials
(21 Days).
*(I.73).......................... 52.226-1................................... Utilization of Indian
Organizations and Indiane-Owned
Economic Enterprises.
*(I.74).......................... 52.227-10.................................. Filing of Patent Applications--
Classified Subject Matter.
*(I.75).......................... 52.227-11.................................. Patent Rights--Retention by the
Contractor (Short Form).
*(I.76).......................... 52.227-12.................................. Patent Rights--Retention by the
Contractor (Long Form).
*(I.77).......................... 52.227-13.................................. Patent Rights--Acquisition by
the Government.
*(I.78).......................... 52.228-7................................... Insurance--Liability to Third
Persons--Alternate I.
*(I.79).......................... 52.228-7................................... Insurance--Liability to Third
Persons--Alternate II.
*(I.80).......................... 52.229-8................................... Taxes--Foreign Cost-
Reimbursement Contracts.
*(I.81).......................... 52.229-10.................................. State of New Mexico Gross
Receipts and Compensating Tax.
*(I.82).......................... 52.230-2................................... Cost Accounting Standards.
(Except if exempted.)
*(I.83).......................... 52.230-3................................... Disclosure and Consistency of
Cost Accounting Practices.
(Except if exempted.)
*(I.84).......................... 52.230-5................................... Administration of Cost
Accounting Standards. (Except
educational institutions.)
*(I.85).......................... 52.232-17.................................. Interest.
*(I.86).......................... 52.232-20.................................. Limitation of Cost.
[[Page 7746]]
*(I.87).......................... 52.232-22.................................. Limitation of Funds.
*(I.88).......................... 52.232-23.................................. Assignment of Claims--Alternate
I.
*(I.89).......................... 52.233-1................................... Disputes--Alternate I.
*(I.90).......................... 52.237-2................................... Protection of Government
Buildings, Equipment and
Vegetation.
*(I.91).......................... 52.242-10.................................. F.O.B. Origin-Government Bills
of Lading or Prepaid Postage.
*(I.92).......................... 52.242-11.................................. F.O.B. Origin-Government Bills
of Lading or Indicia Mail.
*(I.93).......................... 52.242-12.................................. Report of Shipment (REPSHIP).
*(I.94).......................... 52.243-2................................... Changes--Cost-Reimbursement-
Alternate V.
*(I.95).......................... 52.243-6................................... Change Order Accounting.
*(I.96).......................... 52.243-7................................... Notification of Changes (30
Calendar Days).
*(I.97).......................... 52.245-5................................... Government Property (Cost-
Reimbursement, Time-and-
Material, or Labor-Hour
Contracts).
*(I.98).......................... 52.245-5................................... Government Property (Cost-
Reimbursement, Time-and-
Material, or Labor-Hour
Contracts-Alternate I. (For
educational institutions and
nonprofit organizations.)
*(I.99).......................... 52.245-19.................................. Government Property Furnished
``As Is''.
*(I.100)......................... 52.246-23.................................. Limitation of Liability.
*(I.101)......................... 52.246-24.................................. Limitation of Liability-High
Value Items.
*(I.102)......................... 52.246-24.................................. Limitation of Liability-High
Value Items-Alternate I.
*(I.103)......................... 52.246-25.................................. Limitation of Liability-
Services.
*(I.104)......................... 52.247-63.................................. Preference for U.S.-Flag Air
Carriers.
*(I.105)......................... 52.247-66.................................. Returnable Cylinder.
*(I.106)......................... 52.249-5................................... Termination for Convenience of
the Government (Educational and
Other Nonprofit Institutions).
*(I.107)......................... 52.249-6................................... Termination (Cost-
Reimbursement).
*(I.108)......................... 52.251-1................................... Government Supply Sources.
*(I.109)......................... 252.201-7000............................... Contracting Officer's
Representative.
*(I.110)......................... 252.203-7001............................... Special Prohibition on
Employment.
*(I.111)......................... Reserved...................................
*(I.112)......................... Reserved...................................
*(I.113)......................... 52.204-7003................................ Control of Government Personnel
Work Product.
*(I.114)......................... 252.209-7000............................... Acquisition from Subcontractors
Subject to On-Site Inspection
under the Intermediate-Range
Nuclear Forces (INF) Treaty.
*(I.115)......................... 252.225-7012............................... Preference for Certain Domestic
Commodities.
*(I.116)......................... 252.225-7031............................... Secondary Arab Boycott of
Israel.
