[Federal Register Volume 61, Number 85 (Wednesday, May 1, 1996)]
[Rules and Regulations]
[Pages 19468-19473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10446]
[[Page 19467]]
_______________________________________________________________________
Part VII
Department of Housing and Urban Development
_______________________________________________________________________
48 CFR Parts 2401, 2402, 2404, et al.
HUD Acquisition Regulation; Field Reorganization, Streamlining, and
Simplification; Final Rule
Federal Register / Vol. 61, No. 85 / Wednesday, May 1, 1996 / Rules
and Regulations
[[Page 19468]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
48 CFR Parts 2401, 2402, 2404, 2405, 2406, 2409, 2411, 2412, 2413,
2414, 2415, 2416, 2417, 2419, 2420, 2426, 2428, 2429, 2432, 2434,
2436, 2437, 2442, 2452 and 2453
[Docket No. FR-3887-F-02]
RIN No. 2535-AA23
Office of the Assistant Secretary for Administration; HUD
Acquisition Regulation; Field Reorganization, Streamlining, and
Simplification
AGENCY: Office of the Assistant Secretary for Administration, HUD.
ACTION: Final rule; technical amendments.
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SUMMARY: The purpose of this final rule is to amend the HUD Acquisition
Regulation (HUDAR) to: implement the Department's Field reorganization,
particularly the establishment of the Administrative Service Centers;
implement the Federal Acquisition Streamlining Act of 1994 (FASA);
augment Departmental efforts to streamline and simplify the procurement
process by removing unnecessary restrictions; make technical amendments
to the interim rule; and, correct obsolete references.
EFFECTIVE DATE: May 31, 1996.
FOR FURTHER INFORMATION CONTACT: Edward L. Girovasi, Jr., Director,
Policy and Evaluation Division, Office of Procurement and Contracts,
Room 5262, 451 Seventh Street, SW., Washington, DC 20410-3000 (voice
(202) 708-0294, TTY (202) 708-1112). (These are not toll-free numbers.)
SUPPLEMENTARY INFORMATION:
Background
The uniform regulation for the procurement of supplies and services
by Federal departments and agencies, the Federal Acquisition Regulation
(FAR), was promulgated on September 19, 1983 (48 FR 42102). The FAR is
codified in title 48, chapter 1, of the Code of Federal Regulations.
HUD promulgated its regulation to implement the FAR on March 1, 1984
(49 FR 7696).
The HUDAR (title 48, chapter 24 of the Code of Federal Regulations)
is prescribed by the Assistant Secretary for Administration under
section 7(d) of the Department of HUD Act (42 U.S.C. 3535(d)); section
205(c) of the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 486(c)); the Secretary's delegation effective October 9,
1985 (50 FR 42097); and the general authorization in FAR 1.301.
On September 5, 1995 (60 FR 46152), the Department published an
interim rule to amend the HUDAR to update existing coverage with
respect to the Department's structure and organizational
responsibilities, to implement the Federal Acquisition Streamlining Act
(FASA) (Pub. L. 103-355, approved October 13, 1994), and to streamline
Departmental procurement practices. This rule responds to public
comment on the interim rule, and issues it as a final rule. This rule
also removes unnecessary restrictions and corrects obsolete references.
Public Comments
During the public comment period, one comment was received on the
interim rule.
The commenter expressed concern regarding the language at
Sec. 2415.608(a)(2), which permits the identification of proposals
submitted in a best value procurement as being either ``acceptable'',
``unacceptable but capable of being made acceptable'', or
``unacceptable.'' The interim rule stated, ``However, under
solicitations where mandatory requirements are established, those
proposals that do not meet the mandatory requirements may be found
unacceptable without further review.''
The commentor pointed out that this practice seems to set up a
dichotomy between best value procurements and those with mandatory
requirements, as though they are mutually exclusive. The commentor
stated that if a proposal fails to meet a minimum requirement, it could
be rejected as ``unacceptable'' without further review, which
contradicted the ability to identify a proposal as ``unacceptable but
capable of being made acceptable.'' The commentor stated that
presumably, there will be many proposals that fail to meet one or more
mandatory requirements in the initial round, but which, through minor
clarification or even discussions, could easily be corrected to meet
any such requirement. The commentor recommended that the language in
the last sentence of Sec. 2415.608(a)(2) either be revised to be
consistent with the preceding coverage, or deleted altogether.
