[Federal Register Volume 64, Number 131 (Friday, July 9, 1999)]
[Rules and Regulations]
[Pages 37200-37272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15961]
[[Page 37199]]
_______________________________________________________________________
Part II
General Services Administration
_______________________________________________________________________
48 CFR Chapter 5
General Services Administration Acquisition Regulation; Interim Rule
Federal Register / Vol. 64, No. 131 / Friday, July 9, 1999 / Rules
and Regulations
[[Page 37200]]
GENERAL SERVICES ADMINISTRATION
48 CFR Chapter 5
RIN 3090-AE90
General Services Administration Acquisition Regulation
AGENCY: Office of Acquisition Policy, GSA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The General Services Administration (GSA) is revising the
General Services Administration Acquisition Regulation (GSAR) in its
entirety. GSA has rewritten the GSAR into plain English, included only
regulatory material, and removed internal agency guidance. GSA has also
updated the GSAR to reflect recent changes to the Federal Acquisition
Regulation (FAR). GSA intends the reissued GSAR to be simpler to
understand and less burdensome for contractors and offerors, GSA
contracting personnel, and contracting personnel in other agencies
delegated contracting authority subject to following GSAR procedures.
DATES: Effective Date: September 1, 1999. Comments should be submitted
in writing to the address shown below on or before September 7, 1999.
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
On January 28, 1992, the President directed agencies to evaluate
their regulatory programs and eliminate certain rules that restrict the
economy. On September 11, 1993, the President directed agencies to
eliminate at least half of their internal management regulations. While
these directives did not apply to GSA acquisition regulations, GSA
initiated a review and rewrite of the GSAR following the same
principles. The GSAR, as reissued--
--Uses plain English to improve clarity and understanding.
--Reduces the amount of regulatory material.
--Eliminates internal operating procedures that do not have a
significant effect beyond GSA, or a significant cost or administrative
impact on contractors or offerors.
--Eliminates guidance which merely implements or supplements the
Federal Acquisition Regulation (FAR) without a significant cost or
administrative impact on contractors or offerors, or an effect beyond
GSA's internal operating procedures.
--In subparts 503, 515, 552, and 570, incorporates changes from the
interim rule published in the Federal Register at 63 FR 18843, April
16, 1998 (ADP 2800.12A, CHGE 79). GSA received no comments on this
interim rule. The interim rule updated regulation procedures for
acquisitions of leasehold interests in real property for consistency
with FAR Part 15 where applicable. The interim rule is incorporated
with editorial changes for plain language, more clear organization, and
consistency in cross references.
--In subparts 504.5 and 505.1, provides guidance on use of GSA's
Electronic Posting System for issuing synopses and solicitations.
--In subparts 511, 516, 542, and 552 incorporates changes from the
interim rule published in the Federal Register at 64 FR 4788, February
1, 1999 (ADP 2800.12A, CHGE 81). The interim rule clarified
requirements for making deliveries under contracts that provide for
delivery to both civilian and military locations, clarified the
contracting activities authorized to place orders under Federal Supply
Service (FSS) contracts, allowed Procuring Contracting Officers (PCOs)
in FSS to authorize Administrative Contracting Officers (ACOs) to issue
cure or show causes notices, revised the time for submission of close-
out reports under FSS multiple award contracts (MAS), and simplified
the process for deleting items from FSS MAS contracts. Only the
Department of Veterans Affairs (VA) submitted comments. VA requested
that the authority to delete items without prior approval be optional
for VA because of potential conflicts with its Prime Vendor system. VA
also requested that publication requirements for supplemental price
lists be clarified to reflect workdays and be based on calendar months.
GSA adopts these comments. VA also requested that section 552.216-73
identify a GSA contact for information on authorized schedule users.
This comment is not adopted. Questions regarding authorized users
should be referred to the contracting officer.
--In subparts 515.3, 537.2, and 552.237-73, provides guidance on use of
outside evaluators. GSA published a proposed rule on disclosure and use
of proprietary information in the Federal Register at 58 FR 42715,
August 11, 1993. GSA received 18 comments from 5 respondents and
considered all comments in preparing this interim rule. Two principal
areas of concern from industry concerned adding a requirement for
nongovernment evaluators to execute nondisclosure agreements directly
with the owners of proposal information and clarification of available
remedies for violations. GSA will not require nondisclosure agreements
between outside evaluators and the owner of proposal information. Such
a requirement would be impractical to administer and does not add to
the protection afforded the owner of the information. The owner of
proposal information has remedies under the Trade Secrets Act. The
Government has contractual and legal remedies, including those defined
at FAR 3.104, FAR 52.203-8 and 52.203-10, GSAR 552.237-73, and the
termination provisions of the contract.
--In sections 532.71 and 552.232-1, allows automatic payment for
recurring services (i.e., fixed roll payment).
--In sections 536.271 and 552.236-83, establishes procedures for using
project labor agreements for large and significant Federal construction
projects.
--Incorporates updates to remain consistent with the FAR through
Federal Acquisition Circular (FAC) 97-10, including:
--Revises section 503.1 to eliminate references to certifications and
parallel the organization of FAR section 3.1.
--In section 511.404(a)(1), updates the FAR reference from FAR 52.211-1
to FAR 52.211-8.
--Reorganizes Part 513 to correspond to FAR Part 13.
--Eliminates certifications that are not based on statute, including
section 514.303 (eliminating the requirement that the receipt for
withdrawal of a bid certify the representative's authority), section
528.301 (deleting the reference to certification of insurance and
deferring to applicable FAR clauses), and sections 537.110 and 552.237-
72 (changing the certification regarding quasi-military armed forces to
a prohibition).
--Reorganizes and updates Part 515 to correspond to FAR part 15.
--Makes conforming changes to rules on cost and pricing data and
information other than cost or pricing data in Part 515.
[[Page 37201]]
--Updates subpart 519.8 and section 552.219-74, to conform to changes
in FAC 97-05 and 97-06, and to add direct section 8(a) award authority
based on a Memorandum of Understanding with the Small Business
Administration.
--Updates subparts headings in Part 528 to correspond to subpart
headings in the FAR.
--Implements agency protest procedures in sections 533.103 and 552.233-
70.
--Reorganizes Part 542 to correspond to FAR Part 42.
--Updates prescription citations in Part 552 to conform to the revised
Parts 501-550 and 570.
--Deletes the following sections from Part 552, which are either
obsolete or duplicate FAR provisions or clauses:
552.203-4 Contingent Fee Representation and Agreement
552.214-16 Minimum Bid Acceptance Period
552.214-74 Solicitation Copies
552.225-70 Buy American Act--Hand or Measuring Tools or Stainless
Steel
Flatware
552.225-72 Eligible Products from Nondesignated Countries--Waiver
552.225-75 Buy American Act Notice--Construction Materials
552.228-70 Bid Guarantee and Bonds
552.228-71 Bid Guarantee
552.228-72 Performance Bond
552.228-73 Performance and Payment Bonds
552.233-70 Disputes (Utility Contract)
552.236-83 Furnishing Information and Records
552.270-40 Asbestos and Hazardous Waste Management.
--Renumbers section 552.211-1 to 552.211-8 for consistent cross-
numbering to the corresponding clause of FAR 52.211-8.
--Incorporates a clause at sections 552.212-71 and 552.238-78,
Cancellation, required by the Federal Supply Service for multiple award
schedule contracts.
--At section 552.212-71, Contract Terms and Conditions Applicable to
GSA Acquisition of Commercial Items, separates provisions from clauses
and updates references to revised provisions and clauses.
--At section 552.212-72, Contract Terms and Conditions Required to
Implement Statutes or Executive Orders Applicable to GSA Acquisition of
Commercial Items, separates provisions from clauses; adds 552.225-8,
Buy American Act--Trade Agreements--Balance of Payments Program
Certificate and 552.225-9, Buy American Act--Trade Agreements--Balance
of Payments Program; and updates references to revised provisions and
clauses.
--At section 552.216-70, Economic Adjustment--FSS Multiple Award
Schedule Contracts, corrected the title of the clause for internal
consistency.
--At section 552.225-8, Buy American Act--Trade Agreements--Balance of
Payments Program Certificate, conforms the name to the related FAR
provisions.
--At section 552.225-9, Buy American Act--Trade Agreements--Balance of
Payments Program, conforms the name to the related FAR clause.
--At section 552.225-70, Buy American Act-Hand of Measuring Tools or
Stainless Steel Flatware, updates GSAR references.
--At section 552.228-70, Workers' Compensation Laws, changes
``workermen's'' to ``workers'' ' to conform to FAR references.
--At section 552.232-23, Assignment of Claims, deletes references to
``delivery'' orders so that the clause covers both delivery and task
orders.
--At section 552.232-70, Invoice Requirements, deletes references to
``purchase'' and ``delivery'' orders so that the clause covers
purchase, delivery, and task orders.
--At section 552.232-76, Electronic Funds Transfer Payment, updates the
clause to conform the information required under leases for real
property to FAR requirements for other contracts.
--At section 552.232-77, Payment by Credit Card, updates procedures for
consistency with the new Government credit card contract and removes
``delivery'' so that the clause covers both delivery and task orders.
--At section 552.236.77, Specifications and Drawings, corrects the
reference to the FAR clause at 52.236-21, Specifications and Drawings
for Construction.
--At section 552.236-78, Shop Drawings, Coordination Drawings, and
Schedules, corrects the reference to the FAR clause at 52.236-21,
Specifications and Drawings for Construction.
--At section 552.238-74, Contractor's Report of Sales, updates
references to the clause at 552.238-76, Industrial Funding Fee and adds
task orders in paragraph (a).
--At section 552.238-76, Industrial Funding Fee, updates references to
the clause at 552.238-75, Contractor's Report to Sales.
--At section 552.243-71, Equitable Adjustments, revises a reference
from ``workmen's'' to workers'' ' to conform to references in the FAR.
--At section 552.243-72, Modifications (Multiple Award Schedule),
updates references to GSAR clauses.
--At section 552.246-70, Source Inspection by Quality Approved
Manufacturer, corrects the numbering of subparagraphs in paragraph (b).
--At section 552.247-71, Diversion of Shipment Under F.O.B. Destination
Contracts. The clause authorizes GSA to unilaterally direct shipment of
an order to an alternate location. Prior to changes resulting from the
Federal Acquisition Streamlining Act, FAR 52.243-1, Changes--Fixed
Price, and 52.247-54, Diversion of Shipment Under F.O.B. Destination
Contracts, provided the Government the right to unilaterally change the
place of delivery and defined the basis for making related price
adjustments GSA's Federal Supply Service (FSS) used these clauses to
implement efficient inventory management in the Stock, SOP, and Single
Award Schedule programs. The authority to divert shipment to certain
volume orders allows FSS to maintain optimum inventory levels and
minimize space, storage, handling, and related expenses. It also allows
FSS to respond quickly to customer agency needs. FAR 52.212-4(c) allows
changes ``only by written agreement of the parties.'' This requires FSS
to process a bilateral modification for each order when directing
shipment to an alternate location would be in the Government's best
interest. This creates unacceptable delays in processing orders and
responding to customer agencies' needs. It also cause FSS to maintain
excessive stock levels and storage facilities in order to respond to
unusual orders. This unnecessarily increases FSS costs, and in turn,
costs to customer agencies. The ability to unilaterally direct
shipments improves responsiveness and reduces costs in the Government's
best interest.
--At section 552.225-5, Authorized Deviations in Provisions, conforms
the provision to changes in FAR 52.252-5.
--At section 552.252-6, Authorized Deviations in Clauses, conforms the
clause to changes in FAR 52.252-6.
--Revises the following clauses applicable to leases of real property
to provide a common standard to measuring usable square feet based on
the Building Owners and Managers Association definition:
552.270-2 Historic Preference.
552.270-4 Definitions
552.270-14 Changes
552.270-16 Adjustment for Vacant Premises
[[Page 37202]]
552.270-18 Default in Delivery--Time Extensions
552.270-20 Payment
552.270-29 Acceptance of Space
--Redesignates provisions and clauses so that they appear in the
sequence referred to in parts 501-551 and 570.
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
552.203-73............................... 552.203-70
552.203-70............................... 552.203-71
552.209-73............................... 552.209-70
552.209-74............................... 552.209-71
552.209-75............................... 552.209-72
552.209-76............................... 552.209-73
552.214-73............................... 552.214-70
552.214-75............................... 552.214-71
552.214-76............................... 552.214-72
552.216-71............................... 552.216-70
552.216-72............................... 552.216-71
552.216-73............................... 552.216-72
552.216-74............................... 552.216-73
552.219-71............................... 552.219-70
552.219-72............................... 552.219-71
552.219-73............................... 552.219-72
552.219-74............................... 552.219-73
552.223-71............................... 552.223-72
552.223-72............................... 552.223-71
552.225-71............................... 552.225-70
552.228-75............................... 552.228-70
552.229-72............................... 552.229-71
552.232-70............................... 552.232-74
552.232-71............................... 552.232-75
552.232-72............................... 552.232-70
552.232-73............................... 552.232-76
552.232-77............................... 552.232-73
552.232-78............................... 552.232-71
552.232-79............................... 552.232-72
552.232-80............................... 552.232-77
552.238-72............................... 552.238-74
552.238-74............................... 552.238-71
552.238-75............................... 552.238-72
552.238-76............................... 552.238-75
552.238-77............................... 552.238-76
552.246-71............................... 552.246-72
552.246-72............................... 552.246-71
552.270-4................................ 552.270-2
552.270-6................................ 552.270-3
552.270-10............................... 552.270-4
552.270-11............................... 552.270-5
552.270-12............................... 552.270-6
552.270-13............................... 552.270-7
552.270-15............................... 552.270-8
552.270-16............................... 552.270-9
552.270-17............................... 552.270-10
552.270-18............................... 552.270-11
552.270-19............................... 552.270-12
552.270-20............................... 552.270-13
552.270-21............................... 552.270-14
552.270-22............................... 552.270-15
552.270-25............................... 552.270-16
552.270-27............................... 552.270-17
552.270-28............................... 552.270-18
552.270-30............................... 552.270-19
552.270-31............................... 552.270-20
552.270-32............................... 552.270-21
552.270-33............................... 552.270-22
552.270-34............................... 552.270-23
552.270-35............................... 552.270-24
552.270-36............................... 552.270-25
552.270-37............................... 552.270-26
552.270-38............................... 552.270-27
552.270-39............................... 552.270-28
552.270-41............................... 552.270-29
------------------------------------------------------------------------
B. Executive Order 12866
This rule was submitted to the Office of Management and Budget
(OMB) under Executive Order 12866. This is not a major rule under 5
U.S.C. 804.
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 guidance on
disclosure and use of proprietary information implements agency
procedures for releasing proposals outside the Government for
evaluation and provide a contract clause to ensure that evaluation
contractors protect proposal information appropriately. The agency
protest procedures offer vendors an alternate forum which is quicker
and less expensive than protests to the General Accounting Office or
the Courts. The other revisions do not add any new requirements; but
reduce the number of agency regulations, restate existing requirements
in plain English, and provide consistency with the FAR. These revisions
streamline GSA acquisition rules, provide greater flexibility, and
promote understanding.
D. Paperwork Flexibility Act
The reissued GSAR contains information collection requirements
subject to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) which
were approved previously by OMB and assigned the control numbers shown
in section 501.106.
E. Small Business Regulatory Enforcement Fairness Act of 1996
This rule is not a major rule under 5 U.S.C. 804. This rule was
submitted to Congress and GAO under 5 U.S.C. 804.
F. Determination to Issue an Interim Rule
Urgent and compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. Many of the updates to
consistency with the FAR are necessary to comply with statute or
Executive Orders. For example, this rule implements Section 29 of the
Office of Federal Procurement Policy Act (41 U.S.C. 425), eliminating
certifications not required by statute or approved by the Office of
Federal Procurement Policy, and Executive Order 12979, Agency
Procurement Protests, providing inexpensive, informal, simple, and
quick resolution of protests. Other changes necessary for consistency
with the FAR implement streamlined and innovative acquisitions
procedures that benefit contractors, offerors, and GSA contracting
personnel, such as GSA implementation of new FAR Part 15 source
selection procedures. Further, the rule provides significant benefits
to the Federal government, offerors, and contractors by:
--Reducing the number of agency regulations, which reduces
administrative burden and promotes flexibility in the acquisition
process.
--Restates requirements in plain English, which promotes understanding.
--Provides consistency with the FAR, which eliminates conflicts and
reduces confusion.
However, pursuant to Pub. L. 98-577 and FAR 1.501, GSA will
consider public comments received in response to this interim rule in
the formation of the final rule.
List of Subjects in 48 CFR Chapter 5
Government procurement.
Dated: June 16, 1999.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy.
Accordingly, the General Services Administration revises 48 CFR
Chapter 5, to read as follows:
CHAPTER 5--GENERAL SERVICES ADMINISTRATION
SUBCHAPTER A--GENERAL
Part
501 General Services Administration Acquisition Regulations System
502 Definitions of Words and Terms
503 Improper Business Practices and Personal Conflicts of Interest
504 Administrative Matters
SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
505 Publicizing Contract Actions
509 Contractor Qualifications
511 Describing Agency Needs
512 Acquisition of Commercial Items
SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
513 Simplified Acquisition Procedures
514 Sealed Bidding
515 Contracting by Negotiation
516 Types of Contracts
517 Special Contracting Methods
SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
519 Small Business Programs
522 Application of Labor Laws to Government Acquisitions
523 Environment, Conservation, Occupational Safety and Drug-Free
Workplace
525 Foreign Acquisition
[[Page 37203]]
SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
527 Patents, Data, and Copyrights
528 Bonds and Insurance
529 Taxes
532 Contract Planning
533 Protests, Disputes, and Appeals
SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
536 Construction and Architect-Engineer Contracts
537 Service Contracting
538 Federal Supply Schedule Contracting
SUBCHAPTER G--CONTRACT MANAGEMENT
542 Contract Administration and Audi Services
543 Contract Modifications
546 Quality Assurance
547 Transportation
549 Termination of Contracts
SUBCHAPTER H--CLAUSES AND FORMS
552 Solicitation Provisions and Contract Clauses
553 Forms
SUBCHAPTER I--SPECIAL CONTRACTING PROGRAMS
570 Acquiring Leasehold Interests in Real Property
SUBCHAPTER A--GENERAL
PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION
SYSTEM
Subpart 501.1--Purpose, Authority, Issuance
Sec.
501.101 Purpose
501.103 Authority
501.104 Applicability
501.105 Issuance
501.105-1 Publication and code arrangement
501.105-2 Arrangement of regulations
501.105-3 Copies
501.106 OMB Approval under the Paperwork Reduction Act
Subpart 501.4--Deviations From the FAR and GSAR
501.402 Policy
501.403 Individual deviations
501.404 Class deviations
Authority: 40 U.S.C. 486(c).
Subpart 501.1--Purpose, Authority, Issuance
501.101 Purpose.
(a) The General Services Acquisition Regulation (GSAR) contains
agency acquisition policies and practices, contract clauses,
solicitation provisions, and forms that control the relationship
between GSA and contractors and prospective contractors.
(b) GSAR address rules directly to you, the contracting officer,
unless otherwise indicated.
501.103 Authority.
GSA's Senior Procurement Executive issues the GSAR under the
authority of the Federal Property and Administrative Services Act of
1949, as amended.
501.104 Applicability.
(a) General. The GSAR applies to contracts for suppliers or
services, including construction.
(b) Acquisition of leasehold interests in real property. Part 570
establishes rules for the acquisition of leasehold interests in real
property. Other provisions of 48 CFR chapter 5 (GSAR) do not apply to
leases of real property unless specifically cross-reference in part
570.
(c) Relationship to state. Some GSAR rules implement and interpret
laws and other authorities affecting procurement. A GSAR rule
specifically directed by statute has the force and effect of law.
(d) GSAR/FAR Relationship. The GSAR may deviate from the Federal
Acquisition Regulation (FAR) if authorized. If the GSAR does not
implement the FAR, the FAR alone governs.
501.105 Issuance.
501.105-1 Publication and code arrangement.
The GSAR is published in the following sources:
(a) Daily issue of the Federal Register.
(b) Annual Code of Federal Regulations (CFR), as Chapter 5 of Title
48.
(c) GSA Acquisition Manual distributed within GSA.
(d) GSA Home Page at http://www/gas.gov. Click on either
``Government Agencies'' or on ``Business and Industry,'' the click on
``Acquisition.''
501.105-2 Arrangement of regulations.
(a) The GSAR numbers and captions policies and procedures to
correspond to how they appear in the FAR, e.g., 1.104 in the FAR is
501.104 in the GSAR.
(b) GSAR rules not implementing the FAR have numbers beginning with
70, e.g., part 570, subsection 515.209-70.
(c) The GSAR may have gaps in its numbering scheme because a FAR
rule may not require GSAR implementation.
501.105-3 Copies.
The GSAR in CFR form may be purchased from: Superintendent of
Documents, Government Printing Office, Washington, DC 20402.
501.106 OMB approval under the Paperwork Reduction Act.
------------------------------------------------------------------------
OMB Control
GSAR Reference No.
------------------------------------------------------------------------
509.105-1(a)............................................ 3090-0007
511.170-3(a)............................................ 3090-0203
511.170-3(c)............................................ 3090-0203
511.204(d).............................................. 3090-0246
511.404(a)(1)........................................... 3090-0204
511.404(a)(2)........................................... 3090-0204
511.404(a)(5)........................................... 3090-0204
514.201-7(a)............................................ 3090-0200
516.203-4(a)(1)......................................... 3090-0243
516.506................................................. 3090-0248
519.708(b).............................................. 3090-0252
522.406-6............................................... 1215-0149
523.370................................................. 3090-0205
532.111(c).............................................. 3090-0080
532.905-70.............................................. 9000-0102
532.905-71.............................................. 3090-0080
537.110(a).............................................. 3090-0197
537.110(b).............................................. 3090-0006
538.273(a)(1)........................................... 3090-0250
538.273(a)(3)........................................... 3090-0262
538.273(b)(1)........................................... 3090-0121
542.1107................................................ 3090-0027
546.307-70.............................................. 3090-0027
546.302-71.............................................. 3090-0027
549.502(b).............................................. 3090-0027
552.211-8............................................... 3090-0204
552.211-70.............................................. 3090-0203
552.211-77.............................................. 3090-0246
552.211-78.............................................. 3090-0204
552.211-82.............................................. 3090-0204
552.214-71.............................................. 3090-0200
552.216-70.............................................. 3090-0243
552.216-72.............................................. 3090-0248
552.216-73.............................................. 3090-0248
552.219-72.............................................. 3090-0252
552.223-72.............................................. 3090-0205
552.232-72.............................................. 3090-0080
552.237-70.............................................. 3090-0197
552.237-71.............................................. 3090-0006
552.238-70.............................................. 3090-0250
552.238-72.............................................. 3090-0262
552.238-74.............................................. 3090-0121
552.242-70.............................................. 3090-0027
552.246-70.............................................. 3090-0027
552.246-71.............................................. 3090-0027
552.249-71.............................................. 3090-0227
GSA-72-A................................................ 3090-0121
GSA-527................................................. 3090-0007
GSA-618-D............................................... 1215-0149
GSA-1142................................................ 3090-0080
GSA-1364................................................ 3090-0086
GSA-1678................................................ 3090-0027
GSA-2419................................................ 9000-0102
570.702(c).............................................. 3090-0086
------------------------------------------------------------------------
Subpart 501.4--Deviations From the FAR and GSAR
501.402 Policy.
Uniformity is a goal of GSA's Acquisition Regulation System.
Despite this desire for uniformity, a contracting activity may take any
of the following actions:
(a) Develop and test new procedures and techniques.
(b) Adopt alternate procedures in the public interest for unique
programmatic or managerial requirements
[[Page 37204]]
(c) Deviate from a regulatory provision implementing a statutory
requirement provided the deviation does not violate the underlying
statute. Deviations must not be used to defeat the FAR and GSAR
approval requirements.
501.403 Individual deviations.
(a) The Contracting Director approves individual deviations from
the FAR and GSAR.
(b) If GSA delegates authority to another agency and requires
compliance with the GSAR as a condition of the delegation, the
Contracting Director in the agency receiving the delegation may approve
individual deviations from the GSAR unless the agency head receiving
the delegation designates another official.
(c) Send a copy of each deviation to GSA's Senior Procurement
Executive (MV).
501.404 Class deviations.
(a) HCAs approve class deviations from the FAR and GSAR.
(b) If GSA delegates authority to another agency and requires
compliance with the GSAR as a condition of the delegation, the HCA in
the agency receiving the delegation may approve class deviations from
the GSAR unless the agency head receiving the delegation designates
another official.
(c) Send a copy of each deviation to GSA's Senior Procurement
Executive (MV).
(d) A request for class deviations must be supported by statements
that fully describe the need for and the nature of the deviation.
(e) Class deviations from the GSAR:
(1) Expire in 12 months if not extended.
(2) May be rescinded earlier by GSA's Senior Procurement Executive
or by officials designated under paragraph (a) of this section without
prejudice to any action taken previously.
PART 502--DEFINITIONS OF WORDS AND TERMS
Authority: 40 U.S.C. 486(c).
Subpart 502.1--Definitions
502.101 Definitions.
Agency competition advocate means the GSA Competition Advocate in
the Office of Acquisition Policy.
Assigned counsel means the attorney employed by the Office of
General Counsel (including offices of Regional Counsel) assigned to
provide legal review or assistance.
Contracting activity competition advocate means the individual
designated in writing by the head of the contracting activity (HCA).
This authority may not be redelegated. The HCA must ensure that the
designated competition advocate is not assigned any duty or
responsibility that is inconsistent with the advocacy function. The
identity of the designated official shall be communicated to procuring
staff and the Senior Procurement Executive.
Contracting director means:
(a) Except in FSS, a director of a Central Office or Regional
office Division responsible for performing contracting or contract
administration functions.
(b) In FSS, a director of a Commodity Center or FSS Bureau.
Contracting officer's representative (COR), contracting officer's
technical representative (COTR), or contract administrator means a
Government employee designated in writing by the contracting officer to
perform specific limited activities for the contracting officer, such
as contract administration.
Debarring official or suspending official means the Senior
Procurement Executive or a designee.
Head of the contracting activity means the Deputy Associate
Administrator for Acquisition Policy (MV); Commissioners of the Federal
Technology Service (FTS); Federal Supply Service (FSS), or Public
Buildings Service (PBS); or Regional Administrators. The Deputy
Associate Administrator for Acquisition Policy serves as the HCA for
Central Office contracting activities outside of FTS, FSS, and PBS.
Senior procurement executive means the Deputy Associate
Administrator for Acquisition Policy.
Senior program official means a person reporting to, and designated
by, the HCA to have overall program responsibility for determining how
the agency will meet its need. The official should have a position of
authority over the participating offices. Examples include Assistant
Regional Administrators or Deputy Commissioners.
PART 503--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
Subpart 503.1--Safeguards
Sec.
503.104 Procurement integrity
503.104-3 Definitions
503.104-9 Contract clauses
Subpart 503.2--Contractor Gratuities to Government Personnel
503.204 Treatment of violations
Subpart 503.4--Contingent Fees
503.404 Contract clause
Subpart 503.5--Other Improper Business Practices
503.570 Advertising
503.570-1 Policy
503.570-2 Contract clause
Subpart 503.7--Voiding and Rescinding Contracts
503.702 Definition
503.705 Procedures
Authority: 40 U.S.C. 486(c).
Subpart 503.1--Safeguards
503.104 Procurement integrity.
503.104-3 Definitions.
Federal agency procurement as used in FAR 3.104 and in this
section, also means acquisitions of leasehold interests in real
property.
503.104-9 Contract clauses.
Acquisitions of Leasehold Interests in Real Property
Insert a clause substantially the same as the clause at 552.203-70,
Price Adjustment for Illegal or Improper Activity, in solicitations and
contracts for and modifications to leasehold interests in real property
exceeding $100,000.
Subpart 503.2--Contractor Gratuities to Government Personnel
503.204 Treatment of violations.
(a) The Senior Procurement Executive, or designee, makes
determinations under FAR 3.204.
The Senior Procurement Executive, or designee, takes all the
following actions:
(1) Coordinates with legal counsel.
(2) Initiates proceedings under FAR 3.204(a) by notifying the
contractor that GSA is considering action against the contractor for a
violation of the Gratuities clause. Notice is sent by a certified
letter to the last known address of the party, its counsel, or agent
for service of process. In the case of a business, notice is sent to
any partner, principal officer, director, owner or co-owner, or joint
venture.
(3) Presumes receipt if no return receipt is received within 10
calendar days after mailing the notice.
(b) The contractor has 30 calendar days to exercise its rights
under FAR 3.204(b), unless the Senior Procurement Executive, or
designee, grants an extension.
(c) If there is a dispute of fact material to making a
determination, the Senior Procurement Executive, or designee, may refer
the matter to an agency fact-finding official designated by the
[[Page 37205]]
Chairman of the GSA Board of Contract Appeals. Referrals for fact-
finding are not made in cases arising from a conviction or indictment
as defined in FAR 9.403. If a referral is made, the fact-finding
official takes all the following actions:
(1) Gives the contractor an opportunity to dispute material facts
relating to the determinations under FAR 3.204(a)(1) and (2).
(2) Conducts proceedings under rules consistent with FAR 3.204(b).
(3) Schedules a hearing within 20 calendar days of receipt of the
referral. The contractor or GSA may request an extension for good
cause.
(4) Delivers to the Senior Procurement Executive, or designee,
written findings of fact (together with a transcription of the
proceedings, if made) within 20 calendar days after the hearing record
closes. The findings must resolve any material disputes of fact by a
preponderance of the evidence.
(d) The Senior Procurement Executive, or designee, may reject the
findings of the fact-finding official only if the findings are clearly
erroneous or arbitrary and capricious.
(e) In cases arising from conviction or indictment, or in which
there are no disputes of material fact, the Senior Procurement
Executive, or designee, conducts the hearing required by FAR 3.204(b).
(f) If the Gratuities clause was violated, the contractor may
present evidence of mitigating factors to the Senior Procurement
Executive, or designee, either orally or in writing, in accordance with
a schedule the Senior Procurement Executive, or designee, establishes.
The Senior Procurement Executive, or designee, exercises the
Government's rights under FAR 3.204(c) only after considering
mitigating factors.
Subpart 503.4--Contingent Fees
503.404 Contract clause.
Insert 552.203-5, Covenant Against Contingent Fees, in
solicitations and contracts for the acquisition of leasehold interests
in real property expected to exceed $100,000.
Subpart 503.5--Other Improper Business Practices
503.570 Advertising.
503.570-1 Policy.
GSA policy precludes contractors from referring to GSA contracts in
commercial advertising in a manner that states or implies the
Government approves or endorses the product or service or considers it
superior to other products or services. The intent of this policy is to
prevent the appearance of Government bias toward any product or
service.
503.570-2 Contract clause.
Insert the clause at 552.203-71, Restriction on Advertising, in
solicitations and contracts, including acquisitions of leasehold
interests in real property, if the contract amount is expected to
exceed the simplified acquisition threshold.
Subpart 503.7--Voiding and Rescinding Contracts
503.702 Definition.
Notice means a letter sent by certified mail with a return receipt
requested to the last known address of a party, its counsel, or agent
for service of process. In the case of a business, such notice may be
sent to any partner, principal officer, director, owner or co-owner, or
joint venturer. If no return receipt is received within 10 calendar
days of mailing, receipt is presumed.
Voiding and rescinding official means the Senior Procurement
Executive or designee.
503.705 Procedures.
(a) Contracting officer's actions:
(1) If a contract is tainted by misconduct, consult with assigned
counsel to determine if the Government has a common law remedy such as
avoidance, rescission, or cancellation.
(2) If the contractor has a final conviction for a violation under
18 U.S.C. 201-224, you may refer the matter to the voiding and
rescinding official under FAR 3.705.
(i) In the referral, identify the final conviction and include the
information required by FAR 3.705(d)(2) through (5).
(ii) Coordinate the referral with the Office of Inspector General
to determine whether to recommend debarment.
(3) You may postpone a decision to exercise the Government's common
law right to void, rescind, or cancel a contract until completion of
legal proceedings against the contractor.
(b) Voiding and rescinding official's actions:
(1) The voiding and rescinding official reviews the referral and
coordinates with assigned counsel and the contracting activity.
(2) If the official decides to declare void and rescind a contract
and to recover the amounts expended and the property transferred, the
official takes both the following actions:
(i) Issues the notice required by FAR 3.705.
(ii) Conducts the hearing contemplated by FAR 3.705(c)(3).
(3) In case of a dispute of material fact about the agency
decision, the official refers the matter to the fact-finding official
designated by the Chairman of the GSA Board of Contract Appeals. The
voiding and rescinding official makes this referral if the dispute of
fact relates to any of the following:
(i) Contracts affected by the final conviction.
(ii) Amounts expended and property transferred by the Government
under the affected contracts.
(iii) Identity and value of any tangible benefits received by the
Government under the affected contracts.
(4) The voiding and rescinding official issues GSA's final decision
under FAR 3.705(e) after receiving the fact-finding official's report,
if a referral was made. The voiding and rescinding official may reject
the fact-finding official's findings only if they are clearly erroneous
or arbitrary and capricious.
(5) The official coordinates the final decision was the contracting
activity and provides the activity a copy of the decision.
(c) Fact-finding official's actions: The fact-finding official
takes all the following actions:
(1) Gives the contractor an opportunity to dispute material facts.
(2) Conducts the proceedings under rules consistent with FAR
3.705(c)(3).
(3) Schedules a hearing within 20 calendar days after receiving the
referral. The official may grant extensions for good cause at the
request of the contractor or GSA.
(4) Delivers written findings of fact to the voiding and rescinding
official (together with a transcription of the proceeding, if made)
within 20 calendar days after the hearing record closes. The findings
must resolve any material disputes of fact by a preponderance of the
evidence.
PART 504--ADMINISTRATIVE MATTERS
Subpart 504.4--Safeguarding Classified Information Within Industry
Sec.
504.402 General
504.475 Return of classified information
Subpart 504.5--Electronic Commerce in Contracting
504.500 Scope of subpart
504.502 Policy
504.570 Procedures for using the EPS
Authority: 40 U.S.C. 486(c).
Subpart 504.4--Safeguarding Classified Information Within Industry
504.402 General.
(a) This subpart:
[[Page 37206]]
(1) Prescribes procedures for safeguarding classified information
required to be disclosed to contractors in connection with the
solicitation of offers, and the award, performance, and termination of
contracts.
(2) Implements the requirements of the Department of Defense's
Industrial Security Regulation (ISR) and Industrial Security Manual for
Safeguarding Classified Information (ISM). By agreement, the Department
of Defense (DOD) will act for, and on behalf of, GSA in rendering
security services required for safeguarding classified information
released by GSA to U.S. industry.
(b) As used in this subpart, the term:
(1) ``Contractor(s)'' means prospective contractors,
subcontractors, vendors, and suppliers.
(2) ``U.S. industry'' means those industries (including educational
and research institutions) located within the United States, its
possessions, and the Commonwealth of Puerto Rico.
504.475 Return of classified information.
(a) You must recover classified information unless it has been
destroyed as provided in paragraph 19 of the ISM. The Government agency
that provided classified information to a GSA contractor is responsible
for the return of the information.
(b) You must ensure that classified information furnished to
prospective offerors, offerors, or contractors is returned immediately
after any of the following:
(1) After bid opening or closing date for receipt of proposals by
non-responding offerors.
(2) After contract award by unsuccessful offerors.
(3) Upon termination or completion of the contract.
(4) Upon notification that authorization to release classified
information has been withdrawn.
(5) After notification that a facility:
(i) Does not have adequate means to safeguard classified
information.
(ii) Has had its security clearance revoked or inactivated.
(6) Whenever otherwise instructed by the authority responsible for
the security classification.
Subpart 504.5--Electronic Commerce in Contracting
504.500 Scope of subpart.
This subpart provides policy and procedure for use of GSA's
Electronic Posting System (EPS).
504.502 Policy.
(a) The EPS is GSA's primary vehicle for disseminating synopses and
written solicitations. GSA intends that the EPS will substitute for,
not supplement, paper copies of solicitations. (Note that FAR 2.101
defines ``in writing'' or ``written'' to include ``electronically
transmitted and stored information.'')
(b) This policy does not apply to orders placed against existing
contracts, including Federal Supply Service schedule contracts.
(c) Nothing in this policy limits your authority to obtain oral
quotations or proposals as authorized by regulation (e.g., FAR 13.106-1
or FAR 15.203(f)).
504.570 Procedures for using the EPS.
(a) You must use the EPS to issue any synopsis required by FAR part
5 or GSAR part 505.
(b) You must issue each written solicitation on the EPS, except as
provided in paragraphs (c)(2) and (d) of this section.
(c) Although GSA intends that the EPS will substitute for paper
copies of solicitations, web-based transactions are not practical in
some industries or in some geographic areas at this time.
(1) If you expect that electronic access to a solicitation will
result in adequate competition, distribute the solicitation only
through the EPS. Include the following notice in the related synopsis:
GSA is issuing this solicitation only electronically. Interested
parties may access the solicitation at http://www.eps.gov. This site
provides instructions for downloading the solicitation file.
(2) If you believe that distribution of paper copies is necessary
to ensure adequate competition, document the file to justify
distribution of paper copies. Include the notice in paragraph (c)(1) of
this section in the related synopsis, leaving out the first sentence.
(d) In some cases, release of construction drawings must be
controlled to ensure adequate security. In other cases, an exhibit or
attachment incorporated in a solicitation may not be available
electronically. In either of these cases, you must explain in both the
synopsis and the solicitation how interested parties may obtain a copy.
In addition to the notice required by paragraph (c), include a notice
substantially the same as follows in both the synopsis and
solicitation. Tailor the notice as necessary for the particular
acquisition.
This solicitation incorporates documents which are not available
electronically. See [Identify the solicitation section that lists
the subject documents]. Interested parties may request copies of
these documents by writing the Contracting Officer at the address in
[Identify address block in the solicitation].
(e) The Electronic Posting System Manual provides detailed
instructions for using the EPS. The Manual is available at http://
www.eps.gov/buyer.html.
SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
PART 505--PUBLICIZING CONTRACT ACTIONS
Subpart 501.1--Dissemination of Information
Sec.
505.101 Methods of disseminating information
Subpart 505.2--Synopses of Proposed Contract Actions
505.202 Exceptions
505.203 Publicizing and response time
501.270 Synopsis of amendments to solicitations
Subpart 505.5--Paid Advertisements
505.502 Authority
Authority: 40 U.S.C. 486(c).
Subpart 505.1--Dissemination of Information
505.101 Methods of disseminating information.
(a) In Regions with a Business Service Center (BSC), you may post
the notice required by FAR 5.101(a)(2) at the BSC.
(b) Use GSA's Electronic Posting System (EPS) to issue each
synopsis required by FAR part 5 or GSAR part 505. When synopsizing a
solicitation, include the appropriate notice(s) required by 504.570(c)
and (d).
(c) For acquisitions involving real property:
------------------------------------------------------------------------
Then you must publicize
If the acquisition is not exempt under FAR the proposed acquisition--
5.202 or GSAR 505.202, and--
------------------------------------------------------------------------
(1) The acquisition is for real property (1) Either:
appraisal services estimated to cost $25,000 (i) In local
or more. newspapers.
(ii) In the Commerce
Business Daily through
the EPS.
[[Page 37207]]
(2) The acquisition is for leasehold (2) Either:
interests in real property estimated to (i) In local
exceed 10,000 square feet (except lease newspapers.
construction on a preselected site). (ii) In the Commerce
Business Daily through
the EPS.
(3) The acquisition is for a leasehold (3) In the Commerce
interest in a building to be constructed on Business Daily through
a preselected site. the EPS.
------------------------------------------------------------------------
(d) You may publicize proposed leases of 10,000 square feet or less
in local newspapers if it will serve to promote competition.
Subpart 505.2--Synopses of Proposed Contract Actions
505.202 Exceptions.
The Administrator has determined under section 18(c)(3) of the
Office of Federal Procurement Policy Act, as amended (41 U.S.C.
416(c)(3)) and Section 8(g)(3) of the Small Business Act, as amended
(15 U.S.C. 644(g)(3)) that:
(a) Synopsizing in the CBD is not always appropriate for
acquisitions of leasehold interests in real property (except lease
construction on a designated site) or real property appraisal
services.Your may publicize such contract actions following the
procedures in 505.101 and 505.203.
(b) It is not appropriate or reasonable to publish an advance
notice of any of the following:
(1) Acquisitions of works of art, including the design, execution
and installation of the artwork, under the Art-in-Architecture Program.
(2) Supplemental agreements to leases of real property involving
any of the following:
(i) Expansion requests within the scope of a lease (see 570.403).
(ii) Lease extensions under the conditions defined in 570.405.
(iii) Building alterations within the scope of a lease (see 570.5).
505.203 Publicizing and response time.
(a) If you publicize in local newspapers under 505.101(c), ensure
that the notice appears in local newspapers at least 3 calendar days
before issuance of the solicitation. Except as provided in paragraph
(B) of this section, allow at least these minimum response times:
(1) For leasehold interests in real property, 20 calendar days
between solicitation issuance and the date established for receipt of
initial offers.
(2) For real property appraisal services valued at less than either
the Trade Agreements Act (TAA) threshold or the North American Free
Trade Agreement (NAFTA) threshold, 10 calendar days between
solicitation issuance and the date established for receipt of initial
offers. The lower of the two thresholds governs.
(3) For real property appraisal services valued at or over the TAA
threshold or the NAFTA threshold, 40 calendar days from when the notice
appears to receipt of initial offers. If the acquisition falls in a
general category identified in an annual forecast, the period may be
reduced to as few as 10 days. The lower of the two thresholds governs.
(b) The following exceptions to the publicizing and response times
in paragraph (a) of this section apply only to proposed acquisitions of
leasehold interests in real property:
(1) For a proposed acquisition conducted using simplified lease
acquisition procedures (see 570.2), consider the individual acquisition
and establish a reasonable response time.
(2) In cases of urgency, provide as much time as possible and
document the file.
505.270 Synopsis of amendments to solicitations.
Synopsize in the CBD any solicitation amendment when the amendment
either:
(a) Increases the anticipated value of the proposed acquisition
above the dollar threshold requiring synopsis.
(b) Alters the scope of the proposed acquisition so that increased
interest of contractors can be reasonably anticipated.
Subpart 505.5--Paid Advertisements
505.502 Authority.
(a) Newspapers. The HCA, or designee, must approve publication of
paid newspaper advertisements. Approval is not required if FAR 5.101 or
505.101 requires publication. Document the contract file with the
regulatory citation or written approval to support the use of paid
newspaper advertisements.
(b) Other media. Advance approval is not required to advertise in
other media.
PART 509--Contractor Qualifications
Subpart 509.1--Responsible Prospective Contractors
Sec.
509.105 Procedures
509.105-1 Obtaining information
509.105-2 Determinations and documentation
509.106 Preaward surveys
509.106-2 Requests for preaward surveys
Subpart 509.2--Qualifications Requirements
509.206 Acquisitions subject to qualification requirements
509.206-2 Contract clause
Subpart 509.3--First Article Testing and Approval
509.306 Solicitation requirements
509.308 Contract clauses
509.308-1 Testing performed by the contractor
509.308-2 Testing performed by the Government
Subpart 509.4--Debarment, Suspension, and Ineligibility
509.401 Applicability
509.403 Definitions
509.405 Effect of listing
509.405-1 Continuation of current contracts
509.405-2 Restrictions on subcontracting
509.406 Debarment
509.406-1 General
509.406-3 Procedures
509.407 Suspension
509.407-1 General
509.407-3 Procedures
Authority: 40 U.S.C. 486(c).
Subpart 509.1--Responsible Prospective Contractors
509.105 Procedures.
509.105-1 Obtaining information.
(a) From a prospective contractor. In making a determination of
responsibility, you may use the GSA Form 527, Contractor's
Qualification and Financial Information, to obtain information
regarding financial capability from a prospective contractor.
(b) From Government personnel. Solicit and consider information
from all appropriate activities, including legal counsel, quality
control, contract management, credit and finance, and the auditor
before determining that an offeror is responsible. ``Auditor'' is
either:
[[Page 37208]]
(1) The Assistant Inspector General for Auditing (Central Office
only).
(2) The Regional Inspector General for Auditing.
(3) Chief, Credit and Finance Section, the Heartland Region (for an
evaluation of a prospective contractor's financial competence and
credit).
509.105-2 Determinations and documentation.
(a) Provide written notification to a prospective contractor you
determine not responsible. Include the basis for the determination.
Notification provides the prospective contractor with the opportunity
to correct any problem for future solicitation.