*(I.117)......................... Reserved...................................
*(I.118)......................... Reserved...................................
*(I.119)......................... Reserved...................................
*(I.120)......................... 252.227-7030............................... Technical Data-Withholding of
Payment.
*(I.121)......................... 252.227-7037............................... Validation of Restrictive
Markings on Technical Data.
*(I.122)......................... 252.231-7000............................... Supplemental Cost Principles.
*(I.123)......................... 252.232-7006............................... Reduction or Suspension of
Contract Payments Upon Finding
of Fraud.
*(I.124)......................... 252.242-7000............................... Postaward Conference.
*(I.125)......................... Reserved...................................
*(I.126)......................... 252.247-7023............................... Transportation of Supplies by
Sea.
*(I.127)......................... 252.203-7000............................... Statutory Prohibition on
Compensation to Former
Department of Defense
Employees.
*(I.128)......................... 252.203-7002............................... Display of DoD Hotline Poster.
*(I.129)......................... 252.204-7000............................... Disclosure of Information.
*(I.130)......................... 252.204-7002............................... Payment for Subline Items Not
Separately Priced.
*(I.131)......................... 252.205-7000............................... Provision of Information to
Cooperative Agreement Holders.
*(I.132)......................... 252.215-7000............................... Pricing Adjustments.
*(I.133)......................... 252.215-7002............................... Cost Estimating System
Requirements.
*(I.134)......................... 252.219-7001............................... Notice of Partial Small Business
Set-Aside with Preferential
Consideration for Small
Disadvantaged Business
Concerns.
*(I.135)......................... 252.219-7002............................... Notice of Small Disadvantaged
Business Set-Aside.
*(I.136)......................... 252.219-7003............................... Small Business and Small
Disadvantaged Business
Subcontracting Plan (DoD
Contracts).
*(I.137)......................... 252.219-7004............................... Small Business and Small
Disadvantaged Business
Subcontracting Plan (Test
Program).
*(I.138)......................... 252.219-7005............................... Incentive for Subcontracting
with Small Businesses, Small
Disadvantaged Businesses,
Historically Black Colleges and
Universities and Minority
Institutions. (. . . To be
negotiated ________ %.)
*(I.139)......................... 252.219-7005............................... Incentive for Subcontracting
with Small Businesses, Small
Disadvantaged Businesses,
Historically Black Colleges and
Universities and Minority
Institutions-Alternate I. (. .
. To be negotiated ________ %.)
*(I.140)......................... 252.219-7006............................... Notice of Evaluation Preference
for Small Disadvantaged
Business Concerns.
*(I.141)......................... 252.223-7001............................... Hazard Warning Labels.
*(I.142)......................... 252.223-7002............................... Safety Precautions for
Ammunitions and Explosives.
*(I.143)......................... 252.223-7003............................... Change in Place of Performance-
Ammunition and Explosives.
*(I.144)......................... 252.223-7004............................... Drug-Free Work Force.
*(I.145)......................... 252.225-7014............................... Preference for Domestic
Specialty Metals.
*(I.146)......................... 252.225-7016............................... Restriction on Acquisition of
Antifriction Bearings.
*(I.147)......................... 252.225-7025............................... Foregin Source Restrictions.
*(I.148)......................... 252.225-7026............................... Reporting of Contract Outside
the United States.
*(I.149)......................... 252.225-7032............................... Waiver of United Kingdom Levies.
*(I.150)......................... 252.226-7000............................... Notice of Historically Black
College or University and
Minority Institution Set-Aside.
*(I.151)......................... 252.227-7026............................... Deferred Delivery of Technical
Data or Computer Software.
*(I.152)......................... 252.227-7027............................... Deferred Ordering of Technical
Data or Computer Software.
(I.153).......................... Reserved...................................
*(I.154)......................... 252.227-7034............................... Patent--Subcontracts.
[[Page 7747]]
*(I.155)......................... 252.227-7036............................... Certification of Technical Data
Conformity.
*(I.156)......................... 252.227-7039............................... Patents--Reporting of Subject
Inventions.
(I.157).......................... Reserved...................................
*(I.158)......................... 252.232-7000............................... Advance Payment Pool. (For
educational institutions and
nonprofit organizations.)
*(I.159)......................... 252.233-7000............................... Certification of Claims and
Requests for Adjustment or
Relief.
*(I.160)......................... 252.235-7002............................... Animal Welfare.