HUD agrees with the commentor and has deleted the last sentence of
Sec. 2415.608(a)(2) in the final rule. The language as written in the
interim rule could, to some extent, limit the Department's ability to
select the best contractor. Potentially, the initial proposal
representing the best value could be rejected as ``unacceptable'' for
failing to meet a mandatory requirement of the solicitation, when the
deficiency could possibly be corrected through minor clarification or
discussions. Such a proposal may represent an outstanding offer in all
other respects, but under the interim rule, it would have been rejected
as ``unacceptable''. Requiring the Department to reject as
``unacceptable'' any proposal that fails to meet a solicitation's
mandatory requirements appears to defeat the purpose of a best value
procurement. Removal of the last sentence resolves this problem. In
addition, Sec. 2415.608(a)(2) and (3) are merged and redesignated as
Sec. 2415.608(a)(3) to conform to a corresponding FAR change.
Additional Changes
The following changes are also made by this rule:
HUDAR 2401.102 through 2401.105 are redesignated as 2401.103
through 2401.106, respectively, to conform to corresponding FAR
structure recently published as FAC 90-29, effective July 3, 1995. The
heading titles and regulation text are unchanged.
HUDAR 2409.508 through 2409.508-2 are redesignated as 2409.507
through 2409.507-2, respectively, to conform to the corresponding FAR
structure. The regulation text is unchanged.
HUDAR part 2412, Contract delivery performance, is redesignated as
part 2411 and retitled to conform to the revised corresponding FAR
structure published as FAC 90-32, effective October 1, 1995.
HUDAR 2412.1, Delivery or performance schedules, is redesignated as
Sec. 2411.4 to conform to the revised FAR structure published as FAC
90-32, effective October 1, 1995. The regulation text is unchanged.
HUDAR 2412.104, Contract clause, is redesignated as Sec. 2411.404
to conform to the revised FAR structure published as FAC 90-32,
effective October 1, 1995. The text is revised to simplify the
prescriptive language.
HUDAR 2413.106-2 is revised to reflect the changed procurement
method name.
HUDAR 2413.505-1 is revised to authorize the use of Form HUD-2542,
Purchase Order and Payment Authorization, for any purchase using
simplified acquisition procedures charged to the FHA Fund, and to
remove information that is internal in nature.
HUDAR 2414.406, Mistakes in bids, is redesignated as Sec. 2414.407
to conform to the FAR structure revision published as FAC 90-29,
effective July 3, 1995.
HUDAR 2414.406-3, Other mistakes disclosed before award, is
redesignated as Sec. 2414.407-3 to conform to the FAR structure
revision published as FAC 90-
[[Page 19469]]
29, effective July 3, 1995. The regulation text is unchanged.
HUDAR 2414.406-4, Mistakes after award, is redesignated as
Sec. 2414.407-4 to conform to the FAR structure revision published as
FAC 90-29, effective July 3, 1995. The regulation text is revised to
clarify that the concurrence of counsel should be obtained at
headquarters or the field, depending on the location of the contracting
activity.
The heading HUDAR 2414.408, Award, is added to conform to the FAR
structure revision published as FAC 90-29, effective July 3, 1995.
HUDAR 2414.407-70, Award when only one bid is received, is
redesignated as Sec. 2414.408-70 to conform to the revised FAR
structure published in FAC 90-29, effective July 3, 1995. The
regulation text is unchanged.
HUDAR 2415.407, Solicitation provisions, contains numerous
revisions to remove unnecessary restrictions, simplify the prescriptive
language, tailor proposal content to the specific solicitation, and
reduce paperwork burdens placed on offerors. The revisions will give
contracting officers more latitude when requesting other than certified
cost or pricing data in accordance with FAR 15.804-5(a)(2), and will
clarify distinctions in procedures when using the ``lowest-priced
technically acceptable proposal'' or ``best value'' approach to source
selection.
HUDAR 2415.413-1, Alternate I, is amended to eliminate
unnecessarily restrictive requirements regarding the evaluation of
proposals. This revision will allow the Department the flexibility to
have proposal evaluations performed by the most competent technical and
management sources available.
HUDAR 2415.413-2, Alternate II, is added to establish a procedure
consistent with the FAR for instances when it is necessary for external
parties to evaluate proposals to meet the Department's evaluation
needs.
In HUDAR 2415.605, Evaluation factors, paragraphs (c) and (e) are
renumbered to conform to the revised FAR structure published as FAC 90-
31, effective October 1, 1995.
HUDAR 2415.1004, Protests against award, is renumbered to conform
to the revised FAR structure published as FAC 90-31, effective October
1, 1995. The text of the regulation is unchanged.
