[Federal Register Volume 63, Number 73 (Thursday, April 16, 1998)]
[Rules and Regulations]
[Pages 18843-18848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9942]
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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 503, 515, 552 and 570
[APD 2800.12A, CHGE 79]
RIN 3090-AG70
Acquisition Regulation; Negotiation Procedures for Acquisition of
Leasehold Interests in Real Property
AGENCY: Office of Acquisition Policy, GSA.
ACTION: Interim rule with request for comments.
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SUMMARY: The General Services Administration Acquisition Regulation
(GSAR) is amended to update negotiation procedures for acquisitions of
leasehold interests in real property. The changes make GSAR Part 570
consistent, where applicable, with Federal Acquisition Regulation (FAR)
Part 15, as revised by Federal Acquisition Circular (FAC) 97-02. The
changes also update FAR provisions and clauses applicable to
acquisitions of leasehold interests in real property.
DATES: Effective date April 16, 1998. Comments should be submitted in
writing to the address shown below on or before June 15, 1998.
ADDRESSES: Mail comments to General Services Administration, Office of
Acquisition Policy, GSA Acquisition Policy Division (MVP), 1800 F
Street, NW, Room 4012, Washington, DC 20405.
FOR FURTHER INFORMATION CONTACT: Gloria Sochon, GSA Acquisition Policy
Division, (202) 208-6726.
SUPPLEMENTARY INFORMATION:
A. Background
GSA issues regulations for acquiring leasehold interests in real
property under the authority of 40 U.S.C. 486(c), including source
selection procedures. Many of the source selection procedures for
acquiring leasehold interests in real property are based on FAR Part
15. FAC 97-02 made significant revisions to FAR Part 15, infusing
innovative techniques into the source selection process, simplifying
the acquisition process, incorporating changes in pricing proposal
policy, and facilitating the acquisition of best value. In order to
take advantage of the innovations and simpler procedures incorporated
into FAR part 15 by FAC 97-02 and to minimize potential confusion, GSA
is updating 48 CFR part 570 to ensure consistency with FAR part 15
where applicable. The changes provide more flexibility in exchanges
with industry, change the standard for admission into the competitive
range (to all proposal most highly rated), simplify documentation
requirements, ensure that procedures for addressing adverse past
performance are consistent with FAR Part 15, and ensure that procedures
for obtaining and analyzing cost or pricing data or information other
than cost or pricing data remain consistent with FAR Part 15. The
changes also delete the requirement for a Certificate of Procurement
Integrity and a Contingent Fee Representation and Agreement, consistent
with earlier changes made to FAR Part 3.
B. Executive Order 12866
This regulatory action was not subject to Office of Management and
Budget review under Executive Order 12866, dated September 30, 1993,
and is not a major rule under 5 U.S.C. 804. The impact on small
businesses derives from the changes made to the FAR rule, and
[[Page 18844]]
the impacts were discussed in that rule's Final Regulatory Flexibility
Analysis.
C. Regulatory Flexibility Act
This interim rule will not have a significant economic impact on a
substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The rule ensures that
procedures for acquiring leasehold interests in real property remain
consistent, where applicable, with the changes made to FAR Part 15.
Consistency will help minimize confusion that would result from
separate and different procedures. It also provides that the innovative
source selection techniques, simpler processes, and changes in pricing
policy introduced in FAR Part 15 will facilitate the acquisition of
best value leasehold interests in real property. Elimination of burdens
and creation of a simplified, efficient, and impartial acquisition
process benefits all participants in Government contracting, especially
small businesses.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the GSAR do not impose recordkeeping or information collection
requirements, or otherwise collect information from offerors,
contractors, or members of the public that require approval of the
Office of Management and Budget under 44 U.S.C. 3501 et seq.