(b) Due to the potential for de facto debarment, avoid making
repeated determinations of nonresponsiblity based on the same past
performance information.
(c) To provide for timely consideration of the need to institute
action to debar a contractor, submit a copy of each nonresponsibility
determination, other than those based on capacity or financial
capability, to the debarring official.
509.106 Preaward surveys.
509.106-2 Requests for preaward surveys.
Federal Supply Service (FSS). Contracting activities in FSS may use
GSA Form 353, Performance Evaluation & Facilities Report, in lieu of SF
1403 through 1406. Complete Section I in accordance with instructions
in 553.370-353-I.
Subpart 509.2--Qualifications Requirements
509.206 Acquisitions subject to qualification requirements.
509.206-2 Contract clause.
Insert 552.209-70, Product Removal from Qualified Products List, in
solicitations and contracts containing FAR 52.209-1, Qualification
Requirements.
Subpart 509.3--First Article Testing and Approval
509.306 Solicitation requirements.
(a) The clauses at FAR 52.209-3 and 52.209-4 do not cover all the
solicitation requirements described in FAR 9.306. If a solicitation
contains a testing and approval requirement, you must address the
requirements in FAR 9.306 (d), (f), (g), (h), (i), and (j). For FSS,
the clauses prescribed in 509.308 address the requirement in FAR
9.306(h).
(b) In FSS solicitations that contain FAR 52.209-3, First Article
Approval--Contractor Testing, or FAR 52.209-4, First Article Approval--
Government Testing, insert 552.209-71, Waiver of First Article Testing
and Approval Requirement.
509.308 Contract clauses.
509.308-1 Testing performed by the contractor.
In FSS solicitations and contracts that will require the contractor
to perform testing, insert 552.209-72, Supplemental Requirements for
First Article Approval--Contractor Testing, and FAR 52.209-3, Alternate
I.
509.308-2 Testing performed by the Government.
In FSS solicitations and contracts that will have the Government
responsible for first article testing, insert 552.209.73, Supplemental
Requirements for First Article Approval--Government Testing, and FAR
52.209-4, Alternate I.
Subpart 509.4--Debarment, Suspension, and Ineligibility
509.401 Applicability.
This subpart applies to all the following:
(a) Acquisitions of personal property, nonpersonal services
(including construction), space in buildings, transportation services
(Federal Property Management Regulations (FPMR) Subpart 101-40.4).
(b) The purchase, sale, and disposal of real property.
(c) Contracts for disposal of personal property (FPMR Subpart 101-
45.6).
(d) Covered transactions as defined at General Services Property
Management Regulations (GSPMR) 105-68.110(a).
509.403 Definitions.
Fact-finding official, means the Chairman of the Debarment and
Suspension Board within the GSA Board of Contract Appeals or a
designee.
Notice means a letter sent by certified mail, return receipt
requested, to the last known address of a party, its counsel, or agent
for service of process. In the case of a business, such notice may be
sent to any partner, principal officer, director, owner or co-owner, or
joint venturer. If no return receipt is received within 10 calendar
days of mailing, receipt will then be presumed.
509.405 Effect of listing.
509.405-1 Continuation of current contracts.
(a) Consider terminating a current contract under any of the
following circumstances:
(1) Any of the circumstances giving rise to the debarment or
suspension also constitute a default in the contractor's performance of
the contract.
(2) The contractor presents a significant risk to the Government in
completing the contract.
(3) The conduct that provides the cause of the suspension, proposed
debarment, or debarment involved a GSA contract.
(b) Determine which of the following is in the Government's best
interest:
(1) Terminate the contract for either convenience or cause.
(2) Cancel under appropriate contract clauses (e.g., 552.238-73,
Cancellation).
(3) Use other available alternatives under:
(i) FAR 3.2 and 503.2.
(ii) FAR 3.7 and 503.7.
(c) Before making a decision, consult with legal counsel and
consider these factors:
(1) Seriousness of the cause for debarment or suspension.
(2) Extent of contract performance.
(3) Potential costs of termination and reprocurement.
(4) Need for or urgency of the requirement, contract coverage, and
the impact of delay for reprocurement.
(5) Availability of other safeguards to protect the Government's
interest until completion of the contract.
(6) Availability of alternate competitive sources to meet the
requirement (e.g., other multiple award contracts, readily available
commercial items, etc.).
(d) The debarring official is the designee under FAR 9.405-1(c).
509.405-2 Restrictions on subcontracting.
The debarring official is the designee under FAR 9.405-2(a).
509.406 Debarment.
509.406-1 General.
The debarring official is the designee under FAR 9.406-1(c).
509.406-3 Procedures.
(a) Investigation and referral.
(1) Refer to the debarring official matters involving serious
contract improprieties or performance deficiencies. Performance
deficiencies that continue over a period of time or apply to more than
one contract may warrant debarment consideration.
(2) Refer possible criminal or fraudulent activities to the Office
of the Inspector General (OIG). See 5 CFR 6701.107, Reporting Waste,
Fraud, Abuse, and Corruption. If, after investigation, the OIG believes
a cause for debarment exists, it will refer the matter to the debarring
official for consideration of debarment action.
[[Page 37209]]
(b) Reports. Include in referrals to the debarring official a
report that contains at least the following:
(1) The recommendation and supporting rationale.
(2) A list of parties to be considered for possible debarment,
including the contractor, principals, and affiliates. Include last
known home and business addresses, zip codes, and DUNS Number.
(3) A statement of facts.
(4) Copies of documentary evidence and a list of witnesses. Include
addresses and telephone numbers. Determine their availability to appear
at a fact-finding proceeding and identify the subject matter of their
testimony.
(5) GSA's acquisition history with the contractor. Include recent
experience, copies of the pertinent contracts, and an explanation of
impact debarment would have on GSA programs. OIG referrals do not
require this explanation; the debarring official will obtain the
information directly from the contracting activity(s).
(6) A list of any known active or potential criminal
investigations, criminal or civil proceedings, or administrative claims
before the Board of Contract Appeals.
(7) A statement regarding the impact of the debarment action on GSA
programs. This statement is not required for referrals by the Inspector
General; the debarring official will obtain a statement directly from
the contracting activity(s).
(c) Review. The debarring official will review the report, and
after coordinating with assigned legal counsel, either:
(1) Initiate debarment action.
(2) Decline debarment action.
(3) Request additional information.
(4) Refer the matter to the OIG for further investigation and
development of a case file.
(d) Decisionmaking process.
(1) The debarring official will provide:
(i) Notice of declinations, proposed debarments, and decisions to
the referring activity.
(ii) Notice of proposed debarment to each party being considered
for debarment.
(iii) Decision notices to each party after considering information
in the administrative record and information and argument submitted by
the affected party or parties.
(2) A party proposed for debarment:
(i) Has 30 calendar days after receipt of the notice to respond to
the debarring official or the debarment becomes final.
(ii) May request and receive a copy of the administrative record
that was the basis for the proposed debarment. If information is
withheld, the party will be notified and provided the reason.
(iii) May request the opportunity to present information and
argument in person to the debarring official. The debarring official
will schedule an oral presentation within 20 calendar days of receipt
of the request, unless a longer period of time is requested by the
party. An oral presentation is informal and a transcript usually is not
made. The party may supplement the oral presentation with written
information and arguments.
(iv) May identify to the debarring official material facts in
dispute and the bases. For an action other than one based on a
conviction of civil judgment, a party may request review and a written
finding by a fact-finding official.
(3) The debarring official will determine whether there is a
genuine dispute of material fact. If so, the debarring official refers
the matter to a fact-finding official, who will take the following
action as appropriate:
(i) Schedule a hearing within 20 calendar days after receipt of a
request to resolve disputed facts.
(ii) Grant extensions for good cause.
(iii) Provide notice of scheduled hearing.
(iv) Conduct hearings under rules consistent with FAR 9.406-
3(b)(2).
(v)Resolve facts in dispute and provide the debarring official with
written findings of fact based on a preponderance of the evidence. The
fact-finding official provides the written findings of fact (together
with a transcription of the proceeding, unless waived) within 20
calendar days after the hearing record closes.
509.407 Suspension.
Sec. 509.407-1 General.
The suspending official is the designee under FAR 9.407-1(d).
Sec. 509.407-3 Procedures.
(a) General. The procedures in 509.406-3 apply to suspension
actions except as noted in paragraph (b) of this section.
(b) Fact-finding.
(1) Fact-finding will not be conducted in an action:
(i) Based on an indictment.
(ii) When the suspending official finds no genuine dispute of
material facts.
(2) If the action is not based on an indictment, the suspending
official must coordinate with the Department of Justice or state
prosecutorial authority through OIG. Based on the advice received, the
suspending official will determine if fact-finding would impair
substantial interests of the Federal or state Government. In an action
not based on an indictment, a suspended party may:
(i) Identify to the suspending official material facts in dispute
and the bases.
(ii) Request review and a written finding by a fact-finding
official to resolve genuine disputes of material fact. For procedures
involving a genuine dispute of material fact, see 509.406-3(d)(3).
PART 511--DESCRIBING AGENCY NEEDS
Subpart 511.1--Selecting and Developing Requirements Documents
Sec.
511.170 Use of brand name or equal product descriptions
511.170-3 Solicitation provisions
Subpart 511.2--Using and Maintaining Requirements Documents
511.204 Solicitation provisions and contract clauses
Subpart 511.4--Delivery or Performance Schedules
511.404 Contract clauses
Authority: 40 U.S.C. 486(c).
Subpart 511.1--Selecting and Developing Requirements Documents
511.170 Use of brand name or equal product descriptions.
511.170-3 Solicitation provisions.
(a) Include the following immediately after each brand name or
equal item description, with instructions for the offeror to complete
the information:
Offering on:
Manufacturer's Name----------------------------------------------------
Brand------------------------------------------------------------------
Model or Part No.------------------------------------------------------
(b) If the solicitation does not require samples for ``or equal''
offers, include the following notice in the list of brand name or equal
items or component parts:
Notice
If you offer other than brand name items identified in this
solicitation, you must provide adequate information for GSA to
determine the quality of the product(s) offered.
(c) Include a provision substantially the same as the one at
552.211-70, Brand Name or Equal, when you use a brand name or equal
purchase description.
(d) If you use brand name or equal descriptions for component parts
of an end item and the provision at 552.211-70 is impractical for some
or all of the components, you may either:
(1) Not use the provision.
(2) Limit its application to specified components.
[[Page 37210]]
Subpart 511.2--Using and Maintaining Requirements Documents
511.204 Solicitation provisions and contract clauses.
(a) Construction services. Insert the clause at 552.211-71,
Standard References, in solicitations and contracts for construction
services when you expect the contract amount to exceed the simplified
acquisition threshold, and the solicitation meets either of the
following conditions:
(1) The solicitation cites documents or publications not furnished
with the solicitation.
(2) The solicitation incorporates documents or publications by
reference.
(b) Federal specifications. Insert the clause at 552.211-72,
Reference to Specifications in Drawings, in solicitations and contracts
citing Federal specifications which contain drawings.
(c) Supply contracts that exceed the simplified acquisition
threshold.
(1) Include the clause at 552.211-73, Marking, in solicitations and
contracts for supplies when deliveries may be made to both civilian and
military activities and the contract amount is expected to exceed the
simplified acquisition threshold.
(2) Include the clause at 552.211-74, Charges for Marking, in
solicitations and contracts that include the clause at 552.211-73 or a
similar clause.
(3) Include the clause at 552.211-75, Preservation, Packaging and
Packing, in solicitations and contracts for supplies expected to exceed
the simplified acquisition threshold. You may also include the clause
in contracts estimated to be at or below the simplified acquisition
threshold when appropriate.
(4) Insert a clause substantially the same as the clause at
552.211-76, Charges for Packaging and Packing, in solicitations and
contracts for supplies to be delivered to GSA distribution centers.
(d) Supply contracts. Include the clause at 552.211-77, Packing
List, in solicitations and contracts for supplies, including purchases
over the micropurchase threshold.
Subpart 511.4--Delivery or Performance Schedules
511.404 Contract clauses.
(a) Supply contracts.
(1) Single award schedules. Insert 552.211-8, Time of Delivery, in
solicitations and contracts instead of the clause at FAR 52.211-8. If
you need to show different delivery times for different items or groups
of items, use Alternate I.
(2) Multiple award schedules. Insert 552.211-78, Commercial
Delivery Schedule (Multiple Award Schedule), in solicitations issued
and contracts awarded under the multiple award schedule program.
(3) Shelf-life items. Use the following clauses in solicitations
and contracts that require delivery of shelf-life items within a
specified number of months from the date of manufacture or production
(see 101-27.206-2 of the Federal Property Management Regulation):
(i) Insert 552.211-79, Acceptable Age of Supplies, if the required
shelf-life period is 12 months or less, and lengthy acceptance testing
may be involved. For items having a limited shelf-life, substitute
Alternate I when required by the director of the commodity center
concerned.
(ii) Insert 552.211-80, Age on Delivery, if the required shelf-life
period is more than 12 months, or when source inspection can be
performed within a short time period.
(4) Stock replenishment contracts. Insert 552.211-81, Time of
Shipment, in solicitations and stock replenishment contracts that do
not include the Availability for Inspection, Testing and Shipment/
Delivery clause at 552.211-83 and require shipment within 45 calendar
days after receipt of the order. If shipment is required in more than
45 days, use Alternate I.
(5) Notice of shipment. Include 552.211-82, Notice of Shipment, in
solicitation and contracts for supplies when you need to have a notice
of shipment from the contractor.
(6) Indeterminate testing time. Insert 552.211-83, Availability for
Inspection, Testing and Shipment/Delivery, in solicitations and
contracts that provide for source inspection by Government personnel
and that require lengthy testing for which time frames cannot be
determined in advance. If the contract is for stock items, use
Alternate I.
(b) Construction contracts. Insert the clause at 552.211-84, Non-
Compliance with Contract Requirements, in solicitations and contracts
for construction when you expect the contract amount to exceed the
simplified acquisition threshold.
PART 512--ACQUISITION OF COMMERCIAL ITEMS
Subpart 512.3--Solicitation Provisions and Contract Clauses for the
Acquisition of Commercial Items
Sec.
512.301 Solicitation provisions and contract clauses for the
acquisition of commercial items
Authority: 40 U.S.C. 486(c).
Subpart 512.3--Solicitation Provisions and Contract Clauses for the
Acquisition of Commercial Items
512.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(a) Solicitation provisions and clauses. Insert these provisions or
clauses in solicitations or solicitations and contracts, respectively,
in accordance with the instructions provided:
(1) 552.212-70, Preparation of Offer (Multiple Award Schedule), in
solicitations and contracts issued under the multiple award schedule
program.
(2) 552.213-71, Contract Terms and Conditions Applicable to GSA
Acquisition of Commercial Items, when listed clauses apply. The clause
provides for incorporation by reference of terms and conditions which
are, to the maximum extent practicable, consistent with customary
commercial practice. If necessary, tailor this clause.
(3) 552.212-72, Contract Terms and Conditions Required to Implement
Statutes of Executive Orders Applicable to GSA Acquisitions of
Commercial Items, when listed clauses apply.
(i) The clause provides for the incorporation by reference of terms
and conditions required to implement provisions of law or executive
orders that apply to commercial item acquisitions.
(ii) As a result of the General Services Administration Board of
Contract Appeals (GSBCA) decision in the protest of International
Business Machines Corporation GSBCA 90-2 BCA P22,924, May 18, 1990, GSA
solicitations and contracts will deviate from FAR 52.225-8, Buy
American Act-Trade Agreements-Balance of Payments Program Certificate.
Incorporate 552.225-8, Buy American Act-Trade Agreements-Balance of
Payments Program Certificate, and 552.225-9, Buy American Act-Trade
Agreements-Balance of Payments Program, in solicitations and contracts
subject to the Trade Agreement Act. Use them instead of FAR 52.225-8
and 52.225-9 (referenced in FAR 52.212-3 and 52.212-5 respectively).
[[Page 37211]]
(4) 552.213-73, Evaluation-Commercial Items (Multiple Award
Schedule), in multiple award schedule solicitations. Use this provision
instead of FAR 52.212-2.
(b) Use of required provisions and clauses. Use only those
provisions and clauses prescribed in this part. Unless the use of a
provision or clause prescribed elsewhere in the GSAR is consistent with
customary commercial practice for the item being acquired, disregard
contrary instructions. Provisions and clauses prescribed in this part
will be revised to reflect the applicability of new statutes and
executive orders.
(c) Discretionary use of GSAR provisions and clauses. Consistent
with the limitations contained in FAR 12.302(c), include in
solicitations and contracts by addendum other GSAR provisions and
clauses.
(d) Use of additional provisions and clauses. The Senior
Procurement Executive must approve the use of a provision or clause
that is either not:
(1) Prescribed in the FAR or GSAR for use in contracts for
commercial items.
(2) Consistent with customary commercial practice.
SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
PART 513--SIMPLIFIED ACQUISITION PROCEDURES
Subpart 513.3--Simplified Acquisition Methods
Sec.
513.302 Purchase orders.
513.302-70 Purchase orders and related forms.
513.303 Blanket purchase agreements (BPAs).
513.303-3 Preparation of BPAs.
513.307 Forms.
Authority: 40 U.S.C. 486(c).
Subpart 513.3--Simplified Acquisition Methods
513.302 Purchase orders.
513.302-70 Purchase order and related forms.
(a) See GSA Order, Interim Guidance on Use of the Governmentwide
Commercial Purchase Card Service (OAD 4200.8), for forms required for
purchase card actions.
(b) Use GSA Form 3000 or 300-1 (pin-feed format), Order for
Supplies and Services, instead of OF 347, Order for Supplies or
Services, when making purchases payable through the National Electronic
Accounting and Reporting (NEAR) System.
(1) This form may also be used to make other purchases when a
specific form is not prescribed. It may be used as a delivery or task
order instead of SF 1449, Solicitation/Contract/Order for Commercial
Items.
(2) Prepare and process GSA Form 300 following the instructions at
553.370-300-I. Use GSA Form 300A or 300-A(1) (pin-feed format), order
for Supplies or Services (continuation), if additional space is needed.
(c) Use GSA Form 1458, Motor Vehicle Shop Work Order, Repair and
Purchase Order, instead of the OF 347 when making purchases in
connection with the maintenance, servicing or repair of GSA fleet
management vehicles.
(d) Use GSA Form 3186, Order for Supplies or Services or GSA Form
3186-B, Order for Supplies or Services (EDI), instead of OF 347, Order
for Supplies or Services, when making simplified acquisitions or
placing orders against established contracts through the FSS-19 system.
(1) Use GSA Form 3186 for mail orders placed against established
contracts.
(2) Document the file for a delivery, task, or purchase order
transmitted to contractors electronically using Electronic Data
Interchange (EDI) procedures by generating a GSA Form 3186-B.
(e) Use GSA Form 8002B, Motor Vehicle Delivery Order, to order
fleet management vehicles. Do not use this form as a purchase order for
simplified acquisitions. Use GSA Form 8002A to notify the consignee of
the status of motor vehicle requisitions.
513.303 Blanket purchase agreements (BPAs).
513.303-3 Preparation of BPAs.
(a) Description of agreement. Describe limitations, if any, on the
geographic area to be served.
(b) Delivery tickets. Instruct the contractor to include the name
of the individual placing the order on the delivery ticket. The
individual receiving the item or service must sign and date the
delivery or service ticket. Both the supplier and the receiving office
must retain a copy of the delivery ticket.
513.307 Forms.
You may use the GSA Form 3521, Blanket Purchase Agreement, to
prepare a blanket purchase agreement.
PART 514--SEALED BIDDING
Subpart 514.2--Solicitation of Bids
Sec.
514.201 Preparation of invitations for bids.
514.201-1 Uniform contract format.
514.201-2 Part I--The Schedule.
514.201-6 Solicitation provisions.
514.201-7 Contract clauses.
514.202 General rules for solicitation of bids.
514.202-4 Bid samples.
514.203 Methods of soliciting bids.
514.203-1 Transmittal to prospective bidders.
514.270 Aggregate awards.
514.270-1 Definition.
514.270-2 Guidelines for use.
514.270-3 Evaluation factors for award.
514.270-4 Grouping line items for aggregate award.
514.270-5 Evaluation methodologies for aggregate awards.
514.270-6 Guidelines for using the weight factors method.
514.270-7 Guidelines for using the price list method.
Subpart 514.4--Opening of Bids and Award of Contract
514.407 Mistakes in bids.
514.407-3 Other mistakes disclosed before award.
514.407-4 Mistakes after award.
Authority: 40 U.S.C. 486(c).
Subpart 514.2--Solicitation of Bids
514.201 Preparation of invitations for bids.
514.201-1 Uniform contract format.
Include the following notice in each solicitation:
The information collection requirements contained in this
solicitation/contract, are either required by regulation or approved
by the Office of Management and Budget pursuant to the Paperwork
Reduction Act and assigned OMB Control No. 3090-0162.
514.201-2 Part I--The Schedule.
(a) When you use Standard Form 33, Solicitation, Offer and Award,
include the following cautionary notice:
Notice to Bidders--Use Item 13 of the Standard Form 33,
Solicitation, Offer and Award, to offer prompt payment discounts.
The Prompt Payment clause of this solicitation sets forth payment
terms. Do not insert any statement in Item 13 which requires payment
sooner than the time stipulated in the Prompt Payment clause.
Example: If you insert ``NET 20'' in Item 13, GSA will reject your
offer as nonresponsive because the entry contradicts the 30 day
payment terms specified in the Prompt Payment clause.
(b) When you use any other authorized form (e.g., Standard Form
1447, Solicitation/Contract), include the notice in paragraph (a) of
this section. Change the reference to the form number, form title, and
item number accordingly.
Sec. 514.201-6 Solicitation provisions.
When you will consider all or none bids, insert the provision at
552.214-70, ``All or None'' Offers, in the solicitation. For
requirements or indefinite quantity
[[Page 37212]]
contracts, use Alternate I. Do not include this provision in
solicitations when you require the bidder to submit bids on all items
and will make only one award.
514.201-7 Contract clauses.
(a) Stock replenishment contracts. For some stock replenishment
contracts, individual contractors may be unable to furnish the
Government's monthly requirements. You may determine that progressive
awards will be more expedient. In such cases, insert a clause
substantially the same as the clause 552.214-71, Progressive Awards and
Monthly Quantity Allocations, in the solicitation and contract.
(b) Examinations of Records.
(1) Insert 552.214-70, Examination of Records by GSA, in
solicitations and contracts for supplies or services that exceed
$100,000, and acquisitions of leasehold interests in real property that
exceed the simplified lease acquisition threshold, that meet at least
one of the following conditions:
(i) Involve the use or disposition of Government-furnished
property.
(ii) Provide for advance payments, progress payments based on cost,
or guaranteed loan.
(iii) Contain a price warranty or price reduction clause.
(iv) Include an economic price adjustment clause where the
adjustment is not based solely on an established, third party index.
(v) Are requirements, indefinite-quantity, or letter contracts as
defined in FAR part 16.
(vi) Contain the provision at FAR 52.223-4, Recovered Materials
Certification.
(2) You may modify the clause to define the specific area of audit
(e.g., the use or disposition of Government-furnished property). Legal
Counsel and the Assistant Inspector General--Auditing or Regional
Inspector General--Auditing, as appropriate, must concur in any
modifications to the clause.
514.202 General rules for solicitation of bids.
514.202-4 Bid samples.
(a) Solicitation requirements.
(1) When you require bid samples, require bidders to submit samples
produced by the manufacturer whose products will be supplied under the
contract.
(2) The FAR limits use of bid samples to cases where you cannot
describe some characteristics of a product adequately in the
specification or purchase description. This usually applies to
subjective characteristics. You may determine that you need to examine
objective characteristics of bid samples to determine the
responsiveness of a bid. Base your determination on past experience or
other valid considerations. In the solicitation, separately list
``Subjective Characteristics'' and ``Objective Characteristics.''
(3) A sample provision appears at 552.214-72, Bid Sample
Requirements. You may use this provision as shown or modify it to fit
the circumstances of a procurement.
(b) Handling and disposition of samples.
(1) Retain samples from accepted bids for the period of contract
performance. If you have no outstanding claims regarding the contract,
dispose of the samples at the end of the contract term following the
bidder's instructions.
(2) If you anticipate a claim regarding the contract, retain the
bid samples until the claim is resolved.
(3) Retain samples from unsuccessful bids until you make award.
After award, dispose of these samples following the bidder's
instructions.
(c) Using bid samples. Include the information required by FAR
14.202-4(e) in the solicitation. Provide the number, size, and full
description of samples with instructions on how to submit bids. List
the characteristics that you will examine. The list needs to include
any aspect of the bid sample the acquisition team will examine to
determine the product(s) acceptability.
514.203 Methods of soliciting bids.
514.203-1 Transmittal to prospective bidders.
Prospective bidders, as used in FAR 14.203-1, include both the
following:
(a) The incumbent contractor, except when its written response to
the notice of contract action under FAR subpart 5.2 states a negative
interest.
(b) Bidders that responded to recent solicitations for the same or
similar items.
514.270 Aggregate awards.
514.270-1 Definition.
Aggregate award means an arrangement whereby two or more
separately-priced line items are combined for award to that bidder
whose bid will result in the lowest overall cost to the Government for
the line items as a group. The individual price for each item does not
have to be the lowest bid received. (See also the definition of a
``line item'' in FAR 3.302.)
514.270-2 Guidelines for use.
(a) GSA usually solicits prices and reserves the right to make
award for individual line items. In some cases it serves GSA's best
interest to combine two or more line items for an aggregate award. Such
cases include when:
(1) Users desire uniformity of design, style, and finish (e.g.,
suites of household furniture).
(2) The articles will be assembled and used as a unit, and
different manufacturers' components may not be interchangeable.
(3) Users have high demand for certain articles, but demand for
related articles is insufficient to attract competitive bids (e.g.,
various sized of socket wrenches). Awarding the low-demand articles in
conjunction with the high-demand articles may encourage competition.
(4) One location (delivery point) has a large requirement, and
another location has a requirement too small to individually attract
competitive bids.
(5) Awarding and administering numerous small contracts for similar
articles or services is impractical.
(b) Before deciding to combine items for aggregate award, consider
the following factors:
(1) The capability of bidders to furnish the types and quantities
of supplies or services in the aggregate.
(2) How grouping delivery points will affect bidders.
(3) Which combinations will accurately project the lowest overall
cost to the Government.
(c) Do not use an aggregate award if it will significantly restrict
the number of eligible bidders.
514.270-3 Evaluation factors for award.
Clearly state in the solicitation the basis for evaluating bids for
aggregate award. Require bidders to submit a price on each item within
the group or a percentage to be added or subtracted from a list price.
Advise bidders that failure to submit prices as required within a group
makes a bid ineligible for award for that group.
514.270-4 Grouping line items for aggregate award.
(a) Type of contract. While this section addresses supply contracts
(articles and delivery points), the same principles apply to service
contracts (types of services and service areas).
(b) Effect on compeition. Provide for full and open competition
when you group items for award. Grouping items for award may preclude a
significant of firms from bidding. This occurs if firms are unable to
provide all the types or quanities of supplies or services, or
[[Page 37213]]
make deliveries to the various delivery points included in the
prospective aggregate group.
(c) Grouping different articles. Include only related articles in
an aggregate group. Related articles are those normally manufactured or
produced by a majority of prospective bidders. Grouping unrelated
articles often restricts competition unnecessarily.
(d) Grouping geographic locations or delivery points. Consider the
following guidelines before deciding to group different geographic
locations or delivery points:
(1) A delivery point may have sufficient requirements so that
individual shipments involve economic production runs and carload or
truckload quanities. In this case, list it as a separate line item.
(2) The types of bidders (i.e., small or large firms, manufacturers
or distributors, etc.) who respond to previous solicitations can
provide important information. For example, if previous bidders are
distributors with franchises in certain territories, grouping different
territories could tend to restrict competition.
(3) Transportation costs can affect competition and pricing. They
may constitute a significant portion of the total delivered cost.
Obtain the advice and assistance of transportation specialists before
grouping geographic locations or delivery points. Depending upon the
supplies being acquired:
(i) Grouping widespread geographic locations or delivery points may
reduce competition or result in higher prices. It can cause you to lose
``area pricing'' advantages provided by a supplier with a single
production point.
(ii) Conversely, for many small commercial items (hand tools,
locks, etc.), manufacturers may quote the same price for delivery
anywhere in the U.S..
(iii) Tariff boundaries can also affect how manufacturers price
deliveries to different areas.
514.270-5 Evaluation methodologies for aggregate awards.
(a) Definite quantity contracts without options. For definite
quantity contracts without options, the evaluated bid price is the
total bid price, as adjusted for any price-related factors identified
in the solicitation. This reflects the actual cost to the Government
and will identify the most advantageous bid.
(b) Indefinite quantity contracts, requirements contracts, and
options. Indefinite quantity and requirements contracts use estimated
quantities. Options involve the probability of whether and when the
options will be exercised. These situations may result in unbalanced
bids (see FAR 15.404-1(g)), leading to inaccurate evaluation of the
projected cost and award to other than the most advantageous bid. To
avoid unbalanced bids, GSA has two preferred methods for evaluating
bids for aggregate awards: weight factors and price list.
(1) Weight factors method. Assign a weight to each item in a group.
The weight is based on the portion of quantities that item represents.
To evaluate bids, multiply each unit price by its weight factor, then
total the results.
(2) Price list method. Establish prices for bidders to use as a
base for preparing their bids. Prepare a list that identifies a base
price for each item in a group. Bidders bid a percentage factor to add
to or subtract from the base price.
514.270-6 Guidelines for using the weight factors method.
(a) Use the weight factors method when you have reliable estimates
for the quantities needed in an acquisition. Reliable estimates of
quantities form the foundation for:
(1) Accurate evaluation of the projected cost of each bid.
(2) An appropriate determination of which bid is most advantageous
to the Government for the aggregate group.
(b) Assign a weight factor to each item in a group. Develop the
weight factor by calculating the portion of the total quantity in a
defined group that each item represents.
(c) To evaluate bid prices, first multiply the price bid for each
item (unit price X quantity) by its weight factor. Then, add the
subtotals together to project the cost for the aggregate group.
(d) You may reduce estimated quantities to smaller numbers by a
common denominator. This may help facilitate the computations involved
in evaluating bids.
(e) Consider all price-related factors you identified in the
solicitation. Award to the responsive and responsible bidder with the
lowest evaluated overall cost to the Government for the aggregate
group. This represents the most advantageous bid.
514.270-7 Guidelines for using the price list method.
(a) General. The price list method helps avoid unbalanced bidding
when you need to make aggregate awards, but lack accurate estimates of
anticipated quantities. This method establishes base prices for bidders
to use in preparing their bids.
(b) Solicitation requirements. When you use the price list methods,
in the solicitation:
(1) Include the price list.
(2) Include an estimate of requirements.
(3) Require the bidder to express its price as ``net'' or as a
percentage added to or subtracted from the list prices for each group.
Require the bidder to quote only one percentage factor for each group.
This means that the bidder provides one percentage factor that applies
to every item in a group; not a separate percentage for each item.
``Net'' indicates the bidder chooses to submit the list prices as its
bid.
(4) Identify the percentage factor in paragraph (b)(3) of this
section as a price related evaluation factor.
(c) Developing list prices. You may develop price lists using one
or more of the following sources:
(1) Industry published prices.
(2) Industry surveys.
(3) Government cost estimates based on knowledge of the supplies or
services and previous contract prices.
(d) First time use for an item or service. The first time you use
list prices for an item or service, give prospective bidders an
opportunity to review the proposed list. Also provide information on
how GSA will use the list prices. You may provide this information in a
draft solicitation.
(e) Balanced prices. Ensure that the list prices for the grouped
items bear a reasonable and balanced relationship to one another. You
may use prices from previous awards made using the weight factors
method to develop price lists. Review those prices first to ensure they
did not result from unbalanced bidding.
(f) Evaluation and award. Consider all price-related factors
identified in the solicitation. Award to the responsive and responsible
bidder whose percentage factor produces the most favorable price to the
Government. This represents the most advantageous bid.
(g) Example. The following illustrates a bidding schedule
arrangement for a group of items for aggregate award under the price
list method:
[[Page 37214]]
Drills, Twist, High Speed, Under Federal Specification (No. and Date), and Amendment (No. and Date), Amendment
(No. and Date) Wire Gauge Sizes, Straight Shank, Short Length, Type C
----------------------------------------------------------------------------------------------------------------
Item No. National Stock No. Drill size Est. quantity Unit List price
----------------------------------------------------------------------------------------------------------------
Group 1 (Items 1 through 5)
----------------------------------------------------------------------------------------------------------------
1................. 5133-00-189-9246 1................. 2,800 Pkg............... $11.16
2................. 5133-00-189-9247 2................. 2,400 Pkg............... 11.16
3................. 5133-00-189-9248 3................. 2,800 Pkg............... 10.44
4................. 5133-00-189-9249 4................. 1,600 Pkg............... 10.80
5................. 5133-00-189-9250 5................. 2,000 Pkg............... 10.80
----------------------------------------------------------------------------------------------------------------
The bid on each item above is the list price shown minus/plus ____
percent. (Bidder, insert ``net'' or a single percentage amount in the
blank space and cross out minus or plus, as appropriate.)
(h) Special considerations for contracts for store stock items.
Show estimated quantities only if estimates of demand for each item
within a group can be derived from Government records or verified
contractor sales reports. Use only current estimates. If you cannot
estimate the Government's needs, the solicitation may include past
orders. (See CG Decision, B-209037, 82-2 CPD para 323 (1982).)
(i) Special considerations for repair and alteration contracts. In
the solicitation:
(1) List the estimated quantities for work to be performed during
both normal working hours and outside of normal working hours.
(2) State the percent of work anticipated to be performed during
normal working hours.
(3) List the unit prices for work to be performed during both
normal working hours and outside of normal working hours.
(4) Define ``normal'' in terms of hours and days of the week.
(5) Advise bidders of the previous year's total expenditures or
portions of that total attributable to the listed items.
(6) If you provide quantity estimates, state that the estimates are
for information only and do not constitute guarantees or commitments to
order items under the contract.
(7) Solicit two percentage factors for the line item unit prices
listed: one for the unit prices for work performed during normal
working hours and the second for the unit prices for work performed
outside of normal working hours.
(8) You may require multiple percentages when the solicitation
further groups unit prices by trade or business category.
(9) For the evaluated bid price, add together the following
percentages:
(i) The percentage of work performed during normal work hours
multiplied by the total estimate adjusted by the bidder's percentage
factor for that portion of the work, plus
(ii) The percentage of work performed during other than normal
working hours multiplied by the total estimate adjusted by the bidder's
percentage factor for that portion of the work.
(10) Consider other price-related factors identified in the
solicitation. Make award to the responsible and responsive bidder
submitting the lowest overall evaluated bid price for the aggregate
group. This represents the most advantageous bid.
Subpart 514.4--Opening of Bids and Award of Contract
514.407 Mistakes in bids.
514.407-3 Other mistakes disclosed before award.
(a) Delegation of authority by head of the agency. Under FAR
14.407-3(e), contracting directors (see 502.101) are authorized,
without power of redelegation, to make:
(1) The determinations regarding corrections and withdrawals under
FAR 14.407-3(a), (b), and (c).
(2) The corollary determinations not to permit withdrawal or
correction under FAR 14.407-3(d).
(b) Legal review and approval. Assigned counsel must approve
determinations by the contracting director and contracting officer
regarding mistakes in bid.
514.407-4 Mistakes after award.
The contracting director and assigned counsel review and approve
your determinations under FAR 14.407-4(b) and (c).
PART 515--CONTRACTING BY NEGOTIATION
Sub part 515.2--Solicitation and Receipt of Proposals and Information
Sec.
515.204 Contract format
515.204-1 Uniform contract format
515.205 Issuing solicitations
515.209 Solicitation provisions and contract clauses
515.209-70 Examination of records by GSA clause
Subpart 515.3--Source Selection
515.305 Proposal evaluation
515.305-70 Use of outside evaluators
Subpart 515.4--Contract Pricing
515.408 Solicitation provisions and contract clauses
Subpart 515.5--Preaward, Award, and Postaward Notifications, Protests,
and Mistakes
515.506 Postaward debriefing of offerors
Subpart 515.70--Use and Bid Samples
515.7002 Procedures
Authority: 40 U.S.C. 486(c).
Subpart 515.2--Solicitation and Receipt of Proposals and
Information
515.204 Contract format.
515.204-1 Uniform contract format.
(a) The uniform contract format is not required for leases of real
property.
(b) Each solicitation and contract must include the two notices in
paragraphs (b)(1) and (b)(2) of this section, except that acquisitions
of interests in real property, must include only the notice in (b)(1):
(1) ``The information collection requirements contained in this
solicitation/contract are either required by regulation or approved by
the Office of Management and Budget pursuant to the Paperwork Reduction
Act and assigned OMB Control No. 3090-0163.''
(2) ``GSA's hours of operation are 8:00 a.m. to 4:30 p.m. Requests
for preaward debriefings postmarked or otherwise submitted after 4:30
p.m. will be considered submitted the following business day. Requests
for postaward debriefings delivered after 4:30 p.m. will be considered
received and filed the following business day.''
515.205 Issuing solicitations.
Potential sources, as used in FAR 15.205, include both of the
following:
(a) The incumbent contractor, except when its written response to
the notice of contract action under FAR subpart 5.2 states a negative
interest.
[[Page 37215]]
(b) Offerors that responded to recent solicitations for the same or
similar items.
515.209 Solicitation provisions and contract clauses.
515.209-70 Examination of records by GSA clause.
Clause for Other Than Multiple Award Schedules
(a) For other than multiple award schedule (MAS) contracts, insert
the clause at 552.215-70, Examination of Records by GSA, in
solicitations and contracts over $100,000, including acquisitions of
leasehold interests in real property, that meet any of the following
conditions:
(1) Involve the use or 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 under the control of the contractor.
(5) Include an economic price adjustment clause where the
adjustment is not based solely on an established, third party index.
(6) Are requirements, indefinite-quantity, or letter type contracts
as defined in FAR part 6.
(7) Are subject to adjustment based on a negotiated cost escalation
base.
(8) Contain the provision of FAR 52.223-4, Recovered Material
Certification.
(b) You may modify the clause at 552.215-70 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.
Clause for Multiple Award Schedules
(c) Insert the clause at 552.215-71, Examination of Records by GSA
(Multiple Award Schedule), in solicitations and contracts for MAS
contracts.
(d) With the Senior Procurement's Executive approval, you may
modify the clause at 552.215-71 to provide for post-award access to and
the right to examine records to verify that the pre-award/modification
pricing, sales or other data related to the supplies or services
offered under the contract which formed the basis for the award/
modification was accurate, current, and complete. The following
procedures apply:
(1) Such a modification of the clause must provide for the right of
access to expire 2 years after award or modification.
(2) Before modifying the clause, you must make a determination that
absent such access there is a likelihood of significant harm to the
Government and submit it to the Senior Procurement Executive for
approval.
(3) The determinations under paragraph (d)(2) of this section must
be made on a schedule-by-schedule basis.
Subpart 515.3--Source Selection
515.305 Proposal evaluation.
(a) Restrictions placed on a proposal by the submitter. If you
receive a proposal with more restrictive conditions than those in the
provision at FAR 52.215-1(e), ask whether the submitter is willing to
accept the conditions of the paragraph at FAR 52.215-1(e). If the
submitter refuses, consult with legal counsel on whether to accept the
proposal as marked or return it.
(b) Actions before releasing proposal. Before releasing any
proposal to an evaluator you must take all the following actions:
(1) Obtain the signed original ``Conflict of Interest
Acknowledgment and Nondisclosure Agreement'' from each Government and
nongovernment individual serving as an evaluator. Use the
Acknowledgment/Agreement in Figure 515.3-1.
(i) For employees of other Executive agencies, replace the
reference in paragraph (c) of the Acknowledgement/Agreement to GSA's
supplemental standards with a reference to the applicable agency.
(ii) for nongovernment evaluators, substitute paragraph (c) of the
Acknowledgement/Agreement with the following language and delete
paragraph (h):
``(c) I have read and understand the requirements of subsection
27(a) and 27(b) of the Office of Federal Procurement Policy Act (41
U.S.C. 423).
(2) Attach to each proposal a cover page bearing the following
notice:
Government Notice for Handling Proposals
To anyone receiving this proposal or proposal abstract:
(1) This proposal must be used and disclosed for evaluation
purposes only.
(2) You must apply a copy of this Government notice to any
reproduction or abstract of this proposal.
(3) You must comply strictly with any authorized restrictive
notices which the submitter places on this proposal.
(4) You must not disclose this proposal outside the Government
for evaluation purposes except to the extent authorized by, and in
accordance with, the procedures in 48 CFR 515.305-71.
515.305-70 Use of outside evaluators.
(a) Conditions. To use outside evaluators, you must meet the
restrictions in FAR 37.203 and 537.2.
(b) Limitations on disclosing proposal information. You may
disclose proposal information outside the Government before the
Government's decision as to contract award only to the extent
authorized in this section. Disclosure and handling must comply with
FAR 3.1 and 503.1.
(c) Solicitation notice. Include in the solicitation a notice
substantially as follows:
Notice About Releasing Proposals
(1) The Government intends to disclose proposals received in
response to this solicitation to nongovernment evaluators.
(2) Each evaluator will sign and provide to GSA a ``Conflict of
Interest Acknowledgment and Nondisclosure Agreement.''
Figure 515.3-1--Conflict of Interest Acknowledgment and
Nondisclosure Agreement
Conflict of Interest Acknowledgment and Nondisclosure Agreement
For proposals submitted in response to GAS solicitation no.
________, I agree to the following:
(a) To the best of my knowledge and belief, no conflict of
interest exists that may either:
(1) Diminish my capacity to impartially review the proposals
submitted.
(2) Or result in a biased opinion or unfair advantage.
(b) In making the above statement, I have considered all the
following factors that might place me in a position of conflict,
real or apparent, with the evaluation proceedings:
(1) All my stocks, bonds, other outstanding financial interests
or commitments.
(2) All my employment arrangements (past, present, and under
consideration).
(3) As far as I know, all financial interests and employment
arrangements of my spouse, minor children, and other members of my
immediate household.
(c) I have read and understand the requirements of the Standards
of Ethical Conduct for Employees of the Executive Branch (5 CFR Part
2635) and Supplemental Standards of Ethical Conduct for Employees of
the General Service Administration (5 CFR Part 6701).
(d) I have a continuing obligation to disclose any circumstances
that may create an actual or apparent conflict of interest. If I
learn of any such conflict, I will report it immediately to the
Contracting Officer. I will perform no more duties related to
evaluating proposals until I receive instructions on the matter.
(e) I will use proposal information for evaluation purposes
only. I understand that any authorized restriction on disclosure
placed on the proposal by the prospective contractor, prospective
subcontractor, or the Government applies to any reproduction or
abstracted information of the proposal.
[[Page 37216]]
(f) I will use my best efforts to safeguard proposal information
physically. I will not disclose the contents of, nor release any
information about, the proposals to anyone other than:
(1) The Source Selection Evaluation Board or other panel
assembled to evaluate proposals submitted in response to the
solicitation identified above.
(2) Other individuals designed by the contracting Officer.
(g) After completing evaluation, I will return to the Government
all copies of the proposals and any abstracts.
(h) GSA Appropriations Act restriction: These restrictions are
consistent with and do not supersede, conflict with or otherwise
alter the employee obligations, rights, or liabilities created by
Executive Order No. 12958; section 7211 of title 5, United States
Code (governing disclosure of Congress); section 1034 of title 10,
United States Code, as amended by the Military Whistleblower
Protection Act (governing disclosure to Congress by members of the
military); section 2302(b)(8) of title 5, United States Codes, as
amended by the Whistleblower Protection Act (governing disclosures
of illegality, waste, fraud, abuse or public health or safety
threats); the Intelligence Identities Protection Act of 1982 (50
U.S.C. 421 et seq.) (governing disclosures that could expose
confidential Government agents); and the statutes which protect
against disclosure that may compromise the national security,
including sections 641, 793, 794, 798, and 952 of title 18, United
States Code, and section 4(b) of the Subversive Activities Act of
1950 (50 U.S.C. 783(b). The definitions, requirements, obligations,
rights, sanctions, and liabilities created by said Executive order
and listed statutes are incorporated into this agreement and are
controlling.
----------------------------------------------------------------------
(Enter name of evaluator and organization)
----------------------------------------------------------------------
Date
Subpart 515.4--Contract Pricing
515.408 Solicitation provisions and contract clauses.
MAS Requests for Information Other Than Cost or Pricing Data
(a) You should use Alternative IV of the FAR provision at 52.215-
20, Requirements for Cost or Pricing Data or Information Other than
Cost or Pricing Data, for MAS contracts to provide the format for
submission of information other than cost or pricing data for MAS
contracts. To provide uniformity in request under the MAS program, you
should insert the following in paragraph (b) of the provision:
(1) An offer prepared and submitted in accordance with the clause
at 552.212-70, Preparation of Offer (Multuiple Award Schedule).