HUDAR 2416.504, Indefinite-quantity contracts, is renumbered to
Sec. 2416.506, and the title is revised to Solicitation provisions and
contract clauses, to conform to recent FAR changes published in the
Federal Register September 26, 1995 as FAC 90-33, effective October 1,
1995. Paragraph (e) is redesignated as a new section, Sec. 2416.506-70,
Unpriced delivery/task orders, to more accurately reflect the text. The
text of the regulation is unchanged.
HUDAR subpart 2417.2, Options, and Sec. 2417.204(e), Contracts, are
added in accordance with FAR 17.204(e) to give the Department more
flexibility for the acquisition of supplies or services and to
establish the Senior Procurement Executive as the approving official
for solicitations and contracts where the total of the basic and option
periods exceed 5 years.
HUDAR part 2419, Small business and small disadvantaged business
concerns, is retitled to conform to the revised FAR structure published
as FAC 90-32, effective October 1, 1995.
HUDAR 2419.201, General policy, contains numerous revisions to
include reference to women-owned small businesses to conform to
corresponding revisions in the FAR published as FAC 90-32, effective
October 1, 1995.
HUDAR subpart 2419.7, Subcontracting with small businesses and
small disadvantaged business concerns, is retitled to conform to the
revised FAR structure published as FAC 90-32, effective October 1,
1995. The regulation text is unchanged.
HUDAR subpart 2419.9, Contracting opportunities for women-owned
small businesses, is removed in its entirety to conform to
corresponding FAR changes published as FAC 90-32, effective October 1,
1995.
HUDAR part 2420, Labor surplus area concerns, is removed in its
entirety and reserved to conform to the revised FAR structure published
as FAC 90-32, effective October 1, 1995.
HUDAR 2434.001, Definition, is removed in its entirety. The
threshold for major system acquisitions is addressed in internal
directives.
In HUDAR 2437.110, Solicitation provisions and contract clauses,
paragraph (f) is revised by removing the last sentence to simplify the
prescriptive language. The forms identified in the clause prescription
are specified in the clause and do not also need to be in the
prescription.
To remove unnecessary restrictions and reduce burdens on contractor
and HUD personnel, the dollar threshold for requiring HUD Form 441.1,
``Project Management System Baseline Plan'', contained in HUDAR
2442.1106, Reporting requirements, is increased from $100,000 to
$500,000. In addition, the text is revised to allow the use of the
prescribed forms for contracts under $500,000, when determined
necessary by the Contracting Officer.
Accordingly, the prescription at HUDAR 2442.1107, Contract clause,
is revised to reflect the increased dollar threshold of $500,000.
HUDAR 2452.212-70, Contract period, is renumbered to conform to the
revised FAR structure published as FAC 90-32, effective October 1,
1995. The text of the regulation is corrected to cite the renumbered
HUDAR reference and revised to simplify the prescriptive language.
HUDAR 2452.215-70, Proposal content and outline, is revised to
eliminate unnecessary restrictions and simplify the basic provision
concerning proposal content. A new Alternate I is added for
procurements using the lowest-priced technically acceptable approach to
source selection. A new Alternate II is added for situations where the
proposed contract requires work on, or access to, sensitive automated
systems.
HUDAR 2452.219-70, Small business and small disadvantaged business
subcontracting plan, is retitled and the text is revised to include
women-owned small businesses to conform to recent FAR changes published
as FAC 90-32, effective October 1, 1995, to eliminate repetition and
clarify the content of Alternate I.
HUDAR 2452.237-75, Clearance of personnel, paragraph (a), is
amended to revise the forms to be submitted in the event contractor
personnel will be working on-site in any HUD office. The forms
originally specified have changed and this amendment merely revises the
paragraph to reflect the correct forms. Paragraphs (b) and (c) of the
section remain unchanged.
The prescriptive language at HUDAR 2452.242-71, Project management
system, is revised to correspond to the clause prescription at HUDAR
2442.1107. The text of the clause remains unchanged.
Other Matters
Paperwork Reduction Act
The information collection requirements contained in this rule have
been approved by the Office of Management and Budget in accordance with
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), and assigned
OMB control number 2535-0091. An agency may not conduct or sponsor, and
a person is not required to respond to, a collection of information
unless the collection displays a valid control number.