*(I.161)......................... 252.242-7002............................... Submission of Commercial Freight
Bills for Audit.
*(I.162)......................... 252.242-7003............................... Application for U.S. Government
Shipping Documentation/
Instructions.
*(I.163)......................... 252.242-7004............................... Material Management and
Accounting System.
*(I.164)......................... 252.245-7001............................... Reports of Government Property.
*(I.165)......................... 252.247-7024............................... Notification of Transportation
of Supplies by Sea.
*(I.166)......................... 252.249-7001............................... Notification of Substantial
Impact on Employment.
*(I.167)......................... 252.251-7000............................... Ordering From Government Supply
Sources.
*(I.168)......................... 252.223-7006............................... Prohibition on Disposal of Toxic
and Hazardous Materials.
*(I.169)......................... 252.249-7002............................... Notification of Program
Termination or Reduction.
(I.170).......................... 52.204-4................................... Printing/Copying Double-Sided on
Recycled Paper.
*(I.171)......................... 52.208-8................................... Helium Requirement Forecast and
Required Sources for Helium.
(I.172).......................... 52.215-2................................... Audit and Records--Negotiation.
*(I.173)......................... 52.215-2................................... Audit and Records--Negotiation,
Alternate II.
(I.174).......................... 52.215-40.................................. Notification of Ownership
Changes.
*(I.175)......................... 52.215-42.................................. Requirements for Cost or Pricing
Data or Information Other Than
Cost or Pricing Data--
Modifications.
*(I.176)......................... 52.215-42.................................. Requirements for Cost or Pricing
Data or Information Other Than
Cost or Pricing Data--
Modifications, Alternate II.
*(I.177)......................... 52.215-42.................................. Requirements for Cost or Pricing
Data or Information Other Than
Cost or Pricing Data--
Modifications, Alternate III.
(I.178).......................... 52.219-8................................... Utilization of Small, Small
Disadvantaged and Women-Owned
Small Business Concerns.
*(I.179)......................... 52.219-9................................... Small, Small Disadvantaged and
Women-Owned Small Business
Subcontracting Plan.
*(I.180)......................... 52.242-3................................... Penalties for Unallowable Costs.
(I.181).......................... 52.242-4................................... Certification of Indirect Costs.
(I.182).......................... 52.244-6................................... Subcontracts for Commercial
Items and Commercial
Components.
*(I.183)......................... 52.247-67.................................. Submission of Commercial
Transportation Bills to the
General Services Administration
for Audit.
(I.184).......................... 52.223-14.................................. Toxic Chemical Release
Reporting.
(I.185).......................... 252.235-7010............................... Acknowledgement of Support and
Disclaimer.
(I.186).......................... 252.235-7011............................... Final Scientific or Technical
Report.
*(I.187)......................... 252.227-7013............................... Rights in Technical Data--
Noncommercial Items.
*(I.188)......................... 252.227-7013............................... Rights in Technical Data--
Noncommercial Items, Alternate
I.
*(I.189)......................... 252.227-7014............................... Rights in Noncommercial Computer
Software and Noncommercial
Computer Software
Documentation.
*(I.190)......................... 252.227-7014............................... Rights in Nocommercial Computer
Software and Noncommercial
Computer Software
Documentation, Alternate I.
*(I.191)......................... 252.227-7015............................... Technical Data--Commercial
Items.
*(I.192)......................... 252.227-7016............................... Rights in Bid or Proposal
Information.
*(I.193)......................... 252.227-7018............................... Rights in Noncommercial
Technical Data and Computer
Software--Small Business
Innovation Research Program.
*(I.194)......................... 252.227-7018............................... Rights in Noncommercial
Technical Data and Computer
Software--Small Business
Innovation Research Program,
Alternate I.
*(I.195)......................... 252.227-7019............................... Validation of Asserted
Restrictions--Computer
Software.
*(I.196)......................... 252.227-7025............................... Limitations on the Use or
Disclosure of Government-
Furnished Information Marked
with Restrictive Legends.
*(I.197)......................... 252.209-7005............................... Military Recruiting on Campus
(For educational institutions
only.)
.
* * * * * * *
Part IV--Representations and Instructions
Section K. Representations, Certifications and Other Statements of Offerors or Quoters
The following solicitation provisions require representations, certifications or the submission of other
information by offerors. They are mandatory, and are included by reference. Full text copies of these provisions
are available from the Contracting Officer and must be completed and certified before contract award.