(2) Commercial sales practices. The Offeror shall submit
information in the format provided in this solicitation in accordance
with the instructions at Figure 515.4 of the GSA Acquisition Regulation
(48 CFR 515-2), or submit information in the Offeror's own format.
(3) Any additional supporting information requested by the
Contracting Officer. The Contracting Officer may require additional
supporting information, but only to the extent necessary to determine
whether the price(s) offered is fair and reasonable.
(4) By submission of an offer in response to this solicitation, the
Offeror grants the Contracting Officer or an authorized representative
the right to examine, at any time before initial award, books, records,
documents, papers, and other directly pertinent records to verify the
pricing, sales and other data related to the supplies or services
proposed in order to determine the reasonableness of price(s). Access
does not extend to Offeror's cost or profit information of other data
relevant solely to the Offeror's determination of the prices to be
offered in the catalog or marketplace.
(b) Insert the following format for commercial sales practices in
the exhibits or attachments section of the solicitation and resulting
contract (see FAR 12.303).
Commercial Sales Practices Format
Name of Offeror __________ SIN(s) ______
Note: Please refer to Clause 552.212-70, Preparation of Offer
(Multiple Award Schedule), for additional information concerning
your offer. Provide the following information for each SIN (or group
of SINs or SubSIN for which information is the same).
(1) Provide the dollar value of sales to the general public at
or based on an established catalog or market price during the
previous 12-month period or the offerors last fiscal year:
$________. State beginning and ending of the 12 month period.
Beginning ________ ending ________. In the event that a dollar value
is not an appropriate measure of the sales, provide and describe
your own measure of the sales of the item(s).
(2) Show your total projected annual sales to the Government
under this contract for the contract term, excluding options, for
each SIN offered. If you currently hold a Federal Supply Schedule
contract for the SIN the total projected annual sales should be
based on your most recent 12 months of sales under that contract.
SIN ____________ $____________
SIN ____________ $____________
SIN ____________ $____________
(3) Based on your written discounting policies (standard
commercial sales practices in the event you do not have written
discounting policies), are the discounts and any concessions which
you offer the Government equal to or better than your best price
(discount and concessions in any combination) offered to any
customer acquiring the same items regardless of quantity or terms
and conditions? YES____ NO____ (See definition of ``concession'' and
``discount'' in 552.212-70.)
(4)(a) Based on your written discounting policies (standard
commercial sales practices in the event you do not have written
discounting policies), provide information as requested for each SIN
(or group of SINs for which the information is the same) in
accordance with the instructions at Figure 515.4, which is provided
in this solicitation for your convenience. The information should be
provided in the chart below or in an equivalent format developed by
the offeror. Rows should be added to accommodate as many customers
as required.
----------------------------------------------------------------------------------------------------------------
Column 3 Quantity/ Column 5
Column 1 Customer Column 2 Discount Volume Column 4 FOB Term Concessions
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
(b) Do any deviations from your written policies or standard
commercial sales practices disclosed in the above chart ever result
in better discounts (lower prices) or concessions than indicated?
YES __ NO __. If YES, explain deviations in accordance with the
instructions at Figure 515.4, which is provided in this solicitation
for your convenience.
(5) If you are a dealer/reseller without significant sales to
the general public, you should provide manufacturers' information
required by paragraphs (1) through (4) above for each item/SIN
offered, if the manufacturer's sales under any resulting contract
are expected to exceed $500,000. You must also obtain written
authorization from the manufacturer(s) for Government access, at any
time before award or before agreeing to a modification, to the
manufacturer's sales records for the purpose of verifying the
information submitted by the manufacturer. The information is
required in order to enable the Government to make a determination
that the offered price is fair and reasonable. To expedite the
review and processing of offers, you should advise the
manufacturer(s) of this requirement. The contracting officer may
require the
[[Page 37217]]
information be submitted on electronic media with commercially
available spreadsheet(s). The information may be provided by the
manufacturer directly to the Government. If the manufacturer's
item(s) is being offered by multiple dealers/resellers, only one
copy of the requested information should be submitted to the
Government. In addition, you must submit the following information
along with a listing of contact information regarding each of the
manufacturers whose products and/or services are included in the
offer (include the manufacturer's name, address, the manufacturer's
contact point, telephone number, and FAX number) for each model
offered by SIN:
(a) Manufacturer's Name.
(b) Manufacturer's Part Number.
(c) Dealer's/Reseller's Part Number.
(d) Product Description.
(e) Manufacturer's List Price.
(f) Dealer's/Reseller's percentage discount from list price or
net prices.
(End of Format)
(c) Include the instructions for completing the commercial sales
practices format in Figure 515.4 in solicitations issued under the MAS
program.
Figure 515.4--Instructions for Commercial Sales Practices Format
If you responded ``yes'' to question (3), on the Commercial
Sales Practices Format in paragraph (b) of this section, complete
the chart in question (4)(a) for the customer(s) who receive your
best discount. If you responded ``no'', complete the chart in
question (4)(a) showing your written policies or standard sales
practices for all customers or customer categories to whom you sell
at a price (discounts and concessions in combination) that is equal
to or better than the price(s) offered to the Government under this
solicitation or with which the Offeror has a current agreement to
sell at a discount which equals or exceeds the discount(s) offered
under this solicitation. Such agreement shall be in effect on the
date the offer is submitted or contain an effective date during the
proposed multiple award schedule contract period. If your offer is
lower than your price to other customers or customers categories,
you will be aligned with the customer or category of customer that
receives your best price for purposes of the Price Reductions clause
at 552.238-75. The Government expects you to provide information
required by the format in accordance with these instructions that
is, to the best of your knowledge and belief, current, accurate, and
complete as of 14 calender days prior to its submission. You must
also disclose any changes in your price list(s), discounts and/or
discounting policies which occur after the offer is submitted, but
before the close of negotiations. If your discount practices vary by
model or product line, the discount information should be by model
or product line as appropriate. You may limit the number of models
or product lines reported to those which exceed 75% of actual
historical Government sales (commercial sales may be substituted if
Government sales are unavailable) value of the special item number
(SIN).
Column 1--Identify the Applicable Customer or Category of Customer
A ``customer'' is any entity, except the Federal Government,
which acquires supplies or services from the Offeror. The term
customer includes, but is not limited to original equipment
manufacturers, value added resellers, state and local Governments,
distributors, educational institutions (an elementary, junior high,
or degree granting school which maintains a regular faculty and
established curriculum and an organized body of students), dealers,
national accounts, and end users. In any instance where the Offeror
is asked to disclose information for a customer, the Offeror may
disclose information by category of customer if the Offeror's
discount policies or practices are the same for all customers in the
category. (Use a separate line for each customer or category of
customer.)
Column 2--Identify the Discount
The term ``discount'' is as defined in solicitation clause
552.212-70, Preparation of Offer (Multiple Award Schedule). Indicate
the best discount (based on your written discounting policies or
standard commercial discounting practices if you do not have written
discounting policies) at which you sell to the customer or category
of customer identified in column 1, without regard to quantity;
terms and conditions of the agreements under which the discounts are
given; and whether the agreements are written or oral. Net prices or
discounts off of other price lists should be expressed as percentage
discounts from the price list which is the basis of your offer. If
the discount disclosed is a combination of various discounts (prompt
payment, quantity, etc.), the percentage should be broken out for
each type of discount. If the price lists which are the basis of the
discounts given to the customers identified in the chart are
different than the price list submitted upon which your offer is
based, identify the type or title and date of each price list. The
contracting officer may require submission of these price lists. To
expedite evaluation, offerors may provide these price lists at the
time of submission.
Column 3--Identify the Quantity or Volume of Sales
Insert the minimum quantity or sales volume which the identified
customer or category of customer must either purchase/order, per
order or within a specified period, to earn a discount indicate the
time period.
Column 4--Indicate the FOB Delivery Term for Each Identified Customer
See FAR 47.3 for an explanation of FOB delivery terms.
Column 5--Indicate Concessions Regardless of Quantity Granted to the
Identified Customer or Category of Customer
Concessions are defined in solicitation clause 552.12-70,
Preparation of Offers (Multiple Award Schedule). If the space
provided is inadequate, the disclosure should be made on a separate
sheet by reference.
If you respond ``yes'' to question 4(b) in the Commercial Sales
Practices Format, provide an explanation of the circumstances under
which you deviate from your written policies or standard commercial
sales practices disclosed in the chart on the Commercial Sales
Practices Format and explain how often they occur. Your explanation
should include a discussion of situations that lead to deviations
from standard practice, an explanation of how often they occur, and
the controls you employ to assure the integrity of your pricing.
Examples of typical deviations may include, but are not limited to,
one time goodwill discounts to charity organizations or to
compensate an otherwise disgruntled customer; a limited sale of
obsolete or damaged goods; the sale of sample goods to a new
customer, or the sales of prototype goods for testing purposes.
If deviations from your written policies or standard commercial
sales practices disclosed in the chart on the Commercial Sales
Practices Format are so significant and/or frequent that the
Contracting Officer cannot establish whether the price(s) offered is
fair and reasonable, then you may be asked to provide additional
information. The Contracting Officer may ask for information to
demonstrate that you have made substantial sales of the item(s) in
the commercial market consistent with the information reflected on
the chart on the Commercial Sales Practices Format, a description of
the conditions surrounding those sales deviations, or other
information that may be necessary in order for the Contracting
Officer to determine whether your offered price(s) is fair and
reasonable. In cases where additional information is requested the
Contracting Officer will target the request in order to limit the
submission of data to that needed to establish the reasonableness of
the offered price.
(End of Figure)
(d) Insert the clause at 452.215-72, Price Adjustment--Failure
to Provide Accurate Information, in solicitations and contracts
under the MAS program.
(e) You should use Alternate IV of FAR 52.215-21, Requirements
for Cost or Pricing Data or Information Other Than Cost or Pricing
Data--Modifications, to provide for submission of information other
than cost or pricing data for MAS contracts. To provide for
uniformity in requests under the MAS program, you should insert the
following in paragraph (b) of the clause:
(1) Information required by the clause at 552.243-72,
Modifications (Multiple Award Schedule).
(2) Any additional supporting information requested by the
Contracting Officer. The Contracting Officer may require additional
supporting information, but only to the extent necessary to
determine whether the price(s) offered is fair and reasonable.
(3) By submitting a request for modification, the Contractor
grants the Contracting Officer or an authorized representative the
right to examine, at any time before agreeing to a modification,
books, record, documents, papers, and other directly pertinent
records to verify the pricing, sales and other data related to the
supplies or services proposed in order to determine the
[[Page 37218]]
reasonableness of price(s). Access does not extent to Contractor's
cost or profit information or other data related solely to the
Contractor's determination of the prices to be offered in the
catalog or marketplace.
Subpart 515.5--Preawared, Award, and Postaward Notifications,
Protests, and Mistakes
515.506 Postaward debriefing of offerors.
For purposes of determining the date of receipt of a request for
a post award debriefing, GSA's hours of operation are 8:00 a.m. to
4:30 p.m. Request received after 4:30 p.m. will be considered
received the following business day.
Subpart 515.70--Use of Samples
515.7002 Procedures.
(a) Unsolicited samples. The reference to FAR 14.404-2(d) in FAR
14.202-4(g) does not apply.
``However, qualifications in the proposal that are at variance
with the Government's requirements, constitute deficiencies. Resolve
these as provided in FAR 15.306.''
(b) Solicitation requirements.
(1) Use the clause at FR 52.214-20. The second sentence in
paragraph (c) of the clause does not apply. Substitute a sentence
substantially as follows:
Failure of the bid samples to conform to all the required
characteristics listed in the solicitation constitutes a deficiency
in the proposal (see FAR 15.306).
(2) In addition to listing subjective characteristics that you
cannot adequately describe in the specification, you may list and
evaluate objective characteristics. To include objective
characteristics, you must determine that examination of such
characteristics is essential to the acquisition of any acceptable
product. Base your determination on past experience or other valid
considerations.
(c) FAR 52.215-1(c)(3) applies to samples received after the time
set for receipt of offers.
PART 516--TYPES OF CONTRACTS
Subpart 516.2--Fixed Price Contracts
Sec.
516.203-4 Contract clauses
Subpart 516.5--Indefinite-Delivery Contracts
516.506 Solicitation provisions and contract clauses
Subpart 516.6--Time-and-Materials, Labor-Hour, and Letter Contracts
516.603 Letter contracts
516.603-3 Limitations
Authority: 40 U.S.C. 486(c).
Subpart 516.2--Fixed Price Contracts
516.203-4 Contract clauses.
(a) Multiple award schedules. Do not use FAR 52.216-2, 52.216-3, or
52.216-4 in negotiated acquisitions based on discounts from established
commercial catalogs or pricelists. Instead, use:
(1) 552.216-70, Economic Price Adjustment--FSS Multiple Award
Schedule Contracts, in a 1-year solicitation or contract.
(2) 552.216-70 (Alternate I) in multiyear solicitations and
contracts.
(b) Stock or Special Order Program Contracts. In multiyear
solicitations and contracts, after making the determination required by
FAR 16.203-2, use 552.216-71, Economic Price Adjustment-Stock and
Special Order Program Contract, or a clause prepared as authorized in
paragraph (a)(2)(ii) of this subsection.
(1) If the contract includes one or more options to extend the term
of the contract, use the clause with its Alternate I or a clause
substantially the same as 552.216-71 with its Alternate I suitably
modified.
(2) In a contract requiring a minimum adjustment before the price
adjustment mechanism is effectuated, use the basic clause with
Alternate II or with Alternate I and Alternative II.
(3) If the Producer Price Index is not an appropriate indicator for
price adjustment, modify the clause to use an alternate indicator for
adjusting prices. Similarly, if other aspects of 552.216-71 are not
appropriate, use an alternate clause following established procedures.
(c) Adjustments based on cost indexes of labor or material.
(1) If you decide to provide for adjustments based on cost indexes
of labor or material, prepare a clause that defines each of the
following elements:
(i) The type of labor and/or material subject to adjustment.
(ii) The labor rates, including any fringe benefits and/or unit
prices of materials that may be increased or decreased.
(iii) The index(es) that will be used to measure changes in price
levels and the base period or reference point from which changes will
be measured.
(iv) The period during which the price(s) will be subject to
adjustment.
(2) The contracting director must approve use of this clause.
Subpart 516.5--Indefinite-Delivery Contracts
516.506 Solicitation provisions and contract clauses.
(a) In solicitations and contracts for stock or special order
program items, when the contract authorizes FSS and other activities to
issue delivery or task orders, insert the clause at 552.216-72,
Placement of Orders. If only FSS will issue delivery or task orders,
insert the clause with its Alternate I.
(b) In solicitations and contracts for single or multiple award
schedule program items, insert the clause at 552.216-72, Placement of
Orders, with its Alternate II.
(c) If the clause at 552.216-72 is prescribed, insert the provision
at 552.216-73, Ordering Information, in solicitations for stock items
and in other FSS solicitations. Use 552.216-73 Alternate I when
552.216-72 Alternate I is prescribed. Use 552.216-73 Alternate II when
552.72 Alternate II is prescribed.
Subpart 516.6--Time-and-Materials, Labor-Hour, and Letter Contracts
516.603 Letter contracts.
516.603-3 Limitations.
Architect-Engineer (A-E) Services
(a) Requirement for a price proposal. Before you award a letter
contract, the proposed A-E must provide a price proposal for the non-
design effort.
(b) Contents of each letter contract. You must include the
following information in the letter contract:
(1) The scope. If you include the design effort, only authorize the
A-E to perform those services that are independent of the design effort
(for example, feasibility studies, existing facility surveys or site
investigation, etc.). Do not authorize the A-E to begin the design
effort before the letter contract is definitized.
(2) A definitization schedule. Include dates for each of the
following:
(i) Submission of the design fee proposal.
(ii) Start of negotiations.
(iii) Definitization. This date must be no later than 90 days after
the date of the letter contract.
(3) A limitation on the Government's liability for the non-design
effort to be performed under the contract. Insert this amount in FAR
52.216-24, Limitation of Government Liability.
(c) Unilateral price decision. If you must issue a unilateral price
decision, the maximum contract amount must not exceed a reasonable
price for the excludable items plus the 6 percent statutory fee
limitation for the project.
PART 517--SPECIAL CONTRACTING METHODS
Subpart 517.1--Multiyear Contracting
Sec.
517.109 Contract clauses
[[Page 37219]]
Subpart 517.2--Options
17.202 Use of options
17.203 Solicitations
17.207 Exercise of options
17.208 Solicitation provisions and contract clauses
Authority: 40 U.S.C. 486(c).
Subpart 517.1--Multiyear Contracting
517.109 Contract clauses.
Use of FAR 52.217-2, Cancellation Under Multi-year Contracts, is
optional in multiyear contracts authorized by 40 U.S.C. 490(a)(14) for
maintenance and repair of fixed equipment in federally-owned buildings
and services and 40 U.S.C. 481(a)(3) for public utility services.
Subpart 517.2--Options
517.200 Scope of subpart.
(a) This subpart applies to all GSA contracts for supplies and
services, including:
(1) Services involving construction, alteration, or repair
(including dredging, excavating, and painting) of buildings, bridges,
roads, or other kinds of real property.
(2) Architect-engineer services.
(b) If a requirement in this subpart is inconsistent with FAR 17.2,
this subpart takes precedence.
517.202 Use of options.
(a) Supplies or services.
(1) You should use options when they meet one or more of the
following objectives:
(i) Reduce procurement lead time and associated costs.
(ii) Ensure continuity of contract support.
(iii) Improve overall contractor performance.
(iv) Facilitate longer term contractual relationships with those
contractors that continually meet or exceed quality performance
expectations.
(2) An option is normally in the Government's interest in the
following circumstances:
(i) You anticipate a need for additional supplies or services
during the contract term.
(ii) Multiyear contracting authority is not available or its use is
inappropriate and you anticipate a need for additional supplies or
services beyond the initial contract term.
(iii) There is a need for continuity of supply or service support.
(iv) Funds are not available for the entirety of the Government's
needs, but are likely to become available during the contract term.
(v) The initial contract will be used to evaluate the performance
of an emerging small business.
(3) Do not use an option if the market price is likely to change
substantially and an economic price adjustment clause inadequately
protects the Government's interest.
b Construction. For limitations on the use of options, see 536.213
and 536.270.
517.203
Solicitations.
A solicitation that includes an option to extend should inform
offerors that the contract could result in a long term contractual
relationship subject to both of the following conditions:
(a) Continuing need by GSA.
(b) Level of contract performance that at least meets GSA's quality
performance expectations.
517.207 Exercise of options.
Before exercising an option, you must:
(a) Synopsize it unless you meet of the following conditions:
(1) The option was evaluated as part of the original competition.
(2) The contract action meets an exception in FAR 5.202.
(b) Conclude that the contractor's performance under the contract
met or exceeded the Government's expectation for quality performance,
unless another circumstance justifies an extended contractual
relationship.
(c) Determine that the option price is fair and reasonable.
517.208
Solicitation provisions and contract clauses.
(a) For solicitations under FSS's Stock or Special Order Program,
insert a provision substantially the same as the provision at 552.217-
70, Evaluation of Options, if both of the following conditions apply:
(1) The solicitation contains an option to extend the term of the
contract.
(2) The contract will be fixed price and contain an economic price
adjustment clause.
(b) Insert the provision at 552.217-71, Notice Regarding Option(s),
or a similar provision, in solicitations that include an option for
increased quantities of supplies or services or an option to extend.
SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
PART 519--SMALL BUSINESS PROGRAMS
Subpart 519.5--Set-Asides for Small Business
Sec.
519.508 Soliciation provisions and contract clauses
Subpart 519.7--The Small Business Subcontracting Program
519.708 Soliciation provisions
519.708-70 Contract clauses
Subpart 519.8--Contracting with the Small Business Administration (The
8(a) Program)
519.870 Direct 8(a) contracting
519.870-8 Contract clauses
Subpart 519.12--Small Disadvantaged Business Participation Program
519.1202 Evaluation factor or subfactor
519.1202-2 Applicability
Authority: 40 U.S.C. 486(c).
Subpart 519.5--Set-Asides for Small Business
519.508 Solicitation provisions for contract clauses.
Insert 552.219-70, Allocation of Orders--Partially Set-Asides
Items, in solicitations and requirements type supply contracts that are
partially set aside for small business.
Subpart 519.7--The Small Business Subcontracting Program
519.708 Contract clauses.
519.708-70 Solicitation provisions.
Insert the following provisions as directed:
(a) 552.219-71, Notice to Offerors of Subcontracting Plan
Requirements, on the cover page of solicitations containing the clause
at FAR 52.219-9, Small Business Subcontracting Plan.
(b) 552.219-72, Preparation, Submission, and Negotiations of
Subcontracting Plans, in solicitations requiring submission of the
subcontracting plan with initial offers.
(c) 552.219-73, Goals for Subcontracting Plan as follows:
(1) Use the basic provision in sealed bid solicitations containing
FAR 52.219-9 if you are able to establish realistic target goals.
(2) Use Alternate I in:
(i) sealed bid solicitations if you cannot establish target goals.
(ii) Negotiated solicitations that include FAR 52.219-9, but do not
include 552.219-72.
[[Page 37220]]
Subpart 519.8--Contracting With the Small Business Administration
(The 8(a) Program)
519.870 Direct 8(a) contracting.
519.870-8 Contract clauses.
(a) Insert the following clauses in solicitations, contracts, and
orders issued under the MOU:
(1) Insert the clause at 552.219-74, Section 8(a) Direct Award.
(2) Insert the clause at FAR 52.219-14, Limitation on
Subcontracting.
(3) Insert the clause at FAR 52.219-18, Notification of Competition
Limited to Eligible 8(a) Concerns, Substitute the following paragraph
for paragraph (c) of the clause. Add the word ``Deviation'' at the end
of the clause title.
(c) Any award resulting from this solicitation will be made
directly by the Contracting Officer to the successful 8(a) offeror
selected through the evaluation criteria set forth in this
solicitation.
(b) Do not use the clauses at FAR 52.219-11, Special 8(a) Contract
Conditions, FAR 52.219-12, Special 8(a) Subcontract Conditions, or FAR
52.219-17, Section 8(a) Award.
Subpart 519.12--Small Disadvantaged Business Participation Program
519.1202 Evaluation factor or subfactor.
519.1202-2 Applicability.
In addition to the exception in FAR 19.1202-2, do not evaluate the
extent of participation of SDB concerns in performance of multiple
award schedule contracts when all fair and reasonable offers from
responsible sources are accepted.
PART 522--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
522.001 Defintion
Subpart 522.1--Basic Labor Policies
Sec.
522.101 Labor relations
522.101-1 General
522.10-3-5 Contract clauses
Subpart 522.4--Labor Standards for Contracts Involving Construction
522.406 Administration and enforcement
522.406-6 Payrolls and statements
Subpart 522.8--Equal Employment Opportunity
522.803 Responsibilities
522.804 Affirmative action programs
522.804-1 Nonconstruction
522.805 Procedures
522.807 Exemptions
Authority: 40 U.S.C. 486(c).
522.001 Definition.
Agency labor advisory, as used in this part, means the Director of
the GSA Acquisition Policy Division, Office of Acquisition Policy.
Subpart 522.1--Basic Labor Policies
522.101 Labor relations.
522.101-1 General.
(a) GSA personnel performing official duties must maintain GSA's
impartiality in disputes between labor and contractor management by
refraining from involvement in or expressing a position on:
(1) Labor negotiations between contractors and unions.
(2) The merits of any dispute between labor and a contractor's
management.
(b) The Office of General Counsel (OGC) and the agency labor
advisor:
(1) Serve as focal points on contractor labor relations.
(2) Initiate contact on contractor labor relations matters with
national offices of labor organizations, Government departments,
agencies or other governmental organizations.
(3) Serve as a clearinghouse for information on labor laws
applicable to Government acquisitions.
(4) Respond to questions involving FAR Part 22, this part, or other
contractor labor relations matters concerning GSA acquisition programs.
OGC determines the agency's legal position.
522.103-5 Contract clauses.
Insert FAR 52.222-1, Notice to the Government of Labor Disputes, in
solicitations and contracts for items on the DoD Master Urgency List.
Subpart 522.4--Labor Standards for Contracts Involving Construction
522.406 Administration and enforcement.
522.406-6 Payrolls and statements.
Statement From Prime Contractors or Subcontractors That Personally
Perform Work
(a) Weekly payrolls and statements of compliance with respect to
payment of wages are not required from a prime contractor or a
subcontractor that personally performs work.
(b) Instead, a prime contractor or a subcontractor that personally
performs work must submit weekly certified statements clearly showing
the following information:
(1) The individual's contractual relationship.
(2) The scope and date(s) the individual performed the work.
(3) The individual received no wages for the labor performed.
(4) No mechanics or laborers were employed in the prosecution of
the work.
(c) Use GSA Form 618-D, Statement to be Submitted When Work is
Performed Personally, to furnish this information.
Subpart 522.8--Equal Employment Opportunity
522.803 Responsibilities.
Submit questions on the applicability of E.O. 11246 and
implementing regulations to assigned legal counsel.
522.804 Affirmative action programs.
522.804-1 Nonconstruction.
(a) The requirements of FAR 22.804 also apply to each contractor
and subcontractor with 50 or more employees who either:
(1) Serves as a depository of Government funds.
(2) Is a financial institution serving as an issuing and paying
agent for U.S. savings bonds and savings notes.
(b) Contractors, subcontractors, and financial institutions must
develop a written affirmative action compliance program for each of its
establishments even if the amount held is less than $50,000.
522.805 Procedures.
(a) To determine whether the contract meets the threshold in FAR
22.805(a), include the value of the basic contract plus priced options.
A contract modification exercising a priced option is not a contract
award under FAR 22.805(a)(1)(ii) and does not a require a preaward
clearance.
(b) Submit preaward review requests directly.
Furnishing Information to Contractors
(c) In addition to the poster required by FAR 22.805(b), provide
each nonexempt contractor a copy of SF 100.
522.807 Exemptions.
The agency labor advisor submits a request for exemption.
PART 523--ENVIORNMENT, CONSERVATION, OCCUPATIONAL SAFETY AND DRUG-
FREE WORKPLACE
Subpart 523.3--Hazardous Materials Identification and Material Safety
Data
Sec.
523.303 Contract clause
523.370 Solicitation provision
Authority: 40 U.S.C. 486(c).
[[Page 37221]]
Subpart 523.3--Hazardous Materials Identification and Material
Safety Data
523.303 Contract clause.
(a) Insert 552.223-70, Hazardous Substances, in solicitations and
contracts for packaged items subject to the Federal Hazardous
Substances Act and the Hazardous Materials Transportation Act.
(b) Insert 552.223-71, Nonconforming Hazardous Materials, in
solicitations and contracts for supplies that contain hazardous
materials.
523.370 Solicitation provision.
Insert 552.223-72, Hazardous Material Information, in any
solicitation that provides for delivery of hazardous materials on an
f.o.b. origin basis.
PART 525--FOREIGN ACQUISITION
Subpart 525.1--Buy American Act-Supplies
Sec.
525.105 Evaluating offers
525.105-70 Procurement of hand or measuring tools or stainless
steel flatware for DOD
525.109 Solicitation provisions and contract clause
Subpart 525.3--Balance of Payments Program
525.302 Policy
525.302-70 Procurements for agencies under the Foreign Assistance
Act
Subpart 525.4--Trade Agreements
525.402 Policy
525.408 Solicitation provision and contract clauses
Authority: 40 U.S.C. 486(c).
Subpart 525.1--Buy American Act-Supplies
525.105 Evaluating offers.
525.105-70 Procurement of hand or measuring tools or stainless steel
flatware for DOD.
(a) ``Stainless steel flatware'' means special order and stock
items of stainless steel flatware purchased for DOD, including, but not
limited to, the following National Stock Numbers (NSN):
7340-00-060-6057
7340-00-205-3340
7340-00-205-3341
7340-00-241-8169
7340-00-241-8170
7340-00-241-8171
7340-00-559-8357
7340-00-688-1055
7340-00-721-6316
7340-00-721-6971
(b) Purchases of hand or measuring tools or stainless steel
flatware exceeding the simplified acquisition threshold by DOD must be
domestic end products. In the case of stainless steel flatware, the
Secretary of the Department concerned can make an exception. The
individual must determine that a satisfactory quality and sufficient
quantity produced in the United States or its possessions are not
available when needed at domestic market prices.
(c) If GSA solicitations of hand or measuring tools or stainless
steel flatware include DOD requirements, GSA will apply the DOD
restrictions. The bases for applying the DOD restriction to GSA
acquisitions are:
(1) DOD's restrictions apply to requisitions of such items from the
GSA stock program.
(2) The impracticality of establishing a dual supply system to
satisfy the requirements of civilian and military agencies.
(3) GSA may reject any offer when it is considered necessary for
reasons of national interest.
525.109 Solicitation provisions and contract clause.
If you include DOD requirements for hand or measuring tools or
stainless steel flatware in the solicitation for an acquisition to
exceed the simplified acquisition threshold, insert 552.225-70, Notice
of Procurement Restriction--Hand or Measuring Tools or Stainless Steel
Flatware, in the solicitation and resulting contract(s).
Subpart 525.3--Balance of Payments Program
525.302 Policy.
525.302-70 Procurements for agencies under the Foreign Assistance Act.
GSA procurements made directly for other agencies of items to be
used outside the United States are made the Balance of Payments
Program. The only exception is if GSA contracts as the agent for an
agency governed by the Foreign Assistance Act (22 U.S.C. 2151 et seq.).
If this exception applies, the contract will be governed by the
policies and procedures of the agency instead of FAR 25.3 and 525.3.
For example, GSA sometimes acts as agent for the Agency for
International Development and the Bureau of International Narcotics
Matters.
Subpart 525.4--Trade Agreements
525.402 Policy.
As a result of the General Services Administration Board of
Contract Appeals (GSBCA) decision in the protest of International
Business Machines Corporation, 90-2BCA P22,924, May 18. 1990, GSA
solicitations and contracts will deviate from FAR 52.225-8, Buy
American Act-Trade Agreements-Balance of Payments Program Certificate,
and FAR 52.225-9, Buy American Act-Trade Agreements-Balance of payments
Program.
525.408 Solicitation provision and contract clauses.
Insert 552.225-8. Buy American Act-Trade Agreements-Balance of
Payments Program Certificate, and 552.225-9, Buy American Act-Trade
Agreements-Balance of Payments Program, in solicitations and contracts
subject to the Trade Agreements Act. Use them instead of FAR 52.225-8
and 52.225-9.
SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
PART 527--PATENTS, DATA, AND COPYRIGHTS
Subpart 527.4--Rights in Data and Copyrights
Sec.
527.409 Solicitation provisions and contract clauses
Authority: 40 U.S.C. 486(c).
Subpart 527.4--Rights in Data and Copyrights
527.409 Solicitation provisions and contract clauses.
Architect-Engineer Services and Construction Contracts Involving
Architect-Engineer Services
Insert the following in solicitations and contracts for architect-
engineer services and construction contracts involving architect-
engineer services:
(a) Insert 552.227-70, Government Rights (Unlimited), instead of
FAR 52.227-17, Rights in Data-Special Works, in contracts, except if
552.227-71 is prescribed.
(b) If the Government requires sole property rights and exclusive
control over the design and data, insert 552.227-71, Drawings and Other
Data to Become Property of Government, instead of FAR 52.227-17.
PART 528--BONDS AND INSURANCE
Subpart 528.2--Sureties and Other Security for Bonds
Sec.
528.202 Acceptability of corporate sureties
Subpart 528.3--Insurance
528.310 Contract clause for work on a Government installation
Authority: 40 U.S.C. 486(c).
[[Page 37222]]
Subpart 528.2--Sureties and Other Security for Bonds
528.202 Acceptability of corporate sureties.
Corporate surety bonds must be manually signed by the Attorney-in-
Fact or officer of the surety company and the corporate seal affixed.
You may waive failure of the surety to affix the corporate seal as a
minor informality. (See B-184120, July 2, 1975, 75-2 CPD 9.)
Subpart 528.3--Insurance
528.310 Contract clause for work on a Government installation.
(a) Insert the clause at 552.228-70, Workers' Compensation Laws, in
each solicitation and contract that meets all the following conditions:
(1) The contract amount is expected to exceed the simplified
acquisition threshold.
(2) The contract will require work to be performed on Government
property.
(b) In the case of an owner-controlled insurance program, or wrap-
up insurance, the clause will be a part of the policy holder's
requirements.
PART 529--TAXES
Subpart 529.4--Contract Clauses
Sec.
529.401 Domestic contracts
529.401-70 Purchases at or under the simplified acquisition
threshold
529.401-71 Contracts for supplies and services usable by the DC
Government
Authority: 40 U.S.C. 486(c).
Subpart 529.4--Contract Clauses
529.401 Domestic contracts.
529.401-70 Purchases at or under the simplified acquisition threshold.
Insert 552.229-70, Federal, State, and Local Taxes, in purchases
and contracts estimated to exceed the micropurchase threshold, but not
the simplified acquisition threshold.
529.401-71 Contracts for supplies and services usable by the DC
Government.
Insert 552.229-71, Federal Tax-DC Government, in solicitations and
contracts that permit the District of Columbia Government to place
orders.
PART 532--CONTRACT FINANCING
Subpart 532.1--Non-Commercial Item Purchase Financing
Sec.
532.111 Contract clauses for non-commercial purchases
Subpart 532.2--Commercial Item Purchase Financing
532.206 Solicitation provisions and contract clauses
Subpart 532.7--Contract Funding
532.705 Contract clauses
532.705-1 Clauses for contracting in advance of funds
Subpart 532.8--Assignment of Claims
532.806 Contract clauses
Subpart 532.9--Prompt Payment
532.902 Definitions
532-905 Invoice payments
532.905-70 Certification of payment to subcontractors and suppliers
under fixed-price construction contracts
532.905-71 Final payment--construction and building service
contracts
532.908 Contract clauses
Subpart 532.70--Authorizing Payment By Governmentwide Commercial
Purchase Card
532.7001 Definition
532.7002 Solicitation requirements
532.7003 Contract clause
Subpart 532.71--Payments for Recurring Services
532.7101 Definitions
532.7102 Applicability
532.7104 Contract clauses
Authority: 40 U.S.C. 486(c).
Subpart 532.1--Non-Commercial Item Purchase Financing
532.111 Contract clauses for non-commercial purchases.
(a) Invoice requirements. Insert 552.232-70, Invoice Requirements,
or something substantially the same, in all solicitations and contracts
for supplies, services, construction, architect-engineer services, or
the acquisition of leasehold interests in real property that require
the submission of invoices for payment. Delete subparagraph (b) of the
clause if an Accounting Control Transaction (ACT) number is not
required for payment.
(b) Adjusting payments. Insert 552.232-71, Adjusting Payments, in
all solicitations and contracts for recurring building services
expected to exceed the simplified acquisition threshold.
(c) Final payment. Insert 552.232-72, Final Payment, in all
solicitations and contracts for recurring building services expected to
exceed the simplified acquisition threshold.
Subpart 532.2--Commercial Item Purchase Financing
532.206 Solicitation provisions and contract clauses.
Discounts for prompt payment. Include 552.232-8, Discounts for
Prompt Payments, in multiple award schedule solicitations and contracts
insted of the clause at FAR 52.232-8.
Subpart 532.7--CONTRACT FUNDING
532.705 Contract clauses.
532.705-1 Clauses for contracting in advance of funds.
Insert 552.232-73, Availability of Funds, in solicitations and
contracts for services which are ``severable'' when both of the
following conditions apply:
(a) The contract, or a portion of the contract, will be chargeable
to funds of the new fiscal year.
(b) The circumstances described in the prescriptions for FAR
52.232-18 or 52.232-19 do not apply.
Subpart 532.8--Assignment of Claims
532.806 Contract clauses.
Insert the clause at 552.232-23, Assignment of Claims, in
solicitations and requirements or indefinite quantity contracts under
which more than one agency may place orders.
Subpart 532.9--Prompt Payment
532.902 Definitions.
Full cycle electronic commerce means the use of electronic data
interchange (EDI), Internet-based invoice processing, and electronic
funds transfer (EFT):
(a) By the Government, to place purchase, delivery, or task orders,
receive invoices, and pay invoices.
(b) By the Contractor, to accept and fill orders, submit invoices,
and receive payment.
532.905 Invoice payments.
(a) General and architect-engineer contracts. Before exercising the
authority to modify the date for constructive acceptance or
constructive approval of progress payments in the clauses listed in
this section, you must prepare a written justification explaining why a
longer period is necessary. An official one level above you must
approve your justification. Determine the time needed on a case-by-case
basis.
(1) In subdivision (a)(6)(i) of the clause at FAR 52.232-25, Prompt
Payment, do not specify a constructive acceptance period that exceeds
30 days.
(2) In subdivision (a)(4)(i)(A) of the clause at FAR 52.232-26,
Prompt Payment for Fixed-Price Architect-
[[Page 37223]]
Engineer Contracts, do not specify a constructive acceptance period
that exceeds 30 days.
(3) In subdivision (a)(4)(i)(B) of the clause at FAR 52.232-26,
Prompt Payment for Fixed-Price Architect-Engineer Contracts, do not
specify a period for constructive approval of progress payments that
exceeds 7 days.
(b) Construction contracts.
(1) Determine on a case-by-case basis the time specified for
payment of progress payments in subdivision (a)(1)(i)(A) of the clause
at FAR 52.232-27, Prompt Payment for Construction Contracts. Justify in
writing periods longer than 14 days. An official one level above you
must approve your justification. Under no circumstances may more than
30 days be specified.
(2) Determine the time to be specified in subdivision (a)(4)(i) of
FAR clause 52.232-27, for constructive acceptance or approval, on a
case-by-case basis. This time may not exceed 7 days unless you justify
a longer period in writing, and obtain the approval of an official one
level above you. Under no circumstances may more than 30 days be
specified.
(c) Federal Supply Service.
(1) To increase efficiency and reduce costs to the Government,
Federal Supply Service contracts under the Stock, Special Order, and
Schedules Programs may authorize payment within 10 days of receipt of a
proper invoice. The contract must meet all the following conditions:
(i) The contractor agrees to full cycle electronic commerce.
(ii) The contract includes FAR 52.232-33, Mandatory Information for
Electronic Funds Transfer Payment.
(2) The 10 day payment terms apply to each order that meets all the
following conditions:
(i) FSS places the order using EDI in accordance with the Trading
Partner Agreement.
(ii) The contractor submits EDI invoices in accordance with the
Trading Partner Agreement or invoices through the GSA Finance Center
Internet-based invoice process.
(iii) A GSA Finance Center pays the invoices using EFT.
(3) The 10 day payment terms do not apply to any order:
(i) Placed by a GSA contracting activity other than FSS.
(ii) Placed by or paid by another agency.
532.905-70 Certification of payment to subcontractors and suppliers
under fixed-price construction contracts.
The contractor may use GSA Form 2419, Certification of Progress
Payments Under Fixed-Price Construction Contracts, for the
certification required by FAR 52.232-5.
532.905-71 Final payment--construction and building service contracts.
The following procedures apply to construction and building service
contracts.
(a) Do not process the final payment on construction or building
service contracts until the contractor submits a properly executed GSA
Form 1142, Release of Claims. If, after repeated attempts, you are
unable to obtain a release of claims from the contractor, you may
process the final payment with the approval of assigned legal counsel.
(b) The amount of final payment must include, as appropriate,
deductions to cover any of the following:
(1) Liquidated damages for late completion.
(2) Liquidated damages for labor violations.
(3) Amounts withheld for improper payment of labor wages.
(4) The amount of unilateral change orders covering defects and
omissions.
532.908 Contract clauses.
(a) Federal Supply Service. For FSS Stock, Special Order, and
Schedules solicitations and contracts that provide payment in 10 days
under 532.905(c):
(1) If the contract will include FAR 52.212-4 insert the clause at
552.232-74, Invoice Payments. GSA received a class deviation to allow
use of 552.232-74 for commercial items.
(2) If the contract will not include FAR 52.212-4, insert 552.232-
25, Prompt Payment, instead of FAR 552.232-25.
(b) Leasehold Interests in Real Property.
(1) Insert 552.232-75, Prompt Payment, in solicitations and
contracts for acquiring leasehold interests in real property.
(i) You may modify the date for constructive acceptance in
subparagraph (b)(2) of the clause to specify a period longer than 7
calendar days (but not to exceed 30 days) if necessary because of the
nature of the services to be received, inspected or accepted by the
Government. Prepare a written justification for specifying the longer
period and obtain your contracting director's approval.
(ii) Use Alternate I if the lease contract does not contain
provisions for ordering alterations or overtime utility services.
(2) Insert 552.232-76, Electronic Funds Transfer Payment, in
solicitations and contracts for acquisition of leasehold interests in
real property.
Subpart 532.70--Authorizing Payment by Governmentwide Commercial
Purchase Card
532.7001 Definition.
Governmentwide commercial purchase card has the same meaning as in
FAR 13.101.
532.7002 Solicitation requirements.
(a) In solicitations for supplies and services except
telecommunications services (i.e., major systems such as the Federal
Telecommunications System or DSN) and multiple award schedule
solicitations, request offerors to indicate if they will accept payment
by Government commercial credit card. Identify the credit card brand(s)
under the GSA SmartPay program that may be used to make payments under
the contract, on the cover page or in Section L of the solicitation.
(b) For multiple award schedule contracts, identify the credit card
brand(s) under the GSA SmartPay program that may be used to make
payments under the contract in the contract award letter.
(c) For orders placed by GSA, you may authorize payment by
Government commercial credit card only for orders that do not exceed
$100,000 (see GSA Order, Interim Guidance on Use of the Governmentwide
Commercial Purchase Card Service (OAD 4200.8).
(d) Consider requesting offerors to designate different levels for
which they may accept payment by Government commercial credit card, for
example:
If awarded a contract under this solicitation, the offeror
agrees to accept payment by commercial credit card for orders of:
____ $2,500 or less
____ $25,000 or less
____ $50,000 or less
____ $100,000 or less
532.7003 Contract clause.
Insert the clause at 552.232-77, Payment By Credit Card, in
solicitations and resultant contracts for supplies and services except
telecommunications services (i.e., major systems such as the Federal
Telecommunications System or DSN) to provide for payment by
Governmentwide commercial purchase card as an alternative method of
payment for orders.
(a) Use the basic clause when only GSA will place orders under the
contract.
(b) Use Alternate I for solicitations and contracts under which
other agencies may place orders directly.
[[Page 37224]]
Subpart 532.71--Payments for Recurring Services
532.7101 Definitions.
Fixed roll payment means automatic payment of fixed amounts at
regular intervals without submission of an invoice or receiving report.
532.7102 Applicability.
You may use fixed roll payments in any contract that meets all four
of the following conditions:
(a) The contract provides for recurring services at a constant
level for a period of at least two months.
(b) The contract does not contain any discount items.
(c) Payment is due 30 days following completion of the service
month.
(d) For a commercial item acquisition, fixed roll payments are
consistent with customary commercial practice.
532.7104 Contract clauses.
(a) Noncommercial item acquisitions. For solicitations and
contracts to be paid by fixed roll payment, include the clause at
552.232-1, Payments. Do not include the clauses at FAR 52.232-1,
Payments, or 552,232-70, Invoice Requirements.
(b) Commercial item acquisitions. For solicitations and contracts
to be paid by fixed roll payment, tailor the clause at FAR 52.212-4 by
an addendum as noted in paragraphs (b) (1) and (2) of this section.
This tailoring is authorized by a deviation approved on January 5,
1999.
(1) Delete paragraph FAR 52.212-4(g), Invoice.
(2) Add the following to paragraph FAR 52.212-4(i), Payment:
The Government shall pay the Contractor, without submission of
invoices or vouchers, 30 days after the service period, the prices
stipulated in this contract for services rendered and accepted, less
any deductions provided in this contract.
PART 533--PROTESTS, DISPUTES, AND APPEALS
Subpart 533.1--Protests
Sec.
533.103 Protests to the agency
533.103-72 Solicitation provisions
Subpart 533.2--Disputes and Appeals
533.211 Contracting officer's decision
Authority: 40 U.S.C. 486(c).
Subpart 533.1--Protests
Sec. 533.103 Protests to the agency.
Sec. 533.103-72 Solicitation provisions.
Include the provision at 552.233-70, Protests Filed Directly With
the General Services Administration, in each solicitation for either:
(a) Supplies, services, construction, or architect-engineer
services expected to exceed the simplified acquisition threshold.