E. Determination to Issue an Interim Rule
Urgent and compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. The changes to FAR Part
15 have been in effect since January 1, 1998. The changes are
sufficiently important that GSA must update the GSAR immediately. GSA
believes this rule will provide significant benefits to both the
Federal Government and contractors. It will allow GSA and agencies
delegated leasing authority to reduce the resources necessary for
source selection and reduce time to contract award. It will ensure that
the Government receives the best value when acquiring leasehold
interests in real property while ensuring fair treatment of offerors.
The rule will also eliminate the potential for confusion by reducing
the difference in procedures for acquiring supplies and services and
procedures for acquiring leasehold interests in real property.
List of Subjects in 48 CFR Parts 503, 515, 552, and 570
Government procurement.
Accordingly, 48 CFR 570 is amended as follows:
1. The authority citation for 48 CFR Parts 503, 515, 552, and 570
continues to read as follows:
Authority: 40 U.S.C. 486(c).
PART 503--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
2. Section 503.104-10 is revised to read as follows:
503.104-10 Solicitation provisions and contract clauses.
The contracting officer shall insert a clause substantially the
same as the clause at 552.203-73, Price Adjustments for Illegal or
Improper Activity, in solicitations and contracts for the acquisition
of leasehold interests in real property expected to exceed $100,000 and
all modifications to leases exceeding $100,000 which do not already
contain the clause.
3. Section 503.404 is amended by deleting paragraph (a) and
removing the designation ``(b)'' from the remaining paragraph.
PART 515--CONTRACTING BY NEGOTIATION
4. Section 515.106-70 is amended by revising paragraph (a) to read
as follows:
515.106-70 Examination of records by GSA clause.
(a) The contracting officer shall insert the clause at 552.215-70,
Examination of Records by GSA, in solicitations and contracts (other
than multiple award schedule contracts), including acquisitions of
leasehold interests in real property that:
(1) Involve the use and disposition of Government-furnished
property,
(2) Provide for advance payments, progress payments based on cost,
or guaranteed loan,
(3) Contain a price warranty or price reduction clause,
(4) Involve income to the Government where income is based on
operations that are under the control of the contractor,
(5) Include an economic price adjustment clause,
(6) Are requirements, indefinite-quantity, or letter type contracts
as defined in FAR part 16,
(7) Are subject to adjustment based on a negotiated cost escalation
base, or
(8) Contain the provision at FAR 52,223-4, Recovered Material
Certification. The contracting officer may modify the clause to define
the specific area of audit (e.g., the use or disposition of Government-
furnished property, compliance with the price reduction clause).
Counsel and the Assistant Inspector General-Auditing or Regional
Inspector General-Auditing, as appropriate, must concur in any
modifications to the clause.
* * * * *
PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
552.203-71 [Removed]
5. Section 552.203-71 is removed and reserved.
552.203-72 [Removed]
6. Section 552.203-72 is removed and reserved.
552.203-73 [Revised]
7. Section 552.203-73 is amended by revising the introductory text
to read as follows:
552.203-73 Price Adjustments for Illegal or Improper Activity.
As prescribed in 503.104-10, insert the following clause:
* * * * *
8. Section 552.270-1 is revised to read as follows:
552.270-1 Instructions to Offerors-- Acquisition of Leasehold
Interests in Real Property.
As prescribed in 570.702(a), insert the following provision:
Instructions to Offerors--Acquisition of Leasehold Interests in Real
Property (Mar 1998)
(a) Definitions. As used in this provision--
``Discussions'' are negotiations that occur after establishment
of the competitive range that may, at the Contracting Officer's
discretion, result in the offeror being allowed to revise its
proposal.
``In writing'' or ``written'' means any worded or numbered
expression which can be read, reproduced, and later communicated,
and includes electronically transmitted and stored information.
``Proposal modification'' is a change made to a proposal before
the solicitation's closing date and time, or made in response to an
amendment, or made to correct a mistake at any time before award.