Environmental Impact
In accordance with 40 CFR 1508.4 of the regulations of the Council
on
[[Page 19470]]
Environmental Quality and 24 CFR 50.20(k) of the HUD regulations, the
policies and procedures contained in this rule relate only to the
performance of accounting, auditing and fiscal functions and,
therefore, are categorically excluded from the requirements of the
National Environmental Policy Act.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)) has reviewed and approved this rule, and in so doing
certifies that this rule will not have a significant economic impact on
a substantial number of small entities. This rule merely makes
amendments to the Department's acquisition regulations that simplify
HUD's procurement process, revise internal HUD component references,
and implement FAR revisions without adding additional requirements.
Executive Order 12612, Federalism
The General Counsel, as the Designated Official under Section 6(a)
of Executive Order 12612, Federalism, has determined that the policies
contained in this rule will not have substantial direct effects on
States or their political subdivisions, or the relationship between the
Federal government and the States, or on the distribution of power and
responsibilities among the various levels of government. The rule makes
technical revisions and corrections to the agency's regulations. As a
result, the rule is not subject to review under the Order.
Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this rule will not have
potential for significant impact on family formation, maintenance, and
general well-being, and, thus, is not subject to review under the
Order. The rule involves Departmental procurement procedures only.
List of Subjects in 48 CFR Parts 2401, 2402, 2404, 2405, 2406, 2409,
2411, 2412, 2413, 2414, 2415, 2416, 2417, 2419, 2420, 2426, 2428, 2429,
2432, 2434, 2436, 2437, 2442, 2452 and 2453
Government procurement, HUD acquisition regulations.
Accordingly, title 48, Chapter 24, of the Code of Federal
Regulations is amended by adopting as final the interim rule published
on September 5, 1995 (60 FR 46152), with the following changes:
PART 2401--FEDERAL ACQUISITION REGULATIONS SYSTEM
1. The authority citation for part 2401 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
2401.105 [Redesignated]
2. Section 2401.105 is redesignated as 2401.106.
2401.104-2 [Redesignated]
3. Section 2401.104-2 is redesignated as 2401.105-2.
2401.104 [Redesignated]
4. Section 2401.104 is redesignated as 2401.105.
2401.103 [Redesignated]
5. Section 2401.103 is redesignated as 2401.104.
2401.102 [Redesignated]
6. Section 2401.102 is redesignated as 2401.103.
PART 2409--CONTRACTOR QUALIFICATIONS
7. The authority citation for part 2409 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
2409.508 [Redesignated]
8. Section 2409.508 is redesignated as 2409.507.
2409.508-1 [Redesignated]
9. Section 2409.508-1 is redesignated as 2409.507-1.
2409.508-2 [Redesignated]
10. Section 2409.508-2 is redesignated as 2409.507-2.
PART 2412--CONTRACT DELIVERY OR PERFORMANCE
11. The authority citation for part 2412 is revised to read as
follows:
Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
Part 2412 [Redesignated]
12. Part 2412 is redesignated as Part 2411 and the heading is
revised to read as follows:
PART 2411--DESCRIBING AGENCY NEEDS
2411.1 [Redesignated]
13. Newly designated subpart 2411.1 is redesignated as 2411.4.
2411.104 [Redesignated]
14. Newly designated 2411.104 is redesignated as 2411.404 and
revised to read as follows:
2411.404 Contract clause.
(a) The Contracting Officer may insert the clause at 48 CFR
2452.211-70, Contract Period, in all solicitations and contracts.
PART 2413--SIMPLIFIED ACQUISITION PROCEDURES
15. The authority citation for part 2413 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).
16. Section 2413.106-2 is revised to read as follows:
2413.106-2 Data to support purchases.
(d) Contracting officers may use Form HUD-24007, Purchase/Delivery
Order Data File, to record all relevant data pertaining to a purchase
using simplified acquisition procedures, including recording written
and oral quotations received and documenting orders against GSA
contracts.
17. Section 2413.505-1 is revised to read as follows:
2413.505-1 Optional Form (OF) 347, order for supplies and services,
and Optional Form 348, order for supplies and services schedule-
continuation.
(b) For purchases charged to the FHA Fund using simplified
acquisition procedures, contracting officers may use Form HUD-2542,
Purchase Order and Payment Authorization.
PART 2414--SEALED BIDDING
18. The authority citation for part 2414 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).
2414.406 [Redesignated]
19. Section 2414.406 is redesignated as 2414.407.
2414.406-3 [Redesignated]
20. Section 2414.406-3 is redesignated as 2414.407-3.
2414.406-4 [Redesignated]
21. Section 2414.406-4 is redesignated as 2414.407-4, and revised
to read as follows:
2414.407-4 Mistakes after award.