(K.1)............................ 52.203-4................................... Contingent Fee Representation
and Agreement.
(K.2)............................ 52.203-8................................... Requirement for Certificate of
Procurement Integrity-Alternate
I.
(K.3)............................ 52.203-11.................................. Certification and Disclosure
Regarding Payments to Influence
Certain Federal Transactions.
(K.4)............................ 52.204-3................................... Taxpayer Identification.
(K.5)............................ 52.209-5................................... Certification Regarding
Debarment, Suspension, Proposed
Debarment, and Other
Responsibility Matters.
(K.6)............................ 52.215-6................................... Type of Business Organization.
(K.7)............................ 52.215-11.................................. Authorized Negotiators.
(K.8)............................ 52.215-20.................................. Place of Performance.
(K.9)............................ 52.215-30.................................. Facilities Capital Cost of Money
(Except educational
institutions.)
(K.10)........................... Reserved...................................
(K.11)........................... Reserved...................................
(K.12)........................... Reserved...................................
(K.13)........................... 52.222-21.................................. Certification of Nonsegregated
Facilities.
(K.14)........................... 52.222-22.................................. Previous Contracts and
Compliance Reports.
(K.15)........................... 52.222-25.................................. Affirmative Action Compliance.
[[Page 7748]]
(K.16)........................... 52.223-1................................... Clean Air and Water
Certification.
(K.17)........................... 52.223-5................................... Certification Regarding a Drug-
Free Workplace.
(K.18)........................... 52.227-6................................... Royalty Information.
(K.19)........................... 52.230-1................................... Cost Accounting Standards
Notices and Certification.
(K.20)........................... Reserved...................................
(K.21)........................... 252.209-7002............................... Disclosure of Ownership or
Control by a Foreign
Government.
(K.22)........................... 252.219-7000............................... Small Disadvantaged Business
Concern Representation (DOD
Contracts).
(K.23)........................... Reserved...................................
(K.24)........................... Reserved...................................
(K.25)........................... 252.226-7001............................... Hostirically Black College or
University and Minority
Institution Certification.
(K.26)........................... Reserved...................................
(K.27)........................... 252.247-7022............................... Representation of Extent of
Transportation by Sea.
(K.28)........................... 52.204-5................................... Women-Owned Business.
(K.29)........................... 252.209-7.................................. Organizational Conflicts of
Interest Certificate--Marketing
Consultants.
(K.30)........................... 252.219-1.................................. Small Business Program
Representation.
(K.31)........................... 252.223-13................................. Certification of Toxic Chemical
Release Reporting.
(K.32)........................... 252.209-7001............................... Disclosure of Ownership or
Control by the Government of a
Terrorist Country.
(K.33)........................... 252.209-7003............................... Disclosure of Commercial
Transactions with the
Government of a Terrorist
Country.
(K.34)........................... 252.209-7004............................... Reporting of Commercial
Transactions with the
Government of a Terrorist
Country.
(K.35)........................... 252.227-7017............................... Identification and Assertion of
Use, Release, or Disclosure
Restrictions.
(K.36)........................... 252.227-7028............................... Technical Data or Computer
Software Previously Delivered
to the Government.
Section L. Instructions, Conditions, and Notices to Offerors or Quoters
(L.1)............................ 52.252-1................................... Solicitation Provisions
Incorporated by Reference.
(L.2)............................ Reserved...................................
(L.3)............................ 52.210-2................................... Availability of Specifications
and Standards Listed in the DoD
Index of Specifications and
Standards (DODISS) and
Descriptions Listed in DoD
5010.12-L (Deviation).
(L.4)............................ 52.215-5................................... Solicitation Definitions.
(L.5)............................ 52.215-7................................... Unnecessarily Elaborate
Proposals or Quotations.
(L.6)............................ 52.215-8................................... Amendments to Solicitations.
(L.7)............................ 52.215-9................................... Submission of Offers.
(L.8)............................ 52.215-10.................................. Late Submissions, Modifications,
and Withdrawals of Proposals.
(L.9)............................ 52.215-12.................................. Restriction on Disclosure and
Use of Data.
(L.10)........................... 52.215-13.................................. Preparation of Offers.
(L.11)........................... 52.215-14.................................. Explanation to Prospective
Offerors.
(L.12)........................... 52.215-15.................................. Failure to Submit Offer.
(L.13)........................... 52.215-16.................................. Contract Award.