``Proposal revision'' is a change to a proposal made after the
solicitation closing date, at the request of or as allowed by a
Contracting Officer as the result of negotiations.
``Time,'' if stated as a number of days, is calculated using
calendar days, unless otherwise specified, and will include
Saturdays, Sundays, and legal holidays. However, if the last day
falls on a Saturday, Sunday, or legal holiday, then the period shall
include the next working day.
(b) Amendments to solicitations. If this solicitation is
amended, all terms and conditions that are not amended remain
[[Page 18845]]
unchanged. Offerors shall acknowledge receipt of any amendment to
this solicitation by the date and time specified in the
amendment(s).
(c) Submission, modification, revision, and withdrawal of
proposals.
(1) Unless other methods (e.g., electronic commerce or
facsimile) are permitted in the solicitation, proposals and
modifications to proposals shall be submitted in paper media in
sealed envelopes or packages. Offers must be:
(i) Submitted on the forms prescribed and furnished by the
Government as a part of this solicitation or on copies of those
forms, and
(ii) Signed. The person signing an offer must initial each
erasure or change appearing on any offer form. If the offeror is a
partnership, the names of the partners composing the firm must be
included with the offer.
(2) Late proposals and revisions.
(i) The Government will not consider any proposal received at
the office designated in the solicitation after the exact time
specified for receipt of offers unless it is received before the
Government makes award and it meets at least one of the following
conditions:
(A) It was sent by registered or certified mail not later than
the 5th calendar day before the date specified for receipt of offers
(e.g., an offer submitted in response to a solicitation requiring
receipt of offers by the 20th of the month must have been mailed by
the 15th).
(B) It was sent by mail (or telegram or facsimile, if
authorized) or hand-carried (including delivery by a commercial
carrier) if it is determined by the Government that the late receipt
was due primarily to Government mishandling after receipt at the
Government installation.
(C) It was sent by U.S. Postal Service Express Mail Next Day
Service-Post Office to Addressee, not later than 5:00 p.m. at the
place of mailing two working days prior to the date specified for
receipt of proposals. The term ``working days'' excludes weekends
and U.S. Federal holidays.
(D) It was transmitted through an electronic commerce method
authorized by the solicitation and was received at the initial point
of entry to the Government infrastructure not later than 5:00 p.m.
one working day prior to the date specified for receipt of
proposals.
(E) There is acceptable evidence to establish that it was
received at the activity designated for receipt of offers and was
under the Government's control prior to the time set for receipt of
offers, and the Contracting Officer determines that accepting the
late offer would not unduly delay the procurement.
(F) It is the only proposal received.
(ii) Any modification or revision of a proposal or response to
request for information, including any final proposal revision, is
subject to the same conditions as in subparagraphs (c)(2)(i)(A)
through (c)(2)(i)(E) of this provision.
(iii) The only acceptable evidence to establish the date of
mailing of a late proposal or modification or revision sent either
by registered or certified mail is the U.S. or Canadian Postal
Service postmark both on the envelope or wrapper and on the original
receipt from the U.S. or Canadian Postal Service. Both postmarks
must show a legible date or the proposal, response to a request for
information, or modification or revision shall be processed as if
mailed late. ``Postmark'' means a printed, stamped, or otherwise
placed impression (exclusive of a postage meter machine impression)
that is readily identifiable without further action as having been
supplied and affixed by employees of the U.S. or Canadian Postal
Service on the date of mailing. Therefore, offerors or respondents
should request the postal clerk to place a legible hand cancellation
bull's eye postmark on both the receipt and the envelope or wrapper.
(iv) Acceptable evidence to establish the time of receipt at the
Government installation includes the time/date stamp of that
installation on the proposal wrapper, other documentary evidence of
receipt maintained by the installation, or oral testimony or
statements of Government personnel.