(d) For determinations under FAR 14.407-4(b) (1) and (2), the Head
of the Contracting Activity will obtain the concurrence of legal
counsel before notification to the Contractor. The Contracting Officer
shall be notified promptly of action to be taken.
22. A new section, ``2414.408 Award,'' is added immediately
following redesignated 2414.407-4, to read as follows:
[[Page 19471]]
2414.408 Award.
2414.407-70 [Redesignated]
23. Section 2414.407-70 is redesignated as 2414.408-70.
PART 2415--CONTRACTING BY NEGOTIATION
24. The authority citation for part 2415 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).
25. Section 2415.407 is revised to read as follows:
2415.407 Solicitation provisions.
(a) The Contracting Officer shall insert a provision substantially
the same as the provision at 48 CFR 2452.215-70, Proposal Content, in
all solicitations for negotiated procurements using the best value
approach selection method expected to exceed the simplified acquisition
limit. The Contracting officer shall adapt paragraph (c) of the
provision (i.e., include, delete, and provide additional detail to
subparagraphs) to address the particular requirements of the immediate
solicitation. The provision may be used in simplified acquisitions when
it is necessary to obtain technical and management information in
making the award selection. When award selection will be made through
the lowest-priced technically acceptable proposal method, the provision
shall be used with its Alternate I. If the proposed contract requires
work on, or access to, sensitive automated systems as required by the
clause at 48 CFR 2452.237-76, the provision shall be used with its
Alternate II.
26. Section 2415.413-1 is revised to read as follows:
2415.413-1 Alternate I.
It is HUD's policy to have proposals evaluated by the most
competent technical and management sources available. The Department's
preferred procedure for evaluation of proposals is not to disclose the
proposals outside the Government for evaluation purposes. If external
parties will not be used to evaluate proposals, the procedures in FAR
15.413-1 Alternate I, shall be used.
27. A new section 2415.413-2 is added to read as follows:
2415.413-2 Alternate II.
When it is necessary to disclose proposals outside the Government
to meet the Department's evaluation needs, the procedures in FAR
15.413-2 Alternate II, shall be used.
(f)(1) The HCA is authorized to make decisions regarding the
release of proposals outside the Government.
(2) The written agreement shall be obtained prior to releasing
proposals to the evaluator.
(3) The HCA shall make the written determination, which shall be
retained permanently in the official contract file.
2415.605 [Amended]
28. In section 2415.605, paragraph (c) is redesignated (d)(1) and
paragraph (e) is redesignated as paragraph (d)(2).
29. In section 2415.608, paragraph (a) is revised to read as
follows:
2415.608 Proposal evaluation.
(a) After receipt of proposals, the Contracting Officer will
forward copies of the technical portion of each proposal to the TEP
Chairperson or his or her designee. The cost/price portion of each
proposal shall be retained by the Contracting Officer pending initial
technical evaluation by the TEP.
(3) Technical evaluation. The TEP shall rate each proposal based on
the evaluation factors specified in the solicitation. The TEP shall
identify each proposal as being either acceptable, unacceptable but
capable of being made acceptable, or unacceptable. A proposal shall be
considered unacceptable if it is so clearly deficient that it cannot be
corrected through written or oral discussions. Under the best value
approach, predetermined cut-off scores designed to determine a
threshold level of acceptability of proposals shall not be employed. A
technical evaluation report, which complies with FAR 15.608(a)(3),
shall be prepared and signed by the technical evaluator(s), furnished
to the contracting officer, and maintained as a permanent record in the
official procurement file.
* * * * *
2415.1004 [Redesignated]
30. Section 2415.1004 is redesignated as 2415.1005.
PART 2416--TYPES OF CONTRACTS
31. The authority citation for part 2416 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).
2416.504 [Redesignated]
32. Section 2416.504 is redesignated as 2416.506 and the heading is
revised to read as follows:
2416.506 Solicitation provisions and contract clauses.
33. In the newly redesignated section 2416.506, paragraph (e) is
redesignated as section 2416.506-70 and the heading is added to read as
follows:
2416.506-70 Unpriced delivery/task orders.
(e) * * *
PART 2417--SPECIAL CONTRACTING METHODS
34. The authority citation for part 2417 is revised to read as
follows:
Authority: 31 U.S.C. 1535; 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
35. A new subpart 2417.2 is added to read as follows:
Subpart 2417.2--Options
36. A new section 2417.204 is added to read as follows:
2417.204 Contracts.
(e) The Senior Procurement Executive shall approve any solicitation
or contract which exceeds the five (5) year maximum for acquisitions of
supplies or services.