(L.14)........................... Reserved...................................
(L.15)........................... 52.216-1................................... Type of Contract (See
235.7006(d)(B.1)).
(L.16)........................... 52.222-24.................................. Preaward On-Site Equal
Opportunity Compliance Review.
(L.17)........................... 52.228-6................................... Insurance-Immunity from Tort
Liability.
(L.18)........................... 52.233-2................................... Service of Protest (See
235.7006(d)(A.1)(xvii)).
(L.19)........................... 52.237-1................................... Site Visit.
(L.20)........................... 52.252-5................................... Authorized Deviations in
Provisions.
(L.21)........................... 252.204-7001............................... Commercial and Government Entity
(CAGE) Code Reporting.
(L.22)........................... Reserved...................................
(L.23)........................... 52.215-16.................................. Contract Award--Alternate II.
*(L.24).......................... 52.215-41.................................. Requirements for Cost or Pricing
Data or Information Other than
Cost or Pricing Data.
*(L.25).......................... 52.215-41.................................. Requirements for Cost or Pricing
Data or Information Other than
Cost or Pricing Data, Alternate
I.
*(L.26).......................... 52.215-41.................................. Requirements for Cost or Pricing
Data or Information Other than
Cost or Pricing Data, Alternate
II.
*(L.27).......................... 52.215-41.................................. Requirements for Cost or Pricing
Data or Information Other than
Cost or Pricing Data, Alternate
III.
*(L.28).......................... 52.215-41.................................. Requirements for Cost or Pricing
Data or Information Other than
Cost or Pricing Data, Alternate
IV.
(L.29 through L.100) Reserved..................................................................................
(L.101) Government-Furnished Property.
No material, labor, or facilities will be furnished by the Government unless provided for in the solicitation.
(L.102) Proposal Preparation and Submission Instructions........................................................
[[Page 7749]]
(i) Page limitation, format.
(A) A proposal shall be prepared in separate volumes with the
page limit and number of copies specified below. The table of
contents and tabs are exempt from the page limits. No cross-
referencing between volumes for essential information is permitted
except where specifically set forth herein. The following volumes of
material will be submitted:
------------------------------------------------------------------------
Maximum
Title Copies page
limits
------------------------------------------------------------------------
Cost........................... As specified in solicitation *50
summary.
Technical...................... As specified in solicitation 100
summary.
------------------------------------------------------------------------
*The 50-page cost proposal is a goal not a limit. The Contractor may use
additional pages if necessary to comply with public law.
(B) Any technical proposal pages submitted which exceed the page
limitations set forth above will not be read or evaluated. Proposal
pages failing to meet paragraph D format will not be read or
evaluated.
(C) No program cost data or cross-reference to the cost proposal
will be included in any other volume.
(D) Format of the above proposal volumes shall be as follows:
(1) Proposals will be prepared on 8\1/2\ x 11 inch paper except
for foldouts used for charts, tables, or diagrams, which may not
exceed 11 x 17 inches. Foldouts will not be used for text. Pages
will have a one inch margin.
(2) A page is defined as one face of a sheet of paper containing
information. Two pages may be printed on one sheet.
(3) Type size will be no smaller than 10 point character height
(vertical size) and no more than an average 12 characters per inch.
Use of type-setting techniques to reduce type size below 10 points
or to increase characters beyond 12 per inch is not permitted. Such
techniques are construed as a deliberate attempt to circumvent the
intent of page limitations set forth above.
(4) Proposal must lie flat when open, elaborate binding is not
desirable.
(5) No models, mockups or video tapes will be accepted.
(6) Technical proposals will be prepared in the same sequence as
the statement of work.
(ii) Content.
All proposals must be complete and respond directly to the
requirements of the solicitation. The factors and subfactors listed
in Section M of the solicitation shall be addressed. Cost and
supporting data shall be included only in the cost volume. All other
information shall be included in the technical volume.
* * * * *
PART 236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
36. Section 236.201 is amended by revising paragraph (a) to read
as follows:
236.201 Evaluation of contractor performance.
(a) Preparation of performance evaluation reports. Use DD Form
2626, Performance Evaluation (Construction), instead of SF 1420.
* * * * *
37. Section 236.204 is added to read as follows:
236.204 Disclosure of the magnitude of construction projects.
Additional price ranges are--
(i) Between $10,000,000 and $25,000,000;
(ii) Between $25,000,000 and $100,000,000;
(iii) Between $100,000,000 and $250,000,000;
(iv) Between $250,000,000 and $500,000,000; and
(v) Over $500,000,000.