(b) Acquisition of leasehold interests in real property expected to
exceed the simplified lease acquisition threshold.
Subpart 533.2--Disputes and Appeals
Sec. 533.211 Contracting officer's decision.
In addition to the information in FAR 33.211(a)(4)(v), advise the
contractor in your written decision that a notice of appeal must:
(a) Describe the nature of the dispute and the relief sought, the
contract provisions involved, and any other additional information or
comments relating to the dispute considered important.
(b) Be signed personally by the appellant (the prime contractor
making the appeal) or by an officer of the appellant corporation, or
member of the appellant firm, or by the contractor's duly authorized
representative or attorney.
SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
PART 536--CONSTRUCTION AND ARCHITECT--ENGINEER CONTRACTS
Subpart 536.1--General
Sec.
536.101 Applicability
Subpart 536.2--Special Aspects of Contracting for Construction
536.213 Special procedures for sealed bidding in construction
contracting
536.213-3 Invitations for bids
536.213-370 Bids that include alternates
536.213-371 Bids that include options
536.213-372 Bids that include both alternates and options
536.270 Exercise of options
536.271 Project labor agreements
Subpart 536.5--Contract Clauses
536.570 Supplemental provisions and clauses
536.570-1 Definitions
536.570-2 Authorities and limitations
536.570-3 Specialist
536.570-4 Basis of award--construction contract
536.570-5 Working hours
536.570-6 Use of premises
536.570-7 Measurements
536.570-8 Specifications and drawings
536.570-9 Shop drawings, coordination drawings, and schedules
536.570-10 Samples
536.570-11 Heat
536.570-12 Use of equipment by the Government
536.570-13 Subcontracts
536.570-14 Requirement for a project labor agreement
Authority: 40 U.S.C. 486(c).
Subpart 536.1--General
536.101 Applicability.
If a requirement in this part is inconsistent with a requirement in
another GSAR part, this part takes precedence.
Subpart 536.2--Special Aspects of Contracting for Construction
536.213 Special procedures for sealed bidding in construction
contracting.
536.213-3 Invitations for bids.
536.213-370 Bids that include alternates.
(a) The base bid must include all features essential to a sound and
adequate building design. If it appears that funds available for a
project may be insufficient to include all desired features in the base
bid, you may issue a solicitation for a base bid and include one or
more alternates in the order of priority. Use alternates only if they
are clearly justified and involve substantial amounts of work in
relation to the base bid. Their use must be limited and should involve
only ``add'' alternates.
(b) Before opening bids that include alternates, determine, and
record in the contract file, the amount of funds available for the
project. The amount recorded must be announced at the beginning of the
bid opening. The amount is the controlling factor in determining the
low bidder. This amount may be increased later when determining the
alternate items to award to the low bidder if the following condition
is met: the award amount of the base bid plus the combination of
alternate items does not exceed the amount offered for the base bid and
the same combination of alternate items by any other responsible bidder
whose bid conforms to the solicitation. This requirement prevents the
displacement of the low bidder by manipulating the alternates to be
used.
536.213-371 Bids that include options.
(a) Subject to the limitations in paragraph (c) of this section,
you may include options in contracts if it is in the Government's
interest.
(b) the appropriate use of options may include, but is not limited
to, any of the following:
(1) If additional work is anticipated but funds are not expected to
be available at the time of award, and it would not be practicable to
award a separate contract or to permit an additional contractor to work
on the same site.
(2) If fixed building equipment, e.g. elevators or escalators, will
be installed under the construction contract and it is
[[Page 37225]]
advantageous to have the installer of the equipment maintain and
service the equipment during the warranty period.
(c) You must not use options under any of the following conditions:
(1) the prospective option represents known firm requirements for
which funds are available unless competition for the option quantity is
impracticable once the initial contract is awarded.
(2) The contractor will incur undue risks; e.g., the price or
availability of necessary materials or labor is not reasonably
foreseeable.
(d) Solicitations containing option provisions must state the
period within which the options may be exercised.
(e) Solicitations must state whether the basis of award is
inclusive or exclusive of the options. Before issuing a solicitation
that includes evaluated options, you must determine that there is
reasonable certainty that funds will be made available to permit
exercise of the option.
536.213-372 Bids that include both alternates and options.
(a) Solicitations may include both alternates and options if the
conditions in 536.213-370, Bids that include alternates, and 536.213-
371, Bids that include options, are satisfied. In these solicitations,
the low bidder for purposes of award is the responsible bidder offering
the lowest aggregate price for the base bid and the alternates, in the
order of priority listed in the solicitation, that provide the most
work features within the funds available at bid opening, plus all
options designated to be evaluated.
(b) The basis of award may require the evaluation of options
associated with alternates if the related alternate is selected.
(c) Before opening bids that include both alternates and options,
determine, and record in the contract file, the amount of funds
available for the project (i.e., for the base bid and alternate work).
The amount recorded must be announced at the beginning of the bid
opening. This amount may be increased later when determining the
alternate items to be awarded to the low bidder if the following
condition is met: the award amount of the base bid and evaluated
options plus the alternate items does not exceed the amount offered for
the base bid, the evaluated options, and the same combination of
alternate items by any other responsible bidder whose bid conforms to
the solicitation.
536.270 Exercise of options.
(a) If exercising an option, notify the contractor, in writing,
within the time period specified in the contract.
(b) Exercise options only after determining that all the following
conditions exist:
(1) Funds are available.
(2) The requirement covered by the option fulfills an existing
Government need.
(3) Exercising the option is the most advantageous method of
satisfying the Government's need, price and other factors considered.
(c) Before exercising an option, you must determine that the action
complies with the option's terms and this section's requirements.
Include your written determination in the contract file.
(d) The contract modification, or other written document which
notifies the contractor of the exercise of the option, must cite the
option clause as authority. If exercising an unpriced or unevaluated
option, cite the statutory authority permitting the use of other than
full and open competition (see FAR 6.302 and 517.207).
536.271 Project labor agreements.
(a) Authority. This subpart implements the Presidential memorandum
of June 5, 1997, on using project labor agreements (PLAs) on Federal
construction projects. The Presidential memorandum authorizes executive
departments and agencies to require PLAs on large and significant
construction projects for facilities to be owned by a Federal
department or agency.
(b) Applicability. These policies and procedures apply to all GSA
activities authorized to award contracts for construction of facilities
to be owned by a Federal department or agency. You may use a PLA in
leasehold arrangement, Federally funded projects, and other appropriate
circumstances.
(c) Definitions.
Construction means construction, alteration, or repair (including
dredging, excavating, and painting) of buildings, structures, or other
real property. The terms buildings, structures, or other real property
are defined further in Federal Acquisition Regulation (FAR) 36.102.
Labor organization means a labor organization engaged in an
industry affecting commerce, and any agent of such an organization, and
includes any organization of any kind, and any agency, or employee
representation committee, group, association, or plan so engaged in
which employees participate and which exists for the purpose, in whole
or in part, of dealing with employers concerning grievances, labor
disputes, wages, rates of pay, hours, or other terms or conditions of
employment, and any conference, general committee, joint or system
board, or joint council so engaged which is subordinate to a national
or international labor organization (42 U.S.C. 2000e(d)).
Large and significant project means a Federal construction project
with a total cost to the Federal Government of more than $5 million.
Project Labor Agreement (PLA) means an agreement between the
contractor, subcontractors, and the union(s) representing workers.
Under a PLA, the contractor and subcontractors on a project and the
union(s) agree on terms and conditions of employment for the project,
establishing a framework for labor-management cooperation to advance
the Government's procurement interest in cost, efficiency, and quality.
(d) Policy.
(1) You may, on a project-by-project basis, use a PLA on a large
and significant project when both of the following conditions apply:
(i) A PLA will advance the Government's procurement interests.
(ii) No laws that apply to the specific construction project
preclude the use of the PLA.
(2) Do not require any contractor to enter into a PLA with any
particular labor organization.
(3) The use of a PLA is not intended to create any right or
benefit, substantive or procedural enforceable by a nonfederal party
against the United States, its departments, and agencies, its officers
or employees, or any other person.
(e) Procedures.
(1) As part of procurement planning for construction projects with
a total estimated cost to the Federal Government of more than $5
million, you may consider requiring a PLA.
(2) To require a PLA, you must determine whether use of a PLA will
advance the Government's procurement interests in all the following
areas:
(i) Cost, efficiency, and quality.
(ii) Promoting labor-management stability.
(iii) Promoting compliance with applicable legal requirements
governing safety and health, equal employment opportunity, labor and
employment standards, and other matters.
(3) In making the determination required by paragraph (b) of this
section, consult with the agency project or program manager and obtain
guidance from the Agency Labor Advisor and assigned legal counsel. You
should consider the following factors:
(i) Whether past experience with construction projects in the
location where the project will be performed indicates that a PLA will
be effective.
[[Page 37226]]
(ii) Whether delays in performance of the construction contract
would have significant adverse impact on the mission of the agency or
operation of the installation or facility.
(iii) Whether any law applies to the specific construction project
that would impede use of a PLA.
(iv) Whether the labor organizations in the area can provide a
reliable source of skilled, experienced building trades workers in all
crafts needed on the job site for the project's duration (taking into
consideration other major construction work in the area).
(v) Whether the Government can benefit from uniform work rules and
working conditions and established procedures for resolving labor
disputes, no strike/no lock-out protections.
(vi) Whether the Government can benefit from increased stability
and labor peace that derives from greater labor-management cooperation.
(vii) Whether the requirements for a PLA will unreasonably restrict
competition.
(viii) Other relevant information.
(4) Document the rationale supporting your decision to require a
PLA in the contract file.
(5) Provide the following information to the Agency Labor Advisor
(GSA Acquisition Policy Division (MVP)):
(i) A brief description of the project.
(ii) The estimated cost.
(iii) A copy of the document supporting your decision to require a
PLA.
(iv) A copy of the solicitation.
Subpart 536.5--Contract Clauses
536.570 Supplemental provisions and clauses.
536.570-1 Definitions.
Insert 552.236-70, Definitions, in solicitations and contracts if
construction, dismantling, demolition, or removal of improvements is
contemplated.
536.570-2 Authorities and limitations.
Insert 552.236-71, Authorities and Limitations, in solicitations
and contracts if construction, dismantling, demolition, or removal of
improvements is contemplated and the contract amount is expected to
exceed the simplified acquisition threshold.
536.570-3 Specialist
Insert 552.236-72, Specialist, in solicitations and contracts for
construction if the technical sections of the contract require unusual
experience or specialized facilities for adequate contract performance.
536.570-4 Basis of award--construction contract.
(a) Insert a provision substantially the same as 552.236-73, Basis
of Award--Construction Contract, in solicitations for fixed-price
construction contracts except if any of the following conditions apply:
(1) The solicitation requires the submission of a lump-sum bid
only.
(2) The solicitation is for an indefinite quantity contract.
(3) The contract amount is not expected to exceed the simplified
acquisition threshold.
(b) Instructions for use.
------------------------------------------------------------------------
If the solicitation requests
the submission of a . . . Then use the . . .
------------------------------------------------------------------------
(1) Base bid and unit prices. Basic provision.
(2) Base bid and options..... Provision with its Alternate I.
(3) Base bid and alternates.. Provision with its Alternate II.
(4) Base bid, alternates, and Provision with its Alternate III.
options.
------------------------------------------------------------------------
536.570-5 Working hours.
Insert 552.236-74, Working Hours, in solicitations and contracts if
construction, dismantling, demolition, or removal of improvements is
contemplated and the contract amount is expected to exceed the
simplified acquisition threshold.
536.570-6 Use of premises.
Insert 552.236-75, Use of Premises, in solicitations and contracts
if construction, dismantling, demolition, or removal of improvements is
contemplated.
536.570-7 Measurements.
Insert 552.236-76, Measurements, in solicitations and contracts if
construction, dismantling, demolition, or removal of improvements is
contemplated.
536.570-8 Specifications and drawings.
Insert the clause at 552.236-77, Specifications and Drawings, in
solicitations and contracts if construction, dismantling, demolition,
or removal of improvements is contemplated and the contract amount is
expected to exceed the simplified acquisition threshold.
536.570-9 Shop drawings, coordination drawings, and schedules.
Insert the clause at 552.236-78, Shop Drawings, Coordination
Drawings, and Schedules, in solicitations and contracts if construction
is contemplated and the contract amount is expected to exceed the
simplified acquisition threshold.
536.570-10 Samples.
Insert the clause at 552.236-79, Samples, in solicitations and
contracts for construction if the technical sections of the contract
require the submission and approval of samples.
536.570-11 Heat.
Insert the clause at 552.236-80, Heat, in solicitations and
contracts if construction, dismantling, demolition, or removal of
improvements is contemplated.
536.570-12 Use of equipment by the Government.
Insert the clause at 552.236-81, Use of Equipment by the
Government, in contracts requiring heating and air-conditioning of
existing buildings if it may be necessary for the Government to operate
all or part of the equipment before final acceptance of the contract.
536.570-13 Subcontracts.
Insert 552.236-82, Subcontracts, in solicitations and contracts for
construction if the contract amount is expected to exceed the
simplified acquisition threshold.
536.570-14 Requirement for a project labor agreement.
Insert a clause substantially the same as 552.236-83, Requirement
for a Project Labor Agreement, in solicitations and contracts that will
require a project labor agreement.
Part 537--Service Contracting
Subpart 537.1--Service Contracts--General
Sec.
537.101 Definitions
537.110 Solicitation provisions and contract clauses
Subpart 537.2--Advisory and Assistance Services
537.270 Contract clause
Authority: 40 U.S.C. 486(c).
[[Page 37227]]
Subpart 537.1--Service Contracts--General
537.101 Definitions.
``Contracts for building services'' means contracts for services
relating to the operation and maintenance of a building (for example,
janitorial; window washing; snow removal; trash removal; lawn and
grounds care; inspection, maintenance and repair of fixed equipment
(e.g., elevators, air-conditioning, hearing systems)) and protection or
guard service.
537.110 Solicitation provisions and contract clauses.
Contracts for Building Services
The following provision and clauses apply to contracts for building
services:
(a) Insert 552.237-70, Qualifications of Offerors, in solicitations
if the contract amount is expected to exceed the simplified acquisition
threshold.
(b) Insert 552.237-71, Qualifications of Employees, in
solicitations and contracts if the contract amount is expected to
exceed the simplified acquisition threshold. If needed, use
supplemental provisions or clause to describe specific requirements for
employees performing work on the contract.
(c) Insert 552.237-72, Prohibition Regarding ``Quasi-Military Armed
Forces,'' in solicitations and contracts for guard service.
Subpart 537.2--Advisory and Assistance Services
537.270 Contract clause.
Insert the clause at 552.237-73, Restriction on Disclosure of
Information, in solicitations and contracts for proposal evaluation and
analysis services.
PART 538--FEDERAL SUPPLY SCHEDULE CONTRACTING
Subpart 538.2--Establishing and Administering Federal Supply Schedules
Sec.
538.270 Evaluation of multiple award schedule (MAS) offers
538.271 MAS contract awards
538.272 MAS price reductions
538.273 Contract clauses
Authority: 40 U.S.C. 486(c).
Subpart 538.2--Establishing and Administering Federal Supply
Schedules
538.270 Evaluation of multiple award schedule (MAS) offers.
(a) The Government will seek to obtain the offeror's best price
(the best price given to the most favored customer). However, the
Government recognizes that the terms and conditions of commercial sales
vary and there may be legitimate reasons why the best price is not
achieved.
(b) Establish negotiation objectives based on a review of relevant
data and determine price reasonableness.
(c) When establishing negotiation objectives and determining price
reasonableness, compare the terms and conditions of the MAS
solicitation with the terms and conditions of agreements with the
offeror's commercial customers. When determining the Government's price
negotiation objectives, consider the following factors:
(1) Aggregate volume of anticipated purchases.
(2) The purchase of a minimum quantity or a pattern of historic
purchases.
(3) Prices taking into consideration any combination of discounts
and concessions offered to commercial customers.
(4) Length of the contract period.
(5) Warranties, training, and/or maintenance included in the
purchase price or provided at additional cost to the product prices.
(6) Ordering and delivery practices.
(7) Any other relevant information, including differences between
the MAS solicitation and commercial terms and conditions that may
warrant differentials between the offer and the discounts offered to
the most favored commercial customer(s). For example, an offeror may
incur more expense selling to the Government than to the customer who
receives the offeror's best price, or the customer (e.g., dealer,
distributor, original equipment manufacturer, other reseller) who
receives the best price may perform certain value-added functions for
the offeror that the Government does not perform. In such cases, some
reduction in the discount given to the Government may be appropriate.
If the best price is not offered to the Government, you should ask the
offeror to identify and explain the reason for any differences. Do not
require offerors to provide detailed cost breakdowns.
(d) You may award a contract containing pricing which is less
favorable than the best price the offeror extends to any commercial
customer for similar purchases if you make a determination that both of
the following conditions exist:
(1) The prices offered to the Government are fair and reasonable,
even though comparable discounts were not negotiated.
(2) Award is otherwise in the best interest of the Government.
538.271 MAS contract awards.
(a) MAS awards will be for commercial items as defined in FAR
2.101. Negotiate contracts as a discount from established catalog
prices.
(b) Before awarding any MAS contract, determine that the offered
prices are fair and reasonable (see FAR subpart 15.4 and 538.270).
Document the negotiation and your determination using FAR 15.406-3 as
guidance.
(c) State clearly in the award document the price/discount
relationship between the Government and the identified commercial
customer (or category of customers) on which the award is predicated.
538.272 MAS price reductions.
(a) Section 552.238-75, Price Reductions, requires the contractor
to maintain during the contract period the negotiated price/discount
relationship (and/or term and condition relationship) between the
Government and the offeror's customer or category of customers on which
the contract award was predicated (see 538.271(c)). If a change occurs
in the contractor's commercial pricing or discount arrangement
applicable to the identified commercial customer (or category of
customers) that results in a less advantageous relationship between the
Government and this customer or category of customers, the change
constitutes a ``price reduction.''
(b) Make sure that the contractor understands the requirements of
section 552.238-75 and agrees to report to you all price reductions as
provided for in the clause.
538.273 Contract clauses.
(a) Multiple award schedules. Insert in solicitations and
contracts:
(1) 552.238-70, Identification of Electronic Office Equipment
Providing Accessibility for the Handicapped, if you include electronic
office equipment items.
(2) 552.238-71, Submission and Distribution of Authorized FSS
Schedule Pricelists. If GSA is not prepared to accept electronic
submissions for a particular schedule delete:
(i) Subparagraphs (c)(1)(ii) and (c)(3).
(ii) The subparagraph identifier ``(i)'' in (c)(1) and the word
``and'' at the end of subparagraph (i).
(3) 552.238-72, Identification of Energy-Efficient Office Equipment
and Supplies Containing Recovered Materials or Other Environmental
Attributes.
[[Page 37228]]
(4) 552.238-73, Cancellation.
(b) Multiple and single award schedules. Insert in solicitations
and contracts:
(1) 552.238-74, Contractor's Report of Sales.
(2) 552.238-75, Price Reductions.
(3) 552.238-76, Industrial Funding Fee.
SUBCHAPTER G--CONTRACT MANAGEMENT
PART 542--CONTRACT ADMINISTRATION AND AUDIT SERVICES
Subpart 542.11--Production Surveillance and Reporting
Sec.
542.1107 Contract clause.
Subpart 542.15--Contractor Performance Information
542.1503 Procedures.
542.1503-71 Information to collect.
Authority: 40 U.S.C. 486(c).
Subpart 542.11--Production Surveillance and Reporting
542.1107 Contract clause.
FSS Stock or Special Order Program
Insert 552.242-70, Status Report of Orders and Shipments, in
solicitations and indefinite quantity and requirements contracts for
stock or special order program items. You also may use the clause in
indefinite delivery definite quantity contracts for stock or special
order program items when close monitoring is necessary because numerous
shipments are involved.
Subpart 542.15--Contractor Performance Information
542.1503 Procedures.
542.1503-71 Information to collect.
The system for collecting contractor performance data should
include, as appropriate:
(a) Timeliness of delivery or performance, for example:
(1) Adherence to contract delivery schedules.
(2) Resolution of delays
(3) Number of ``show cause'' letters and ``cure notices'' issued.
(4) Number of delinquent deliveries.
(5) Number of contract extensions resulting from contractor-caused
delays.
(6) Timely submission or performance or required tests.
(b) Conformance of product or service to contract requirements, for
example:
(1) Quality of workmanship.
(2) Reliability.
(3) Adequacy of correction of defects.
(4) Number of safety defects.
(5) Number of product rejections.
(6) Results of laboratory tests.
(7) Number and extent of warranty problems.
(c) Customer comments, for example:
(1) Number and quality of positive comments.
(2) Number and nature of complaints.
(3) Adequacy of resolving customer complaints.
(d) Terminations for default.
(e) On-the-job safety performance record, including the number of
lost or restricted workdays due to occupational injuries in comparison
to the national average.
(f) Adequacy of contractor's quality assurance system.
(g) Compliance with other key contract provisions, for example:
(1) Subcontracting program.
(2) Labor standards.
(3) Safety standards.
(4) Reporting requirements.
(h) Exhibiting customer-oriented behavior.
(i) Other performance elements identified by the Service.
PART 543--CONTRACT MODIFICATIONS
Subpart 543.2--Change Orders
Sec.
543.205 Contract clauses
Authority: 40 U.S.C. 486(c).
Subpart 543.2--Change Orders
543.205 Contract clauses.
(a) Construction.
(1) Insert 552.243-70, Pricing of Adjustments, in solicitations and
contracts if the contract:
(i) Amount is expected to exceed the simplified acquisition
threshold.
(ii) Will be other than a cost type.
(2) Insert 552.243-71, Equitable Adjustments, in solicitations and
contracts containing FAR 52.243-4.
(b) Multiple award schedules (MAS). Insert 552.243-72,
Modifications (Multiple Award Schedule), in MAS solicitations and
contracts issued by GSA. For solicitations and contracts issued under
Federal Supply Classification (FSC) 65 you may use the clause with its
Alternate I for products ordered from authorized Prime Vendors.
PART 546--QUALITY ASSURANCE
Subpart 546.3--Contract Clauses
Sec.
546.302 Fixed-price supply contracts
546.302-70 Source inspection by Quality Approved Manufacturer
546.302-71 Source inspection
546.312 Construction contracts
Subpart 546.4--Government Contract Quality Assurance
546.470-2 Certification testing
Subpart 546.7--Warranties
546.708 Warranties of Data
546.710 Contract clauses
Authority: 40 U.S.C. 486(c).
Subpart 546.3--Contract Clauses
546.302 Fixed-price supply contracts.
546.302-70 Source inspection by Quality Approved Manufacturer.
For contracts and solicitations issued by FSS:
(a) Insert the clause at 552.246-70, Source Inspection by Quality
Approved Manufacturer, in solicitations and contracts that provide for
source inspection, except:
(1) Multiple award schedule contracts.
(2) Motor vehicle contracts.
(3) Contracts awarded by the FSS Services Acquisition Center,
unless you decide, together with the Central Office Quality Assurance
Division (FQA), that inspection by Government personnel is necessary.
(b) You may authorize inspection and testing at manufacturing
plants or other facilities located outside the United States, Puerto
Rico, or the Virgin Islands, under paragraph (a)(1) of the clause at
552.246-70 under any of the circumstances listed in this paragraph.
Coordinate the authorization with FQA and document it in the file.
(1) Inspection services are available from another Federal agency
with primary inspection responsibility in the geographic area.
(2) An inspection interchange agreement exists with another agency
for inspection at a contractor's plant.
(3) The procurement is for the Agency for International Development
and specifies the area of source.
(4) Other considerations will ensure more economical and effective
inspection consistent with the Government's interest.
546.302-71 Source inspection.
For solicitations and contracts issued by FSS, if Government
personnel at the source will perform inspection, insert 552.246-71,
Source Inspection by Government.
546.312 Construction contracts.
Insert the clause at 552.246-72, Final Inspection and Tests, in
solicitations and contracts for construction that include FAR 52.246-
12, Inspection of Construction.
[[Page 37229]]
Subpart 546.4--Government Contract Quality Assurance
546.470-2 Certification testing.
Certification testing determines whether an item conforms with a
specification for the purpose of executing a certificate of compliance
required by the specification. The contractor has responsibility for
certification testing.
Subpart 546.7--Warranties
546.708 Warranties of data.
(a) Use warranties of data only when you meet both of the following
conditions:
(1) You decide the use of a warranty is in the Government's
interest.
(2) The contracting director concurs in your decision.
(b) The technical or specification manager has responsibility for
developing any warranties of data.
546.710 Contract clauses.
(a) Insert the clause at 552.246-17, Warranty of Supplies of a
Noncomplex Nature, instead of FAR 52.246-17 in solicitations and
contracts. Use the following alternates as applicable:
(1) Commercial item acquisitions other than multiple award
schedules. Use the clause at 552.246-17 with its Alternate I.
(2) Other than commercial items in Class 8010. Use the clause at
552.246-17 with its Alternate II.
(3) Other than commercial items in Class 8030 or 8040. Use the
clause at 552.246-17 with its Alternate III. In addition, specify in
the solicitation whether the items are ``noncritical end use items'' or
``critical end use items''.
(b) Multiple award schedules, except international schedules.
Insert the clause at 552.246-73, Warranty--Multiple Award Schedule, in
solicitations and contracts.
(c) International multiple award schedules. Insert the clause at
552.246-74, Warranty--International Multiple Award Schedule, in
solicitations and contracts.
(d) Construction contracts expected to exceed the simplified
acquisition threshold. Insert the clause at 552.246-75, Guarantees, in
solicitations and contracts.
(e) Pesticides. Insert the clause at 552.246-76, Warranty of
Pesticides, in solicitations and contracts involving the procurement of
pesticides.
PART 547--TRANSPORTATION
Subpart 547.3--Transportation in Supply Contracts
Sec.
547.300 Scope of subpart
547.303 Standard delivery terms and contract clauses
547.303-1 F.o.b origin
547.304 Determination of delivery terms
547.304-5 Exceptions
547.305 Solicitation provisions, contract clauses, and
transportation factors
Authority: 40 U.S.C. 486(c).
Subpart 547.3--Transportation in Supply Contracts
547.300 Scope of subpart.
This subpart applies to FSS acquisitions.
547.303 Standard delivery terms and contract clauses.
547.303-1 F.o.b origin.
Contractor Responsibilities
The contractor must both:
(a) Request a carrier routing from the applicable transportation
zone office on all shipments weighing 10,000 pounds or more.
(b) Mail the original of the commercial bill of lading (CBL), to
the office that authorized the CBL (applies to shipment on a CBL).
Ensure that the signature of the carrier's agent and the annotation
required by FAR 52.247-1 appear on the original and all copies of the
CBL.
547.304 Determination of delivery terms.
547.304-5 Exceptions.
(a) Solicitations that provide for delivery to Alaska, Hawaii, or
Puerto Rico. Include notice that the offeror may specify delivery
f.o.b. origin; f.o.b. vessel, part of shipment; f.o.b. destination; or
any combination of these. If appropriate, provide for other delivery
terms.
(b) Federal Supply Schedules. If f.o.b. destination is offered for
delivery within CONUS, attempt to obtain the same delivery term for
shipment to Alaska, Hawaii, or Puerto Rico.
547.305 Solicitation provisions, contract clauses, and transportation
factors.
(a) Insert 552.247-70, Placarding Railcar Shipments, in
solicitations and contracts if it is essential that the railcar doors
be especially positioned next to the unloading dock, platform, or
warehouse door.
(b) Insert 552.247-71, Diversion of Shipment Under f.o.b.
Destination Contracts, in Stock, Special Order Program (SOP), and
Single Award Schedule solicitations and contracts which provide for
f.o.b. destination shipment.
PART 549--TERMINATION OF CONTRACTS
Subpart 549.5--Contract Termination Clauses
Sec.
549.502 Termination for convenience of the Government
Authority: 40 U.S.C. 486(c).
Subpart 549.5--Contract Termination Clauses
549.502 Termination for convenience of the Government.
Acquisitions Funded Through the Information Technology (IT) Fund
(a) You may use the clause at 552.249-70, Termination for
Convenience of the Government (Fixed-Price) (Short Form), when
appropriate, in solicitations and contracts for the acquisition and
maintenance of telephone systems funded through the Information
Technology (IT) Fund. Use this clause with FAR 52.249-1 or FAR 52.249-3
and 52.249-4.
(b) If you use the clause at 552.249-70, you must also insert
552.249-71, Submission of Termination Liability Schedule, in the
solicitation and contract.
SUBCHAPTER H CLAUSES AND FORMS
PART 552 SOLICITATION PROVISIONS AND CONTRACT CLAUSES
552.000 Scope of part
Subpart 552.1--Instructions for Using Provisions and Clauses
552.101-70 Using Part 552
552.102 Incorporating provisions and clauses
552.103 Identification of provisions and clauses
552.104 Procedures for modifying and completing provisions and
clauses
552.105 Procedures for using alternates
552.107-70 Provisions and clauses prescribed in subpart 552.1
Subpart 552.2--Text of Provisions and Clauses
552.200 Scope of subpart
552.203-5 Covenant Against Contingent Fees
552.203-70 Price Adjustment for Illegal or Improper Activity
552.203-71 Restriction on Advertising
552.209-70 Product Removal from Qualified Products List
552.209-71 Waiver of First Article Testing and Approval Requirement
552.209-72 Supplemental Requirements for First Article Approval--
Contractor Testing
552.209-73 Supplemental Requirements for First Article Approval--
Government Testing
[[Page 37230]]
552.211-8 Time of Delivery
552.211-70 Brand Name or Equal
552.211-71 Standard References
552.211-72 Reference to Specifications in Drawings
552.211-73 Marking
552.211-74 Charges for Marking
552.211-75 Preservation, Packaging and Packing
552.211-76 Charges for Packaging and Packing
552.211-77 Packing List
552.211-78 Commercial Delivery Schedule (Multiple Award Schedule)
552.211-79 Acceptable Age of Supplies
552.211-80 Age on Delivery
552.211-81 Time of Shipment
552.211-82 Notice of Shipment
552.211-83 Availability for Inspection, Testing, and Shipment/
Delivery
552.211-84 Non-Compliance with Contract Requirements
552.212-70 Preparation of Offer (Multiple Award Schedule)
552.212-71 Contract Terms and Conditions Applicable to GSA
Acquisition of Commercial Items
552.212-72 Contract Terms and Conditions Required to Implement
Statutes or Executive Orders Applicable to GSA Acquisition of
Commercial Items
552.212-73 Evaluation--Commerical Items (Multiple Award Schedule)
552.214-70 ``All or None'' Offers
552.214-71 Progressive Awards and Monthly Quantity Allocations
552.214-72 Bid Sample Requirements
552.215-70 Examination of Records by GSA
552.215-71 Examination of Records by GSA (Multiple Award Schedule)
552.215-72 Price Adjustment--Failure to Provide Accurate
Information
552.216-70 Economic Price Adjustment--FSS Multiple Award Schedule
Contracts
552.216-71 Economic Price Adjustment--Stock and Special Order
Program Contracts
552.216-72 Placement of Orders
552.216-73 Ordering Information
552.217-70 Evaluation of Options
552.217-71 Notice Regarding Option(s)
552.219-70 Allocation of Orders--Partially Set-aside Items
552.219-71 Notice to Offerors of Subcontracting Plan Requirements
552.219-72 Preparation, Submission, and Negotiation of
Subcontracting Plans
552.219-73 Goals for Subcontracting Plan
552.219-74 Section 8(a) Direct Award
552.223-70 Hazardous Substances
552.223-71 Nonconforming Hazardous Materials
552.223-72 Hazardous Material Information
552.225-8 Buy American Act--Trade Agreements--Balance of Payments
Program Certificate
552.225-9 Buy American Act--Trade Agreements--Balance of Payments
Program
552.225-70 Notice of Procurement Restriction--Hand or Measuring
Tools or Stainless Steel Flatware
552.227-70 Government Rights (Unlimited)
552.227-71 Drawings and Other Data to Become Property of Government
552.228-70 Workers' Compensation Laws
552.229-70 Federal, State, and Local Taxes
552.229-71 Federal Excise Tax--DC Government
552.232-1 Payments
552.232-8 Discounts for Prompt Payment
552.232-23 Assignment of Claims
552.232-25 Prompty Payment
552.232-70 Invoice Requirements
552.232-71 Adjusting Payments
552.232-72 Final Payment
552.232-73 Availability of Funds
552.232-74 Invoice Payments
552.232-75 Prompt Payment
552.232-76 Electronic Funds Transfer Payment
552.232-77 Payment By Credit Card
552.233-70 Protests Filed Directly with the General Services
Administration
552.236-70 Definitions
552.236-71 Authorities and Limitations
552.236-72 Specialist
552.236-73 Basis of Award--Construction Contract
552.236-74 Working Hours
552.236-75 Use of Premises
552.236-76 Measurements
552.236-77 Specifications and Drawings
552.236-78 Shop Drawings, Coordination Drawings, and Schedules
552.236-79 Samples
552.236-80 Heat
552.236-81 Use of Equipment by the Government
552.236-82 Subcontracts
552.236-83 Requirement for a Project Labor Agreement
552.237-70 Qualifications of Offerors
552.237-71 Qualifications of Employees
552.237-72 Prohibition Regarding ``Quasi-Military Armed forces.''
552.237-73 Restriction on Disclosure of Information
552.238-70 Identification of Electronic Office Equipment Providing
Accessibility for the Handicapped
552.238-71 Submission and Distribution of Authorized FSS Schedule
Pricelists
552.238-72 Identification of Energy-Efficient Office Equipment and
Supplies Containing Recovered Materials or Other Environmental
Attributes
552.238-73 Cancellation
552.238-74 Contractor's Report of Sales
552.238-75 Price Reductions
552.238-76 Industrial Funding Fee
552.242-70 Status Report of Orders and Shipments
552.243-70 Price of Adjustments
552.243-71 Equitable Adjustments
552.243-72 Modifications (Multiple Award Schedule)
552.246-17 Warranty of Supplies of a Noncomplex Nature
552.246-70 Source Inspection by Quality Approved Manufacturer
552.246-71 Source Inspection by Government
552.246-72 Final Inspection and Tests
552.246-73 Warranty--Multiple Award Schedule
552.246-74 Warranty--International Multiple Award Schedule
552.246-75 Guarantees
552.246-76 Warranty of Pesticides
552.247-70 Placarding Railcar Shipments
552.247-71 Diversion of Shipment Under f.o.b. Destination Contracts
552.249-70 Termination for Convenience of the Government (Fixed
Price) (Short Form)
552.249-71 Submission of Termination Liability Schedule
552.252-5 Authorized Deviations in Provisions
552.252-6 Authorized Deviations in Clauses
552.270-1 Instructions to Offerors--Acquisition of Leasehold
Interest in Real Property
552.270-2 Historic Preference
552.270-3 Parties to Execute Lease
552.270-4 Definitions
552.270-5 Subletting and Assignment
552.270-6 Maintenance of Building and Premises--Right of Entry
552.270-7 Fire and Casualty Damage
552.270-8 Compliance with Applicable Law
552.270-9 Inspection--Right of Entry
552.270-10 Failure in Performance
552.270-11 Successors Bound
552.270-12 Alterations
552.270-13 Proposals for Adjustment
552.270-14 Changes
552.270-15 Liquidated Damages
552.270-16 Adjustment for Vacant Premises
552.270-17 Delivery and Condition
552.270-18 Default in Delivery--Time Extensions
552.270-19 Progressive Occupancy
552.270-20 Payment
552.270-21 Effect of Acceptance and Occupancy
552.270-22 Default by Lessor During the Term
552.270-23 Subordination, Nondisturbance and Attornment
552.270-24 Statement of Lease
552.270-25 Substitution of Tenant Agency
552.270-26 No Waiver
552.270-27 Integrated Agreement
552.270-28 Mutuality of Obligation
552.270-29 Acceptance of Space
552.000 Scope of part.
This part provides the text of provisions and clauses which are
unique to GSA or supplement the FAR.
Subpart 552.1--Instructions for Using Provisions and Clauses
552.101-70 Using Part 552.
(a) Definition. ``Clause,'' as used in this subpart, means
provision or clause as defined in FAR 52.101(a).
(b) Numbering.
(1) Clauses which are ``substantially'' the same as FAR clauses and
clauses to be used instead of FAR clauses are identified as follows:
(i) The clause has the same title as a clause in the FAR.
(ii) The number 5 precedes the clause.
(iii) The clause appears under the same subsection number and
caption as in the FAR.
[[Page 37231]]
(2) Supplemental clauses are numbered in the same manner as the
FAR, except:
(i) The chapter number precedes the clause.
(ii) The subsection numbers begin with 70.
(iii) The clauses are sequentially numbered, e.g., 552.232-70,
552.232-71, etc.
552.102 Incorporating provisions and clauses.
You may incorporate clauses prescribed in the GSAR for
solicitations and contracts by reference.
552.103 Identification of provisions and clauses.
Deviations. If the GSAR prescribes a class deviation from a FAR
clause, identify the clause by the GSAR citation (e.g., 552.232-8
PROMPT PAYMENT DISCOUNT (NOV 1987) (DEVIATION FAR 552.232-8)).
552.104 Procedures for modifying and completing provisions and
clauses.
(a) The procedures in FAR 52.104 apply when you modify or complete
a GSAR provision or clause. Provisions and clauses shall not be
modified unless the GSAR authorizes their modification.
(b) You do not need to identify modifications of clauses which
result from negotiations unless you issue an amendment to the
solicitation.
(c) In general, you should modify FAR or GSAR clauses only for
individual cases. If a contracting activity develops a modification for
repeated use, furnish a copy to the Office of GSA Acquisition Policy
(MV) for potential inclusion in the GSAR.
552.105 Procedures for using alternates.
The procedures in FAR 52.105 apply to GSAR part 552.
552.107-70 Provisions and clauses prescribed in subpart 552.1.
(a) Insert the provision at 552.252-5, Authorized Deviations in
Provisions, in solicitation that include any FAR or GSAR clause with an
authorized deviation. You must use this provision in lieu of the FAR
provision at 552.252-5.
(b) Insert the clause at 552.252-6, Authorized Deviations in
Clauses, in solicitations and contracts that include any FAR or GSAR
clause with an authorized deviation. You must use this clause in lieu
of the FAR clause at 52.252-6.
Subpart 552.2--Text of Provisions and Clauses
552.200 Scope of subpart.
This subpart sets forth the text of all GSAR provisions and
clauses. It also cross-references the location in the GSAR that
prescribes the use of each provision and clause.
552.203-5 Covenant Against Contingent Fees.
As prescribed in 502.404, insert the following clause:
Convenant Against Contingent Fees (Feb 1990)
(a) The Contractor warrants that no person or agency has been
employed or retained to solicit or obtain this contract upon an
agreement or understanding for a contingent fee, except a bona fide
employee or agency. For breach or violation of this warrant, the
Government shall have the right to annul this contract without
liability or, in its discretion, to deduct from the contract price
or consideration, or otherwise recover the full amount of the
contingent fee.
(b) ``Bona fide agency,'' as used in this clause, means an
established commercial or selling agency (including licensed real
estate agents or brokers), maintained by a Contractor for the
purpose of securing business, that neither exerts nor proposes to
exert improper influence to solicit or obtain Government contracts
nor holds itself out as being able to obtain any Government contract
or contracts through improper influence.
``Bona fide employee,'' as used in this clause, means a person,
employed by a Contractor and subject to the Contractor's supervision
and control as to time, place, and manner of performance, who
neither exerts nor proposes to exert improper influence to solicit
or obtain Government contracts nor holds out as being able to obtain
any Government contract or contracts through improper influence.
``Contingent fee,'' as used in this clause, means any
commission, percentage, brokerage, or other fee that is contingent
upon the success that a person or concern has in securing a
Government contract.
``Improper influence,'' as used in this clause, means any
influence that induces or tends to induce a Government employee or
officer to give consideration or to act regarding a Government
contract on any basis other than the merits of the matter.
(End of clause)
552.203-70 Price Adjustment for Illegal or Improper Activity.
As prescribed in 503.104-9, insert the following clause:
Price Adjustment for Illegal or Improper Activity (Sep 1999)
(a) If the head of the contracting activity (HCA) or his or her
designee determines that there was a violation of subsection 27(a)
of the Office of Federal Procurement Policy Act, as amended (41
U.S.C. 423), as implemented in the Federal Acquisition Regulation,
the Government, at its election, may--
(1) Reduce the monthly rental under this lease by 5 percent of
the amount of the rental for each month of the remaining term of the
lease, including any option periods, and recover 5 percent of the
rental already paid;
(2) Reduce payments for alterations not included in monthly
rental payments by 5 percent of the amount of the alterations
agreement; or
(3) Reduce the payments for violations by a Lessor's
subcontractor by an amount not to exceed the amount of profit or fee
reflected in the subcontract at the time the subcontract was placed.
(b) Prior to making a determination as set forth above, the HCA
or designee shall provide to the Lessor a written notice of the
action being considered and the basis therefor. The Lessor shall
have a period determined by the agency head or designee, but not
less than 30 calendar days after receipt of such notice, to submit
in person, in writing, or through a representative, information and
argument in opposition to the proposed reduction. The agency head or
designee may, upon good cause shown, determine to deduct less than
the above amounts from payments.
(c) The rights and remedies of the Government specified herein
are not exclusive, and are in addition to any other rights and
remedies provided by law or under this lease.
(End of clause)
552.203-71 Restriction on Advertising.
As prescribed in 503.570-2, insert the following clause:
Restriction on Advertising (Sep 1999)
The Contractor shall not refer to this contract in commercial
advertising or similar promotions in such a manner as to state or
imply that the product or service provided is endorsed or preferred
by the White House, the Executive Office of the President, or any
other element of the Federal Government, or is considered by these
entities to be superior to other products or services. Any
advertisement by the Contractor, including price-off coupons, that
refers to a military resale activity shall contain the following
statement: ``This advertisement is neither paid for nor sponsored,
in whole or in part, by any element of the United States
Government.''
(End of clause)
552.209-70 Produce Removal from Qualified Products List.
As prescribed in 509.206-2, insert the following clause:
Product Removal From Qualified Products List (Sep 1999)
If, during the performance of this contract, the product being
furnished is for any reason (except those outlined in paragraph
3.1.1 of the applicable Federal or Interim Federal Specification for
security cabinets, security vault doors and changeable combination
padlocks) removed from the Qualified Products List, the Government
may terminate this contract for default.
(End of clause)
[[Page 37232]]
552.209-71 Waiver of First Article Testing and Approval Requirement.
As prescribed in 509.306, insert the following provision:
Waiver of First Article Testing and Approval Requirement (Sep 1999)
(a) Offerors must submit an offer including testing and
approval, however, an offeror may submit an alternate offer
excluding testing and approval, provided the offeror satisfies the
requirements for the waiving of first article testing.
(b) Before a waiver of the first article testing requirement of
this solicitation will be considered, the offeror is requested to
identify the procurement under which the product offered was
previously approved and accepted:
----------------------------------------------------------------------
(Offeror to insert both contract number and applicable national
stock number.)
(End of provision)
552.209-72 Supplemental Requirements for First Article Approval--
Contractor Testing.
As prescribed in 509.308-1, insert the following clause:
Supplemental Requirements for First Article Approval--Contractor
Testing (Sep 1999)
(a) The term ``Contracting Officer'' as used in FAR 52.209-3,
First Article Approval--Contractor Testing, means the Administrative
Contracting Officer (ACO).
(b) The Contractor shall have either (1) the necessary
inspection and test equipment at the Contractor's plant to perform
first article testing, or (2) if the inspection and test equipment
is not available, a letter of commitment from a laboratory
acceptable to the Government to perform the inspection and testing.
(c) When the Government elects to witness the first article
testing, the Contractor shall conduct the testing between the hours
of 7:00 AM and 5:00 PM, Monday thru Friday, unless a different time
is agreed to by the ACO.
(d) The first article test report shall contain:
(1) The complete test data, the test method(s) used and date of
test;
(2) Signature and printed name of the individual who performed
the inspection;
(3) Applicable specification/CID and/or drawing numbers;
(4) Name and type of test equipment used; and
(5) All numerical values as a result of testing with each noted
as to whether it passes or fails the contract test requirements.
(e) The first article shall be retained by the Contractor as the
manufacturing standard and will be kept in a secure area, under
control of the Quality Assurance Specialist (QAS), to protest
against possible changes or alterations for the life of the
contract. If the first article sample is destroyed during testing or
damaged to a point making it unusable as a standard, the Contractor,
upon Government request, shall provide a second sample.
(f) If the Contractor delivers the approved first article as
part of the contract quantity, it shall be in the last scheduled
delivery under the contract.