PART 2419--SMALL BUSINESS PROGRAMS
37. The heading of part 2419 is revised to read as set forth above.
38. The authority citation for part 2419 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
39. Section 2419.201(c), (d)(1) through (7) and (d)(9) are revised
to read as follows:
2419.201 General policy.
(c) The Director, Office of Small and Disadvantaged Business
Utilization (OSDBU), Headquarters, is responsible for the
administration of HUD's small business programs. This includes
Department-wide responsibility for developing, implementing, executing,
and managing these programs, providing advice on these programs, and
representing HUD before other government agencies on matters primarily
affecting small, small disadvantaged and women-owned small businesses.
(d) Each head of a contracting activity shall designate a small
business specialist who shall perform the following functions:
(1) Maintain a program designed to locate capable small business
sources as referenced in 48 CFR 2419.201(c) for current and future
procurements;
(2) Coordinate inquiries and requests for advice from such
businesses on procurement matters;
(3) Review proposed requirements for supplies and services, ensure
that all such business concerns will be afforded an equitable
opportunity to compete, and, as appropriate, initiate
[[Page 19472]]
recommendation for small business or Section 8a set-asides (under the
Small Business Act);
(4) Take action to ensure the availability of adequate
specifications and drawings, when necessary, to obtain participation by
such businesses in a procurement;
(5) Review proposed procurements for possible breakout of items
suitable for procurement from such businesses;
(6) Advise such businesses with respect to the financial assistance
available under existing laws and regulations and assist such
businesses in applying for financial assistance;
(7) Ensure that adequate records are maintained and accurate
reports are prepared concerning such businesses participation in the
procurement program;
* * * * *
(9) Act as liaison between the Contracting Officer and the
appropriate SBA office in connection with set-asides, certificates of
competency, size classification, and any other matter in which the
small business program may be involved.
40. The heading of subpart 2419.7 is revised to read as follows:
Subpart 2419.7--Subcontracting With Small Business, Small
Disadvantaged Business and Women-Owned Small Business Concerns
Subpart 2419.9 [Removed]
41. Subpart 2419.9 is removed.
Subpart 2419.901 [Removed]
42. Section 2419.901 is removed.
PART 2420--LABOR SURPLUS AREA CONCERNS
43. The authority citation for part 2420 is revised to read as
follows:
Authority: 42 U.S.C. 3535(d).
PART 2420 [REMOVED AND RESERVED]
44. Part 2420, consisting of subpart 2420.1 and Sec. 2420.102, is
removed and reserved.
PART 2434--MAJOR SYSTEM ACQUISITIONS
45. The authority citation for part 2434 is revised to read as
follows:
Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
2434.001 [Removed]
46. Section 2434.001 is removed.
PART 2437--SERVICE CONTRACTING
47. The authority citation for part 2437 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
48. In Sec. 2437.110, paragraph (f) is revised to read as follows:
2437.110 Solicitation provisions and contract clauses.
* * * * *
(f) The Contracting Officer shall insert the clause at 48 CFR
2452.237-75, Clearance of Personnel, in all solicitations and contracts
where contractor personnel will be working on-site in any HUD office.
* * * * *
PART 2442--PRODUCTION SURVEILLANCE AND REPORTING
49. The authority citation for part 2442 is revised to read as
follows:
Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
50. Section 2442.1106 is revised to read as follows:
2442.1106 Reporting requirements.
(a) All contracts for professional or technical services exceeding
$500,000 shall use HUD Form 441.1, ``Project Management System Baseline
Plan,'' to outline how the Contractor proposes to carry out the
contract work and HUD Form 661.1, ``Project Management System Progress
Report,'' to monitor quantitative progress against the baseline plan.
Each of these forms shall be accompanied by a narrative description.
The Contracting Officer may waive the requirement to use these forms if
he or she believes the Statement of Work or contractor's technical
proposal are sufficiently specific or another acceptable means for
project management is substituted. Contracts awarded under the Acquired
Property Program are exempt from use of this reporting requirement. The
prescribed forms may be used for contracts under $500,000, when
determined necessary by the Contracting Officer.