(v) The only acceptable evidence to establish the date of
mailing of a late offer, modification or revision, or withdrawal
sent by Express Mail Next Day Service-Post Office to Addressee is
the date entered by the post office receiving clerk on the ``Express
Mail Next Day Service-Post Office to Addressee'' label and the
postmark on both the envelope or wrapper and on the original receipt
from the U.S. Postal Service. ``Postmark'' has the same meaning as
defined in paragraph (c)(2)(iii) of this provision, excluding
postmarks of the Canadian Postal Service. Therefore, offerors or
respondents should request the postal clerk to place a legible hand
cancellation bull's eye postmark on both the receipt and the
envelope or wrapper.
(vi) Notwithstanding paragraph (c)(2)(i) of this provision, a
late modification or revision of an otherwise successful proposal
that makes its terms more favorable to the Government will be
considered at any time it is received and may be accepted.
(vii) An offeror may withdraw its proposal by written notice or
telegram (including mailgram) received at any time before award. If
the solicitation authorizes facsimile proposals, an offeror may
withdraw its proposal via facsimile received at any time before
award, subject to the conditions specified in the provision entitled
``Facsimile Proposals.'' Proposals may be withdrawn in person by an
offeror or an authorized representative, if the representative's
identity is made known and the representative signs a receipt for
the proposal before award.
(viii) If an emergency or unanticipated event interrupts normal
Government processes so that proposals cannot be received at the
office designated for receipt of proposals by the exact time
specified in the solicitation, and urgent Government requirements
preclude amendment of the solicitation or other notice of an
extension of the closing date, the time specified for receipt of
proposals will be deemed to be extended to the same time of day
specified in the solicitation on the first work day on which normal
Government processes resume. If no time is specified in the
solicitation, the time for receipt is 4:30 p.m., local time, for the
designated Government office.
(3) Any information given to a prospective offeror concerning
this solicitation will be furnished promptly to all other
prospective offerors, if that information is necessary in submitting
offers or if the lack of it would be prejudicial to any other
prospective offeror.
(4) Offerors may submit modifications to their proposals at any
time before the solicitation closing date and time, and may submit
modifications in response to an amendment, or to correct a mistake
at any time before award.
(5) Offerors may submit amended proposals only if requested or
allowed by the Contracting Officer.
(6) The Government will construe an offer to be in full and
complete compliance with this solicitation unless the offer
describes any deviation in the offer.
(7) Offerors may submit proposals that depart from stated
requirements. Such a proposal shall clearly identify why the
acceptance of the proposal would be advantageous to the Government.
The proposal must clearly identify and explicitly define any
deviations from the terms and conditions of the solicitation, as
well as the comparative advantage to the Government. The Government
reserves the right to amend the solicitation to allow all offerors
an opportunity to submit revised proposals based on the revised
requirements.
(d) Restriction on disclosure and use of data. An offeror that
includes in its proposal data that it does not want disclosed to the
public for any purpose, or used by the Government except for
evaluation purposes, must meet both of the following conditions:
(1) Mark the title page with the following legend:
This proposal includes data that shall not be disclosed outside
the Government and shall not be duplicated, used, or disclosed--in
whole or in part--for any purpose other than to evaluate this
proposal. If, however, a lease is awarded to this offeror as a
result of--or in connection with--the submission of this data, the
Government shall have the right to duplicate, use, or disclose the
data to the extent provided in the resulting contract. This
restriction does not limit the Government's right to use information
contained in this data if it is obtained from another source without
restriction. The data subject to this restriction are contained in
sheets [insert numbers or other identification of sheets].
(2) Mark each sheet of data it wishes to restrict with the
following legend:
Use or disclosure of data contained on this sheet is subject to
the restriction on the title page of this proposal.
(e) Lease award.
(1) The Government intends to award a lease resulting from this
solicitation to the responsible offeror whose proposal represents
the best value after evaluation in accordance with the factors and
subfactors in the solicitation.
(2) The Government may reject any or all proposals if such
action is in the Government's interest.