(End of clause)
552.209-73 Supplemental Requirements for First Article Approval--
Government Testing.
As prescribed in 509.308-2, insert the following clause:
Supplemental Requirements for First Article Approval--Government
Testing (Sep 1999)
(a) The term ``Contracting Officer'' as used in FAR 52.209-4,
First Article Approval--Government Testing, means the Administrative
Contracting Officer (ACO).
(b) The first article shall be retained by the Contractor as the
manufacturing standard and will be kept in a secure area, under the
control of the Quality Assurance Specialist (QAS) to protect against
possible changes or alterations for the life of the contract. If the
first article sample is destroyed during testing or damaged to a
point making it unusable as a standard, the Contractor, upon
Government request, shall provide a second sample.
(c) If the Contractor deliver the approved first article as part
of the contract quantity, it shall be in the last scheduled delivery
under the contract.
(End of clause)
552.211-8 Time of Delivery.
As prescribed in 511.404(a)(1) insert the following clause:
Time of Delivery (Sep 1999)
(a) The time of delivery for each item means the time required
after receipt of an order (1) to make delivery to a destination in
the case of delivered prices, or (2) to place shipment in transit in
the case of f.o.b. origin prices.
(b) Delivery is required to be made at the point(s) specified
within ______ days after receipt of order.
(End of clause)
Alternate I (SEP 1999). It it is necessary to show different
delivery times for different items or groups of items, the
Contracting Officer may substitute the following paragraph (b) for
paragraph (b) of the basis clause.
(b) Delivery is required to be made at the point(s) specified
within the number of calender days after receipt of order as
indicated below:
------------------------------------------------------------------------
Required
Items or groups of items (Special Item Numbers or delivery
Nomenclature) time (DAYS
ARO)
------------------------------------------------------------------------
------------------------------------------------------------------------
552.211-70 Brand Name or Equal.
As prescribed in 511.170-3(c), insert the following provision:
Brand Name or Equal (Feb 1996)
(As used in this clause, the term ``brand name'' includes
identification of products by make and model.)
(a) Identification of items in this solicitation by a ``brand
name or equal'' description is intended to indicate the quality and
characteristics of products that will be satisfactory and is not
intended to be restrictive. Offers of ``equal'' products (including
products of the brand name manufacturer other than the one described
by brand name) will be considered for award if such products are
clearly identified in the offers and are determined by the
Government to meet fully the salient characteristics requirements
listed in the solicitation.
(b) Unless clearly indicated in the offer than an ``equal''
product is offered, the offer shall be considered as offering a
referenced brand name product.
(c)(1) An offeror proposing to furnish an ``equal'' product
shall insert the name of the product in the space provided in the
solicitation or otherwise clearly the product. The Government's
determination as to the acceptability of the ``equal'' product shall
be based on information furnished or otherwise identified in the
offer as well as other information reasonably available to the
purchasing activity. CAUTION TO OFFERORS. The purchasing activity is
not responsible for locating or securing any information not
identified in the offer and reasonably available to the purchasing
activity. Accordingly, to ensure that sufficient information is
available, the offeror must furnish with its offer all descriptive
material (such as cuts, illustrations, drawings, or other
information) necessary for the purchasing activity to (i) determine
whether the product offered meets the special salient
characteristics, and (ii) establish exactly what the offeror
proposes to furnish. The information furnished may include specific
references to information previously furnished or otherwise
reasonably available to the purchasing activity.
(2) An offeror proposing to modify a product to make it conform
to the requirements of the solicitation shall (i) include in its
offer a clear description of the proposed modifications and (ii)
clearly mark any descriptive material to show the proposed
modifications.
(3) In sealed bidding, modifications proposed after bid opening
to make a product conform to a brand name product referenced in the
solicitation will not be considered.
(End of provision)
552.211-71 Standard References.
As prescribed in 511.204(a), insert the following clause:
Standard References (Sep 1999)
(a) All documents and publications (such as, but not limited to,
manuals, handbooks, codes, standards and specifications) cited in
this contract for the purpose of establishing requirements
applicable to equipment, materials, or workmanship under this
contract, shall be deemed to be incorporated herein as fully as if
printed and bound with the specifications of this contract, in
accordance with the following:
[[Page 37233]]
(1) Wherever reference is made to Standard Specifications of the
Public Buildings Service, Interim Federal Specifications, Interim
Amendments to Federal Specifications, Interim Federal Standards, or
Interim Amendments to Federal Standards, the Contractor shall comply
with the requirements set out in the issue or edition identified in
this contract.
(2) Wherever reference is made to any such document other than
those specified in subparagraph (1) above, the Contractor shall
comply with the requirements set out in the edition specified in
this contract, or if not specified, the latest edition or revision
thereof, as well as the latest amendment or supplement thereto, in
effect on the date of the solicitation on this project, except as
modified by, as otherwise provided in, or as limited to type, class
or grade, by the specifications of this contract.
(b) Upon request the Contractor shall make available at the job
site within a reasonable time, a copy of each trade manual and
standard which is incorporated by reference in this contract and
which governs quality and workmanship.
(End of clause)
552.211-72 Reference to Specifications in Drawings.
As prescribed in 511.204(b), insert the following clause:
References to Specifications in Drawings (Feb 1996)
If military or other drawings are made a part of this contract,
any reference in the drawings to Federal specifications or standards
will be considered to be a reference to the date of such Federal
specification or standard identified in the contract. If the date of
the Federal specification or standard is not identified in the
contract, the edition, including revisions thereto, in effect on the
date the solicitation is issued will apply.
(End of clause)
552.211-73 Marking.
As prescribed in 511.204(c)(1), insert the following clause:
Marking (Feb 1996)
(a) General requirements. Interior packages, if any, and
exterior shipping containers shall be marked as specified elsewhere
in the contract. Additional marking requirements may be specified on
delivery orders issued under the contract. If not otherwise
specified, interior packages and exterior shipping containers shall
be marked in accordance with the following standards:
(1) Deliveries to civilian activities. Supplies shall be marked
in accordance with Federal Standard 123, edition in effect on the
date of issuance of the solicitation.
(2) Deliveries to military activities. Supplies shall be marked
in accordance with Military Standard 129, edition in effect on the
date of issuance of the solicitation.
(b) Improperly marked material. When Government inspection and
acceptance are at destination, and delivered supplies are not marked
in accordance with contract requirements, the Government has the
right, without prior notice to the Contractor, to perform the
required marking, by contract or otherwise, and charge the
Contractor therefor at the rate specified elsewhere in this
contract. This right is not exclusive, and is in addition to other
rights or remedies provided for in this contract.
(End of clause)
552.211-74 Charges for Marking.
As prescribed in 511.204(c)(2), insert a clause substantially as
follows:
Charges for Marking (Feb 1996)
The rate provided for in paragraph (b) of 552.211-73, Marking,
is $________* per man-hour or fraction thereof.
(End of clause)
*The rate to be inserted in the above clause shall be determined
and published by the Commissioner, Federal Supply Service, or a
designee.
552.211-75 Preservation, Packaging and Packing.
As prescribed in 511.204(c)(3), insert the following clause:
Preservation, Packaging, and Packing (Feb 1996)
Unless otherwise specified, all items shall be preserved,
packaged, and packed in accordance with normal commercial practices,
as defined in the applicable commodity specification. Packaging and
packing shall comply with the requirements of the Uniform Freight
Classification and the National Motor Freight Classification (issue
in effect at time of shipment) and each shipping container of each
item in a shipment shall be of uniform size and content, except for
residual quantities. Where special or unusual packing is specified
in an order, but not specifically provided for by the contract, such
packing details must be the subject of an agreement independently
arrived at between the ordering agency and the Contractor.
(End of clause)
552.211-76 Charges for Packaging and Packing.
As prescribed in 511.204(c)(4), insert a clause substantially as
follows:
Charges for Packaging and Packing (Feb. 1996)
If supplies shipped to a GSA wholesale distribution center are
not packaged and packed in accordance with contract requirements,
the Government has the right, without prior notice to the
Contractor, to perform the required repackaging/repacking, by
contract or otherwise, and charge the Contractor therefore at the
rate of $____*____ per man-hour or fraction thereof. The Contractor
will also be charged for material costs, if incurred. This right is
not exclusive, and is in addition to other rights or remedies
provided for in this contract.
(End of clause)
*The rate to be inserted in the above clause shall be determined
by the Commissioner, Federal Supply Service, or a designee.
552.211-77 Packing List.
As prescribed in 511.204(d), insert the following clause:
Packing List (Feb. 1996)
(a) A packing list or other suitable shipping document shall
accompany each shipment and shall indicate:
(1) Name and address of the consignor;
(2) Name and complete address of the consignee;
(3) Government order or requisition number;
(4) Government bill of lading number covering the shipment (if
any); and
(5) Description of the material shipped, including item number,
quantity, number of containers, and package number (if any).
(b) When payment will be made by Government commercial credit
card, in addition to the information in (a) above, the packing list
or shipping document shall include:
(1) Cardholder name and telephone number and
(2) The term ``Credit Card.''
(End of clause)
552.211-78 Commercial Delivery Schedule (Multiple Award Schedule).
As prescribed in 511.404(a)(2), insert the following clause:
Commercial Delivery Schedule (Multiple Award Schedule) (Feb. 1996)
(a) Time of Delivery. The Contractor shall deliver to
destination within the number of calendar days after receipt of
order (ARO) in the case of F.O.B. Destination prices, or to place of
shipment in transit in the case of F.O.B. Origin prices, as set
forth below. Offerors shall insert in the ``Time of Delivery (days
ARO)'' column in the schedule of Items a definite number of calendar
days within which delivery will be made. In no case shall the
offered delivery time exceed the Contractor's normal commercial
practice. The Government requires the Contractor's normal commercial
delivery time, as long as it is less than the ``STATED'' delivery
time(s) shown below. If the Offeror does not insert a delivery time
in the schedule of items, the Offeror will be deemed to offer
delivery in accordance with the Government's stated delivery time as
stated below:
[[Page 37234]]
------------------------------------------------------------------------
Government's Contractor's
Items or group of items (Special Item stated normal
Number or Nomenclature) delivery time commercial
(days ARO) delivery time
------------------------------------------------------------------------
.............. ..............
.............. ..............
.............. ..............
------------------------------------------------------------------------
(b) Expedited Delivery Times. For those items that can be
delivered quicker than the delivery times in paragraph (a), above,
the Offeror is requested to insert below, a time (hours/days ARO)
that delivery can be made when expedited delivery is requested.
------------------------------------------------------------------------
Expedited
Item or group of items (Special Item Number or delivery
Nomenclature) time (HOURS/
DAYS ARO)
------------------------------------------------------------------------
...........
...........
...........
------------------------------------------------------------------------
(c) Overnight and 2-Day Delivery Times. Ordering activities may
require overnight or 2-day delivery. The Offeror is requested to
annotate its price list or by separate attachment identify the items
that can be delivered overnight or within 2 days. Contractors
offering such delivery services will be required to state in the
cover sheet to its FSS price list details concerning this service.
(End of clause)
552.211-79 Acceptable Age of Supplies.
As prescribed in 511.404(a)(3)(i), insert the following clause:
Acceptable Age of Supplies (Feb. 1996)
The supplies furnished under this contract shall not be more
than ____ months old, beginning with the first full month after the
date of manufacture marked on the container. For the purpose of this
clause, supplies shall be considered to be furnished (1) when they
are offered to the Government for inspection and testing, or (2) on
the date of shipment if shipment is authorized to be made without
prior inspection by the Government. If the age of the supplies
furnished under this contract is greater than the specified period,
the Government may exercise its right to reject the supplies.
(End of clause)
Alternate I (FEB 1996). For items having a limited shelf-life,
the sentence below should be substituted for the first sentence of
the basic clause when authorized:
The supplies furnished under this contract shall not be more
than ____ days old, beginning with the date of manufacture (month,
day, year) marked on the container.
552.211-80 Age on Delivery.
As prescribed in 511.404(a)(3)(ii) insert the following clause:
Age on Delivery (Feb. 1996)
Included in the description of each shelf-life item is a
statement regarding the ``age on delivery.'' The age of the item(s)
shall not exceed the number of months shown in the item description,
counted from the first day of the month after the month of
manufacture to the date of delivery to the specified delivery
point(s). If the age of the supplies delivered under this contract
is greater than the number of months shown, the Government may
exercise its right to reject the supplies.
(End of clause)
552.211-81 Time of Shipment.
As prescribed in 511.404(a)(4), insert the following clause:
Time of Shipment (Feb. 1996)
Shipment is required within ______ calendar days after receipt
of order.
(End of clause)
Alternate I (FEB 1996). If the contract will require shipment
more than 45 calendar days after receipt of the order, the following
paragraph should be added to the basic clause.
Each delivery order will specify that shipment is required no
later than the number of days shown above. If such order also states
that ``Early Shipment is Precluded,'' the Contractor agrees to make
shipment no sooner than ______ calendar days after receipt of order.
Earlier shipments may result in nonacceptance of the supplies at the
delivery point at the time of arrival.
(The second number to be inserted should be 15 calendar days less
than the first number.)
552.211-82 Notice of Shipment.
As prescribed in 511.404(a)(5), insert the following clause:
Notice of Shipment (Feb 1996)
If specified in an order placed under this contract, the
Contractor shall, at the time each shipment is made on such order,
furnish a notice of shipment to either the consignee or the ordering
office or both, as specified. This requirement may be satisfied by
completion and return of appropriate forms furnished by the ordering
office or by the furnishing of copies of bills of lading, freight
bills, or similar documents in accordance with normal commercial
practice if such document clearly identifies the order number, items
and quantities shipped, date of shipment, point of origin, method of
shipment and routing, and the name of initial carrier.
(End of clause)
552.211-83 Availability for Inspection, Testing, and Shipment/
Delivery.
As prescribed in 511.404(a)(6), insert the following clause:
Availability for Inspection, Testing, and Shipment/Delivery (Feb 1996)
(a) The Government requires that the supplies be made available
for inspection and testing within ________*________ calendar days
after receipt of [Insert ``Notice of Award'' or ``order''], and be
[Insert ``shipped'' or ``delivered''] within ________*________
calendar days after receipt of (1) notice of approval and release by
the Government inspector or (2) authorization to ship without
Government inspection.
(b) Failure to make supplies available for inspection and
testing or to [Insert ``ship'' or ``deliver''] as required by this
clause may result in termination of this contract for default.
(End of clause)
Alternate I (Feb. 1996). If the contract is for stock items, the
Contracting Officer shall insert ``shipped'' or ``ship'' in the
basic clause, add the following paragraph (b) and redesignate
paragraph (b) of the basic clause as paragraph (c).
(b) If notice of approval and release by the Government
inspector or authorization to ship without Government inspection is
received before ________*________ calendar days after receipt of the
[Insert ``Notice of Award'' or ``order''], receipt of such notice
shall be deemed to be received on the ________*________ calendar day
after receipt of [Insert ``Notice of Award'' or ``order''].
Shipments shall not be made before the ________*________ calendar
day after receipt of the [Insert ``Notice of Award'' or ``order'']
unless authorized in writing by the Contracting Officer.
*Entries are normally the same number of days specified for
availability.
552.211-84 Non-Compliance With Contract Requirements.
As prescribed in 511.404(b), insert the following clause:
Non-Compliance With Contract Requirements (Feb 1996)
In the event the Contractor, after receiving written notice from
the Contracting Officer of non-compliance with any requirement of
this contract, fails to initiate promptly such action as may be
appropriate to comply with the specified requirement within a
reasonable period of time, the Contracting Officer shall have the
right to order the Contractor to stop any or all work under the
contract until the Contractor has complied or has initiated such
action as may be appropriate to comply within a reasonable period of
time. The Contractor will not be
[[Page 37235]]
entitled to any extension of contract time or payment for any costs
incurred as a result of being ordered to stop work for such cause.
(End of clause)
552.212-70 Preparation of Offer (Multiple Award Schedule).
As prescribed in 512.301(a)(1), insert the following clause:
Preparation of Offer (Multiple Award Schedule) (Aug 1997)
(a) Definitions. Concession, as used in this solicitation, means
a benefit, enhancement or privilege (other than a discount), which
either reduces the overall cost of a customer's acquisition or
encourages a customer to consummate a purchase. Concessions include,
but are not limited to freight allowance, extended warranty,
extended price guarantees, free installation and bonus goods.
Discount, as used in this solicitation, means a reduction to
catalog prices (published or unpublished). Discounts include, but
are not limited to, rebates, quantity discounts, purchase option
credits, and any other terms or conditions other than concessions)
which reduce the amount of money a customer ultimately pays for
goods or services ordered or received. Any net price lower than the
list price is considered a ``discount'' by the percentage difference
from the list price to the net price.
(b) For each Special Item Number (SIN) included in an offer, the
Offeror shall provide the information outlined in paragraph (c).
Offerors may provide a single response covering more than one SIN,
if the information disclosed is the same for all products under each
SIN. If discounts and concessions vary by model or product line,
offerors shall ensure that information is clearly annotated as to
item or items referenced.
(c) Provide information described below for each SIN:
(1) Two copies of the offeror's current published (dated or
otherwise identified) commercial descriptive catalogs and/or price
list(s) from which discounts are offered. If special catalogs or
price lists are printed for the purpose of this offer, such
descriptive catalogs or price lists shall include a statement
indicating the special catalog or price list represent a verbatim
extract from the Offeror's commercial catalog and/or price list and
identify the descriptive catalog and/or price list from which the
information has been extracted.
(2) Next to each offered item in the commercial catalog and/or
price list, the Offeror shall write the special item number (SIN)
under which the item is being offered. Unless a special catalog or
price list is submitted, all other items shall be marked
``excluded,'' lined out, and initiated by the offeror.
(3) The discount(s) offered under this solicitation. The
description of discounts offered shall include all discounts, such
as prompt payment discounts, quantity/dollar volume discounts
(indicate whether models/products can be combined within the SIN or
whether SINs can be combined to earn discounts), blanket purchase
agreement discounts, or purchase option credits. If the terms of
sale appearing in the commercial catalogs or price list on which an
offer is based are in conflict with the terms of this solicitation,
the latter shall govern.
(4) A description of concessions offered under this solicitation
which are not granted to other customers. Such concessions may
include, but are not limited to, an extended warranty, a return/
exchange goods policy, or enhanced or additional services.
(5) If the Offeror is a dealer/reseller or the Offeror will use
dealers to perform any aspect of contract awarded under this
solicitation, describe the functions, if any, that the dealer/
reseller will perform.
(End of clause)
552.212-71 Contract Terms and Conditions Applicable to GSA Acquisition
of Commercial Items.
As prescribed in 512.301(a)(2), insert the following clause:
Contract Terms and Conditions Applicable to GSA Acquisition of
Commercial Items (Sep 1999)
The Contractor agrees to comply with any provision or clause
that is incorporated herein by reference to implement agency policy
applicable to acquisition of commercial items or components. The
provision or clause in effect based on the applicable regulation
cited on the date the solicitation is issued applies unless
otherwise stated herein. The following provisions and clauses are
incorporated by reference:
[The contracting officer should either check the provisions and
clauses that apply or delete the provisions and clauses that do not
apply from the list. The contracting officer may add the date of the
provision or clause if desired for clarity.
(a) Provisions.
____ 552.237-70 Qualifications of Offerors
(b) Clauses.
____ 552.203-71 Restriction on Advertising
____ 552.211-73 Marking
____ 552.2215-70 Examination of Records by GSA
____ 552.215-71 Examination of Records by GSA (Multiple Award
Schedule)
____ 552.215-72 Price Adjustment--Failure to Provide Accurate
Information
____ 552.219-70 Allocation of Orders--Partially Set-Aside Items
____ 552.228-70 Workers' Compensation Laws
____ 552.229-70 Federal, State, and Local Taxes
____ 552.232-8 Discounts for Prompt Payment
____ 552.232-23 Assignment of Claims
____ 552.232-71 Adjusting Payments
____ 552.232-72 Final Payment
____ 552.232-73 Availability of Funds
____ 552.237-71 Qualifications of Employees
____ 552.238-71 Submission and Distribution of Authorized FSS
Schedule Price List
____ 552.238-74 Contractor's Report of Sales
____ 552.238-75 Price Reductions
____ 552.242-70 Status Report of Orders and Shipments
____ 552.243-72 Modifications (Multiple Award Schedule)
____ 552.246-73 Warranty--Multiple Award Schedule
____ 552.246-76 Warranty of Pesticides
(End of clause)
552.212-72 Contract Terms and Conditions Required To Implement
Statutes or Executive Orders Applicable to GSA Acquisition of
Commercial Items.
As prescribed in 512.301(a)(3), insert the following clause:
Contract Terms and Conditions Required To Implement Statutes or
Executive Orders Applicable to GSA Acquisition of Commercial Items (Sep
1999)
The Contractor agrees to comply with any provision or clause
that is incorporated herein by reference to implement provisions of
law or Executive Orders applicable to acquisition of commercial
items or components. The provision or clause in effect based on the
applicable regulation cited on the date the solicitation is issued
applies unless otherwise stated herein. The following provisions and
clauses are incorporated by reference:
[The contracting officer should either check the provisions and
clauses that apply or delete the provisions and clauses that do not
apply from the list. The contracting officer may add the date of the
provision or clause if desired for clarity.]
(a) Provisions.
____ 552.223-72 Hazardous Material Information
____ 552.225-8 Buy American Act--Trade Agreements--Balance of
Payments Program Certificate
(b) Clauses.
____ 552.223-70 Hazardous Substances
____ 552.223-71 Nonconforming Hazardous Material
____ 552.225-9 Buy American Act--Trade Agreements--Balance of
Payments Program
____ 552.238-70 Identification of Electronic Office Equipment
Providing Accessibility for the Handicapped
____ 552.238-72 Identification of Energy-Efficient Office Equipment
and Supplies Containing Recovered Materials or Other Environmental
Attributes
____ 552.238-76 Industrial Funding Fee
(End of clause)
552.212-73 Evaluation--Commercial Items (Multiple Award Schedule).
As prescribed in 512.301(a)(4), insert the following provision:
Evaluation--Commercial Items (Multiple Award Schedule) (Aug 1997)
(a) The Government may make multiple awards for the supplies or
services offered in response to this solicitation that meet the
definition of a ``commercial item'' in FAR 52.202-1. Awards may be
made to those responsible offerors that offer reasonable pricing,
conforming to the solicitation, and will be most advantageous to the
[[Page 37236]]
Government, taking into consideration the multiplicity and
complexity of items of various manufacturers and the differences in
performance required to accomplish or produce required end results,
production and distribution facilities, price, compliance with
delivery requirements, and other pertinent factors. By providing a
selection of comparable supplies or services, ordering activities
are afforded the opportunity to fulfill their requirements with the
item(s) that constitute the best value and that meet their needs at
the lowest overall cost.
(b) A written notice of award or acceptance of an offer, mailed
or otherwise furnished to the offeror within the time for acceptance
specified in the offer, shall result in a binding contract without
further action by either party. Before the offer's specified
expiration time, the Government may accept an offer (or part of an
offer), whether or not there are negotiations after its receipt,
unless a written notice of withdrawal is received before award.
(End of provision)
Alternate I (AUG 1997). When anticipating competition of
identical items, add the following paragraph after paragraph (b) of
the basic provision.
(c) The Government reserves the right to award only one contract
for all or a part of a manufacturer's product line. When two or more
offerors (e.g., dealers/resellers) offer the identical product,
award may be made competitively to only one offeror on the basis of
the lowest price. (Discounts for early payment will not be
considered as an evaluation factor in determining the low offeror).
During initial open season for an option period, any offers that are
equal to or lower than the current contract price received for
identical items will be considered. Current contractors will also be
allowed to submit offers for identical items during this initial
open season. The current contractor which has the identical item on
contract will be included in the evaluation process. The Government
will evaluate all offers and may award only one contract for each
specified product or aggregate group.
552.214-70 ``All or None'' Offers.
As prescribed in 514.201-6, insert the following provision:
``All or None'' Offers (Sep 1999)
(a) Unless awards in the aggregate are specifically precluded in
this solicitation, the Government reserves the right to evaluate
offers and make awards on all ``all or none'' basis as provided
below.
(b) An offer submitted on an ``all or none'' or similar basis
will be evaluated as follows: The lowest acceptable offer exclusive
of the ``all or none'' offer will be selected with respect to each
item (or group of items when the solicitation provides for aggregate
awards) and the total cost of all items thus determined shall be
compared with the total of the lowest acceptable ``all or none''
offer. Award will be made to result in the lowest total cost to the
Government.
(End of provision)
Alternate I (SEP 1999). For a requirements or indefinite
quantity contract, the following paragraph (b) shall be substituted
in the basic provision:
(b) An offer submitted on an ``all or none'' or similar basis
will not be considered unless the offer is low on each item to which
the ``all or none'' offer is made applicable. The term ``each item''
as used in this provision refers either to an item that under the
terms of the solicitation may be independently awarded, or to a
group of items on which an award is to be made in the aggregate.
552.214-71 Progressive Awards and Monthly Quantity Allocations.
As prescribed in 514.201-7(a), insert the following clause:
Progressive Awards and Monthly Quantity Allocations (Sep 1999)
(a) Monthly quantity allocation.
(1) Set forth below are the Government's estimated annual and
monthly requirements for each stock item covered by this
solicitation. Offerors shall indicate, in the spaces provided, the
monthly quantity which they are willing to furnish of any item or
group of items involving the use of the same production facilities.
In making monthly allocations, offerors are urged to group as many
items as possible. Such groupings will make it possible for the
Government to make fullest use of the production capabilities of
each offeror.
(2) Offerors need not limit their monthly allocations to the
Government's estimated monthly requirements, since additional
unanticipated needs may occur during the period of the contract. If
an offeror does not insert monthly allocation quantities, it will be
deemed to offer to furnish all of the Government's requirements,
even though they may exceed the stated estimated requirements.
------------------------------------------------------------------------
Estimated annual Estimated monthly
National stock number requirements requirements
------------------------------------------------------------------------
------------------------------------------------------------------------
Bidders Monthly Quantity Allocations
------------------------------------------------------------------------
Monthly
Items or groups of items allocation
quantity
------------------------------------------------------------------------
------------------------------------------------------------------------
(b) Progressive awards. If the low responsive offeror's monthly
quantity allocation is less than the Government's estimated
requirements, the Government may make progressive awards beginning
with the low responsive offeror and including each next low
responsive offeror to the extent necessary to meet the estimated
requirements.
(c) Ordering procedures. If progressive awards are made, orders
will be placed first with the Contractor offering the lowest price
on each item normally up to that Contractor's maximum quantity
allocation and then, in the same manner, successively to other
Contractors. When cumulative orders during any month, placed with a
lower priced Contractor, equal or exceed 95 percent of its monthly
quantity allocation, to avoid the placement of unduly small orders
or the splitting of a subsequent order, the Government reserves the
right to award the full quantity of the subsequent order to the next
lower priced Contractor. In no case will orders be placed with any
Contractor in excess of its monthly quantity allocation.
(End of clause)
552.214-72 Bid Sample Requirements.
As prescribed in 514.202-4(a)(3), insert the following provision:
Bid Sample Requirements (Sep 1999)
This provision supplements FAR 52.214-20, which is incorporated
by reference. Samples shall be from the production of the
manufacturer whose products will be supplied under resultant
contracts.
(a) Two bid samples are required for each of the following items
in this solicitation:
----------------------------------------------------------------------
(b) Two representative samples shall be submitted for each of
the following items upon which a bid is submitted:
[[Page 37237]]
------------------------------------------------------------------------
Items Acceptable representative samples
------------------------------------------------------------------------
------------------------------------------------------------------------
Note:
(1) Bidders {time} are or {time} are not authorized to re-
apply samples being retained by GSA in connection with previous
solicitations and/or resultant contracts. When the block ``are'' is
marked by the government, FAR 52.214-20, Alternate II, shall apply.
(2) Bidders who propose to furnish an item or group of items
from more than one manufacturer or production point must submit two
samples from the production of each manufacturer or production
point.
(c) Samples will be evaluated to determine compliance with all
characteristics listed below:
------------------------------------------------------------------------
Subjective characteristics Objective characteristics
------------------------------------------------------------------------
------------------------------------------------------------------------
(d) Forward samples addressed to the Sample Room indicated
below. Except for samples delivered by U.S. Mail, deliveries will be
accepted between the hours of ____________________ Mondays through
Fridays, official holidays excluded.
Caution: Use proper address for method of shipment selected.
Mail and Parcel Post
(Insert Address of Bid Sample Room)
Freight or Express
(Insert address of Bid Sample Room)
(End of provision)
552.215-70 Examination of Records by GSA.
As prescribed in 514.201-7(b) and 515.209-70(a) insert the
following clause:
Examination of Records by GSA (Feb 1996)
The Contractor agrees that the Administrator of General Services
or any duly authorized representatives shall, until the expiration
of 3 years after final payment under this contract, or of the time
periods for the particular records specified in Subpart 4.7 of the
Federal Acquisition Regulation (48 CFR 4.7), whichever expires
earlier, have access to and the right to examine any books,
documents, papers, and records of the Contractor involving
transactions related to this contract or compliance with any clauses
thereunder. The Contractor further agrees to include in all its
subcontracts hereunder a provision to the effect that the
subcontractor agrees that the Administrator of General Services or
any authorized representatives shall, until the expiration of 3
years after final payment under the subcontract, or of the time
periods for the particular records specified in Subpart 4.7 of the
Federal Acquisition Regulation (48 CFR 4.7), whichever expires
earlier, have access to and the right to examine any books,
documents, papers, and records of such subcontractor involving
transactions related to the subcontract or compliance with any
clauses thereunder. The term ``subcontract'' as used in this clause
excludes (a) purchase orders not exceeding $100,000 and (b)
subcontracts or purchase orders for public utility services at rates
established for uniform applicability to the general public.
(End of clause)
552.215-71 Examination of Records by GSA (Multiple Award Schedule).
As prescribed in 515.209-70(c), insert the following clause:
Examination of Records by GSA (Multiple Award Schedule) (Aug 1997)
The Contractor agrees that the Administrator of General Services
or any duly authorized representative shall have access to and the
right to examine any books, documents, papers and records of the
contractor involving transactions related to this contract for
overbillings, billing errors, compliance with the Price Reduction
clause and compliance with the Industrial Funding Fee clause of this
contract. This authority shall expire 3 years after final payment.
The basic contract and each option shall be treated as separate
contracts for purposes of applying this clause.
(End of clause)
552.215-72 Price Adjustment--Failure to Provide Accurate Information.
As prescribed in 515.408(d), insert the following clause:
Price Adjustment--Failure To Provide Accurate Information (Aug 1997)
(a) The Government, at its election, may reduce the price of
this contract or contract modification if the Contracting Officer
determines after award of this contract or contract modification
that the price negotiated was increased by a significant amount
because the Contractor failed to:
(1) Provide information required by this solicitation/contract
or otherwise requested by the Government; or
(2) Submit information that was current, accurate, and complete;
or
(3) Disclose changes in the Contractor's commercial
pricelist(s), discounts or discounting policies which occurred after
the original submission and prior to the completion of negotiations.
(b) The Government will consider information submitted to be
current, accurate and complete if the data is current, accurate and
complete as of 14 calendar days prior to the date it is submitted.
(c) If any reduction in the contract price under this clause
reduces the price for items for which payment was made prior to the
date of the modification reflecting the price reduction, the
Contractor shall be liable to and shall pay the United States--
(1) The amount of the overpayment; and
(2) Simple interest on the amount of such overpayment to be
computed from the date(s) of overpayment to the Contractor to the
date the Government is repaid by the Contractor at the applicable
underpayment rate effective each quarter prescribed by the Secretary
of Treasury under 26 U.S.C. 6621(a)(2).
(d) Failure to agree on the amount of the decrease shall be
resolved as a dispute.
(e) In addition to the remedy in paragraph (a) of this clause,
the Government may terminate this contract for default. The rights
and remedies of the Government specified herein are not exclusive,
and are in addition to any other rights and remedies provided by law
or under this contract.
(End of Clause)
552.216-70 Economic Price Adjustment--FSS Multiple Award Schedule
Contracts.
As prescribed in 516.203-4(a), insert the following clause:
Economic Price Adjustment--FSS Multiple Award Schedule Contracts (Sep
1999)
Price adjustments include price increases and price decreases.
Adjustments will be considered as follows:
(a) Contractors shall submit price decreases anytime during the
contract period in which they occur. Price decreases will be handled
in accordance with the provisions of the Price Reduction Clause.
(b) Contractors may request price increases under the following
conditions:
(1) Increases resulting from a reissue or other modification of
the Contractor's commercial catalog/pricelist that was used as the
basis for the contract award.
(2) Only three increases will be considered during the contract
period.
(3) Increases are requested after the first 30 days of the
contract period and prior to the last 60 days of the contract
period.
(4) At least 30 days elapse between requested increases.
(c) The aggregate of the increases in any contract unit price
under this clause shall not exceed ______* percent of the original
contract unit price. The Government reserves the right to raise this
ceiling where changes in market conditions during the contract
period support an increase.
*Insert the percent appropriate at the time the solicitation is
issued. This percentage should normally be 10 percent, unless based
on a trend established by an appropriate index such as the Producer
Prices and Price Index during the most recent 6-month period
indicates that a different percentage is more appropriate. Any
ceiling other than 10 percent must be approved by the contracting
director.
(d) The following material shall be submitted with the request
for a price increase:
(1) A copy of the commercial catalog/pricelist showing the price
increase and the effective date for commercial customers.
[[Page 37238]]
(2) Commercial Sales Practice format regarding the Contractor's
commercial pricing practice relating to the reissued or modified
catalog/price-list, or a certification that no change has occurred
in the data since completion of the initial negotiation or a
subsequent submission.
(3) Documentation supporting the reasonableness of the price
increase.
(e) The Government reserves the right to exercise one of the
following options:
(1) Accept the Contractor's price increases as requested when
all conditions of (b), (c), and (d) of this clause are satisfied;
(2) Negotiate more favorable discounts from the new commercial
prices when the total increase requested is not supported; or,
(3) Remove the product(s) from contract involved pursuant to the
Cancellation Clause of this contract, when the increase requested is
not supported.
(f) The contract modification reflecting the price adjustment
shall be signed by the Government and made effective upon receipt of
notification from the Contractor that the new catalog/pricelist has
been mailed to the addresses previously furnished by the Contracting
Officer, provided that in no event shall such price adjustment be
effective prior to the effective date of the commercial price
increases. The increased contract prices shall apply to delivery
orders issued to the Contractor on or after the effective date of
the contract modification.
(End of clause)
* Insert the percent appropriate at the time the solicitation is
issued. This percentage should normally be 10 percent, unless based
on a trend established by an appropriate index such as the Producer
Prices and Price Index during the most recent 6-month period
indicates that a different percentage is more appropriate. Any
ceiling other than 10 percent must be approved by the contracting
director.
Alternate I (SEP 1999). The following is substituted for
paragraphs (b) and (c) of the clause:
(b) Contractors may request price increases to be effective on
or after the first 12 months of the contract period providing all of
the following conditions are met:
(1) Increases resulting from a reissue or other modification of
the Contractor's commercial catalog/pricelist that was used as the
basis for the contract award.
(2) No more than three increases will be considered during each
succeeding 12-month period of the contract. (For succeeding contract
periods of less than 12 months, up to three increases will be
considered subject to the other conditions of this subparagraph
(b)).
(3) Increases are requested before the last 60 days of the
contract period.
(4) At least 30 days elapse between requested increases.
(c) In any contract period during which price increases will be
considered, the aggregate of the increases during any 12-month
period shall not exceed *________ percent of the contract unit price
in effect at the end of the preceding 12-month period. The
Government reserves the right to raise the ceiling when market
conditions during the contract period support such a change.
* Insert the percentage appropriate at the time the solicitation
is issued. This percentage should be determined based on the trend
established by an appropriate index such as the Producer Prices and
Price Index. A ceiling of more than 10 percent must be approved by
the Contracting Director.
552.216-71 Economic Price Adjustment--Stock and Special Order Program
Contracts.
As prescribed in 516.203-4(b), insert the following clause:
Economic Price Adjustment-Stock and Special Order Program Contracts
(Sep 1999)
(a) ``Producer Price Index'' (PPI), as used in this clause,
means the originally released index, not seasonally adjusted,
published by the Bureau of Labor Statistics, U.S. Department of
Labor (Labor) for product code ________ found under Table ________.
(b) During the term of the contract, the award price may be
adjusted once upward or downward a maximum of *________ percent. Any
price adjustment for the product code shall be based upon the
percentage change in the PPI released in the month prior to the
initial month of the contract period specified in the solicitation
for sealed bidding or the month prior to award in negotiation (the
base index) and the PPI released 12 months later (the updated
index). The formula for determining the Adjusted Contract Price
(ACP) applicable to shipments for the balance of the contract period
is-
[GRAPHIC] [TIFF OMITTED] TR09JY99.000
(c) If the PPI is not available for the month of the base index
or the updated index, the month with the most recently published PPI
prior to the month determining the base index or updated index shall
be used.
(d) If a product code is discontinued, the Government and the
Contractor will mutually agree to substitute a similar product code.
If Labor designates an index with a new title and/or code number as
continuous with the product code specified above, the new index
shall be used.
(e) Unless the Contractor's written request for a price
adjustment resulting from the application of the formula in (b)
above is received by the Contracting Officer within 30 calendar days
of the release of the updated index, the Contractor shall have
waived its right to an upward price adjustment for the balance of
the contract. Alternatively, the Contracting Officer will
unilaterally adjust the award price downward when appropriate using
the updated index defined in (b) above.
(f) Price adjustments shall be effective upon execution of a
contract modification by the Government or on the 31st day following
the release of the updated index, whichever is later, shall indicate
the updated index and percent of change as well as the ACP, and
shall not apply to delivery orders issued before the effective date.
(End of clause)
Alternate I (SEP 1999). As prescribed in 516.203-4(b) (1) and
(2), substitute the following paragraphs (b), (e) and (f) for
paragraphs (b), (e) and (f) of the basic clause:
(b) In any option period, the contract price may be adjusted
upward or downward a maximum of *________ percent.
(1) For the first option period, any price adjustment for the
product code shall be based upon the percentage change in the PPI
released in the month prior to the initial month of the contract
period specified in the solicitation for sealed bidding or the month
prior to award in negotiation (the base index) and the PPI released
in the third month before completion of the initial contract period
stated in the solicitation (the updated index). This initial
contract period may be less than 12 months. The formula for
determining the Adjusted Contract Price (ACP) applicable to
shipments during the first option period is--
[GRAPHIC] [TIFF OMITTED] TR09JY99.001
(2) For any subsequent option period, the price adjustment shall
be the percentage change between the previously updated index (the
new base index) and the PPI released 12 months later (the most
recent updated index). This percentage shall be applied to the
Current Contract Price (CCP). The formula for determining the ACP
applicable to shipments for the subsequent option period(s) is--
[GRAPHIC] [TIFF OMITTED] TR09JY99.002
(e) Unless the Contractor's written request for a price
adjustment resulting from the application of the formulas in (b) (1)
or (2) above is received by the Contracting Officer within 30
calendar days of the date of the Government's preliminary written
notice of its intent to exercise the option, the Contractors shall
have waived its right to an upward price adjustment for that option
period. Alternatively, the Contracting Officer in its written notice
shall exercise the option at the CCP or at a reduced price when
appropriate using the formulas in (b) (1) or (2) above.
(f) Price adjustments shall be effected by execution of a
contract modification by the Government indicating the most recent
updated index and percent of change and shall apply to delivery
orders placed on or after the first day of the option period.
[[Page 37239]]
Alternate II (SEP 1999). As prescribed in 516.203-4(b)(2), add
the following paragraph (g) to the basic clause.
(g) No price adjustment will be made unless the percentage in
the PPI is at least **____ percent.
*The appropriate percentage should be determined based upon the
historical trend in the PPI for the product code. A ceiling of more
than 10 percent must be approved by the Contracting Director.
**The Contracting Officer should insert a lower percent than the
maximum percentage stated in paragraph (b) of the clause.
552.216-72 Placement of Orders.
As prescribed in 516.506, inset the following clause:
Placement of Orders (Sep 1999)
(a) Delivery orders (orders) will be placed by:
[Contracting Officer insert names of Federal agencies]
(b) Orders may be placed through Electronic Data Interchange
(EDI) or mailed in paper form. EDI orders shall be placed using the
American National Standards Institute (ANSI) X12 Standard for
Electronic Data Interchange (EDI) format.
(c) If the Contractor agrees, GSA's Federal Supply Service (FSS)
will place all orders by EDI using computer-to-computer EDI. If
computer-to-computer EDI is not possible, FSS will use an
alternative EDI method allowing the Contractor to receive orders by
facsimile transmission. Subject to the Contractor's agreement, other
agencies may place orders by EDI.
(d) When computer-to-computer EDI procedures will be used to
place orders, the Contractor shall enter into one or more Trading
Partner Agreements (TPA) with each Federal agency placing orders
electronically in order to ensure mutual understanding by the
parties of certain electronic transaction conventions and to
recognize the rights and responsibilities of the parties as they
apply to this method of placing orders. The TPA must identify, among
other things, the third party provider(s) through which electronic
orders are placed, the transaction sets used, security procedures,
and guidelines for implementation. Federal agencies may obtain a
sample format to customize as needed from the office specified in
(g) below.
(e) The Contractor shall be responsible for providing its own
hardware and software necessary to transmit and receive data
electronically. Additionally, each party to the TPA shall be
responsible for the costs associated with its use of third party
provider services.
(f) Nothing in the TPA will invalidate any part of this contract
between the Contractor and the General Services Administration. All
terms and conditions of this contract that otherwise would be
applicable to a mailed order shall apply to the electronic order.
(g) The basic content and format of the TPA will be provided by:
General Services Administration, Acquisition Operations and
Electronic Commerce Center (FCS), Washington, DC 20406
Telephone: [Contracting officer insert appropriate telephone
numbers]
FAX:
(End of clause)
Alternate I (SEP 1999). As prescribed in 516.506, substitute the
following paragraphs (a), (b), (c), and (d) for paragraphs (a), (b),
(c), and (d) of the basic clause:
(a) All delivery orders (orders) under this contract will be
placed by the General Services Administration's Federal Supply
Service (FSS). The Contractor is not authorized to accept orders
from any other agency. Violation of this restriction may result in
termination of the contract pursuant to the default clause of this
contract.
(b) All orders shall be placed by Electronic Data Interchange
(EDI) using the American National Standards Institute (ANSI) X12
Standard for Electronic Data Interchange (EDI) format.
(c) If the Contractor agrees, transmission will be computer-to-
computer EDI. If computer-to-computer EDI is not possible, FSS will
use an alternative EDI method allowing the Contractor to receive
orders by facsimile transmission.
(d) When computer-to-computer EDI procedures will be used to
place orders, the Contractor shall enter into a Trading Partner
Agreement (TPA) with FSS in order to ensure mutual understanding by
the parties of certain electronic transaction conventions and to
recognize the rights and responsibilities of the parties as they
apply to this method of placing orders. The TPA must identify among
other things, the third party provider(s) through which electronic
orders are placed, the transaction sets used, security procedures,
and guidelines for implementation.
Alternate II (SEP 1999). As prescribed in 516.506(c), substitute
the following paragraph (a) for paragraph (a) of the basic clause:
(a) The organizations listed below may place orders under this
contract. Questions regarding organizations authorized to use this
schedule should be directed to the Contracting Officer.
(1) Executive agencies.
(2) Other Federal agencies.
(3) Mixed-ownership Government corporations.
(4) The District of Columbia.
(5) Government contractors authorized in writing by a Federal
agency pursuant to 48 CFR 51.1.
(6) Other activities and organizations authorized by statute or
regulation to use GSA as a source of supply.
552.216-73 Ordering Information.
As prescribed in 516.506(c), insert the following provision:
Ordering Information (Sep 1999)
(a) In accordance with the Placement of Orders clause of this
solicitation, the offeror elects to receive orders placed by GSA's
Federal Supply Service (FSS) by either {time} facsimile
transmission or {time} computer-to-computer Electronic Data
Interchange (EDI).
(b) An offeror electing to receive computer-to-computer EDI is
requested to indicate below the name, address, and telephone number
of the representative to be contacted regarding establishment of an
EDI interface.
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
(c) An offeror electing to receive orders by facsimile
transmission is requested to indicate below the telephone number(s)
for facsimile transmission equipment where orders should be
forwarded.
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
(d) For mailed orders, the offeror is requested to include the
postal mailing address(es) where paper form orders should be mailed.
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
(End of provision)
Alternate I (SEP 1999). As prescribed in 516.506(b), delete
paragraph (d) of the basic provision.