38. Section 236.271 is revised to read as follows:
236.271 Cost-plus-fixed-fee contracts.
Annual military construction appropriations acts restrict the use
of cost-plus-fixed-fee contracts (see 216.306(c)).
39. Section 236.604 is amended by adding paragraph (a) introductory
text to read as follows:
236.604 Performance evaluation.
(a) Preparation of performance reports. Use DD Form 2631,
Performance Evaluation (Architect-Engineer), instead of SF 1421.
(2) * * *
* * * * *
PART 242--CONTRACT ADMINISTRATION
40. Section 242.203 is amended by removing at the end of paragraph
(a)(i)(P) the word ``and''; by removing at the end of paragraph
(a)(i)(Q) the period and adding a semicolon and the word ``and''; by
revising paragraph (a)(ii); by removing paragraph (a)(iii); and by
redesignating paragraphs (a)(iv) and (a)(v) as (a)(iii) and (a)(iv)
respectively. The revision reads as follows:
242.203 Retention of contract administration.
(a)(i) * * *
(ii) Contract administration functions for base, post, camp, and
station contracts on a military installation are normally the
responsibility of the installation or tenant commander. However, the
Defense Contract Management Command (DCMC) shall, upon request of the
military department, and subject to prior agreement, perform contract
administration services on a military installation.
* * * * *
PART 246--QUALITY ASSURANCE
41. Section 246.770-2 is amended by redesignating paragraphs (b)
and (c) as paragraphs (c) and (d) respectively; by adding a new
paragraph (b); and by revising the newly designated paragraph (c) to
read as follows:
246.770-2 Policy.
(a) * * *
(b) Contracting officers and program managers shall consider the
following when developing and negotiating weapon system warranty
provisions:
(1) Warranties may not be appropriate in all situations, and a
waiver should be sought if a warranty would not be cost-effective or
would otherwise be inconsistent with the national defense. In drafting
warranty provisions, the drafters must ensure they understand the
planned operational, maintenance, and supply concepts of the weapon
system to be fielded, and must structure a warranty that matches those
concepts. A warranty plan should be prepared in consonance with
development of the warranty provision early in the weapon system's life
cycle. The plan should contain program warranty strategy, terms of the
warranty, administration and enforcement requirements, and should be
coordinated with the user and support activities.
(2) A cost/benefit analysis must be accomplished in support of each
warranty (see 246.770-7). The cost/benefit analysis compares all costs
associated with the warranty to the expected benefits. An estimate
shall be made of the likelihood of defects and the estimated cost of
correcting such defects. Also, if substantive changes are required to
the planned operational, maintenance, or supply concepts, any increased
costs should be weighed against the expected benefits in deciding
whether a warranty is cost-effective.
(3) The Warranty Guidebook prepared by the Defense Systems
Management College, Fort Belvoir, VA 22060-5426, is a valuable
reference that can assist in the development, negotiation, and
administration of an effective weapon system warranty.
(c) Contracting officers may require warranties that provide
greater coverage and remedies than specified in paragraph (a) of this
subsection.
* * * * *
[[Page 7750]]
42. Section 246.770-8 is amended by revising the introductory text
of paragraph (a); by removing paragraph (b)(2); by redesignating
paragraph (b)(3) as paragraph (b)(2), and by revising the introductory
text of paragraphs (c) and (c)(2). The revised text reads as follows:
246.770-8 Waiver and notification procedures.
(a) The Secretary of Defense has delegated waiver authority within
the limits specified in 10 U.S.C. 2403. The waiving authority for the
defense agencies is the Under Secretary of Defense (Acquisition and
Technology). Submit defense agency waiver requests to the Director,
Defense Procurement, for processing. The waiving authority for the
military departments is the Secretary of the department with authority
to redelegate no lower than an Assistant Secretary. The waiving
authority may waive one or more of the weapon system warranties
required by 246.770-2 if--
* * * * *
(c) Departments and agencies shall issue procedures for processing
waivers and notifications to Congress.
(1) * * *
(2) Notifications shall include--
* * * * *
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
43. Section 252.209-7005 is amended by revising the clause date to
read ``(FEB 1996)''; and by revising paragraph (b) to read as follows:
252.209-7005 Military recruiting on campus.