(3) The Government may waive informalities and minor
irregularities in proposals received.
(4) The Government intends to evaluate proposals and award a
lease after conducting
[[Page 18846]]
discussions with offerors whose proposals have been determined to be
within the competitive range. If the Contracting Officer determines
that the number of proposals that would otherwise be in the
competitive range exceeds the number at which an efficient
competition can be conducted, the Contracting Officer may limit the
number of proposals in the competitive range to the greatest number
that will permit an efficient competition among the most highly
rated proposals. Therefore, the offeror's initial proposal should
contain the offeror's best terms from a price and technical
standpoint.
(5) Exchanges with offerors after receipt of a proposal do not
constitute a rejection or counteroffer by the Government.
(6) The Government may determine that a proposal is unacceptable
if the prices proposed are materially unbalanced between line items
or subline items. Unbalanced pricing exists when, despite an
acceptable total evaluated price, the price of one or more contract
line items is significantly overstated or understated as indicated
by the application of cost or price analysis techniques. A proposal
may be rejected if the Contracting Officer determines that the lack
of balance poses an unacceptable risk to the Government.
(7) The unconditional written acceptance of an offer establishes
a valid contract.
(8) The Government may disclose the following information in
postaward debriefings to other offerors:
(i) The overall evaluated cost or price and technical rating of
the successful offeror;
(ii) The overall ranking of all offerors, when any ranking was
developed by the agency during source selection; and
(iii) A summary of the rationale for award.
(End of provision)
Alternate I (MAR 1998). As prescribed in 570.702(a)(1),
substitute the following paragraph for paragraph (c)(2)(i) of the
basic provision:
(i) Any offer received at the office designated in the
solicitation after the exact time specified for receipt of final
proposal revisions will not be considered unless it is received
before award is made and it meets one of the following conditions--
Alternate II (DATE). As prescribed in 570.702(a)(2), substitute
the following paragraph for paragraph (e)(4) of the basic provision:
(4) The Government intends to evaluate proposals and award a
lease without discussions with offerors (except clarifications as
described in FAR 15.306(a)). Therefore, the offeror's initial
proposal should contain the offeror's best terms from a cost or
price and technical standpoint. The Government reserves the right to
conduct discussions if the Contracting Officer later determines them
to be necessary. If the Contracting Officer determines that the
number of proposals that would otherwise be in the competitive range
exceeds the number at which an efficient competition can be
conducted, the Contracting Officer may limit the number of proposals
in the competitive range to the greatest number that will permit an
efficient competition among the most highly rated proposals.
9. Sections 552.270-2 and 552.270-3 are removed and reserved.
10. Section 552.270-4 is amended by revising the introductory text
to read as follows:
552.270-4 Historic Preference.
As prescribed in 570.702(b), insert the following provision:
* * * * *
552.270-5 [Removed]
11. Section 552.270-5 is removed and reserved.
12. Section 552.270-6 is amended by revising the introductory text
to read as follows:
552.270-6 Parties to Execute Lease.
As prescribed in 570.702(c), insert the following provision:
* * * * *
13. Section 552.270-20 is amended by revising the clause date and
paragraph (c) to read as follows:
552.270-20 Proposals for Adjustment.
* * * * *
PROPOSALS FOR ADJUSTMENT (APR 1998)
* * * * *
(c) The following Federal Acquisition Regulation (FAR)
provisions also apply to all proposals exceeding $500,000--
(1) The Lessor shall provide cost or pricing data including
subcontractor cost or pricing data (48 CFR 15.403-4); and
(2) The Lessor's representative, all Contractors, and
subcontractors whose portion of the work exceeds $500,000 must sign
and return the ``Certificate of Current Cost or Pricing Data'' (48
CFR 15.406-2).
* * * * *
PART 570--ACQUISITION OF LEASEHOLD INTERESTS IN REAL PROPERTY
14. Section 570.107 is added as follows:
570.107 Oral presentations.
Oral presentations may be used for acquisitions of leasehold
interests in real property. Follow the procedures in FAR 15.102.