Alternate II (SEP 1999). As prescribed in 516.506(b), add
paragraph (e) to the basic provision.
(e) Offerors marketing through dealers are requested to indicate
below whether those dealers will be participating in the proposed
contract.
Yes ( ) No ( )
If ``yes'' is checked, ordering information to be inserted above
shall reflect that in addition to offeror's name, address, and
facsimile transmission telephone number, orders can be addressed to
the offeror's name, c/o nearest local dealer. In this event, two
copies of a list of participating dealers shall accompany this
offer, and shall also be included in Contractor's Federal Supply
Schedule pricelist.
552.217-70 Evaluation of Options.
As prescribed in 517.208(a), insert the following provision:
Evaluation of Options (Aug 1990)
(a) The Government will evaluate offers for award purposes by
determining the lowest base period price. When option year pricing
is based on a formula (e.g., changes in the Producer Price Index or
other common standard); option year pricing is automatically'
considered when evaluating the base year price, as any change in
price will be uniformly related to changes in market conditions. All
options are therefore considered to be evaluated. Evaluation of
options will not obligate the Government to exercise the option(s).
(b) The Government will reject the offer if exceptions are taken
to the price provisions of the Economic Price Adjustment clause,
unless the exception results in a lower maximum option year price.
Such offers will be evaluated without regard to the lower option
year(s) maximum. However, if the offeror offering a lower maximum is
awarded a contract, the award will reflect the lower maximum.
552.217-71 Notice Regarding Option(s).
As prescribed in 517.208(b), insert the following provision:
[[Page 37240]]
Notice Regarding Option(s) (Nov 1992)
The General Services Administration (GSA) has included an option
to [Insert ``purchase additional quantities of supplies or
services'' or ``extend the term of this contract'' or ``purchase
additional quantities of supplies or services and to extend the term
of this contract''] in order to demonstrate the value it places on
quality performance by providing a mechanism for continuing a
contractual relationship with a successful Offeror that performs at
a level which meets or exceeds GSA's quality performance
expectations as communicated to the Contractor, in writing, by the
Contracting Officer or designated representative. When deciding
whether to exercise the option, the Contracting Officer will
consider the quality of the Contractor's past performance under this
contract in accordance with 48 CFR 517.207.
(End of provision)
552.219-70 Allocation of Orders--Partially Set-aside Items.
As prescribed in 519.508, insert the following clause:
Allocation of Orders--Partially Set-Aside Items (Sep 1999)
Where the set-aside portion of an item or group of items is
awarded to a Contractor other than the one receiving the award on
the corresponding non-set-aside portion, the Government will divide
the requirements to be ordered between the two Contractors with the
objective of achieving, as nearly as possible, a 50/50 division of
the total value of orders placed after the award of the set-aside
portion. In no case will this division vary by more than a 60/40
division (with either the non-set-aside or set-aside Contractor
receiving the larger portion) from the time of the award of the set-
aside portion.
(End of clause)
552.219-71 Notice to Offerors of Subcontracting Plan Requirements.
As prescribed in 519.708, insert the following provision:
Notice to Offerors of Subcontracting Plan Requirements (Sep 1999)
The General Services Administration (GSA) is committed to
assuring that maximum practicable opportunity is provided to small,
HUBZone small, small disadvantaged, and women-owned small business
concerns to participate in the performance of this contract
consistent with its efficient performance. GSA expects any
subcontracting plan submitted pursuant to FAR 52.219-9, Small
Business Subcontracting Plan, to reflect this commitment.
Consequently, an offeror, other than a small business concern,
before being awarded a contract exceeding $500,000 ($1,000,000 for
construction), must demonstrate that its subcontracting plan
represents a creative and innovative program for involving small,
HUBZone small, small disadvantaged, and women-owned small business
concerns as subcontractors in the performance of this contract.
(End of provision)
552.219-72 Preparation, Submission, and negotiation of Subcontracting
Plans.
As prescribed in 519.708(b), insert the following provision:
Preparation, Submission, and Negotiation of Subcontracting Plans (Sep
1999)
(a) An offeror, other than a small business concern, submitting
an offer that exceeds $500,000 ($1,000,000 for construction) shall
submit a subcontracting plan with its initial offer. The
subcontracting plan will be negotiated concurrently with price and
any required technical and management proposals, unless the offeror
submits a previously-approved commercial products plan.
(b) Maximum practicable utilization of small, HUBZone small,
small disadvantaged, and women-owned small business concerns as
subcontractors is a matter of national interest with both social and
economic benefits. The General Services Administration (GSA) expects
that an offeror's subcontracting plan will reflect a commitment to
assuring that small, HUBZone small, small disadvantaged, and women-
owned small business concerns are provided the maximum practicable
opportunity, consistent with efficient contract performance, to
participate as subcontractors in the performance of the resulting
contract. An offeror submitting a commercial products plan can
reflect this commitment through subcontracting opportunities it
provides that relate to the offeror's production generally; i.e.,
for both its commercial and Government business.
(c) GSA believes that this potential contract provides
significant opportunities for the use of small, HUBZone small, small
disadvantaged, and women-owned small business concerns as
subcontractors. Consequently, in addressing the eleven elements
described at FAR 52.219-9(d) of the clause in this contract entitled
Small Business Subcontracting Plan, the offeror shall:
(1) Demonstrate that its subcontracting plan represents a
creative and innovative program for involving small, HUBZone small,
small disadvantaged, and women-owned small business concerns in
performing the contract.
(2) Include a description of the offeror's subcontracting
strategies used in any previous contracts, significant achievements,
and how this plan will build upon those earlier achievements.
(3) Demonstrate through its plan that it understands the small
business subcontracting program's objectives and GSA's expectations,
and it is committed to taking those actions necessary to meet these
goals or objectives.
(d) In determining the acceptability of any subcontracting plan,
the Contracting Officer will take each of the following actions:
(1) Review the plan to verify that the offeror demonstrates an
understanding of the small business subcontracting program's
objectives and GSA's expectations with respect to the program and
has included all the information, goals, and assurances required by
FAR 52.219-9.
(2) Consider previous goals and achievements of contractors in
the small industry.
(3) Consider information and potential sources obtained from
agencies administering national and local preference programs and
other advocacy groups in evaluating whether the goals stated in the
plan adequately reflect the anticipated potential for subcontracting
to small, HUBZone small, small disadvantaged, and women-owned small
business concerns.
(4) Review the offeror's description of its strategies,
historical performance and significant achievements in placing
subcontracts for the same or similar products or services with
small, HUBZone small, small disadvantaged, and women-owned small
business concerns. The offeror's description can apply to commercial
as well as previous Government contracts.
(e) Failure to submit an acceptable subcontracting plan and/or
correct deficiencies in a plan within the time specified by the
Contracting Officer shall make the offeror ineligible for award.
(End of provision)
552.219-73 Goals for Subcontracting Plan.
As prescribed in 519.708(c), insert the following provision:
Goals for Subcontracting Plan (Sep 1999)
(a) Maximum practicable utilization of small, HUBZone small,
small disadvantaged, and women-owned small business concerns as
subcontractors is a matter of national interest with both social and
economic benefits.
(1) The General Service Administration's (GSA's) commitment to
ensuring that maximum practicable opportunity is provided to small,
HUBZone small, small disdvantaged, and women-owned small business
concerns to participate as subcontractors in the performance of this
contract, consistent with its efficient performance, must be
reflected in the offeror's subcontracting plan submitted pursuant to
the clause of this contract at FAR 52.219-9, Small Business
Subcontracting Plan.
(2) In addressing the eleven elements described at FAR 52.219-
9(d), the offeror shall demonstrate that its subcontracting plan
represents a creative and innovative program for involving small,
HUBZone small, small disadvantaged, and women-owned small business
concerns in performing this contract. An offeror submitting a
commercial products plan can demonstrate its commitment in providing
maximum practicable opportunities through subcontracting
opportunities it provides to small, HUBZone small, small
disadvantaged, and women-owned small business concerns that relate
to the offeror's production generally; i.e., for both its commercial
and Government business.
(3) The subcontracting plan shall include a description of the
offeror's subcontracting strategies used in previous contracts and
significant achievements, with an explanation of how this plan will
build upon those earlier achievements. Additionally, the offeror
shall demonstrate through its plan
[[Page 37241]]
that it understands the small business subcontracting program's
objectives, GSA's expectations, and is committed to taking those
actions necessary to meet these goals or objectives.
(b) GSA believes that this contract provides significant
opportunities for the use of small, HUBZone small, small
disadvantaged, and women-owned small business concerns as
subcontractors. Accordingly, it is anticipated that an acceptable
subcontracting plan will contain at least the following goals:
Small Business........................... ______ percent.
HUBZone Small Business................... ______ percent.
Small Disadvantaged Business............. ______ percent.
Women-Owned Small Business............... ______ percent.
Note: Target goals are expressed as a percentage of planned
subcontracting dollars.
(c) In determining the acceptability of any subcontracting plan,
the Contracting Officer will--
(1) Review the plan to verify that the offeror has demonstrated
an understanding of the small business subcontracting program's
objectives and GSA's expectations with respect to the programs and
has included all the information, goals, and assurances required by
FAR 52.219-9;
(2) Consider previous goals and achievements of contractors in
the same industry;
(3) Consider information and potential sources obtained from
agencies administering national and local preference programs and
other advocacy groups in evaluating whether the goals stated in the
plan adequately reflect the anticipated potential for subcontracting
to small, HUBZone small, small disadvantaged, and women-owned small
business concerns; and
(4) Review the offeror's description of its strategies,
historical performance and significant achievements in placing
subcontracts for the same or similar products or services with
small, HUBZone small, small disadvantaged, and women-owned small
business concerns. The offeror's description can apply to commercial
as well as previous Government contracts.
(d) Failure to submit an acceptable subcontracting plan and/or
correct deficiencies in a plan within the time specified by the
Contracting Officer shall make the offeror ineligible for award.
(End of provision)
Alternate I (SEP 1999). As prescribed in 519.708(c)(2), delete
paragraph (b) of the basic provision and redesignate paragraphs (c)
and (d) as paragraphs (b) and (c).
552.219-74 Section 8(a) Direct Award.
As prescribed in 519.870-8, insert the following clause:
Section 8(a) Direct Award (Sep 1999)
(a) This contract is issued as a direct award between the
contracting activity and the 8(a) Contractor pursuant to the
Memorandum of Understanding between the Small Business
Administration (SBA) and the General Services Administration. SBA
retains the responsibility for 8(a) certifications, 8(a) eligibility
determinations, and related issues, and will provide counseling and
assistance to the 8(a) contractor under the 8(a) program. The
cognizant SBA district office is:
[Complete at time of award]
(b) The contracting activity is responsible for administering
the contract and taking any action on behalf of the Government under
the terms and conditions of the contract. However, the contracting
activity shall give advance notice to SBA before it issues a final
notice terminating performance, either in whole or in part, under
the contract. The contracting activity shall also coordinate with
SBA prior to processing any advance payments or novation agreements.
The contracting activity may assign contract administration
functions to a contract administration office.
(c) The Contractor agrees:
(1) To notify the Contracting Officer, simultaneous with its
notification to SBA (as required by SBA's 8(a) regulations), when
the owner or owners upon whom 8(a) eligibility is based plan to
relinquish ownership or control of the concern. Consistent with 15
U.S.C. 637(a)(21), transfer of ownership or control shall result in
termination of the contract for convenience, unless SBA waives the
requirement for termination prior to the actual relinquishing of
ownership and control.
(2) To the requirements of 52.219-14, Limitations on
Subcontracting.
(End of clause)
552.223-70 Hazardouis Substances.
As prescribed in 523.303(a), insert the following clause:
Hazardous Substances (May 1989)
(a) If the packaged items to be delivered under this contract
are of a hazardous substance and ordinarily are intended or
considered to be for use as a household item, this contract is
subject to the Federal Hazardous Materials Act, as amended (15
U.S.C. 1261-1276), implementing regulations thereof (16 CFR Chapter
II), and Federal Standard No. 123, Marking for Shipment (Civil
Agencies), issue in effect on the date of this solicitation.
(b) The packaged items to be delivered under this contract are
subject to the preparation of shipping documents, the preparation of
items for transportation, shipping container construction, package
making, package labeling, when required, shipper's certification of
compliance, and transport vehicle placarding in accordance with
Parts 171 through 178 of 49 CFR and the Hazardous Materials
Transportation Act.
(c) The minimum packaging acceptable for packaging Department of
Transportation regulated hazardous materials shall be those in 49
CFR 173.
(End of clause)
552.223-71 Nonconforming Hazardous Materials.
As prescribed in 523.303(b), insert the following clause:
Nonconforming Hazardous Materials (Sep 1999)
(a) Nonconforming supplies that contain hazardous material or
that may expose persons who handle or transport the supplies to
hazardous material and which require replacement under the
inspection and/or warranty clauses of this contract shall be
reshipped to the Contractor at the Contractor's expense. The
Contractor agrees to accept return of these nonconforming supplies
and to pay all costs occasioned by their return.
(b) ``Hazardous materials,'' as used in this clause, includes
any material defined as hazardous under the latest version of
Federal Standard No. 313 (including revisions adopted during the
term of the contract).
(c) If the Contractor fails to provide acceptable disposition
instructions for the nonconforming supplies within 10 days from the
date of the Government's request (or such longer period as may be
agreed to between the Contracting Officer and the Contractor), or
fails to accept return of the reshipped nonconforming supplies, such
failure:
(1) may be interpreted as a willful failure to perform,
(2) may result in termination of the contract for default and
(3) shall be considered by the Contracting Officer in
determining the responsibility of the Contractor for any future
award (see FAR 9.104-3(b) and 9.406-2).
(d) Pending final resolution of any dispute, the Contractor
shall promptly comply with the decision of the Contracting Officer.
(End of clause)
552.223-72 Hazardous Material Information.
As prescribed in 523.370, insert the following provision:
Hazardous Material Information (Sep 1999)
Offeror shall indicate for each national stock number (NSN) the
following information:
----------------------------------------------------------------------------------------------------------------
NSN DOT shipping name DOT hazard class DOT label required
----------------------------------------------------------------------------------------------------------------
Yes [ ] No [ ]
Yes [ ] No [ ]
Yes [ ] No [ ]
----------------------------------------------------------------------------------------------------------------
[[Page 37242]]
(End of provision)
552.225-8 Buy American Act--Trade Agreements--Balance of Payments
Program Certificate.
As prescribed in 525.408, insert the following provision:
Buy American Act--Trade Agreements--Balance of Payments Program
Certificate (Sep 1999) (Deviation FAR 52.225-8)
(a) The Offeror, by signing this offer, certifies that each end
product to be delivered under this contract is a U.S. made end
product, a designated country end product, a Caribbean Basin country
end product, a Canadian end product or a Mexican end product as
defined in the clause entitled ``Buy American Act--Trade
Agreements--Balance of Payments Program'' at 48 CFR 552.225-9.
(b) Offers will be evaluated in accordance with Subpart 25.4 of
the Federal Acquisition Regulation except that offers of U.S. made
end products, designated country end products, Caribbean Basin end
products, Canadian end products, or Mexican end products shall be
evaluated without the restrictions of the Buy American Act or the
Balance of Payments Program.
(End of provision)
552.225-9 Buy American Act--Trade Agreements--Balance of Payments
Program.
As prescribed in 525.408, insert the following clause.
Buy American Act--Trade Agreements--Balance of Payments Program (SEP
1999) (Deviation FAR 52.225-9)
(a) This clause implements the Trade Agreements Act of 1979 (19
U.S.C. 2501-2582) by providing a preference for U.S. made end
products, designated country end products, Caribbean Basin country
end products, Canadian end products or Mexican end products over
other products.
``Caribbean Basin country end products,'' as used in this
clause, means an article that: (1) is wholly the growth, product, or
manufacture of a Caribbean Basin country (as defined in section
25.401 of the Federal Acquisition Regulation (FAR)), or (2) in the
case of an article which consists in whole or in part of materials
from another country or instrumentality, has been substantially
transformed into a new and different article of commerce with a
name, character, or use distinct from that of the article or
articles from which it was so transformed. The term includes
services (except transportation services) incidental to its supply;
provided that the value of those incidental services does not exceed
that of the product itself. It does not include service contracts as
such. The term excludes products that are excluded from duty free
treatment from Caribbean countries under the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(b)). These exclusions
presently consist of (i) textiles and apparel articles that are
subject to textile agreements; (ii) footwear, handbags, luggage,
flat goods, work gloves, and leather wearing apparel not designated
as eligible articles for the purpose of the Generalized System of
Preference under title V of the Trade Act of 1974; (iii) tuna,
prepared or preserved in any manner in airtight containers, (iv)
petroleum, or any product derived from petroleum; and (v) watches
and watch parts (including cases, bracelets and straps) of whatever
type including, but not limited to, mechanical, quartz digital or
quartz analog, if such watches or watch parts contain any material
that is the product of any country to which the Tariff Schedule of
the United States (TSUS) column 2 rates of duty apply.
``Designated country end product,'' as used in this clause,
means an article that (1) is wholly the growth, product, or
manufacture of the designated country (as defined in section 25.401
of the Federal Acquisition Regulation (FAR)), or (2) in the case of
an article which consists in whole or in part of materials from
another country or instrumentality, has been substantially
transformed into a new and different article of commerce with a
name, character, or use distinct from that of the article or
articles from which it was so transformed. The term includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
that of the product itself. It does not include service contracts as
such.
``Canadian end product,'' as used in this clause, means an
article that (1) is wholly the growth, product, or manufacture of
Canada, or (2) in the case of an article which consists in whole or
in part of materials from another country or instrumentality, has
been substantially transformed in Canada into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was transformed. The
term includes services (except transportation services) incidental
to its supply; provided, that the value of those incidental services
does not exceed that of the product itself. It does not include
service contracts as such.
``Mexican end product,'' as used in this clause, means an
article that (1) is wholly the growth, product, or manufacture of
Mexico, or (2) in the case of an article which consists in whole or
in part of materials from another country or instrumentality, has
been substantially transformed in Mexico into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was so transformed.
The term includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed that of the product itself. It
does not include service contracts as such.
``End products,'' as used in this clause, means those articles,
materials, and supplies to be acquired under this contract for
public use.
``U.S. made end product,'' as used in this clause, means an
article which (1) is wholly the growth, product, or manufacture of
the United States, or (2) in the case of an article which consists
in whole or in part of materials from another country or
instrumentality, has been substantially transformed in the United
States into a new and different article of commerce with a name,
character, or use distinct from that of the article or articles from
which it was so transformed.
``Nondesignated country end products,'' as used in this clause,
means any end product which is not a U.S. made end product,
designated country end product, Caribbean Basin Country end product,
Canadian end product or Mexican end product.
``United States,'' as used in this clause, means the United
States, its possessions, Puerto Rico, and any other place which is
subject to its jurisdiction, but does not include leased bases or
trust territories.
(b) The Contractor agrees to deliver under this contract only
U.S. made end products, designated country end products, Caribbean
Basin country end products, Canadian end products or Mexican end
products or, if a national interest waiver is granted under section
302 of the Trade Agreements Act of 1979, nondesignated country end
products. Only if such waiver is granted may a nondesignated country
end product be delivered under the contract(s).
(c) Offers will be evaluated in accordance with the policies and
procedures of Part 25 of the FAR except that offers of U.S. made end
products, designated country end products, Caribbean Basin end
products, Canadian end products or Mexican end products shall be
evaluated without the restrictions of the Buy American Act or the
Balance of Payments Program.
(End of clause)
552.225-70 Notice of Procurement Restriction--Hand or Measuring Tools
or Stainless Steel Flatware.
As prescribed in 525.109, insert the following clause:
Notice of Procurement Restriction--Hand or Measuring Tools or Stainless
Steel Flatware (Sep 1999)
(a) Awards under this solicitation will only be made to offerors
that will furnish hand or measuring tools or stainless steel
flatware that are domestic end products. Pursuant to the
requirements of the current Department of Defense Appropriations
Act, GSA has determined, in accordance with Section 6-104.4 of the
Armed Services Procurement Regulation (6/15/70)(32 CFR 6-104.4),
that it is in the national interest to reject foreign products.
As used in this clause, a ``domestic end product'' is--
(1) Any hand or measuring tool, except for an electric or air-
motor driven hand tool, or stainless steel flatware, wholly produced
or manufactured, including all components, in the United States or
its possessions; or
(2) Any electric or air-motor driven hand tool if the cost of
its components produced or manufactured in the United States exceeds
75 percent of the cost of all its components.
(b) Tool kits or sets, being procured under this solicitation,
will not be considered domestic end products if any individual tool
classified in FSC Group 51 or 52 and included in a tool kit or set
is not a domestic end product as defined in paragraph (a) of this
clause. The restrictions of this clause do not apply to individual
hand or measuring tools that are contained in the tool kit or set
but are not classified in FSC Group 51 or 52.
[[Page 37243]]
(End of clause)
552.227-70 Government Rights (Unlimited).
As prescribed in 527.409, insert the following clause:
Government Rights (Unlimited) (May 1989)
The Government shall have unlimited rights in all drawings,
designs, specifications, notes and other works developed in the
performance of this contract, including the right to use same on any
other Government design or construction without additional
compensation to the Contractor. The Contractor hereby grants to the
Government a paid-up license throughout the world to all such works
to which he may assert or establish any claim under design patent or
copyright laws. The Contractor for a period of three years after
completion of the project agrees to furnish the original or copies
of all such works on the request of the Contracting Officer.
(End of clause)
552.227-71 Drawings and Other Data to Become Property of Government.
As prescribed in 527.409(b), substitute the following clause:
Drawings and Other Data to Become Property of Government (May 1989)
All designs, drawings, specifications, notes and other works
developed in the performance of this contract shall become the sole
property of the Government and may be used on any other design or
construction without additional compensation to the Contractor. The
Government shall be considered the ``person for whom the work was
prepared'' for the purpose of authorship in any copyrightable work
under Section 201(b) of Title 17, United States Code. With respect
thereto, the Contractor agrees not to assert or authorize others to
assert any rights nor establish any claim under the design patent or
copyright laws. The Contractor for a period of three years after
completion of the project agrees to furnish all retained works on
the request of the Contracting Officer. Unless otherwise provided in
this contract, the Contractor shall have the right to retain copies
of works beyond such period.
(End of clause)
552.228-70 Workers' Compensation Laws.
As prescribed in 528.310(a), insert the following clause:
Workers' Compensation Laws (Sep. 1999)
The Act of June 25, 1936, 49 Stat. 1938 (40 U.S.C. 290)
authorizes the constituted authority of the several States to apply
their workers' compensation laws to all lands and premises owned or
held by the United States.
(End of clause)
552.229-70 Federal, State, and Local Taxes.
As prescribed in 529.401-70, insert the following clause:
Federal, State, and Local Taxes (Apr 1984)
The contract price includes all applicable Federal, State, and
local taxes. No adjustment will be made to cover taxes which may
subsequently be imposed on this transaction or changes in the rates
of currently applicable taxes. However, the Government will, upon
the request of the Contractor, furnish evidence appropriate to
establish exemption from any tax from which the Government is exempt
and which was not included in the contract price.
(End of clause)
552.229-71 Federal Excise Tax--DC Government.
As prescribed in 529.401-71, insert the following clause:
Federal Excise Tax--DC Government (Sep 1999)
If the District of Columbia cites an Internal Revenue Tax Exempt
Certificate Number on orders placed under this contract, the
Contractor shall bill shipments to the District of Columbia at
prices exclusive of Federal excise tax and show the amount of such
tax on the invoice.
(End of clause)
552.232-1 Payments.
As prescribed in 532.7104, insert the following clause:
Payments (Apr 1984) (Deviation FAR 52.232-1)
(a) The Government shall pay the Contractor, without submission
of invoices or vouchers, 30 days after the service period, the
prices stipulated in this contract for supplies delivered and
accepted or services rendered and accepted, less any deductions
provided in this contract.
(b) Unless otherwise specified in this contract, the Government
will make payment on partial deliveries accepted by the Government
if either:
(1) The amount due on the deliveries warrants it.
(2) The Contractor requests it and the amount due on the
deliveries is at least $1,000 or 50 percent of the total contract
price.
(c) When processing payment, GSA's Finance Office will
automatically generate the 12 digit invoice number using the ACT
number assigned to the contract, followed by an abbreviated month
and year of service (e.g., 84261554JUN7, for June 1997). The ACT
number appears on the contract award document.
(End of clause)
552.232-8 Discounts for Prompt Payment.
As prescribed in 532.206, insert the following clause:
Discounts for Prompt Payment (Apr 1989) (Deviation FAR 52.232-8)
(a) Discounts for early payment (hereinafter referred to as
``discounts'' or ``the discount'') will be considered in evaluating
the relationship of the offeror's concessions to the Government vis-
a-vis the offeror's concessions to its commercial customers, but
only to the extent indicated in this clause.
(b) Discounts will not be considered to determine the low
offeror in the situation described in the ``Offers on Identical
Products'' provision of this solicitation.
(c) Uneconomical discounts will not be considered as meeting the
criteria for award established by the Government. In this
connection, a discount will be considered uneconomical if the
annualized rate of return for earning the discount is lower than the
``value of funds'' rate established by the Department of the
Treasury and published quarterly in the Federal Register. The
``value of funds'' rate applied will be the rate in effect on the
date specified for the receipt of offers.
(d) Agencies required to use the resultant schedule will not
apply the discount in determining the lowest delivered price
pursuant to the FPMR, 41 CFR 101-26.408, if the agency determines
that payment will probably not be made within the discount period
offered. The same is true if the discount is considered uneconomical
at the time of placement of the order.
(e) Discounts for early payment may be offered either in the
original offer or on individual invoices submitted under the
resulting contract. Discounts offered will be taken by the
Government if payment is made within the discount period specified.
(f) Discounts that are included in offers become a part of the
resulting contracts and are binding on the Contractor for all orders
placed under the contract. Discounts offered only on individual
invoices will be binding on the Contractor only for the particular
invoice on which the discount is offered.
(g) In connection with any discount offered for prompt payment,
time shall be computed from the date of the invoice. For the purpose
of computing the discount earned, payment shall be considered to
have been made on the date which appears on the payment check or the
date on which an electronic funds transfer was made.
(End of clause)
552.232-23 Assignment of Claims.
As prescribed in 532.806, insert the following clause:
Assignment of Claims (Sep 1999)
Because this is a requirements or indefinite quantity contract
under which more than one agency may place orders, paragraph (a) of
the Assignment of Claims clause (FAR 52.232-23) is inapplicable and
the following is substituted therefor:
In order to prevent confusion and delay in making payment, the
Contractor shall not assign any claim(s) for amounts due or to
become due under this contract. However, the Contractor is permitted
to assign separately to a bank, trust company, or other financial
institution, including any Federal lending agency, under the
provisions of the Assignment of Claims Act, as amended, 31 U.S.C.
3727, 41 U.S.C. 15 (hereinafter referred to as ``the Act''), all
amounts due or to become due under any order amounting to $1,000 or
more issued by any Government agency under this contract. Any such
assignment takes effect only if and when the assignee files written
notice of the assignment together with a true copy of the instrument
of assignment with the contracting officer issuing the order and the
[[Page 37244]]
finance office designated in the order to make payment. Unless
otherwise stated in the order, payments to an assignee of any
amounts due or to become due under any order assigned may, to the
extent specified in the Act, be subject to reduction or set-off.
(End of clause)
552.232-25 Prompt Payment.
As prescribed in 532.908(a)(2), insert the following clause:
Prompt Payment (Jul 1998) (Deviation FAR 52.232-25)
Notwithstanding any other payment clause in this contract, the
Government will make invoice payments and contract financing
payments under the terms and conditions specified in this clause.
Payment shall be considered as being made on the day a check is
dated or the date of an electronic funds transfer. Definitions of
pertinent terms are set forth in section 32.902 of the Federal
Acquisition Regulation. All days referred to in this clause are
calendar days, unless otherwise specified. (However, see
subparagraph (a)(4) of this clause concerning payments due on
Saturdays, Sundays, and legal holidays.)
(a) Invoice payments.
(1) The due date for making invoice payments by the designated
payment office is:
(i) For orders placed electronically by the General Services
Administration (GSA) Federal Supply Service (FSS), and to be paid by
GSA through electronic funds transfer (EFT), the later of the
following two events:
(A) The 10th day after the designated billing office receives a
proper invoice from the Contractor. If the designated billing office
fails to annotate the invoice with the date of receipt at the time
of receipt, the invoice payment due date shall be the 10th day after
the date of the Contractor's invoice; provided the Contractor
submitted a proper invoice and no disagreement exists over quantity,
quality, or Contractor compliance with contract requirements.
(B) The 10th day after Government acceptance of supplies
delivered or services performed by the Contractor.
(ii) For all other orders, the later of the following two
events:
(A) The 30th day after the designated billing office receives a
proper invoice from the Contractor. If the designated billing office
fails to annotate the invoice with the date of receipt at the time
of receipt, the invoice payment due date shall be the 30th day after
the date ofthe Contractor's invoice; provided the Contractor
submitted a proper invoice and no disagreement exists over quantity,
quality, or Contractor compliance with contract requirements.
(B) The 30th day after Government acceptance of supplies
delivered or services performed by the Contractor.
(iii) On a final invoice, if the payment amount is subject to
contract settlement actions, acceptance occurs on the effective date
of the contract settlement.
(2) The General Services Administration will issue payment on
the due date in (a)(1)(i) above if the Contractor complies with full
cycle electronic commerce. Full cycle electronic commerce includes
all the following elements:
(i) The Contractor must receive and fulfill electronic data
interchange (EDI) purchase orders (transaction set 850).
(ii) The Contractor must generate and submit to the Government
valid EDI invoices (transaction set 810) or submit invoices through
the GSA Finance Center Internet-based invoice process. Internet-
based invoices must be submitted using procedures provided by GSA.
(iii) The Contractor's financial institution must receive and
process, on behalf of the Contractor, EFT payments through the
Automated Clearing House (ACH) system.
(iv) The EDI transaction sets in (i) through (iii) above must
adhere to implementation conventions provided by GSA.
(3) If any of the conditions in(a)(2) above do not occur, the 10
day payment due dates in (a)(1) become 30 day payment due dates.
(4) Certain food products and other payments.
(i) Due dates on Contractor invoices for meat, meat food
products, or fish; perishable agricultural commodities; and dairy
products, edible fats or oils, and food products prepared from
edible fats or oils are--
(A) For meat or meat food products, as defined in section
2(a)(3) of the Packers and Stockyard Act of 1921 (7 U.S.C. 182 (3)),
and as further defined in Pub. L. 98-181, including any edible fresh
or frozen poultry meat, any perishable poultry meat food product,
fresh eggs, an any perishable egg product, as close as possible to,
but not later than, the 7th day after product delivery.
(B) For fresh or frozen fish, as defined in section 204(3) of
the Fish and Seafood Promotion Act of 1986 (16 U.S.C. 4003(3)), as
close as possible to, but not later than, the 7th day after product
delivery.
(C) For perishable agricultural commodities, as defined in
section 1(4) of the Perishable Agricultural Commodities Act of 1930
(7 U.S.C. 499a(4)), as close as possible to, but not later than, the
10th day after product delivery, unless another date is specified in
the contract.
(D) For daily products, as defined in section 111(e) of the
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502(e)),
edible fats or oils, and food products prepared from edible fats or
oils, as close as possible to, but not later than, the 10th day
after the date on which a proper invoice has been received. Liquid
milk, cheese, certain processed cheese products, butter, yogurt, ice
cream, mayonnaise, salad dressing, and other similar products, fall
within this classification. Nothing in the Act limits this
classification to refrigerated products. When questions arise
regarding the proper classification of a specific product,
prevailing industry practices will be followed in specifying a
contract payment due date. The burden of proof that a classification
of a specific product is, in fact, prevailing industry practice is
upon the Contractor making the representation.
(ii) If the contract does not require submission of an invoice
for payment (e.g., periodic lease payments), the due date will be as
specified in the contract.
(5) Contractor's invoice. The Contractor shall prepare and
submit invoices to the designated billing office specified in the
contract. Notwithstanding paragraph (g) of the clause at FAR 52.212-
4, Contract Terms and Conditions--Commercial Items, if the
Contractor submits hard-copy invoices, submit only an original
invoice. No copies of the invoice are required. A proper invoice
must include the items listed in subdivisions (a)(5)(i) through
(a)(5)(viii) of this clause. If the invoice does not comply with
these requirements, it shall be returned within 7 days after the
date the designated billing office received the invoice (3 days for
meat, meat food products, or fish; 5 days for perishable
agricultural commodities, edible fats or oils, and food products
prepared from edible fats or oils), with a statement of the reasons
why it is not a proper invoice. Untimely notification will be taken
into account in computing any interest penalty owed the Contractor
in the manner described in subparagraph (a)(5) of this clause.
(i) Name and address of the Contractor.
(ii) Invoice date. (The Contractor is encouraged to date
invoices as close as possible to the date of the mailing or
transmission.)
(iii) Contract number or other authorization for supplies
delivered or services preformed (including order number and contract
line item number).
(iv) Description, quantity, unit of measure, unit price, an
extended prices of supplies delivered or services performed.
(v) Shipping and payment terms (e.g., shipment number and date
of shipment, prompt payment discount terms). Bill of lading number
and weight of shipment will be shown for shipments on Government
bills or lading.
(vi) Name and address of Contractor official to whom payment is
to be sent (must be the same as that in the contract or in a proper
notice of assignment).
(vii) Name (where practicable), title, phone number, and mailing
address of person to be notified in the event of a defective
invoice.
(viii) Any other information or documentation required by the
contract (such as evidence of shipment).
(ix) While not required, the Contractor is strongly encouraged
to assign an identification number to each invoice.
(6) Interest penalty. An interest penalty shall be paid
automatically by the designated payment office, without request from
the Contractor, if payment is not made by the due date and the
conditions listed in subdivisions (a)(6)(i) through (a)(6)(iii) of
this clause are met, if applicable. However, when the due date falls
on a Saturday, Sunday, or legal holiday when Federal Government
offices are closed and Government business is not expected to be
conducted, payment may be made on the following business day without
incurring a late payment interest penalty.
(i) A proper invoice was received by the designated billing
office.
(ii) A receiving report or other Government documentation
authorizing payment was processed, and there was no disagreement
over quantity, quality, or Contractor compliance with any contract
term or condition.
[[Page 37245]]
(iii) In the case of a final invoice for any balance of funds
due the Contractor for supplies delivered or services performed, the
amount was not subject to further contract settlement actions
between the Government and the Contractor.
(7) Computing penalty amount. The interest penalty shall be at
the rate established by the Secretary of the Treasury under section
12 of the Contract Disputes Act of 1978 (41 U.S.C. 611) that is in
effect on the day after the due date, except where the interest
penalty is prescribed by other governmental authority (e.g.,
tariffs). This rate is referred to as the ``Renegotiation Board
Interest Rate,'' and it is published in the Federal Register
semiannually on or about January 1 and July 1. The interest penalty
shall accrue daily on the invoice principal payment amount approved
by the Government until the payment date of such approved principal
amount; and will be compounded in 30-day increments inclusive from
the first day after the due date through the payment date. That is,
interest accrued at the end of any 30-day period will be added to
the approved invoice principal payment amount and will be subject to
interest penalties if not paid in the succeeding 30-day period. If
the designated billing office failed to notify the Contractor of a
defective invoice within the periods prescribed in subparagraph
(a)(5) of this clause, the due date on the corrected invoice will be
adjusted by subtracting from such date the number of days taken
beyond the prescribed notification of defects period. Any interest
penalty owed the Contractor will be based on this adjusted due date.
Adjustments will be made by the designated payment office for errors
in calculating interest penalties.
(i) For the sole purpose of computing an interest penalty that
might be due the Contractor, Government acceptance shall be deemed
to have occurred constructively on the 7th day (unless otherwise
specified in this contract) after the Contractor delivered the
supplies or performed the services in accordance with the terms and
conditions of the contract, unless there is a disagreement over
quantity, quality or Contractor compliance with a contract
provision. In the event that actual acceptance occurs within the
constructive acceptance period, the determination of an interest
penalty shall be based on the actual date of acceptance. The
constructive acceptance requirement does, not however, compel
Government officials to accept supplies or services, perform
contract administration functions, or make payment prior to
fulfilling their responsibilities.
(ii) The following periods of time will not be included in the
determination of an interest penalty:
(A) The period taken to notify the Contractor of defects in
invoices submitted to the Government, but this may not exceed 7 days
(3 days for meat, meat food products, or fish; 5 days for perishable
agricultural commodities, dairy products, edible fats or oils, and
food products prepared from edible fats or oils).
(B) The period between the defects notice and resubmission of
the corrected invoice by the Contractor.
(C) For incorrect electronic funds transfer (EFT) information,
in accordance with the EFT clause of this contract.
(iii) Interest penalties will not continue to accrue after the
filing of a claim for such penalties under the clause at 52.233-1,
Disputes, or for more than 1 year. Interest penalties of less than
$1 need not be paid.
(iv) Interest penalties are not required on payment delays due
to disagreement between the Government and the Contractor over the
payment amount or other issues involving contract compliance or on
amounts temporarily withheld or retained in accordance with the
terms of the contract. Claims involving disputes, and any interest
that may be payable, will be resolved in accordance with the clause
at 52.233-1, Disputes.
(8) Prompt payment discounts. An interest penalty also shall be
paid automatically by the designated payment office, without request
from the Contractor, if a discount for prompt payment is taken
improperly. The interest penalty will be calculated as described in
subparagraph (a)(7) of this clause on the amount of discount taken
for the period beginning with the first day after the end of the
discount period through the date when the Contractor is paid.
(9) Additional interest penalty.
(i) If this contract was awarded on or October 1, 1989, a
penalty amount, calculated in accordance with subdivision
(a)(9)(iii) of this clause, shall be paid in addition to the
interest penalty amount if the Contractor--
(A) Is owed an interest penalty of $1 or more;
(B) Is not paid the interest penalty within 10 days after the
date the invoice amount is paid; and
(C) Makes a written demand to the designated payment office for
additional penalty payment, in accordance with subdivision
(a)(9)(ii) of this clause, postmarked not later than 40 days after
the invoice amount is paid.
(ii)(A) Contractors shall support written demands for additional
penalty payments with the following data. No additional data shall
be required. Contractors shall--
(1) Specifically assert that late payment interest is due under
a specific invoice, and request payment of all overdue late payment
interest penalty and such additional penalty as may be required;
(2) Attach a copy of the invoice on which the unpaid late
payment interest was due; and
(3) State that payment of the principal has been received,
including the date of receipt.
(B) Demands must be postmarked on or before the 40th day after
payment was made, except that--
(1) If the postmark is illegible or nonexistent, the demand must
have been received and annotated with the date of receipt by the
designated payment office on or before the 40th day after payment
was made; or
(2) If the postmark is illegible or nonexistent and the
designated payment office fails to make the required annotation, the
demand's validity will be determined by the date the Contractor has
placed on the demand; provided such date is no later than the 40th
day after payment was made.
(iii)(A) The additional penalty shall be equal to 100 percent of
any original late payment interest penalty, except--
(1) The additional penalty shall not exceed $5,000;
(2) The additional penalty shall never be less than $25; and
(3) No additional penalty is owed if the amount of the
underlying interest penalty is less than $1.
(B) If the interest penalty ceases to accrue in accordance with
the limits stated in subdivision (a)(5)(iii) of this clause, the
amount of the additional penalty shall be calculated on the amount
of interest penalty that would have accrued in the absence of these
limits, subject to the overall limits on the additional penalty
specified in subdivision (a)(7)(iii)(A) of this clause.
(C) For determining the maximum and minimum additional
penalties, the test shall be the interest penalty due on each
separate payment made for each separate contract. The maximum and
minimum additional penalty shall not be based upon individual
invoices unless the invoices are paid separately. Where payments are
consolidated for disbursing purposes, the maximum and minimum
additional penalty determination shall be made separately for each
contract therein.
(D) The additional penalty does not apply to payments regulated
by other Government regulations (e.g., payments under utility
contracts subject to tariffs and regulation).
(b) Contract financing payments.
(1) Due dates for recurring financing payments. If this contract
provides for contract financing, requests for payment shall be
submitted to the designated billing office as specified in this
contract or as directed by the Contracting Officer. Contract
financing payments shall be made on the [insert day as prescribed by
Agency head; if not prescribed, insert 30th day] day after receipt
of a proper contract financing request by the designated billing
office. In the event that an audit or other review of a specific
financing request is required to ensure compliance with the terms
and conditions of the contract, the designated payment office is not
compelled to make payment by the due date specified.
(2) Due dates for other contract financing. For advance
payments, loans, or other arrangements that do not involve recurring
submissions of contract financing requests, payment shall be in
accordance with the corresponding contract terms or as directed by
the Contracting Officer.
(3) Interest penalty not applicable. Contract financing payments
shall not be assessed an interest penalty for payment delays.
(c) Fast payment procedure due dates. If this contract contains
the clause at 52.213-1, Fast Payment Procedure, payments will be
made within 15 days after the date of receipt of the invoice.
(End of clause)
552.232-70 Invoice Requirements.
As prescribed in 532.111(a), insert the following clause:
[[Page 37246]]
Invoice Requirements (Sep 1999)
(a) Invoices shall be submitted in an original only, unless
otherwise specified, to the designated billing office specified in
this contract or order.
(b) Invoices must include the Accounting Control Transaction
(ACT) number provided below or on the order.
ACT Number (Contracting Officer insert number)
(c) In addition to the requirements for a proper invoice
specified in the Prompt Payment clause on this contract or order,
the following information or documentation must be submitted with
each invoice:
(Contracting Officer list additional requirements.)
(End of clause)
552.232-71 Adjusting Payments.
As prescribed in 532.111(b), insert the following clause:
Adjusting Payments (Sep 1999)
(a) Under the Inspection of Services clause of this contract,
payments may be adjusted if any services do not conform with
contract requirements. The Contracting Office or a designated
representative will inform the Contractor, in writing, of the type
and dollar amount of proposed deductions by the 10th workday of the
month following the performance period for which the deductions are
to be made.
(b) The Contractor may, within 10 working days of receipt of the
notification of the proposed deductions, present to the Contracting
Officer specific reasons why any or all of the proposed deductions
are not justified. Reasons must be solidly based and must provide
specific facts that justify reconsideration and/or adjustment of the
amount to be deducted. Failure to respond within the 10-day period
will be interpreted to mean that the Contractor accepts the
deductions proposed.
(c) All or a portion of the final payment may be delayed or
withheld until the Contracting Officer makes a final decision on the
proposed deduction. If the Contracting Officer determines that any
or all of the proposed deductions are warranted, the Contracting
Officer shall so notify the Contractor, and adjust payments under
the contract accordingly.
(End of clause)
552.232-72 Final Payment.
As prescribed in 532.111(c), insert the following clause:
Final Payment (Sep 1999)
Before final payment is made, the Contractor shall furnish the
Contracting Officer with a release of all claims against the
Government relating to this contract, other than claims in stated
amounts that are specifically excepted by the Contractor from the
release. If the Contractor's claim to amounts payable under the
contract has been assigned under Assignment of Claims Act of 1940,
as amended (31 U.S. 3727, 41 U.S.C. 15), a release may also be
required of the assignee.
(End of clause)
552.232-73 Availability of Funds.
As prescribed in 532.705-1, insert the following clause:
Availability of Funds (Sep 1999)
The authorization of performance of work under this contract
during the initial contract period and any option or extension
period(s) is contingent upon the appropriation of funds to procure
this service. If the contract is awarded, extended, or option(s)
exercised, the Government's obligation beyond the end of the fiscal
year (September 30), in which the award or extension is made or
option(s) exercised, is contingent upon the availability of funds
from which payment for the contract services can be made. No legal
liability on the part of the Government for payment of any money
beyond the end of the each fiscal year (September 30) shall arise
unless or until funds are made available to the Contracting Officer
for this procurement and written notice of such availability is
given to the Contractor.
(End of clause)
552.232-74 Invoice Payments.
As prescribed in 532.908 (a)(1), insert the following clause:
Invoice Payments (Sep 1999)
(a) The due date for making invoice payments by the designated
payment office is:
(1) For orders placed electronically by the General Services
Administration (GSA) Federal Supply Service (FSS), and to be paid by
GSA through electronic funds transfer (EFT), the later of the
following two events:
(i) The 10th day after the designated billing office receives a
proper invoice from the Contractor. If the designated billing office
fails to annotate the invoice with the date of receipt at the time
of receipt, the invoice payment due date shall be the 10th day after
the date of the Contractor's invoice; provided the Contractor
submitted a proper invoice and no disagreement exists over quantity,
quality, or Contractor compliance with contract requirements.
(ii) The 10th day after Government acceptance of supplies
delivered or services performed by the Contractor.