* * * * *
(b) General. An institution of higher education that has been
determined, using procedures established by the Secretary of Defense
at 32 CFR part 216: (1) to have a policy of denying, or (2) to
effectively prevent the Secretary of Defense from obtaining for
military recruiting purposes, entry to such institution's campuses,
access to students on those campuses, or access to directory
information pertaining to its students, is ineligible for contract
award and payments under existing contracts. In addition, the
Government shall terminate this contract for the Contractor's
material failure to comply with the terms and conditions of award.
* * * * *
44. Section 252.217-7027 is revised to read as follows:
252.217-7027 Contract Definitization.
As prescribed in 217.7406(b), use the following clause:
CONTRACT DEFINITIZATION (FEB 1996)
(a) A ______(insert specific type of contract action) is
contemplated. The Contractor agrees to begin promptly negotiating
with the Contracting Officer the terms of a definitive contract that
will include (1) all clauses required by the Federal Acquisition
Regulation (FAR) on the date of execution of the underfinitized
contract action, (2) all clauses required by law on the date of
execution of the definitive contract action, and (3) any other
mutually agreeable clauses, terms, and conditions. The Contractor
agrees to submit a ______(insert type of proposal; e.g., fixed-price
or cost-and-fee) proposal and cost or pricing data supporting its
proposal.
(b) The schedule for definitizing this contract is as follows
(insert target date for definitization of the contract action and
dates for submission of proposed, beginning of negotiations, and, if
appropriate, submission of the make-or-buy and subcontracting plans
and cost or pricing data).
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
(c) If agreement on a definitive contract action to supersede
this undefinitized contract action is not reached by the target date
in paragraph (b) of this clause, or within any extension of it
granted by the Contracting Officer, the Contracting Officer may,
with the approval of the head of the contracting activity, determine
a reasonable price or fee in accordance with subpart 15.8 and part
31 of the FAR, subject to Contractor appeal as provided in the
Disputes clause. In any event, the Contractor shall proceed with
completion of the contract, subject only to the Limitation of
Government Liability clause.
(1) After the Contracting Officer's determination of price or
fee, the contract shall be governed by--
(i) All clauses required by the FAR on the date of execution of
this underfinitized contract action for either fixed-price or cost-
reimbursement contracts, as determined by the Contracting Officer
under this paragraph (c);
(ii) All clauses required by law as of the date of the
Contracting Officer's determination; and
(iii) Any other clauses, terms, and conditions mutually agreed
upon.
(2) To the extent consistent with paragraph (c)(1) of this
clause, all clauses, terms, and conditions included in this
undefinitized contract action shall continue in effect, except those
that by their nature apply only to an undefinitized contract action.
(d) The definitive contract resulting from this undefinitized
contract action will include a negotiated ____________________
(insert ``cost/price ceiling'' or ``firm-fixed price'') in no event
to exceed ____________________ (insert the not-to-exceed amount).
(End of clause)
45. Section 252.223-7007 is added to read as follows:
252.223-7007 Safeguarding Sensitive Conventional Arms, Ammunition, and
Explosives.
As prescribed in 223.7203, use the following clause:
Safeguarding Sensitive Conventional Arms, Ammunition, and Explosives
(Feb. 1996)
(a) Definition.
``Arms, ammunition, and explosives (AA&E),'' as used in this
clause, means those items within the scope (chapter 1, paragraph B)
of DoD 5100.76-M, Physical Security of Sensitive Conventional Arms,
Ammunition, and Explosives.
(b) The requirements of DoD 5100.76-M apply to the following
items of AA&E being developed, produced, manufactured, or purchased
for the Government, or provided to the Contractor as Government-
furnished property under this contract:
------------------------------------------------------------------------
National
Nomenclature stock Sensitivity
number category
------------------------------------------------------------------------
------------------------------------------------------------------------
(c) The Contractor shall comply with the requirements of DoD
5100.76-M, as specified in the statement of work. The edition of DoD
5100.76-M in effect on the date of issuance of the solicitation for
this contract shall apply.
(d) The Contractor shall allow representatives of the Defense
Investigative Service (DIS), and representatives of other
appropriate offices of the Government, access at all reasonable
times into its facilities and those of its subcontractors, for the
purpose of performing surveys, inspections, and investigations
necessary to review compliance with the physical security standards
applicable to this contract.
(e) The Contractor shall notify the cognizant DIS field office
of any subcontract involving AA&E within 10 days after award of the
subcontract.