15. Section 570.204-4 is revised to read as follows:
570.204-4 Negotiation, evaluation, and award.
(a) Negotiations, if applicable, should be conducted in accordance
with 570.305.
(b) Offers must be evaluated in accordance with the solicitation.
The contracting officer shall evaluate the price and document the lease
file to demonstrate that the proposed contract prices represent fair
and reasonable prices. In cases where the total cost exceeds $500,000,
cost and pricing data must be obtained unless the requirement is waived
or one of the exceptions at FAR 15.403-1 applies. For purposes of FAR
15.403-1(c)(1)(iii), ``same or similar items'' means similar space
leased to the general public. A market survey and/or an appraisal
conducted in accordance with accepted real property appraisal
procedures may be used as evidence to establish the price
reasonableness.
(c) An acceptable small business subcontracting plan must be
provided if the total contract value of the lease will exceed $500,000,
unless the lease will be awarded to a small business concern.
(d) The contracting officer should review the List of Parties
Excluded from Federal Procurement and Nonprocurement Programs, to
ensure the proposed awardee is eligible to receive the award and is
otherwise responsible before awarding the lease.
(e) An award will be made to the responsible offeror whose proposal
represents the best value after evaluation considering price and other
factors included in the solicitation.
16. Section 570.303 is amended by revising paragraphs (a)(7)(i) and
(a)(8) as follows:
570.303 Solicitation for offers (SFO).
(a) * * *
(7) * * *
(i) Unless the design-build selection procedures are being used as
authorized by 570.106(c), the solicitation must comply with FAR 15.304
and either:
(A) FAR 15.101-1 if the Government will use the tradeoff process,
or
(B) FAR 15.101-2 if the Government will use the lowest price
technically acceptable source selection process.
* * * * *
(8) Include a statement outlining the information that may be
disclosed in preaward and postaward debriefings.
* * * * *
17. Section 570.305 is revised to read as follows:
570.305 Negotiations.
(a) Follow the procedures in FAR 15.306 and 15.307 for exchanges
(including clarifications, communications, negotiations, and
discussions) and revisions.
(b) Place a written record of all exchanges in the lease file.
(c) Provide prompt written notice to any offeror excluded from the
competitive range or otherwise eliminated from the competition in
accordance with FAR 15.503(a)(1).
570.306 [Removed]
18. Section 570.306 is removed and reserved.
[[Page 18847]]
19. Section 570.307 is revised to read as follows:
570.307 Late offers, modifications of offers, and withdrawals of
offers.
Offers determined to be received late will be handled in accordance
with FAR 15.208.
570.308-1 [Amended]
20. Section 570.308-1 is amended by deleting paragraph (b) and
redesignating paragraph (c) as paragraph (b).
21. Section 570.308-2 is revised to read as follows:
570.308-2 Cost or pricing data.
(a) Cost or pricing data are required under the circumstances
described in FAR 15.403-4.
(b) The exceptions to and waivers of submission of cost or pricing
data outlined in FAR 15.403-1 apply to leasing actions. For purposes of
FAR 15.403-1(c)(1)(iii), ``same or similar items'' means similar space
leased to the general public. A market survey and/or an appraisal
conducted in accordance with accepted real property appraisal
procedures may be used as evidence to establish the price
reasonableness.
(c) In exceptional cases, the requirement for submission of cost or
pricing data may be waived under FAR 15.403-1(c)(4).
(d) When cost or pricing data is required, the contracting officer
shall follow the procedural requirements in FAR 15.403-5.
22. Section 570.308-3 is revised to read as follows:
570.308-3 Proposal evaluation.
(a) Offers must be evaluated in accordance with the solicitation.
(b) The contracting officer shall evaluate the price and document
the lease file to demonstrate that the proposed contract prices
represent fair and reasonable prices.