(2) For all other orders, the later of the following two events:
(i) The 30th day after the designated billing office receives a
proper invoice from the Contractor. If the designated billing office
fails to annotate the invoice with the date of receipt at the time
of receipt, the invoice payment due date shall be the 30th day after
the date of the Contractor's invoice; provided the Contractor
submitted a proper invoice and on disagreement exists over quantity,
quality, or Contractor compliance with contract requirements.
(ii) The 30th day after Government acceptance of supplies
delivered or services performed by the Contractor.
(3) On a final invoice, if the payment amount is subject to
contract settlement actions, acceptance occurs on the effective date
of the contract settlement.
(b) The General Services Administration will issue payment on
the due date in (a)(1) above if the Contractor complies with full
cycle electronic commerce. Full cycle electronic commerce includes
all the following elements:
(1) The Contractor must receive and fulfill electronic data
interchange (EDI) purchase orders (transaction set 850).
(2) The Contractor must generate and submit to the Government
valid EDI invoices (transaction set 810) of submit invoices through
the GSA Finance Center Internet-based invoice process. Internet-
based invoices must be submitted using procedures provided by GSA.
(3) The Contractor's financial institution must receive and
process, on behalf of the Contractor, EFT payments through the
Automated Clearing House (ACH) system.
(4) The EDI transaction sets in (b)(1) through (b)(3) above must
adhere to implementation conventions provided by GSA.
(c) If any of the conditions in (b) above do not occur, the 10-
day payment due dates in (a)(1) become 30-day payment due dates.
(d) Notwithstanding paragraph (g) of the clause at FAR 52.212-4,
Contract Terms and Conditions--Commercial Items, if the Contractor
submits hard-copy invoices, submit only an original invoice. No
copies of the invoice are required.
(e) All other provisions of the Prompt Payment Act (31 U.S.C.
3901 et seq.) and Office of Management and Budget (OMB) Circular A-
125, Prompt Payment, apply.
(End of clause)
552.232-75
As prescribed in 532.908 (b)(1), insert the following clause:
Prompt Payment (Sep 1999)
The Government will make payments under the terms and conditions
specified in this clause. Payment shall be considered as being made
on the day a check is dated or an electronic funds transfer is made.
All days referred to in this clause are calendar days, unless
otherwise specified.
(a) Payment due date.
(1) Rental Payments. Rent shall be paid monthly in arrears and
will be due on the first workday of each month, and only as provided
for by the lease.
(i) When the date for commencement of rent falls on the 15th day
of the month or earlier, the initial monthly rental payment under
this contract shall become due on the first workday of the month
following the month in which the commencement of the rent is
effective.
(ii) When the date for commencement of rent falls after the 15th
day of the month, the initial monthly rental payment under this
contract shall become due on the first workday of the second month
following the month in which the commencement of the rent is
effective.
(2) Other payments. The due date for making payments other than
rent shall be the later of the following two events:
(i) The 30th day after the designated billing office has
received a proper invoice from the Contractor.
(ii) The 30th day after Government acceptance of the work or
service. However,
[[Page 37247]]
if the designated billing office fails to annotate the invoice with
the actual date of receipt, the invoice payment due date shall be
deemed to be the 30th day after the Contractor's invoice is dated,
provided a proper invoice is received and there is no disagreement
over quantity, quality, or Contractor compliance with contract
requirements.
(b) Invoice and inspection requirements for payments other than
rent.
(1) The Contractor shall prepare and submit an invoice to the
designated billing office after completion of the work. A proper
invoice shall include the following items:
(i) Names and address of the Contractor.
(ii) Invoice date.
(iii) Lease number.
(iv) Government's order number or other authorization.
(v) Description, price, and quantity of work or services
delivered.
(vi) Name and address of Contractor official to whom payment is
to be sent (must be the same as that in the remittance address in
the lease or the order).
(vii) Name (where practicable), title, phone number, and mailing
address of person to be notified in the event of a defective
invoice.
(2) The Government will inspect and determine the acceptability
of the work performed or services delivered within 7 days after the
receipt of a proper invoice or notification of completion of the
work or services unless a different period is specified at the time
the order is placed. If actual acceptance occurs later, for the
purpose of determining the payment due date and calculation of
interest, acceptance will be deemed to occur on the last day of the
7 day inspection period. If the work or service is rejected for
failure to conform to the technical requirements of the contract,
the 7 days will be counted beginning with receipt of a new invoice
or notification. In either case, the Contractor is not entitled to
any payment or interest unless actual acceptance by the Government
occurs.
(c) Interest Penalty.
(1) An interest penalty shall be paid automatically by the
Government, without request from the Contractor, if payment is not
made by the due date.
(2) The interest penalty shall be at the rate established by the
Secretary of the Treasury under Section 12 of the Contract Disputes
Act of 1978 (41 U.S.C. 611) that is in effect on the day after the
due date. This rate is referred to as the ``Renegotiation Board
Interest Rate,'' and it is published in the Federal Register
semiannually on or about January 1 and July 1. The interest penalty
shall accrue daily on the payment amount approved by the Government
and be compounded in 30-day increments inclusive from the first day
after the due date through the payment date.
(3) Interest penalties will not continue to accrue after the
filing of a claim for such penalties under the clause at 52.233-1,
Disputes, or for more than 1 year. Interest rates penalties of less
than $1.00 need not be paid.
(4) Interest penalties are not required on payment delays due to
disagreement between the Government and Contractor over the payment
amount or other issues involving contract compliance or on amounts
temporarily withheld or retained in accordance with the terms of the
contract. Claims involving disputes, and any interest that may be
payable, will be resolved in accordance with the clause at 52.233-1,
Disputes.
(End of clause)
Alternate I (SEP 1999). If Alternate I is used, subparagraph
(a)(1) of the basic clause should be designated as paragraph (a) and
subparagraph (a)(2) and paragraph (b) should be deleted. Paragraph
(c) of the basic clause should be redesignated (b).
552.232-76 Electronic Funds Transfer Payment.
As prescribed in 532.908(b)(2), insert the following clause:
Electronic Funds Transfer Payment (Sep 1999)
(a) The Government will make payments under this lease by
electronic funds transfer (EFT). The Lessor must, no later than 30
days before the first payment:
(1) Designate a financial institution for receipt of EFT
payments.
(2) Submit this designation to the Contracting Officer or other
Government official, as directed.
(b) The Lessor must provide the following information:
(1) The American Bankers Association 9-digit identifying number
for wire transfers of the financing institution receiving payment if
the institution has access to the Federal Reserve Communications
System.
(2) Number of account to which funds are to be deposited.
(3) Type of depositor account (``C'' for checking, ``S'' for
savings).
(4) If the Lessor is a new enrollee to the EFT system, the
Lessor must complete and submit a ``Payment Information Form,'' SF
3881, before payment can be processed.
(c) If the Lessor, during the performance of this contract,
elects to designate a different financial institution for the
receipt of any payment, the appropriate Government official must
receive notice of such change and the required information specified
above no later than 30 days before the date such change is to become
effective.
(d) The documents furnishing the information required in this
clause must be dated and contain the:
(1) Signature, title, and telephone number of the Lessor or the
Lessor's authorized representative.
(2) Lessor's name.
(3) Lease number.
(e) Lessor's failure to properly designate a financial
institution or to provide appropriate payee bank account information
may delay payments of amounts otherwise properly due.
(End of clause)
552.232-77 Payment By Credit Card.
As prescribed in 532.7003, insert the following clause:
Payment By Credit Card (Sep. 1999)
(a) Definitions. ``Government commercial credit card'' means the
uniquely numbered credit card issued by a contractor under GSA's
Governmentwide Contract for Fleet, Travel, and Purchase Card
Services to named individual Government employees to pay for
official Government purchases.
``Oral order'' means an order placed orally either in person or
by telephone.
(b) At the option of the Government and if agreeable to the
Contractor, payments of ____*____ or less for oral or written orders
may be made using the Government commercial credit card.
(c) The Contractor shall not process a transaction for payment
through the credit card clearinghouse until the purchased supplies
have been shipped or services performed. Unless the cardholder
requests correction or replacement of a defective or faulty item in
accordance with other contract requirements, the Contractor shall
immediately credit a cardholder's account for items returned as
defective or faulty.
(d) Payments made using the Government Commercial Credit Card
are not eligible for any negotiated prompt payment discount. Payment
made using a Government debit card will receive the applicable
prompt payment discount.
(End of clause)
* Enter amount not to exceed $100,000.
Alternate I (SEP 1999). For solicitations and contracts under
which other agencies may place orders directly, replace paragraph
(b) of the basic clause with the following:
(b) At the option of the Government and if agreeable to the
Contractor, payments for oral or written orders may be made using
the Government commercial purchase card. The dollar value of a
purchase card action must not exceed the ordering agency's
established limit.
552.233-70 Protests Filed Directly with the General Services
Administration.
As prescribed in 533.103-72, insert the following provisions:
Protests Filed Directly With the General Services Administration (Sep.
1999)
(a) The following definitions apply in this provision:
``Agency Protest Official for GSA'' means the official in the
Office of Acquisition Policy designated to review ad decide
procurement protests filed with GSA.
``Deciding official'' means the person chosen by the protester
to decide the agency protest. The deciding official may be either
the Contracting Officer or the Agency Protest Official.
(b) The filing time frames in FAR 33.103(e) apply. An agency
protest is filed when the protest complaint is received at the
location the solicitation designates for serving protests. GSA's
hours of operation are 8:00 a.m. to 4:30 p.m. Protests delivered
after 4:30 p.m. will be considered received and filed the following
business day.
(c) A protest filed directly with the General Services
Administration (GSA) must:
(1) Indicate that it is a protest to the agency.
(2) Be filed with the Contracting Officer.
[[Page 37248]]
(3) State whether the protester chooses to have the Contracting
Officer or the Agency Protest Official for GSA decide the protest.
If the protest is silent on this matter, the Contracting Officer
will decide the protest.
(4) Indicate whether the protester prefers to make an oral
presentation, a written presentation, or an oral presentation
confirmed in writing, of arguments in support of the protest to the
deciding official.
(5) Include the information required by FAR 33.103(d)(2):
(i) Name, address, fax number, and telephone number of the
protester.
(ii) Solicitation or contract number.
(iii) Detailed statement of the legal and factual grounds for
the protest, to include a description of resulting prejudice to the
protester.
(iv) Copies of relevant documents.
(v) Request for a ruling by the agency.
(vi) Statement as to the form of relief requested.
(vii) All information establishing that the protester is an
interested party for the purpose of filing a protest.
(viii) All information establishing the timeliness of the
protest (see paragraph (b) of this provision).
(d) An interested party filing a protest with GSA has the choice
of requesting either that the Contracting Officer or the Agency
Protest Official for GSA decide the protest.
(e) The decision by the Agency Protest Official for GSA is an
alternative to a decision by the Contracting Officer. The Agency
Protest Official for GSA will not consider appeals from the
Contracting Officer's decision on an agency protest.
(f) The deciding Official must conduct a scheduling conference
with the protester within three (3) days after the protest is filed.
The scheduling conference will establish deadlines for oral or
written arguments in support of the agency protest and for agency
officials to present information in response to the protest issues.
The deciding official may hear oral arguments in support of the
agency protest at the same time as the scheduling conference,
depending on availability of the necessary parties.
(g) Oral conferences may take place either by telephone or in
person. Other parties (e.g., representatives of the program office)
may attend at the discretion of the deciding official.
(h) The following procedures apply to information submitted in
support of or in response to an agency protest:
(1) The protester and the agency have only one opportunity to
support or explain the substance of the protest (either orally, in
writing, or orally confirmed in writing).
(2) GSA procedures do not provide for any discovery.
(3) The deciding official has discretion to request additional
information from either the agency or the protester. However, the
deciding official will normally decide protests on the basis of
information provided by the protester and the agency.
(4) The parties are encouraged, but not required, to exchange
information submitted to the Agency Protest Official for GSA.
(5) Any written response by the agency to the protest must be
filed with the deciding official within five (5) days after the
filing of the protest.
(6) Any additional information that either party wants to submit
in writing after one-time oral arguments in support of the agency
protest, must be received by the deciding official within two (2)
days after the date of the oral arguments.
(i) The deciding official will resolve the protest through
informal presentations or meetings to the maximum extent
practicable.
(j) An interested party may represent itself or be represented
by legal counsel. GSA will not reimburse the party for any legal
fees related to the agency protest.
(k) GSA will stay award or suspend contract performance in
accordance with FAR 33.103(f). The stay or suspension, unless over-
ridden, remains in effect until the protest is decided, dismissed,
or withdrawn.
(l) The deciding official will make a best effort to issue a
decision on the protest within twenty-eight (28) days after the
filing date. The decision may be oral or written. If the decision is
communicated orally to the protester, the deciding official will
confirm in writing within three (3) days after the decision.
(m) GSA may dismiss or stay proceedings on an agency protest if
a protest on the same or similar basis is filed with a protest forum
outside of GSA.
(End of provision)
552.236-70 Definitions.
As prescribed in 536.570-1, insert the following clause:
Definitions (Apr 1984)
The terms ``Administration'' and ``Service'' as used in this
contract shall mean the General Services Administration (GSA) and
the Public Buildings Service (PBS), respectively.
(End of clause)
552.236-71 Authorities and Limitations.
As prescribed in 536.570-2, insert the following clause:
Authorities and Limitations (Apr 1984)
(a) All work shall be performed under the general direction of
the Contracting Officer, who alone shall have the power to bind the
Government and to exercise the rights, responsibilities, authorities
and functions vested in him by the contract documents, except that
he shall have the right to designate authorized representatives to
act for him. Wherever any provision in this contract specifies an
individual (such as, but not limited to, Construction Engineer,
Resident Engineer, Inspector or Custodian) or organization, whether
governmental or private, to perform any act on behalf of or in the
interests of the Government, that individual or organization shall
be deemed to be the Contracting Officer's authorized representative
under this contract but only to the extent so specified. The
Contracting Officer may, at any time during the performance of this
contract, vest in any such authorized representatives additional
power and authority to act for him or designate additional
representatives, specifying the extent of their authority to act for
him; a copy of each document vesting additional authority in an
authorized representative or designating an additional authorized
representative shall be furnished to the Contractor.
(b) The Contractor shall perform the contract in accordance with
any order (including but not limited to instruction, direction,
interpretation, or determination) issued by an authorized
representative in accordance with his authority to act for the
Contracting Officer; but the Contractor assumes all the risk and
consequences of performing the contract in accordance with any order
(including but not limited to instruction, direction,
interpretation, or determination) of anyone not authorized to issue
such order.
(End of clause)
552.236-72 Specialist.
As prescribed in 536.570-3, insert the following clause:
Specialist (Apr 1984)
The term ``Specialist,'' as used in the contract specification,
shall mean an individual or firm of established reputation (or, if
newly organized, whose personnel have previously established a
reputation in the same field), which is regularly engaged in, and
which maintains a regular force of workmen skilled in either (as
applicable) manufacturing or fabricating items required by the
contract, installing items required by the contract, or otherwise
performing work required by the contract. Where the contract
specification requires installation by a specialist, that term shall
also be deemed to mean either the manufacturer of the item, an
individual or firm licensed by the manufacturer, or an individual or
firm who will perform the work under the manufacturer's direct
supervision.
(End of clause)
552.236-73 Basis of Award--Construction Contract.
As prescribed in 536.570-4, insert the following provision or the
appropriate Alternate:
Basis of Award--Construction Contract (Apr 1985)
(a) The low bidder for purposes of award is the responsible
bidder offering the lowest price for the base bid (consisting of the
lump sum bid and any associated unit price bids extended by the
applicable number of units shown on the bid form). See Standard Form
1442, Solicitation, Offer, and Award and the provision entitled
``Contract Award--Sealed Bidding.''
(b) A bid may be rejected as nonresponsive if the bid is
materially unbalanced as to bid prices. A bid is unbalanced when the
bid is based on prices significantly less than cost for some work
and significantly overstated for other work.
(End of provision)
Alternate I (APR 1985). if the solicitation includes a base bid
and options, the Contracting Officer shall delete paragraph (a) of
the basic provision and insert paragraph (a) substantially as
follows:
[[Page 37249]]
(a) The low bidder for purposes of award is the responsible
bidder offering the lowest aggregate price for (1) the base bid
(consisting of the lump sum bid and any associated unit price bids
extended by the applicable number of units shown on the bid form)
plus (2) all options designated to be evaluated. The evaluation of
options will not obligate the Government to exercise the options.
See Standard Form 1442, Solicitation, Offer, and Award and the
provision entitled ``Contract Award--Sealed Bidding.''
Alternate II (APR 1985). If the solicitation includes a base bid
and alternates, the Contracting Officer shall delete paragraph (a)
of the basic provision and insert paragraphs (a), (c), and (d)
substantially as follows:
(a) The low bidder for purposes of award is the responsible
bidder offering the lowest aggregate price for (1) the base bid
(consisting of the lump sum bid and any associated unit price bids
extended by the applicable number of units shown on the bid form)
plus (2) those alternates in the order of priority listed in the
solicitation that provide the most features of work within the funds
available at bid opening. See the provision entitled ``Contract
Award--Sealed Bidding.''
(c) Alternates will be added to the base bid in the order listed
in the solicitation (see Standard Form 1442, Solicitation, Offer,
and Award). If the addition of an alternate would make all bids
exceed the funds available at bid opening, that alternate shall be
skipped and the next subsequent alternate in a lower amount shall be
added, provided that the aggregate of base bid and the selected
alternates do not exceed the funds available at bid opening. For
example, when the amount available is $100,000 and a bidder's base
bid is $85,000, with its separate bids on four successive
alternatives being $10,000, $8,000, $6,000, and $4,000, the
aggregate amount of the bid for purposes of selecting the alternates
would be $99,000 (base bid plus the first and four alternates). The
second and third alternates are skipped because each of them would
cause the aggregate of the base bid and alternates to exceed the
$100,000 amount available when considered with the first alternate.
All bids shall be evaluated on the basis of the same alternates.
(d) After the low bidder has been determined in accordance with
paragraph (a), an award may be made to that low bidder on the base
bid, plus any combination of alternates for which funds are
available at the time of award, but only if the award amount does
not exceed the amount offered by any other responsible bidder. If
the base bid plus the proposed combination of alternates exceed the
amount offered by any other responsible bidder for the same
combination of alternates, the award cannot be made on that
combination of alternates.
Alternate III (APR 1985). If the solicitation includes a base
bid, alternates, and options, the Contracting Officer shall delete
paragraph (a) of the basic provision and insert paragraphs (a), (c),
and (d) substantially as follows:
(a) The low bidder for purposes of award is the responsible
bidder offering the lowest aggregate price for (1) the base bid
(consisting of the lump sum bid and any associated unit price bids
extended by the applicable number of units shown on the bid form)
plus (2) those alternates in the order of priority listed in the
solicitation that provide the most features of work within the funds
available at bid opening plus (3) all options designated to be
evaluated except those options associated with alternates which are
skipped during the selection process outlined in paragraph (c)
below. The evaluation of options will not obligate the Government to
exercise the options. See the provision entitled ``Contract Award--
Sealed Bidding.''
(c) Alternates will be added to the base bid in the order listed
in the solicitation (see Standard Form 1442, Solicitation, Offer, or
Award). If the addition of an alternate would make all bids exceed
the funds available at bid opening, that alternate shall be skipped
and the next subsequent alternate in a lower amount shall be added,
provided that the aggregate of base bid and the selected alternates
do not exceed the funds available at bid opening. For example, when
the amount available is $100,000 and a bidder's base bid is $85,000,
with its separate bids on four successive alternates being $10,000,
$8,000, $6,000, and $4,000, the aggregate amount of the bid for
purposes of selecting the alternates would be $99,000 (base bid plus
the first and fourth alternates). The second and third alternates
are skipped because each of them would cause the aggregate of the
base bid and alternates to exceed the $100,000 amount available when
considered with the first alternate. All bids shall be evaluated on
the basis of the same alternates.
(d) After the low bidder has been determined in accordance with
paragraph (a), award may be made to that low bidder on the base bid
and evaluated options plus any combination of alternates for which
funds are available at the time of award, but only if that low
bidder is still low on the sum thereof plus any previously
unevaluated options designated to be evaluated which are associated
with proposed alternates that were skipped during the selection
under paragraph (c). If that low bidder is not still low, award
cannot be made on the proposed combination of alternates.
552.236-74 Working Hours.
As prescribed in 536.570-5, insert the following clause:
Working Hours (Apr 1984)
(a) It is contemplated that all work will be performed during
the customary working hours of the trades involved unless otherwise
specified in this contract. Work performed by the Contractor at his
own volition outside such customary working hours shall be at no
additional expense to the Government.
(b) Any requests received by the Contractor from occupants of
existing buildings to change the hours of work shall be referred to
the Contracting Officer for determination.
(End of clause)
552.236-75 Use of Premises.
As prescribed in 536.570-6, insert the following clause:
Use of Premises (Apr 1984)
(a) If the premises are occupied, the Contractor, his
subcontractors, and their employees shall comply with the
regulations governing access to, operation of, and conduct while in
or on the premises and shall perform the work required under this
contract in such a manner as not to unreasonably interrupt or
interfere with the conduct of Government business.
(b) Any request received by the Contractor from occupants of
existing buildings to change the sequence of work shall be referred
to the Contracting Officer for determination.
(c) If the premises are occupied, the Contractor, his
subcontractors and their employees shall not have access to or be
admitted into any building outside the scope of this contract except
with official permission.
(End of clause)
552.236-76 Measurements.
As prescribed in 536.570-7, insert the following clause:
Measurements (Apr 1984)
All dimensions shown of existing work and all dimensions
required for work that is to connect with work now in place, shall
be verified by the Contractor by actual measurement of the existing
work. Any discrepancies between the contract requirements and the
existing conditions shall be referred to the Contracting Officer
before any work affected thereby has been performed.
(End of clause)
552.236-77 Specifications and Drawings
As prescribed in 536.570-8, insert the following clause:
Specifications and Drawings (Sep 1999)
The requirements of the clause entitled ``Specifications and
Drawings for Construction'' at FAR 52.236-21, are supplemented as
follows:
(a) In case of difference between small and large-scale
drawings, the large-scale drawings shall govern. Schedules on any
contract drawing shall take precedence over conflicting information
on that or any other contract drawing. On any of the drawings where
a portion of the work is detailed or drawn out and the remainder is
shown in outline, the parts detailed or drawn out shall apply also
to all other like portions of the work.
(b) Where the word ``similar'' occurs on the drawings, it shall
have a general meaning and not be interpreted as being identical,
and all details shall be worked out in relation to their location
and their connection with other parts of the work.
(c) Standard Details or Specification Drawings are applicable
when listed, bound with the specifications, noted on the drawings or
referenced elsewhere in the specifications. Where the notes on the
drawings indicate modifications, such modifications shall govern.
(d) In case of difference between Standard Details or
Specification Drawings and the specifications, the specifications
will govern. In case of difference between the Standard Details or
Specification Drawings and their drawings prepared specifically for
this contract, the later shall govern.
[[Page 37250]]
(End of clause)
552.236-78 Shop Drawings, Coordination Drawings, and Schedules.
As prescribed in 536.570-9, insert the following clause:
Shop Drawings, Coordination Drawings, and Schedules (Sep 1999)
The requirements, of the clause entitled ``Specifications and
Drawings for Construction'' at FAR 52.236-21, are supplemented as
follows:
(a) The Contractor shall submit shop drawings, coordination
drawings, and schedules for approval as required by the
specifications or requested by the Contracting Officer as follows:
(b) Show drawings shall include fabrication, erection and
setting drawings, schedule drawings, manufacturers' scale drawings,
wriring and control diagrams, cuts or entire catalogs, pamphlets,
descriptive literature, and performance and test data.
(c) Drawings and schedules, other than catalogs, pamphlets and
similar printed material, shall be submitted in reproducible form
with two prints made by a process approved by the Contracting
Officer. Upon approval, the reproducible form will be returned to
the Contractor who shall then furnish the number of additional
prints, not to exceed 10, required by the specifications. The
Contractor shall submit shop drawings in catalog, pamphlet and
similar printed form in a minimum of four copies plus as many
additional copies as the Contractor may desire or need for his use
or use by subcontractors.
(d) Before submitting shop drawings on the mechanical and
electrical work, the Contractor shall submit and obtain the
Contracting Officer's approval of such lists of mechanical and
electrical equipment and materials as may be required by the
specifications.
(e) Each shop drawing or coordination drawing shall have a blank
area 5 by 5 inches, located adjacent to the title block. The title
block shall display the following:
Number and title of drawing
Date of drawing or revision
Name of project building or facility
Name of Contractor and (if appropriate) name of subcontractor
submitting drawing
Clear identify of contents and location on the work
Project title and contract number
(f) Unless otherwise provided in this contract, or otherwise
directed by the Contracting Officer, shop drawings, coordination
drawings and schedules shall be submitted to the Contracting
Officer, with a letter in triplicate, sufficiently in advance of
construction requirements to permit no less than 10 working days for
checking and appropriate action.
(g) Approval of drawings and schedules will be general and shall
not be construed as permitting any departure from the contract
requirements, or as approving departures from full-size details
furnished by the Contracting Officer.
(End of clause)
552.236-79 Samples.
As prescribed in 536.570-10, insert the following clause:
Samples (Apr 1984)
(a) After the award of the contract, the Contractor shall
furnish for the approval of the Contracting Officer samples required
by the specifications or by the Contracting Officer. Samples shall
be delivered to the Contracting Officer or to the Architect as
specified or as directed. The Contractor shall prepay all shipping
charges on samples. Materials or equipment for which samples are
required shall not be used in the work until approved in writing by
the Contracting Officer.
(b) Each sample shall have a label indicating:
(1) Name of project building or facility, project title and
contract number.
(2) Name of Contractor and, if appropriate, name of
subcontractor.
(3) Identification of material or equipment with specification
requirement.
(4) Place of origin.
(5) Name of producer and brand (if any).
Samples of finished materials shall have additional markings
that will identify them under the finish schedules.
(c) The Contractor shall mail under separate cover a letter in
triplicate submitting each shipment of samples and containing the
information required in paragraph (b) of this clause. He shall
enclose a copy of this letter with the shipment and send a copy to
the Government representative on the project. Approval of a sample
shall be only for the characteristics or use named in such approval
and shall not be construed to change or modify any contract
requirement. Substitutions will not be permitted unless they are
approved in writing by the Contracting Officer.
(d) Approved samples not destroyed in testing will be sent to
the Government representative at the project. Approved samples of
hardware in good condition will be marked for identification and may
be used in the work. Materials and equipment, incorporated in the
work shall match the approved samples. Other samples not destroyed
in testing or not approved will be returned to the Contractor at his
expense if so requested at time of submission.
(e) Failure of any material to pass the specified tests will be
sufficient cause for refusal to consider, under this contract, any
further samples of the same brand or make of that material or
equipment which previously has proved unsatisfactory in service.
(f) Samples of various materials or equipment delivered on the
site or in place may be taken by the Government representative for
testing. Samples failing to meet contract requirements, or there
shall be a proper adjustment of the contract price as determined by
the Contracting Officer.
(g) Unless otherwise specified, when tests are required only one
test of each sample proposed for use will be made at the expense of
the Government. Samples which do not meet specification requirements
will be rejected. Testing of additional samples will be made by the
Government at the expense of the Contractor.
(End of clause)
552.236-80 Heat.
As prescribed in 536.570-11, insert the following clause:
Heat (Apr 1984)
Unless otherwise specified or unless already provided by the
Government the Contractor shall;
(a) Provide heat, as necessary to protect all work, materials,
and equipment against injury from dampness and cold;
(b) Protect, cover and/or heat as may be necessary, to provide
and maintain a temperature of not less than 50 degrees Fahrenheit
(1) in the concrete during the placing, setting and curing of
concrete, and (2) in the plaster during the application, setting and
curing of plaster; and
(c) Provide heat as necessary in the area where work is to be
done to provide the minimum temperature recommended by the supplier
or manufacturer of the material, but in no case less than 50 degrees
Fahrenheit, for a period beginning 10 days before placing or
interior finishes and finish materials and continuing until
completion or beneficial occupancy of the area, whichever is
earlier.
(End of clause)
552.236-81 Use of Equipment by the Government.
As prescribed in 536.570-12, insert the following clause:
Use of Equipment by the Government (Apr 1984)
(a) The Government may take over and operate, with Government
employees, such equipment as is necessary for heating or cooling
such areas of the building as require the service, as soon as the
installation is sufficiently complete.
(b) The Contracting Officer will advise the Contractor by
letter, prior to the use of equipment, which items of equipment will
be operated, and the date and time such operation will begin.
(c) Government operation of equipment will not relieve the
Contractor of the one-year guarantee on materials and workmanship
elsewhere provided for in this contract.
(d) The guarantee period, elsewhere provided for in this
contact, for each piece of equipment shall be in accordance with the
``Guarantees'' clause of this contract.
(End of clause)
552.236-82 Subcontracts.
As prescribed in 536.570-13, insert the following clause:
Subcontracts (Apr 1984)
(a) Nothing contained in the contract shall be construed as
creating any contractual relationship between any subcontractor and
the Government. The divisions or sections of the specifications are
not intended to control the Contractor in dividing the work among
subcontractors, or to limit the work performed by any trade.
(b) The Contractor shall be responsible to the Government for
acts and omissions of his own employees and of subcontractors and
[[Page 37251]]
their employees. He shall also be responsible for the coordination
of the work of the trades, subcontractors and suppliers.
(c) The Government will not undertake to settle any differences
between or among the Contractor, subcontractors, or suppliers.
(End of clause)
552.236-83 Requirement for a Project Labor Agreement.
As prescribed in 536.570-14, insert a clause substantially the same
as the following:
Requirement for a Project Labor Agreement (Sep 1999)
(a) Definition. ``Project Labor Agreement'' (PLA) means an
agreement between the contractor, subcontractors, and the union(s)
representing workers. Under a PLA, the contractor and subcontractors
on a project and the union(s) agree on terms and conditions of
employment for the project, establishing a framework for labor-
management cooperation to advance the Government's procurement
interest in cost, efficiency, and quality.
(b) The Contractor shall, after contract award, enter into a PLA
for performance of [Insert project or contract name]. The PLA binds
the Contractor and subcontractors of whatever tier engaged in onsite
construction work. The PLA shall include all the following terms:
(1) Guarantees against strikes, lockouts, and similar work
disruptions.
(2) Effective, prompt and mutually binding procedures for
resolving labor disputes arising during the project.
(3) Other mechanisms for labor-management cooperation on matters
of mutual interest and concern, including productivity, quality of
work, safety, and health.
(4) The PLA shall fully conform to all applicable statutes,
regulations, and Executive Orders.
(c) Any PLA reached under this clause shall not change the terms
of this contract or provide for any pricing adjustment by the
Government.
(d) The Government shall not participate in the negotiations of
any PLA.
(e) Nothing in this clause precludes contractors or
subcontractors from competing for contracts or subcontracts on this
project without discrimination based on union or non-union status.
(End of clause)
552.237-70 Qualifications of Offerors.
As prescribed in 537.110(a), insert the following provision:
Qualifications of Offerors (May 1989)
(a) Offers will be considered only from responsible
organizations or individuals now or recently engaged in the
performance of building service contracts comparable to those
described in this solicitation. In order to determine an Offeror's
qualifications, the Offeror may be requested to furnish a narrative
statement listing comparable contracts which it has performed; a
general history of its operating organization; and its complete
experience. An Offeror may also be required to furnish a statement
of its financial resources; show that it has the ability to maintain
a staff of regular employees adequate to ensure continuous
performance of the work; and, demonstrate that its equipment and/or
plant capacity for the work contemplated is sufficient, adequate,
and suitable.
(b) Competency in performing comparable building service
contracts, demonstration of acceptable financial resources,
personnel staffing, plant, equipment, and supply sources will be
considered in determining whether an Offeror is responsible.
(c) Prospective Offerors are advised that in evaluating these
areas involving any small business concern(s), any negative
determinations are subject to the Certificate of Competency
procedures set forth in the Federal Acquisition Regulation.
(End of provision)
552.237-71 Qualifications of Employees.
As prescribed in 537.110(b), insert the following clause:
Qualifications of Employees (May 1989)
(a) The contracting officer or a designated representative may
require the Contractor to remove any employee(s) from GSA controlled
buildings or other real property should it be determined that the
individual(s) is either unsuitable for security reasons or otherwise
unfit to work on GSA controlled property.
(b) The Contractor shall fill out and cause all of its employees
performing work on the contract work to fill out, for submission to
the Government, such forms as may be necessary for security or other
reasons. Upon request of the Contracting Officer, the Contractor and
its employees shall be fingerprinted.
(c) Each employee of the Contractor shall be a citizen of the
United States of America, or an alien who has been lawfully admitted
for permanent residence as evidenced by Alien Registration Receipt
Card Form I-151, or, who presents other evidence from the
Immigration and Naturalization Service that employment will not
affect his immigration status.
(End of clause)
552.237-72 Prohibition Regarding ``Quasi-Military Armed Forces.''
As prescribed in 537.110(c), insert the following clause:
Prohibition Regarding ``Quasi-Military Armed Forces'' (Sep 1999)
The Contractor must not, during the term of this contract, offer
for hire ``Quasi-Military Armed Forces'' within the meaning of the
court decision in United States ex. rel. Weinberger v. Equifax, 557
F.2d 456 (5th Cir. 1977).
(End of clause)
552.237-73 Restriction on Disclosure of Information.
As prescribed in 537.270, insert the following clause:
Restriction on Disclosure of Information (Sep 1999)
(a) The Contractor shall, in the performance of this contract,
keep all information contained in source documents or other media
furnished by the Government in the strictest confidence. The
Contractor shall not publish or otherwise divulge such information
in whole or in part, in any manner or form, nor authorize or permit
others to do so. The Contractor shall take such reasonable measures
as are necessary to restrict access to such information, while in
the Contractor's possession, to those employees needing such
information to perform the work provided herein, i.e., on a ``need
to know'' basis. The Contractor shall immediately notify, in
writing, the Contracting Officer in the event that the Contractor
determines or has reason to suspect a breach of this requirement.
(b) The Contractor shall not disclose any information concerning
the work under this contract to any person or individual unless the
Contractor obtains prior written approval from the Contracting
Officer.
(c) The Contractor shall insert the substance of this clause in
any consultant agreement or subcontract under this contract.
(d) Any unauthorized disclosure of information may result in
termination of this contract for cause.
(End of clause)
552.238-70 Identification of Electronic Office Equipment Providing
Accessibility for the Handicapped.
As prescribed in 538.273(a)(1), insert the following clause:
Identification of Electronic Office Equipment Providing Accessibility
for the Handicapped (Sept 1991)
(a) Definitions. ``Electronic office equipment accessiblity''
means the application/configuration of electronic office equipment
(includes hardware, software and firmware) in a manner that
accommodates the functional limitations of individuals with
disabilities (i.e., handicapped individuals) so as to promote
productivity and provide access to work related and/or public
information resources.
``Handicapped individuals'' mean qualified individuals with
impairments as cited in 29 CFR 1613.702(f) who can benefit from
electronic office equipment accessibility.
``Special peripheral'' means a special needs aid that provides
access to electronic equipment that is otherwise inaccessible to a
handicapped individual.
(b) The offeror is encouraged to identify in its offer, and
include in any commercial catalogs and pricelists accepted by the
Contracting Officer, office equipment, including any special
peripheral, that will facilitate electronic office equipment
accessibility for handicapped individuals. Identification should
include the type of disability accommodated and how the users with
that disability would be helped.
(End of clause)
[[Page 37252]]
552.238-71 Submission and Distribution of Authorized FSS Schedule
Pricelists.
As prescribed in 538.273(a)(2), insert the following clause:
Submission and Distribution of Authorized FSS Schedule Pricelists (Sep
1999)
(a) Definition. For the purposes of this clause, the Mailing
List is [Contracting officer shall insert either: ``the list of
addressees provided to the Contractor by the Contracting Officer''
or ``the Contractor's listing of its Federal Government
customers''].
(b) The Contracting Officer will return one copy of the
Authorize FSS Schedule Pricelist to the Contractor with the
notification of contract award.
(c)(1) The Contractor shall provide to the GSA Contracting
Officer:
(i) Two paper copies of Authorized FSS Schedule Pricelist; and
(ii) The Authorized FSS Schedule Pricelist on a common-use
electronic medium.
The Contracting Officer will provide detailed instructions for
the electronic submission with the award notification. Some
structured data entry in a prescribed format may be required.
(2) The Contractor shall provide to each addressee on the
mailing list either:
(i) One paper copy of the Authorized FSS Schedule Price List; or
(ii) A self-addressed, postage-paid envelope or postcard to be
returned by addressee that want to receive a paper copy of the
pricelist. The Contractor shall distribute price lists within 20
calendar days after receipt of returned requests.
(3) The Contractor shall advise each addressee of the
availability of pricelist information through the on-line Multiple
Award Schedule electronic data base.
(d) The Contractor shall make all of the distributions required
in paragraph (c) at least 15 calendar days before the beginning of
the contract period, or within 30 calendar days after receipt of the
Contracting Officer's approval for printing, whichever is later.
(e) During the period of the contract, the Contractor shall
provide one copy of its Authorized FSS Schedule Pricelist to any
authorized schedule user, upon request. Use of the mailing list for
any other purpose is not authorized.
(End of clause)
552.238-72 Identification of Energy-Efficient Office Equipment and
Supplies Containing Recovered Materials or Other Environmental
Attributes.
As prescribed in 538.273(a)(3), insert the following clause:
Identification of Energy-Efficient Office Equipment and Supplies
Containing Recovered Materials or Other Environmental Attributes (Sep.
1999)
(a) Definitions. ``Energy-efficient office equipment,'' as used
in this clause, means office equipment that, in representative use,
provides equivalent or better performance and value to users, but
uses significantly less energy than most functionally equivalent
models.
``Recovered materials,'' as used in this clause, means waste
material and by-products which have been recovered or diverted from
solid waste, but such term does not include those materials and by-
products generated from, and commonly reused, within an original
manufacturing process (42 U.S.C. 6903(19)). For paper, it also
includes postconsumer materials, and manufacturing and certain other
wastes. (42 U.S.C. 6962(h)).
``Remanufactured products,'' as used in this clause, means
equipment or parts that have been factory remanufactured or rebuilt
to meet new equipment or part performance specifications and have
had no use subsequent to their remanufacture.
(b) The offeror shall identify in its offer and include in any
commercial catalogs and pricelists and any resultant Government
catalogs or pricelists submitted to the Contracting Officer, energy-
efficient office equipment and supplies that contain recovered
material, remanufactured products, or other environmental
attributes. Examples of energy-efficient office equipment are
microcomputers and associated equipment that meet the requirements
of the Environmental Protection Agency's (EPA's) Energy Star
Computers Program. Supplies that contain recovered materials and
other environmental attributes include, but are not limited to,
products identified in EPA procurement guidelines (40 CFR Subchapter
I) and products that are either degradable, ozone safe, recyclable,
contain low volatile organic content compounds, contribute to source
reduction, or otherwise are designed or manufactured to achieve
environmental improvement. For example, an offeror can identify
products that are safe or safer alternatives for more toxic or
hazardous products and products that can be substituted for ones
manufactured with toxic or hazardous materials. Such supplies shall
satisfy the guidance contained in 16 CFR Part 260, Guides for the
Use of Environmental Marketing Claims.
(c) An offeror, in identifying an item with an environmental
attribute, shall possess evidence or rely upon a reasonable basis to
substantiate the claim (see 16 CFR 260.5). The Government will
accept an offeror's claim of an item's environmental attribute on
the basis of--
(1) Participation in a Federal agency sponsored program, e.g.,
EPA's Energy Star Computer program;
(2) Verification by an independent organization that specializes
in certifying such claims; or
(3) Possession of competent and reliable evidence. For any test,
analysis, research, study or other evidence to be ``competent and
reliable,'' it must have been conducted and evaluated in an
objective manner by persons qualified to do so, using procedures
generally accepted in the profession to yield accurate and reliable
results.
(End of clause)
552.238-73 Cancellation.
As prescribed in 538.273(a)(4), insert the following clause:
Cancellation (Sep 1999)
Either party may cancel this contract in whole or in part by
providing written notice. The cancellation will take effect 30
calendar days after the other party receives the notice of
cancellation. If the Contractor elects to cancel this contract, the
Government will not reimburse the minimum guarantee.
(End of clause)
552.238-74 Contractor's Report of Sales.
As prescribed in 538.273(b)(1), insert the following clause:
Contractor's Report of Sales (Sep 1999)
(a) The Contractor must report the quarterly dollar value (in
U.S. dollars and rounded to the nearest whole dollar) of all sales
under this contract by calendar quarter (i.e., January-March, April-
June, July-September, and October-December). The dollar value of a
sale is the price paid by the schedule user for products and
services on a schedule contract task or delivery order, as recorded
by the Contractor. The reported contract sales value must include
the industrial funding fee (see Clause 552.238-76).
(b) The Contractor must report the quarterly dollar value of
sales on electronic GSA Form 72A, Contractor's Report of Sales, to
the FSS Vendor Support Center (VSC) Website at Internet, http://
VSC.gsa.gov. The Contractor must report sales separately for each
National Stock Number (NSN), Special Item Number (SIN), or subitem.
If no sales occur, the Contractor must show zero on the report for
each separate NSN, SIN, or subitem.
(c) The Contractor must register with the VSC before using the
automated reporting system. To register, the Contractor (or its
authorized representative) must call the VSC at (703) 305-6235 and
provide the necessary information regarding the company, contact
name(s), and telephone number(s). The VSC will then issue a 72A
specific password and provide other information needed to access the
reporting system. Instructions for electronic reporting are
available at the VSC Website or by calling the above phone number.
(d) The Contractor must convert the total value of sales made in
foreign currency to U.S. dollars using the ``Treasury Reporting
Rates of Exchange,'' issued by the U.S. Department of Treasury,
Financial Management Service. The Contractor must use the issue of
the Treasury report in effect on the last day of the calendar
quarter. The report is available from: Department of the Treasury,
Financial Management Service, International Funds Branch, 3700 East-
West Highway, PGCII, Room 5A19, Hyattsville, MD 20782, Telephone:
(202) 874-7994, Internet: http://www.fms.treas.gov/intn.html.
(e) The report is due 30 days following the completion of the
reporting period. The Contractor must also provide a close-out
report within 120 days after the expiration of the contract. The
contract expires upon physical completion of the last, outstanding
task or delivery order of the contract. The close-out report must
cover all sales not shown in the final quarterly report and
reconcile all errors and credits. If the Contractor reported all
contract sales and reconciled all errors and credits on the final
quarterly report, then show zero sales in the close-out report.
[[Page 37253]]
(End of clause)
552.238-75 Price Reductions.
As prescribed in 538.273(b)(2), insert the following clause:
Price Reductions (Sep 1999)
(a) Before award of a contract, the Contracting Officer and the
Offeror will agree upon (1) the customer (or category of customers)
which will be the basis of award, and (2) the Government's price or
discount relationship to the identified customer (or category of
customers). This relationship shall be maintained through out the
contract period. Any change in the Contractor's commercial pricing
or discount arrangement applicable to the identified customer (or
category of customers) which disturbs this relationship shall
constitute a price reduction.
(b) During the contract period, the Contractor shall report to
the Contracting Officer all price reductions to the customer (or
category of customers) that was the basis of award. The Contractor's
report shall include an explanation of the conditions under which
the reductions were made.
(c)(1) A price reduction shall apply to purchases under this
contract if, after the date negotiations conclude, the Contractor--
(i) Revises the commercial catalog, pricelist, schedule or other
document upon which contract award was predicated to reduce prices;
(ii) Grants more favorable discounts or terms and conditions
than those contained in the commercial catalog, pricelist, schedule
or other documents upon which contract award was predicated; or
(iii) Grants special discounts to the customer (or category of
customers) that formed the basis of award, and the change disturbs
the price/discount relationship of the Government to the customer
(or category of customers) that was the basis of award.
(2) The Contractor shall offer the price reduction to the
Government with the same effective date, and for the same time
period, as extended to the commercial customer (or category of
customers).
(d) There shall be no price reduction for sales--
(1) To commercial customers under firm, fixed-price definite
quantity contracts with specified delivery in excess of the maximum
order threshold specified in this contract;
(2) To Federal agencies; or
(3) Caused by an error in quotation or billing, provided
adequate documentation is furnished by the Contractor to the
Contracting Officer.
(e) The Contractor may offer the Contracting Officer a voluntary
Governmentwide price reduction at any time during the contract
period.
(f) The Contractor shall notify the Contracting Officer of any
price reduction subject to this clause as soon as possible, but not
later than 15 calendar days after its effective date.