(f) The Contractor shall ensure that the requirements of this
clause are included in all subcontracts, at every tier--
(1) For the development, production, manufacture, or purchase of
AA&E; or
(2) When AA&E will be provided to the subcontractor as
Government-furnished property.
(g) Nothing in this clause shall relieve the Contractor of its
responsibility for complying with applicable Federal, state, and
local laws, ordinances, codes, and regulations (including
requirements for obtaining licenses and permits) in connection with
the performance of this contract.
(End of clause)
252.228-7006 [Removed and Reserved]
46. Section 252.228-7006 is removed and reserved.
252.232-7004 [Amended]
47. Section 252.232-7004 is amended by revising the clause date to
read ``(FEB 1996)'' and by revising in paragraph (a), in the
parenthetical phrase, the word
[[Page 7751]]
``excepting'' to read ``including'' and the phrase ``Undefinitized
Actions'' to read ``Undefinitized Contract Actions.''
PART 253--FORMS
48. Section 253.213-70 is amended by revising paragraph (e)(14) to
read as follows:
253.213-70-- Instructions for completion of DD Form 1155
* * * * *
(e) * * *
14 SHIP TO--
If a single ship-to point applies to the entire order, enter the
name and address of that point in this block and a DODAAD code in
the code block. For FMS shipments, enter the MAPAD code in the code
block and an instruction for the contractor to contact the
transportation office of the administering activity to obtain a name
and shipping address. Enter multiple ship-to points in the schedule
and mark this block, ``See Schedule.''
* * * * *
49. At the end of Part 253 ``253.303-2626, Performance Evaluation
(construction)'' and ``253.303-2631, Performance Evaluation (Architect-
Engineer)'' are added to the DFARS Form List.
Appendix G to Chapter 2 [Amended]
50-51. Appendix G to Chapter 2, Part 3, Navy Activity Address
Numbers, is amended by revising activity address numbers N00019,
N00023, N00024, N00030, N00039, N00104, N00383, and by adding activity
address number N00391 to read as follows:
Appendix G--Activity Address Numbers
* * * * *
PART 3--NAVY ACTIVITY ADDRESS NUMBERS
* * * * *
N00019--Naval Air Systems Command
EF*, GU*--1421 Jefferson Davis Highway
EF0-9--Arlington, VA 22243-5120
* * * * *
N00023--Naval Supply Systems Command
4J*, L5*--1931 Jefferson Davis Highway
4J0-9--Arlington, VA 22241-5360
N00024--Naval Sea Systems Command
EH*, U0*--2531 Jefferson Davis Highway
EH0-9--Arlington, VA 22242-5160
* * * * *
N00030--Strategic Systems Programs
EK*--1931 Jefferson Davis Highway
EK0-9--Arlington, VA 22241-5362
* * * * *
N00039--Space and Naval Warfare Systems Command
NS*--2451 Crystal Drive
NS0-9--Arlington, VA 22245-5200
* * * * *
N00104--Naval Inventory Control Point
EP--5450 Carlisle Pike
EQ--Box 2020, Mechanicsburg, PA 17055-0788
* * * * *
N00383--Naval Inventory Control Point
GB--700 Robbins Avenue
GC--Philadelphia, PA 19111-5098
* * * * *
N00391--Naval Inventory Control Point
EP, EQ,--700 Robbins Avenue
GB, GC--Philadelphia, PA 19111-5098
* * * * *
52. Appendix G to Chapter 2, Part 4, Marine Corps Activity Address
Numbers, is amended by revising activity number M67854 to read as
follows:
PART 4--MARINE CORPS ACTIVITY ADDRESS NUMBERS
* * * * *
M67854--Marine Corps Systems Command
(MAJ00027)--2033 Barnett Ave, Suite 315
MU6-9--Quantico, VA 22134-5010
* * * * *
53. Appendix G, Chapter 2, Part 10, Miscellaneous Defense
Activities Activity Address Numbers, is amended by revising activity
number MDA946 to read as follows:
PART 10--MISCELLANEOUS DEFENSE ACTIVITIES ACTIVITY ADDRESS NUMBERS
* * * * *
MDA946--Real Estate and Facilities Directorate, Washington headquarters
Services, 1155 Defense Pentagon, room 3C345, Washington, DC 20301-1155
* * * * *
[FR Doc. 96-4480 Filed 2-28-96; 8:45 am]
BILLING CODE 5000-04-M