(c) The contracting officer shall evaluate past performance in
accordance with FAR 15.305(a)(2).
(d) The lease file must document the evaluation of other award
factors listed in the solicitation. The file must include the basis for
evaluation, an analysis of each offer, and a summary of findings. An
abstract of final proposal revisions may be prepared to aid in the
analysis of offers received.
23. Section 570.309 is revised to read as follows:
570.309 Award.
(a) As used in this section, ``day'' has the meaning set forth at
FAR 33.101.
(b) The contracting officer is designated as the source selection
authority unless the Head of the Contracting Activity appoints another
individual for a particular leasing action or group of leasing actions.
(c) An award will be made to the responsible offeror whose proposal
represents the best value after evaluation in accordance with the
factors and subfactors in the solicitation.
(d) Award will be made in writing within the timeframe specified in
the SFO. If an award cannot be made within that time, the contracting
officer shall request in writing from each offeror an extension of the
acceptance period through a specific date.
(e) Unsuccessful offerors will be notified in writing or
electronically in accordance with FAR 15.503(b).
(f) The source selection authority may reject all proposals
received in response to an SFO, if doing so is in the best interest of
the Government.
24. Section 570.310 is revised to read as follows:
570.310 Debriefings.
The procedures in FAR 15.505 and 15.506 apply to leasing actions.
25. Section 570.401 is revised to read as follows:
570.401 Disclosure of mistakes after award.
When a mistake in a lessor's offer is not discovered until after
award, the mistake should be handled as provided in FAR 14.407-4 and
subpart 514.4.
26. Section 570.602-2 is amended by revising paragraphs (c)(3),
(d), (e)(3), and (f)(3) to read as follows:
570.602-2 Procedures.
* * * * *
(c) * * *
(3) The requirements for the submission of cost or pricing data
outlined in FAR 15.403-4, 15.403-5, and 15.406-2 apply to alteration
projects over $500,000. The procedural requirements at FAR 15.403-5
must be followed when requesting cost and pricing data. Exceptions or
waivers to submission of cost or pricing data must be processed in
accordance with the requirements of FAR 15.403-1. If the lease does not
include the clauses at FAR 52.215-10 and 52.215-12 or the clauses at
FAR 52.215-11 and 52.215-13, the modification to the lease for the
alterations must add the clauses at FAR 52.215-11 and 52.215-13 if cost
and pricing data is submitted.
(d) Audits. Unless the cost or pricing data requirement is exempt
or waived in accordance with FAR 15.403-1, an audit must be requested
for negotiated alteration projects which are not competed as a part of
the lease and exceed $500,000.
(e) * * *
(3) Analyze profit in accordance with FAR 15.404-4 if the project
exceeds $100,000; and
* * * * *
(f) * * *
(3) Negotiations must be documented in accordance with FAR 15.406-
3.
* * * * *
27. Section 570.701 is amended by revising paragraphs (c), (d),
(f), (g), (h), (j), and (k) to read as follows:
570. 701 FAR provisions and clauses.
* * * * *
(c) All solicitations and contracts which exceed $2,500 must
include the following provisions/clauses:
------------------------------------------------------------------------
FAR part 52 cite Title
------------------------------------------------------------------------
52.219-1........................... Small Business Program
Representations.
52.222-36.......................... Affirmative Action for Handicapped
Workers.
------------------------------------------------------------------------
(d) All solicitations and contracts which exceed $10,000 must
include the following provisions/clauses:
------------------------------------------------------------------------
FAR part 52 cite Title
------------------------------------------------------------------------
52.222-21.......................... Certification of Nonsegregated
Facilities.
52.222-22.......................... Previous Contracts and Compliance
Reports.
52.222-25.......................... Affirmative Action Compliance.
52.222-26.......................... Equal Opportunity.