51. Section 2442.1107 is revised to read as follows:
2442.1107 Contract clause.
The Contracting Officer shall insert the clause at 48 CFR 2452.242-
71, Project Management System, in solicitations and contracts for
professional or technical services exceeding $500,000, unless the
Contracting Officer determines that the Statement of Work or technical
proposal is sufficiently specific, or another acceptable method for
project management is substituted. Use of this clause in contracts
below the stated threshold is at the discretion of the Contracting
Officer.
PART 2452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52. The authority citation for part 2452 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
2452.212-70 [Redesignated]
53. Section 2452.212-70 is redesignated as Sec. 2452.211-70 and the
introductory text is revised to read as follows:
2452.211-70 Contract period.
As prescribed in 2411.404(a), insert the following clause in all
solicitations and contracts:
* * * * *
54. Section 2452.215-70 is revised to read as follows:
2452.215-70 Proposal content.
As prescribed in 2415.407(a), insert a provision substantially the
same as the following:
Proposal Content (Oct 1995)
(a) Proposals shall be submitted in two parts as described in
paragraphs (b) and (c) below. Each of the parts must be complete in
itself so that evaluation of each part may be conducted
independently, and so that the technical and management part may be
evaluated strictly on its own merit. Proposals shall be submitted in
the format, if any, prescribed elsewhere in this solicitation.
Proposals shall be enclosed in sealed packaging and addressed to the
office specified in the solicitation. The offeror's name and
address, the solicitation number and the date and time specified in
the solicitation for proposal submission must appear in writing on
the outside of the package.
(b) Proposals shall be submitted in original and [insert number]
copies of Part I and [insert number] copies of Part II.
(c) Part I--Technical and Management.
(1) Prior experience. The offeror shall provide evidence of the
offeror's (i.e., firm's or organization's) prior and current
experience in performing the work and/or providing the deliverables
required by the solicitation.
(2) Past Performance. The offeror shall provide evidence of the
offeror's past performance in accomplishing work--including meeting
delivery dates and schedules--the same as, or substantially similar
to, that required by the solicitation. The offeror shall provide
references as follows [Contracting Officer insert specific
instruction for reference check information required].
(3) Personnel qualifications. The offeror shall provide the
names, position descriptions and information to support the
qualifications--including relevant experience, specialized training
and education--of all proposed key personnel (see the clause
entitled ``Key Personnel'' in this solicitation for further
definition). The
[[Page 19473]]
term ``personnel'' shall include any proposed consultants and
subcontractor employees who will perform duties of key personnel.
(4) Management Capability. The offeror shall provide evidence of
his/her organization's ability to manage the work required under the
proposed contract. The offeror shall describe how the work will be
organized, the proposed staffing and the responsibilities and
existing commitments of proposed staff.
(5) Technical Capability. The offeror shall provide a detailed
description of how he/she proposes to conduct the work required
under the proposed contract.
(6) Mandatory Minimum Requirements. The offeror shall provide
evidence, including copies of documents, as appropriate of
[contracting officer insert description of requirement(s), e.g.,
licenses, minimum experience, etc., or delete this paragraph if not
applicable].
(d) Part II--Business Proposal.
(1) The Offeror shall complete the Representations and
Certifications provided in Section K of this solicitation and
include them in this Part II.
(2) The offeror shall provide information to support the
offeror's proposed costs or prices as prescribed elsewhere in this
Section L.
(End of Provision)
Alternate I (Oct 1995)
Substitute paragraph (c) with the following:
(c) Part I--Technical and Management Information.
(1) Prior experience. The offeror shall provide evidence that
the offeror's (i.e., firm's or organization's) prior experience
meets the following minimum standards: [contracting officer insert
specific experience requirements].
(2) Past Performance. The offeror shall provide evidence of the
offeror's past performance as follows: [contracting officer insert
specific performance requirements]. The offeror shall provide
references as follows [contracting Officer insert specific
instruction for reference check information required].
(3) Personnel qualifications. The offeror shall provide the
names, position descriptions and evidence that proposed key
personnel (see the clause entitled ``Key Personnel'' elsewhere in
this solicitation for definition) meet the minimum qualifications
described below. The term ``personnel'' includes any proposed
consultants and subcontractor employees who will perform duties of
key personnel. The minimum qualifications are: [contracting officer
insert descriptions]
(4) Management Capability. The offeror shall provide evidence of
his/her organization's ability to manage the work required under the
proposed contract. The offeror shall describe how the work will be
organized, the proposed staffing and the responsibilities and
existing commitments of proposed staff.
(End of provision)
Alternate II (Oct 1995)
Add the following subparagraph, numbered sequentially, to
paragraph (c):
The offeror shall describe in detail how the offeror will
maintain the security of automated systems as required by clause
2452.237-76 in Section I of this solicitation.