52.222-35.......................... Affirmative Action for Disabled
Veterans and Veterans of the
Vietnam Era.
52.222-37.......................... Employment Reports on Disabled
Veterans and Veterans of the
Vietnam Era.
------------------------------------------------------------------------
* * * * *
(f) All solicitations and contracts which exceed $100,000 must
include the following FAR provisions/clauses:
------------------------------------------------------------------------
FAR part 52 cite Title
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52.203-11.......................... Certificate and Disclosure
Regarding Payments to Influence
Certain Federal Transactions.
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(g) All solicitations and contracts for actions which exceed the
simplified lease acquisition threshold must include the following FAR
provisions/clauses:
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FAR part 52 cite Title
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52.203-2........................... Certificate of Independent Price
Determination.
52.203-7........................... Anti-Kickback Procedures.
[[Page 18848]]
52.209-5........................... Certification Regarding Debarment,
Suspension, Proposed Debarment,
and Other Responsibility Matters.
52.215-2........................... Audits and Records--Negotiation.
52.219-8........................... Utilization of Small, Small
Disadvantaged, and Women-Owned
Small Business Concerns.
52.223-6........................... Drug-Free Workplace.
52.233-2........................... Service of Protest (Solicitations
only).
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(h) All solicitations and contracts which exceed $500,000 must
include the FAR clauses at 52.219-9, Small, Small Disadvantaged, and
Women-Owned Small Business Subcontracting Plan, and 52.219-16,
Liquidated Damages--Subcontracting Plan.
* * * * *
(j) When cost or pricing data is required for work or service
exceeding $500,000 the FAR clauses at 52.215-10, Price Reduction for
Defective Cost or Pricing Data, and 52.215-12, Subcontractor Cost or
Pricing Data, must be included in solicitations and contracts.
(k) When the contracting officer determines that it is desirable to
authorize the submission of facsimile proposals, the solicitation must
include the FAR provision at 52.215-5, Facsimile Proposals.
28. Section 570.702 is revised to read as follows:
570.702 Solicitation provisions.
When a solicitation for offers is issued, the contracting officer
should include provisions substantially the same as the following
unless the contracting officer makes a determination that use of one or
more of the provisions is not appropriate:
(a) 552.270-1 Instructions to Offerors--Acquisition of Leasehold
Interests in Real Property.
(1) Use Alternate I if the contracting officer decides that it is
advantageous to the Government to allow offers to be submitted up to
the exact time specified for receipt of final proposal revisions.
(2) Use Alternate II if the Government intends to award without
discussions.
(b) 552.270-4 Historic Preference.
(c) 552.270-6 Parties to Execute Lease.
29. Section 570.703 is amended by deleting paragraph (a)(25) and
redesignating paragraph (a)(26) as (a)(25).
30. Section 570.704 is revised to read as follows:
570.704 Use of provisions and clauses.
The omission of any provision or clause when its prescription
requires its use constitutes a deviation which must be approved under
subpart 501.4. Approval may be granted to deviate from provisions or
clauses that are mandated by statute (e.g., GSAR 552.203-5, Covenant
Against Contingent Fees, FAR 52.215-2, Audit and Records--Negotiation,
etc.) in order to modify the language of the provision or clause, when
permitted by the statute. However, the statutory provisions and clauses
may not be omitted from the SFO unless the statute provides for waiving
the requirements of the provision or clause. Also, certain clauses
required by non-GSA regulations require approval of the issuing agency
before the contracting officer can delete or modify them (e.g., 52.222-
26, Equal Opportunity; 52.222-35, Affirmative Action for Disabled
Veterans and Veterans of the Vietnam Era; and 52.222-36 Affirmative
Action for Handicapped Workers, require the approval of the Department
of Labor's Office of Federal Contract Compliance Programs before they
can be deleted from or modified in the SFO or lease).
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 98-9942 Filed 4-15-98; 8:45 am]
BILLING CODE 6820-61-P