(End of provision)
55. Section 2452.219-70 is amended by revising the section heading,
the intrductory text, the clause heading, paragraphs (b) through (d),
and Alternate I to read as follows:
2452.219-70 Small, Small Disadvantaged, and Women-Owned Small
Business Subcontracting Plan.
As prescribed in 2419.708, insert the following provision:
Small, Small Disadvantaged and Women-Owned Small Business
Subcontracting Plan (Oct 1995)
* * * * *
(b) Consistent with the national interest, it is HUD policy that
small business, women-owned small business and small business
concerns that are owned and controlled by socially and economically
disadvantaged individuals shall have the maximum practicable
opportunity to participate in the performance of HUD work at the
prime and subcontract level. Therefore, any contract awarded as a
result of this solicitation shall fully comply with the intent of
this policy, and the successful offeror shall agree to pursue an
effective and comprehensive small business, small disadvantaged
business and women-owned small business subcontracting program in
compliance with the clause entitled ``Utilization of Small, Small
Disadvantaged and Women-Owned Small Business Concerns.''
(c) Prior compliance with subcontracting plans shall be
considered in determining the responsibility of an offeror (see FAR
9.104-3). Therefore, offerors having previous contracts with
subcontracting plans shall provide the following information: agency
name; agency point of contact; contract number; total contract
value; a synopsis of the work required under the contract; the
role(s) of the subcontractor(s) involved; and, the applicable goals
and actual performance (dollars and percentages) for subcontracting
with small, small disadvantaged and women-owned small business
concerns. This information shall be provided for the three most
recently (within the last three years) completed contracts with such
subcontracting plans.
(d) The contract expected to result from this solicitation will
contain the clause at FAR 52.219-9, ``Small, Small Disadvantaged and
Women-Owned Small Business Subcontracting Plan.'' In accordance with
that clause, the offeror shall submit the complete subcontracting
plan with the response to this solicitation. The content of the
final plan is subject to negotiation. Failure to submit a complete
subcontracting plan and negotiate its content in good faith shall
make the offeror ineligible for the contract award.
(End of provision)
Alternate I (Dec 1992)
This alternate is required for all sealed bid solicitations
exceeding $500,000 ($1,000,000 for construction) that are not set
aside for small business. In such cases, insert the following
paragraph (d) for that in the basic clause:
(d) The contract expected to result from this solicitation will
contain the clause at FAR 52.219-9, ``Small, Small Disadvantaged and
Women-Owned Small Business Subcontracting Plan (Alternate I).'' The
offeror submitting the apparent low bid, upon request by the
Contracting Officer, shall submit a subcontracting plan, where
applicable, which addresses separately subcontracting with small,
small disadvantaged business and women-owned small business
concerns, and which shall be included in and made a part of the
resultant contract. The Contracting Officer will review the adequacy
of the subcontracting plan as part of the responsibility
determination (FAR Subpart 9.1). Failure to submit an adequate
subcontracting plan where applicable shall make the bidder
ineligible for the contract award.
(End of provision)
56. In Sec. 2452.237-75, the clause heading and paragraph (a) are
revised to read as follows:
2452.237-75 Clearance of personnel.
* * * * *
Clearance of Personnel (June 1995)
(a) The contractor shall submit to the Contracting Officer
within five days after contract award, two (2) completed Forms FD-
258, ``Fingerprint Chart'', one original and one copy of the SF 85P,
``Questionnaire for Public Trust Positions'', and one original and
one copy of the OF 306, ``Declaration for Federal Employment'', for
the contractor and all employees who have access to the building in
performance of the contract work. These forms must be submitted for
all replacement employees prior to entrance on duty. Necessary forms
will be furnished by HUD. If the Contracting Officer receives an
unsuitable report on any employee after processing these forms or if
the Contracting Officer finds a prospective employee to be
unsuitable or unfit for his/her duties, the contractor shall be
advised immediately that such employee cannot continue to work or be
assigned to work under the contract.
* * * * *
57. In Sec. 2452.242-71, the introductory text is revised to read
as follows:
2452.242-71 Project management system.
As prescribed in 2442.1107, insert the following clause:
* * * * *
Dated: April 19, 1996.
Marilynn A. Davis,
Assistant Secretary for Administration.
[FR Doc. 96-10446 Filed 4-30-96; 8:45 am]
BILLING CODE 4210-01-P