(g) The contractor will be modified to reflect any price
reduction which becomes applicable in accordance with this clause.
(End of clause)
552.238-76 Industrial Funding Fee.
As prescribed in 538.273(b)(3), insert the following clause:
Industrial Funding Fee (Sep 1999)
(a) The Contractor must pay the Federal Supply Service, GSA, an
industrial funding fee (IFF). The Contractor must remit the IFF in
U.S. dollars within 30 days after the end of each quarterly
reporting period as established in clause 552.238-74, Contractor's
Report of Sales. The IFF equals ________*________ of total quarterly
sales reported. The IFF reimburses the GSA Federal Supply Service
for the costs of operating the Federal Supply Schedules Program and
recoups its operating costs from ordering activities. Offerors must
include the IFF in their prices. The fee is included in the award
price(s) and reflected in the total amount charged to ordering
activities.
(b) The Contractor must remit any monies due as a result of the
close-out report required by Clause 552.238-74 at the time the
close-out report is submitted to GSA.
(c) The Contractor must pay the IFF amount due by check, or
electronic funds transfer through the Automated Clearing House
(ACH), to the ``General Services Administration.'' If the payment
involves multiple special item numbers or contracts, the Contractor
may consolidate the IFFs into one payment. To ensure that the
payment is credited properly, the Contractor must identify the check
or electronic transmission as an ``Industrial Funding Fee'' and
include the following information: contract number(s); report
amount(s); and report period(s). If the Contractor makes payment by
check, provide this information on either the check, check stub, or
other remittance material.
(1) If paying the IFF by check, the Contractor must forward the
check to the following address: General Services Administration,
Accounts Receivable Branch, P.O. Box 70500, Chicago, IL 60673-0500.
(2) If paying by electronic funds transfer through the ACH, the
Contractor must call GSA, Financial Information Control Branch,
Receivables, Collections and Sales Section (6BCDR) at [Contracting
Officer to insert phone number] to make arrangements.
(d) If the full amount of the IFF is not paid within 30 calendar
days after the end of the applicable reporting period, it
constitutes a contract debt to the United States Government under
the terms of FAR 32.6. The Government may exercise all rights under
the Debt Collection Act of 1982, including withholding or setting
off payments and interest on the debt (see FAR 52.232-17, Interest).
(e) If the Contractor fails to submit sales reports, falsifies
sales report, or fails to pay the IFF In a timely manner, the
Government may terminate or cancel this contract. Willful failure or
refusal to furnish the required reports, falsification of sales
reports, or failure to pay the IFF timely constitutes sufficient
cause for terminating the Contractor for cause under the termination
provisions of this contract.
(End of clause)
*The Commissioner, Federal Supply Service or a designee
determines and provides to contracting officers the percentage
amount of the fee to insert in the above clause.
552.242-70 Status Report of Orders and Shipments.
As prescribed in 542.1107, insert the following clause:
Status Report of Orders and Shipments (Apr 1992)
(a) The Contractor shall furnish to the Administrative
Contracting Officer (ACO) a report covering orders received and
shipments made during each calendar month of contract performance.
The information required by the Government shall be reported on GSA
Form 1678, Status Report of Orders and Shipments, in accordance with
instructions on the form. The information required by the GSA Form
1678 may also be submitted in an automated printout form if
authorized by the ACO. Alternatively, the required information may
be reported by electronic data interchange using ANSI standards. For
further information, contact GSA, Contract Administration Division
[Insert appropriate telephone number of FQC] Reports shall be
forwarded to the ACO no later than the seventh workday of the
succeeding month.
(b) An initial supply of GSA Form 1678 will be forwarded to the
Contractor with the contract. Additional copies of the form, if
needed, may be obtained from the ACO, or reproduced by the
Contractor.
(End of clause)
552.243-70 Pricing of Adjustments.
As prescribed in 543.205(a)(1), insert the following clause:
Pricing of Adjustments (Apr. 1989)
When costs are a factor in any determination of a contract price
adjustment, such costs shall be in accordance with the contract cost
principles and procedures in Part 31 of the Federal Acquisition
Regulation (48 CFR Part 31) in effect on the date of this contract.
(End of clause)
552.243-71 Equitable Adjustments.
As prescribed in 543.205(a)(2), insert the following clause:
Equitable Adjustments (Apr 1984)
(a) The provisions of the ``Changes'' clause prescribed by FAR
52.243-4 are supplemented as follows:
(1) Upon written request, the Contractor shall submit a
proposal, in accordance with the requirements and limitations set
forth in the ``Equitable Adjustments'' clause, for work involving
contemplated changes covered by the request. The proposal shall be
submitted within the time limit indicated in the request or any
extension of such time limit as may be subsequently granted. The
Contractor's written statement of the monetary extent of a claim for
equitable adjustment shall be submitted in the following form:
(i) Proposals totaling $5,000 or less shall be submitted in the
form of a lump sum proposal with supporting information to
[[Page 37254]]
clearly relate elements of cost with specific items of work involved
to the satisfaction of the Contracting Officer, or his/her
authorized representative.
(ii) For proposals in excess of $5,000, the claim for equitable
adjustment shall be submitted in the form of a lump sum proposal
supported with an itemized breakdown of all increases and decreases
in the contract in at least the following detail:
Direct Costs
Material quantities by trades and unit costs
(Manufacturing burden associated with material fabrication performed
will be considered to be part of the material costs of the
fabricated item delivered to the job site)
Labor breakdown by trades and unit costs
(Identified with specific item of material to be placed or operation
to be performed)
Construction equipment exclusively necessary for the change
Costs of preparation and/or revision to shop drawings resulting from
the change
Workers' Compensation and Public Liability Insurance
Employment taxes under FICA and FUTA
Bond Costs--when size of change warrants revision
Overhead, Profit and Commission
(2) The allowable overhead shall be determined in accordance
with the contract cost principles and procedures in Part 31 of the
Federal Acquisition Regulation (48 CFR Part 31) in effect on the
date of this contract. The percentages for profit and commission
shall be negotiated and may vary according to the nature, extent and
complexity of the work involved, but in no case shall exceed the
following unless the Contractor demonstrates entitlement to a higher
percentage:
----------------------------------------------------------------------------------------------------------------
Profit Commission
Overhead (percent) (percent)
----------------------------------------------------------------------------------------------------------------
To Contractor on work performed by ......................................... .............. 10
other than his own forces.
To first tier subcontractor on work ......................................... .............. 10
performed by his subcontractors.
To Contractor and/or the To be Negotiated......................... 10 ..............
subcontractors for that portion of
the work performed with their
respective forces.
----------------------------------------------------------------------------------------------------------------
Not more than four percentages will be allowed regardless of the
number of tier subcontractors. The Contractor shall not be allowed a
commission on the commission received by a first tier subcontractor.
Equitable adjustments for deleted work shall include credits for
overhead, profit and commission. On proposals covering both
increases and decreases in the amount of the contract, the
application of overhead and profit shall be on the net change in
direct costs for the Contractor or subcontractor performing the
work.
(3) The Contractor shall submit with the proposal his request
for time extension (if any), and shall include sufficient
information and dates to demonstrate whether and to what extent the
change will delay the contract in its entirety.
(4) In considering a proposal, the Government shall make check
estimates in detail, utilizing unit prices where specified or agreed
upon, with a view to arriving at an equitable adjustment.
(5) After receipt of a proposal the Contracting Officer shall
act thereon, within 30 days; provided however, that when the
necessity to proceed with a change does not allow time properly to
check a proposal or in the event of failure to reach an agreement on
a proposal, the Government may order the Contractor to proceed on
the basis of price to be determined at the earliest practicable
date. Such price shall not be more than the increase or less than
the decrease proposed.
(6) If a mutually acceptable agreement cannot be reached, the
Contracting Officer may determine the price unilaterally.
(b) The provisions of the ``Differing Site Conditions'' clause
prescribed by FAR 52.236-2 are supplemented as follows: The
Contractor shall submit all claims for equitable adjustment in
accordance with, and subject to the requirements and limitations set
out in paragraph (a) of this ``Equitable Adjustments'' clause.
(End of clause)
552.243-72 Modifications (Multiple Award Schedule).
As prescribed in 543.205(b), insert the following clause:
Modifications (Multiple Award Schedule (Sep 1999)
(a) General. The Contractor may request a contract modification
by submitting a request to the Contracting Officer for approval,
except as noted in paragraph (d) of this clause. At a minimum, every
request shall describe the proposed change(s) and provide the
rationale for the requested change(s).
(b) Types of Modifications.
(1) Additional items/additional SINs. When requesting additions,
the following information must be submitted:
(i) Information requested in paragraphs (1) and (2) of the
Commercial Sales Practice Format to add SINs.
(ii) Discount information for the new item(s) or new SIN(s).
Specifically, submit the information requested in paragraphs 3
through 5 of the Commercial Sales Practice Format. This information
is the same as the initial award, a statement to that effect may be
submitted instead.
(iii) Information about the new item(s) or the item(s) under the
new SIN(s) as described in 552.212-70, Preparation of Offer
(Multiple Award Schedule) is required.
(iv) Delivery time(s) for the new item(s) or the items under the
new SIN(s) must be submitted in accordance with 552.211-78,
Commercial Delivery Schedule (Multiple Award Schedule).
(v) Production point(s) for the new item(s) or the item(s) under
the new SIN(s) must be submitted if required by 52.215-6, Place of
Performance.
(vi) Hazardous material information (if applicable) must be
submitted as required by 52.223-3 (ALT I), Hazardous Material
Identification and Material Safety Data.
(vii) Any information requested by 52.212-3(f), Offerors
Representations and Certifications--Commercial Items, that may be
necessary to assure compliance with 552.225-9, Buy American Act--
Trade Agreement--Balance of Payments Program.
(2) Deletions. The Contractor shall provide an explanation for
the deletion. The Government reserves the right to reject any
subsequent offer of the same item or a substantially equal item at a
higher price during the same contract period, if the contracting
officer finds the higher price to be unreasonable when compared with
the deleted item.
(3) Price Reduction. The Contractor shall indicate whether the
price reduction falls under item (i), (ii), or (iii) of paragraph
(c)(1) of the Price Reductions clause at 552.238-75. If the price
reduction falls under item (i), the Contractor shall submit a copy
of the dated commercial price list. If the price reduction falls
under item (ii) or (iii), the Contractor shall submit a copy of the
applicable price list(s), bulletins or letters or customer
agreements which outline the effective date, duration, terms and
conditions of the price reduction.
(c) Effective Dates. The effective date of any modification is
the date specified in the modification, except as otherwise provided
in the Price Reductions clause at 552.238-75.
(d) Electronic File Updates. The Contractor shall update
electronic file submissions to reflect all modifications. For
additional items or SINs, the Contractor shall obtain the
contracting officer's approval before transmitting changes. Contract
modifications will not be made effective until the Government
receives the electronic file updates. The Contractor may transmit
price reductions, item deletions, and corrections without prior
approval. However, the Contractor shall notify the contracting
officer as set forth in the Price Reductions clause at 552.238-75.
(e) Amendments to Paper Supply Schedule Price Lists.
(1) The Contractor must provide supplements to its paper price
lists, reflecting the most current changes. The Contractor may
either:
(i) Distribute a supplemental paper Federal Supply Schedule
Price List within 15 workdays after the effective date of each
modification.
[[Page 37255]]
(ii) Distribute quarterly cumulative supplements. The period
covered by a cumulative supplement is at the discretion of the
Contractor, but may not exceed three calendar months from the
effective date of the earliest modification. For example, if the
first modification occurs in February, the quarterly supplement must
cover February--April, and every 3 month period after. The
Contractor must distribute each quarterly cumulative supplement
within 15 workdays from the last day of the calendar quarter.
(2) At a minimum, the Contractor shall distribute each
supplement to those ordering activities that previously received the
basic document. In addition, the Contractor shall submit two copies
of each supplement to the contracting officer, and one copy to the
FSS Schedule Information Center.
(End of clause)
Alternate I (Sep 1999). As prescribed in 543.205(b), substitute
the following paragraph (d) for paragraph (d) of the basic clause:
(d) Electronic File Updates. The Contractor shall update
electronic file submissions to reflect all modifications. For
additional items or SINs, the Contractor shall obtain the
contracting officer's approval before transmitting changes. Contract
modifications will not be made effective until the Government
receives the electronic file updates. The Contractor may transmit
price reductions and corrections without prior approval. However,
the Contractor shall notify the contracting officer as set forth in
the Price Reductions clause at 552.238-75.
552.246-17 Warranty of Supplies of a Noncomplex Nature
As prescribed in 546.710(a), insert the following clause:
Warranty of Supplies of a Noncomplex Nature (Dec 1990) (Deviation FAR
52.246-17)
(a) Definitions. ``Acceptance,'' as used in this clause, means
the act of an authorized representative of the Government by which
the Government assumes for itself, or as an agent of another,
ownership of existing supplies, or approves specific services as
partial or complete performance of the contract.
``Correction,'' as used in this clause, means the elimination of
a defect.
``Supplies,'' as used in this clause, means the end item
furnished by the Contractor and related services required under the
contract. The word does not include ``data.''
(b) Contractor's obligations.
(1) Notwithstanding inspection and acceptance by the Government
of supplies furnished under this contract, or any condition of this
contract concerning the conclusiveness thereof, the Contractor
warrants that for ________*________
(i) All supplies furnished under this contract will be free from
defects in material or workmanship and will conform with the
requirements of this contract; and
(ii) The preservation, packaging, packing, and marking, and the
preparation for, and method of, shipment of such applies will
conform with the requirements of this contract.
(2) When return, correction, or replacement is required, the
Contractor shall be responsible for all costs attendant to the
return, correction or replacement of the nonconforming supplies. Any
removal in connection with the above shall be done by the Contractor
at its expense. However, the Contractor's liability for the
transportation charges shall not exceed an amount equal to the cost
of transportation by the usual commercial method of shipment between
the place of delivery specified in the contract and the Contractor's
plant, and return.
(3) Any supplies or parts thereof, corrected or furnished in
replacement under this clause, shall also be subject to the terms of
this clause to the same extent as supplies initially delivered. The
warranty, with respect to supplies or parts thereof, shall be equal
in duration to that in paragraph (b)(1) of this clause and shall run
from the date of delivery of the corrected or replaced supplies.
(4) All implied warranties of merchantability and ``fitness for
a particular purpose'' are excluded from any obligation contained in
this contract.
(c) Remedies available to the Government.
(1) The Contracting Officer shall give written notice to the
Contractor of any breach of warranties in paragraph (b)(1) of this
clause with ________*________. This notice shall contain information
concerning the deficiencies found, the location of the nonconforming
supplies, and the quantity involved.
(2) Within a reasonable time after the notice, the Contracting
Officer may either--
(i) Require, by written notice, the prompt correction or
replacement of any supplies or parts thereof (including
preservation, packaging, packing, and marking) that do not conform
with the requirements of this contract within the meaning of
paragraph (b)(1) of this clause; or
(ii) Retain such supplies and reduce the contract price by an
amount equitable under the circumstances. When the nature of the
defect in the nonconforming item is such that the defect affects an
entire batch or lot of material, then the equitable price adjustment
shall apply to the entire batch or lot of material from which the
nonconforming item was taken.
(3)(i) If the contract provides for inspection of supplies by
sampling procedures, conformance of supplies or components subject
to warranty action shall be determined by the applicable sampling
procedures in the contract. The Contracting Officer--
(A) May, for sampling purposes, group any supplies delivered
under this contract;
(B) Shall require the size of the sample to be that required by
sampling procedures specified in the contract for the quantity of
supplies on which warranty action is proposed;
(C) May project warranty sampling results over supplies in the
same shipment or other supplies contained in other shipments even
though all of such supplies are not present at the point of
reinspection; provided, that the supplies remaining are reasonably
representative of the quantity on which warranty action is proposed;
and
(D) Need not use the same lot size as on original inspection or
reconstitute the original inspection lots.
(ii) Within a reasonable time after notice of any breach of the
warranties specified in paragraph (b)(1) of this clause, the
Contracting Officer may exercise one or more of the following
options:
(A) Require an equitable adjustment in the contract price for
any group of supplies.
(B) Screen the supplies grouped for warranty action under this
clause at the Contractor's expense and return all nonconforming
supplies to the Contractor for correction or replacement.
(C) Require the Contractor to screen the supplies at locations
designated by the Government within the continental United States
and to correct or replace all nonconforming supplies.
(D) Return the supplies grouped for warranty action under this
clause to the Contractor (irrespective of the f.o.b. point or the
point of acceptance) for screening and correction or replacement.
All costs incurred by the Government in returning the nonconforming
supplies, including costs to the freight carrier resulting from the
Contractor's refusal to accept their return, shall be for the
Contractor's account.
(4)(i) The Contracting Officer may, by contract or otherwise,
correct or replace the nonconforming supplies with similar supplies
from another source and charge to the Contractor the cost occasioned
to the Government thereby if the Contractor--
(A) Fails to make redelivery of the corrected or replaced
supplies within the time established for their return; or
(B) Fails either to accept return of the nonconforming supplies
or fails to make progress after their return to correct or replace
them so as to endanger performance of the delivery schedule, and in
either of these circumstances does not cure such failure within a
period of 10 days (or such longer period as the Contracting Officer
may authorize in writing) after receipt of notice from the
Contracting Officer specifying such failure.
(ii) Instead of correction or replacement by the Government, the
Contracting Officer may require an equitable adjustment of the
contract price for all nonconforming supplies, including batch or
lot materials which either have been consumed or other disposition
has been made. In addition, if the Contractor fails to furnish
timely disposition instructions, the Contracting Officer may return
the supplies for screening and correction or replacement under
subparagraph (c)(3)(ii)(D) above; store the nonconforming supplies
for the Contractor's account; sell the nonconforming supplies to the
highest bidder on the open market and apply the proceeds against the
accumulated storage and other costs, including the cost of the sale;
or otherwise dispose of the nonconforming supplies for the
Contractor's account in a reasonable manner. The Government is
entitled to reimbursement from the Contractor, or from the proceeds
of such disposal, for the reasonable expenses of the care and
disposition of the
[[Page 37256]]
nonconforming supplies, as well as for excess costs incurred or to
be incurred.
(5) The rights and remedies of the Government provided in this
clause are in addition to and do not limit any rights afforded to
the Government by any other clause of this contract.
(6) Unless otherwise provided, this warranty is applicable both
within and outside the continental limits of the United States.
(7) In addition to other marking requirements of this contract,
the Contractor shall stamp or mark the supplies delivered or
otherwise furnish notice with the supplies of the existence of the
warranty. The marking should briefly include (i) a statement that
the warranty exists, (ii) the substance of the warranty, (iii) its
duration, and (iv) whom to notify if the supplies are found to be
defective.
(End of clause)
* State the specific period of time after delivery or the
specified event whose occurrence will terminate the warranty period;
e.g., the number of miles or hours of use, or combination of any
applicable event or periods of time.
** Insert specific period of time; e.g., ``45 days from the last
delivery under this contract,'' or ``45 days after discovery of the
defect.'' The number of days specified shall be no less than 30.
Alternate I (DEC 1990). As prescribed in 546.710(a)(1),
substitute the following for paragraph (b)(1) of the basic clause
and delete paragraph (b)(4) of the basic clause.
(1) Notwithstanding inspection and acceptance by the Government
of supplies furnished under this contract, or any condition of this
contract concerning the conclusiveness thereof, the Contractor
warrants that for ________*________ all supplies furnished--
(i) Are of a quality to pass without objection in the trade
under the contract description;
(ii) Are fit for the ordinary purposes for which the supplies
are used;
(iii) Are within the variations permitted by the contract, and
are of an even kind, quality, and quantity within each unit and
among all units;
(iv) Are adequately contained, packaged, and marked as the
contract may require; and
(v) Conform to the promises or affirmations of fact made on the
container.
Alternate II (DEC 1990). As prescribed in 546.710(a)(2),
substitute the following paragraph for paragraph (b)(1) of the basic
clause:
(1) Notwithstanding inspection and acceptance by the Government
of supplies furnished under this contract, or any condition of this
contract concerning the conclusiveness thereof, the Contractor
warrants that for ________*________ all supplies furnished--
(i) Conform to the specifications except that in the case of
solvent systems, the viscosity may exceed the specified maximum by
10 Kreb Units, unless otherwise specified elsewhere in this
contract; and
(ii) Are suitable for their intended purpose as stated in this
contact.
Alternate III (DEC 1990). As prescribed in 546.710(a)(3),
substitute the following for paragraph (b)(1) of the basic clause,
redesignate paragraph (c) of the basic clause as paragraph (d), and
add the following as paragraph (c) in the basic clause:
(1) Notwithstanding inspection and acceptance by the Government
of supplies furnished under this contract, or any condition of this
contract concerning the conclusiveness thereof, the Contractor
warrants that for ________*________, beginning with the first day of
the first full month following the month of manufacture marked on
the container, all supplies furnished retain their original
characteristics to the extent that the supplies remain suitable for
the intended use as stated in this contract (i) under actual
application conditions or (ii) when tested in accordance with
requirements stated elsewhere in this contract.
(c) Government surveillance and testing.
(1) During this period, surveillance will be maintained on
supplies warehoused in Government facilities; and the supplies will
be tested periodically to determine their suitability for intended
use. Sampling for surveillance testing will be in accordance with
Military Standard No. 105, and such testing will be made after
NORMAL MIXING, STIRRING, OR SHAKING, in accordance with directions
either furnished with the supplies or as shown in the applicable
specifications.
(2) Surveillance testing will be based on storage stability
requirements set forth in the contract specification, or purchase
description on the basis of salient characteristics (e.g., viscosity
or sag flow, curing time, strip adhesion or tensile shear, etc.)
established by GSA as appropriate to determine suitability for
intended use. In the case of brand name items not covered by
detailed purchase descriptions, surveillance testing may be based on
salient characteristics included in the manufacturer's data sheets.
If storage stability requirements showing allowable variations are
not included in applicable specifications or elsewhere in the
contract, material will be considered suitable for intended use if
the salient characteristics vary not more than 20 percent from the
originally specified values (i.e., those applicable to acceptance
testing of the supplies) for noncritical end-use items, and not more
then 10 percent for critical end-use items.
552.246-7-0 Source Inspection by Quality Approved Manufacturer.
As prescribed in 546.302-70, insert the following clause:
Source Inspection by Quality Approved Manufacturer (Sep 1999)
(a) Inspection system and inspection facilities.
(1) The inspection system maintained by the Contractor under the
Inspection of Supplies--Fixed Price clause (FAR 52.246-2) of this
contract shall be maintained throughout the contract period and
shall comply with all requirements of editions in effect on the date
of the solicitation of either Federal Standard 368 or the
International Organization for Standardization (ISO) Standard 9001
(ANSI/ASQC Q 91) (Quality Systems--Model for Quality Assurance in
Design/Development, Production, Installation and Servicing), or ISO
Standard 9002 (ANSI/ASQC Q 92) (Quality Systems--Model for Quality
Assurance in Production and Installation). The ISO 9000 family of
standards is a set of worldwide standards used to document,
implement and demonstrate quality assurance systems. When using the
ISO option the Contractor's quality system must be registered by a
third party registrar accredited by either the Registrar
Accreditation Board (RAB) or an organization recognized as
equivalent. A written description of the inspection system shall be
made available to the Government before contract award. The
Contractor shall immediately notify the Contracting Officer and the
designated GSA quality assurance office of any changes made in the
inspection system during the contract period. As used herein, the
term ``inspection system'' means the Contractor's own facility or
any other facility acceptable to the Government that will be used to
perform inspections or tests of materials and components before
incorporation into end articles and for inspection of such end
articles before shipment. When the manufacturing plant is located
outside of the United States, the Contractor shall arrange delivery
of the items from a plant or warehouse located in the United States
(including Puerto Rico and the Virgin Islands) equipped to perform
all inspections and tests required by the contract or specifications
to evidence conformance therewith, or shall arrange with a testing
laboratory or other facility in the United States, acceptable to the
Government, to perform the required inspections and tests.
(2) In addition to the requirements in Federal Standard 368, ISO
9001 or ISO 9002 records shall include the date when inspection and
testing were performed. These records shall be available for (i) 3
years after final payment; or (ii) 4 years from the end of the
Contractor's fiscal year in which the record was created, whichever
period expires first.
(3) Offerors are required to specify, in the space provided
elsewhere in this solicitation, the name and address of each
manufacturing plant or other facility where supplies will be
available for inspection, indicating the item number(s) to which
each applies.
(4) Within 10 calendar days after receipt of the written notice
of award, the Contractor shall provide the Administrative
Contracting Officer with the name of the individual and an alternate
that will be responsible for inspecting each shipment under this
contract.
(b) Inspection and receiving reports.
(1) For each shipment released, one of the officials named by
the Contractor under paragraph (a)(4) above shall sign a Quality
Approved Manufacturer Certificate certifying that supplies have been
inspected and found to comply with contract requirements. The
certification shall read as follows:
``I certify that all items in this shipment have been listed
herein, and have been inspected and found to comply with all
requirements of the contract.''
[[Page 37257]]
Signature of Certifying Official
(2) For shipments made to military facilities, the Contractor
shall prepare and distribute the DD Form 250, Material Inspection
and Receiving Report, or computer formatted equivalent of the form
not later than the close of business the workday following shipment.
The certification above shall be placed in block 16 on this form.
The Contractor will be provided a supply of the DD Form 250 with
complete instructions for preparation and distribution.
(3) For shipments made to civilian facilities only, the
Contractor shall prepare and distribute not later than the close of
business the workday following shipment a certification of
inspection and conformance for the identified items, in accordance
with instructions furnished at the time of award. The Contractor may
furnish the requisite information on the DD Form 250 or computer
formatted equivalent, company letterhead, or invoice document.
(c) Inspection by Government personnel.
(1) Although the Government will normally rely upon the
Contractor's certification as to the quality of supplies shipped, it
reserves the right under the Inspection of Supplies--Fixed Price
clause to inspect and test all supplies called for by this contract,
before acceptance, at all times and places, including the point of
manufacture. When the Government notifies the Contractor of its
intent to inspect supplies before shipment, the Contractor shall
notify or arrange for subcontractors to notify the designated GSA
quality assurance office 7 workdays before the date when supplies
will be ready for inspection. Shipment shall not be made until
inspection by the Government is completed and shipment is authorized
by the Government.
(2) Government inspection responsibility will be assigned the
GSA quality assurance office which has jurisdiction over the State
in which the Contractor's or subcontractor's plant or other
designated point for inspection is located.
(3) During the contract period, a Government representative may
periodically select samples of supplies produced under this contract
for verification inspection and testing. Samples sent to a
Government testing facility will be disposed of as follows: Samples
from an accepted lot, not damaged in the testing process, will be
returned promptly to the Contractor after completion of tests.
Samples damages in the testing process will be disposed of as
requested by the Contractor. Samples from a rejected lot will be
returned to the Contractor or disposed of in a time and manner
agreeable to both the Contractor and the Government.
(d) Quality deficiencies.
(1) Notwithstanding any other clause of this contract concerning
the conclusiveness of acceptance by the Government, any supplies or
production lots shipped under this contract found to be defective in
material or workmanship, or otherwise not in conformity with the
requirements of this contract within a period of ________*________
months after acceptance shall, at the Government's option, be
replaced, repaired or otherwise corrected by the Contractor at no
cost to the Government within 30 calendar days (or such longer
period as the Government may authorize in writing) after receipt of
notice to replace or correct. The Contractor shall remove, at its
expense, supplies rejected or required to be replaced, repaired or
corrected. When the nature of the defect affects an entire batch or
lot of supplies, and the Contracting Officer determines that
correction can best be accomplished by retaining the nonconforming
supplies and reducing the contract price by an amount equitable
under the circumstances, then the equitable price adjustment shall
apply to the entire batch or lot of supplies from which the
nonconforming item was taken.
(2) If supplies in process, shipped, or awaiting shipment to
fill Government orders are found not to comply with contract
requirements, or if deficiencies in either plant quality or process
controls are found, the Contractor may be issued a Quality
Deficiency Notice (QDN). Upon receipt of a QDN, the Contractor shall
take immediate corrective action and shall suspend shipment of the
supplies covered by the QDN until such time as corrective action has
been completed. The Contractor shall notify the GSA quality
assurance office, within 5 workdays, of corrective action taken or
to be taken to permit on site verification by a Government
representative. Shipments of nonconforming supplies will be returned
at the Contractor's expense and may constitute cause for
termination. Delays due to the insurance of a QDN do not constitute
excusable delay under the Default clause. Failure to complete
corrective action in a timely manner may result in termination of
this contract.
(3) This contract may be terminated for default if subsequent
Government inspection discloses that plant quality or process
controls are not being maintained, supplies which do not meet the
requirements of the specification are being shipped, or there is
failure to comply with any other requirement of this clause.
(e) Additional cost for inspection and testing. The Contractor
will be charged for any additional cost of inspection/testing or
reinspecting/retesting supplies for the reasons stated in paragraph
(e) of FAR 52.246-2, Inspection of Supplies--Fixed Price. When
inspection or testing is performed by or under the direction of GSA,
charges will be at the rate of $________*________ per man-hour or
fraction thereof if the inspection is at a GSA distribution center;
$________*________ per man-hour or fraction thereof, plus travel
costs incurred, if the inspection is at any other location; and
$________*________ per man-hour or fraction thereof for laboratory
testing, except that when a testing facility other than a GSA
laboratory performs all or part of the required tests, the
Contractor shall be assessed the actual cost incurred by the
Government as a result of testing at such facility. When inspection
is performed by or under the direction of any agency other than GSA,
the charges indicated above may be used, or the agency may assess
the actual cost of performing the inspection and testing.
(F) Responsibility for rejected supplies. When the Contractor
fails to remove or provide instructions for the removal of rejected
supplies under paragraph (d) above, pursuant to the Contracting
Officer's instructions, the Contractor shall be liable for all costs
incurred by the Government in taking such measures as are expedient
to avoid unnecessary loss to the Contractor. In addition to the
remedies provided in FAR 52.246-2, supplies may be--
(1) Stored for the Contractor's account;
(2) Reshipped to the Contractor at its expense (any additional
expense incurred by the Government or the freight carrier caused by
the refusal of the Contractor to accept their return also shall be
for the Contractor's account); or
(3) Sold to the highest bidder on the open market and the
proceeds applied against the accumulated storage and other costs,
including the cost of the sale.
(g) Subcontracting requirements. The Contractor shall insert in
any subcontracts the inspection or testing provisions set forth in
paragraphs (a) through (d) of this clause and the Inspection of
Supplies--Fixed Price clause of this contract. The Contractor shall
be responsible for compliance by any subcontractor with the
provisions set forth in paragraphs (a) through (d) of this clause
and the Inspection of Supplies--Fixed Price clause.
(End of clause)
*Normally insert 12 months as the period during which defective
or otherwise nonconforming supplies must be replaced. However, when
the supplies being bought have a shelf life of less than 1 year, you
should use the shelf-life period, or in the instance where you
reasonably expect a longer period to be available, you should use
the longer period.
**The rates to be inserted are established by the Commissioner
of the Federal Supply Service or a designee.
552.246-71 Source Inspection by Government.
As prescribed in 546.302-71, insert the following clause:
Souce Inspection by Government (SEP 1999)
(a) Inspection by Government personnel.
(1) Supplies to be furnished under this contract will be
inspected at source by the Government before shipment from the
manufacturing plant or other facility designated by the Contractor,
unless the Contractor is otherwise notified in writing by the
Contracting Officer or a designated representative. Notwithstanding
the foregoing, the Government may perform any or all tests contained
in the contract specifications at a Government facility without
prior written notice by the Contracting Officer before release of
the supplies for shipment. Samples sent to a Government resting
facility will be disposed of as follows: Samples from an accepted
lot, not damaged in the testing process, will be returned promptly
to the Contractor after completion of tests. Samples damaged in the
testing process will be disposed of as requested by the Contractor.
Samples from a rejected lot will be returned to the Contractor or
disposed of in a time and manner agreeable to both the Contractor
and the Government.
[[Page 37258]]
(2) Government inspection responsibility will be assigned to the
GSA quality assurance office which has jurisdiction over the State
in which the Contractor's subcontractor's plant or other designated
point for inspection is located. The Contractor shall notify or
arrange for subcontractors to notify the designated GSA quality
assurance office 7 workdays before the date when supplies will be
ready for inspection. Shipment shall not be made until after
inspection by the Government is completed and shipment is authorized
by Government.
(b) Inspection and receiving reports. For each shipment, the
Contractor shall be responsible for preparation and distribution of
inspection documents as follows: (1) DD Form 250, Material
Inspection and Receiving Report, or computer formatted equivalent
for deliveries to military agencies; or (2) GSA Form 308, Notice of
Inspection for deliveries to GSA or other civilian agencies. When
required, the Contractor will be furnished a supply of GSA Form 308
and/or DD Form 250, and complete instructions for their reparation
and distribution.
(c) Inspection facilities.
(1) The inspection system required to be maintained by the
Contractor in accordance with FAR 52.246-2, Inspection of Supplies--
Fixed Price, may be the Contractor's own facilities or any other
facilities acceptable to the Government. The facilities shall be
utilized to perform all inspections and tests of materials and
components before incorporation into end articles, and for the
inspection of such end articles before shipment. The Government
reserves the right to evaluate the acceptability and effectiveness
of the Contractor's inspection system before award and periodically
during the contract period.
(2) Offerors are required to specify, in the spaces provided
elsewhere in the solicitation, the name and address of each
manufacturing plant or other facility where supplies will be
available for inspection, indicating the item number(s) to which
each applies.
(3) The Contractor shall deliver the items specified in this
contract from a plant or warehouse located within the United States
(including Puerto Rico and the Virgin Islands) that is equipped to
perform all inspections and tests required by this contract or
specifications to evidence conformance therewith, or shall arrange
with a testing laboratory or other facility in the United States,
acceptable to the Government, to perform the required inspections
and tests.
(d) Availability of records.
(1) In addition to any other requirement of this contract, the
Contractor shall maintain records showing the following information
for each order received under the contract: (i) order number; (ii)
date order received by the Contractor; (iii) quantity ordered; (iv)
date scheduled into production; (v) batch or lot number, if
applicable; (vi) date inspected and/or tested; (vii) date available
for shipment; (viii) date shipped or date service completed; and
(ix) National Stock Number (NSN), or if none is provided in the
contract, the applicable item number or other contractual
identification.
(2) These records should be maintained at the point of source
inspection and shall be available to the Contracting Officer, or an
authorized representative, for (i) 3 years after final payment; or
(ii) 4 years from the end of the Contractor's fiscal year in which
the record was created, whichever period expires first.
(e) Additional cost for inspection and testing. The Contractor
will be charged for any additional cost for inspecting/testing or
reinspection/retesting supplies for the reasons stated in paragraph
(e) of FAR 52.246-2, Inspection of Supplies--Fixed Price. When
inspection or testing is performed by or under the direction of GSA,
charges will be at the rate of $________*________ per man-hour or
fraction thereof if the inspection is at a GSA distribution center;
$________*________ per man-hour or fraction thereof, plus travel
costs incurred, if the inspection is at any other location; and
$________*________ per man-hour or fraction thereof for laboratory
testing, except that when a testing facility other than a GSA
laboratory performs all or part of the required tests, the
Contractor shall be assessed the actual cost incurred by the
Government as a result of testing at such facility. When inspection
is performed by or under the direction of any agency other than GSA,
the charges indicated above may be used, or the agency may assess
the actual cost of performing the inspection and testing.
(f) Responsibility for rejected supplies. When the Contractor
fails to remove or provide instructions for the removal of rejected
supplies under FAR 52.246-2(h) pursuant to the Contracting Officer's
instructions, the Contractor shall be liable for all costs incurred
by the Government in taking such measures as are expedient to avoid
unnecessary loss to the Contractor. In addition to the remedies
provided in FAR 52.246-2, supplies may be--
(1) Stored for the Contractor's account;
(2) Reshipped to the Contractor at its expense (any additional
expense incurred by the Government or the freight carrier caused by
the refusal of the Contractor to accept their return also shall be
for the Contractor's account); or
(3) Sold to the highest bidder on the open market and the
proceeds applied against the accumulated storage and other costs,
including the cost of the sale.
(End of clause)
*The rates to be inserted are established by the Commissioner of
the Federal Supply Service or a designee.
552.246-72 Final Inspection and Tests.
As prescribed in 546.312, insert the following clause:
Final Inspection and Tests (Sep 1999)
The Contractor shall give written notice to the Contracting
Officer at least 10 calendar days before the date the work will be
completed and ready for final inspection and tests. Final inspection
and tests will begin within 10 calendar days after the date
specified in the Contractor's notice unless the Contracting Officer
determines that the work is not ready for final inspection and so
informs the Contractor.
(End of clause)
552.246-73 Warranty--Multiple Award Schedule.
As prescribed in 546.710(b), insert the following clause:
Warranty--Multiple Award Schedule (Feb 1996)
Unless specified otherwise in this contract, the Contractor's
standard commercial warranty as stated in the Contractor's
commercial price list will apply to this contract.
(End of clause)
552.246-74 Warranty--International Multiple Award Schedule.
As prescribed in 546.710(c), insert the following clause:
Warranty--International Multiple Award Schedule (May 1989)
Unless specified otherwise in this contract, the Contractor's
standard commercial warranty as stated in the commercial price list
applies to this contract, except: (a) the Contractor shall provide,
at a minimum, a warranty on all non-consumable parts for a period of
90 days from the date that the Government accepts the product; (b)
parts and labor required under the warranty provisions shall be
supplied free of charge; (c) transportation costs of returning the
products to and from the repair facility, or the costs involved with
Contractor personnel traveling to the Government facility for the
purpose of repairing the product onsite shall be borne by the
Contractor during the 90-day warranty period.
(End of clause)
552.246-75 Guarantees.
As prescribed in 546.710(d), insert the following clause:
Guarantees (May 1989)
(a) Unless otherwise provided in the specifications, the
Contractor guarantees all work to be in accordance with contract
requirements and free from defective or inferior materials,
equipment, and workmanship for 1 year after the date of final
acceptance or the date the equipment or work was placed in use by
the Government, whichever occurs first.
(b)(1) If, within any guarantee period, the Contracting Officer
finds that guaranteed work requires repair or change because of
defective or inferior materials, equipment, or workmanship or is not
in accordance with contract requirements, the Contracting Officer
shall notify the Contractor in writing. The Contractor shall
promptly, and without additional expense to the Government, correct:
(i) All guaranteed work;
(ii) All damage to equipment, the site, the building or its
contents resulting from the unsatisfactory guaranteed work; and
(iii) Any work, materials, and equipment that are disturbed in
fulfilling the guarantee, including any disturbed work, materials,
and equipment that may have been guaranteed under another contract.
(2) If the Contractor fails to proceed promptly in accordance
with the guarantee,
[[Page 37259]]
the Government may have such work performed at the expense of the
Contractor.
(c) Any special guarantees that may be required under the
contract will be subject to paragraphs (a) and (b), insofar as they
do not conflict with special guarantees.
(d) The Contractor shall furnish to the Government: (1) Each
transferable guarantee or warranty of equipment, materials, or
installation furnished by any manufacturer, supplier, or installer
in the ordinary course of business; (2) All information required to
make such guarantee or warranty legally binding and effective; and
(3) The information and the guarantee or warranty in sufficient time
to permit the Government to meet any time limit specified in the
guarantee or warranty or, if no time limit is specified, prior to
completion and acceptance of all work under this contract.
(End of clause)
552.246-76 Warranty of pesticides.
As prescribed in 546.710(e), insert the following clause:
Warranty of Pesticides (May 1989)
(a) Notwithstanding acceptance of pesticides by the Government,
the Contractor warrants that for 1 year after the date of shipment,
all pesticides furnished under this contract shall meet the
requirements of Pub. L. 92-516, as amended, and shall be registered
with the Environmental Protection Agency (EPA).
(b) If EPA takes action to stop sale, stop use, remove, seize,
or cancel registration of a pesticide within 1 year after date of
shipment, the Contractor shall immediately notify the Contracting
Officer. The notification will include: (1) contract number; (2)
identification of the pesticide; (3) reason for the EPA action
against the pesticide; and (4) list of Government agencies and
addresses to which it was delivered.
(End of clause)
552.247-70 Placarding Railcar Shipments.
As prescribed in 547.305(a), insert the following clause:
Placarding Railcar Shipments (May 1989)
When a railcar is loaded in such a manner that it can be or
should be unloaded from only one side, the Contractor shall place on
the appropriate railcar door a placard reading ``UNLOAD FROM THIS
SIDE'' and on the opposite door a placard reading ``UNLOAD FROM
OTHER SIDE.''
(End of clause)
552.247-71 Diversion of Shipment Under f.o.b. Destination Contracts.
As prescribed in 547.305(b), insert the following clause:
Diversion of Shipment Under F.O.B. Destination Contracts (Sep 1999)
(a) Notwithstanding paragraph (c) of the clause in this contract
titled 52.212-4, Contract Terms and Conditions--Commercial Items,
the Government has the unilateral right to make changes at any time
within the general scope of this contract in either the:
(1) Method of shipment or packing.
(2) Place of delivery.
(b) If any such change causes an increase or decrease in the
cost of this contract, the Contracting Officer shall make an
equitable adjustment in the contract price, the delivery schedule,
or both. The Contractor must assert its right to an adjustment under
this clause within 30 days from the date of receipt of a delivery
order.
(c) The Government shall make no adjustment when supplies are
identically priced for delivery regionally or nationally and the
place of delivery is changed within the area to which the identical
price applies. In all other cases, adjustments for changes in
transportation costs under this clause shall be determined as
follows:
(1) If the contractor ships by contract or common carrier, price
adjustments shall be determined by comparing the cost of shipments
to the new destination(s), as evidenced by copy of paid freight
bills supplied by the Contractor with the invoice, to one of the
following:
(i) The cost of shipments to the standard contract destination,
as evidenced by copy of appropriate paid freight bills supplied by
the Contractor.
(ii) If no shipments have been made to the standard contract
destination, the cost as evidenced by the applicable rates of a
common or contract carrier. If carrier rates are not publicly filed
with a regulatory body (e.g., interstate shipments moving by rail
piggyback service), the Contractor shall provide a copy of the
contract, letter agreement, or other written communication from the
carrier(s) quoting the rates/charges that would have applied for
shipments to the standard contract destination.
(2) If (i) shipments to the new destination are made by the
Contractor's owned or leased trucks or (ii) shipments to the
original destination were or would have been made by the
Contractor's owned or leased trucks, the Government shall determine
the adjustment by substituting a rate equal to 70 percent of the
lowest applicable rate published in common carrier tariffs as of the
date of shipment for the Contractor's actual rate or contemplated
transportation costs.
(d) If the copies of paid freight bills for a diverted shipment
do not show, or make readily available, each of the following
items,the Contractor shall supply a written statement showing the
item(s):
(1) Full name of each carrier in the routing.
(2) Number of containers.
(3) Gross shipping weight.
(4) Actual date of shipping.
(5) Freight description for the supplies as indicated in the
``National Motor Freight Classification'' or the ``Uniform Freight
Classification'' (Rail).
(End of clause)
552.249-70 Termination for Convenience of the Government (Fixed Price)
(Short Form).
As prescribed in 549.502(a) insert the following clause:
Termination for Convenience of the Government (Fixed-Price) (Short
Form) (May 1988) (Deviation FAR 52.249-1 and 52.249-2)
(a) If the Government terminates this contract for convenience,
the rights of the Government and the Contractor shall be determined
under paragraph (b) unless there is a termination liability
schedule, in which case the rights of the parties shall be
determined under paragraph (c).
(b) The clause at [Contracting Officer inserts 52.249-1 or
52.249-2, as applicable] of the FAR shall apply to the supply
portion of the contract and the clauses at 52.249-4 of the FAR shall
apply to the service portion of the contract.
(c) If the Contractor specifies a schedule of termination
liability charges that would be incurred by the Government if the
Government terminates this lease contract without taking title to
the equipment, the payment of such charges shall be the only
responsibility of the Government to compensate the Contractor for
such termination; except that, there shall be no termination
liability for equipment installed after termination of this
contract.
(End of clause)
552.249-71 Submission of Termination Liability Schedule.
As prescribed in 549.502(b), insert the following clause:
Submission of Termination Liability Schedule (May 1989)
(a) An offeror may submit, as part of its proposal, a
termination liability schedule to be applied if any resultant
contract is terminated by the Government for reasons other than
default. The offeror shall provide and explain the amount and method
of computation of the termination liability charge(s).
(b) If submitted, the termination liability schedule will be
incorporated into Part I, Section B of the contract document. If a
termination liability schedule is not submitted and the Government
terminates any resultant contract for its convenience, the rights of
the parties shall be determined under paragraph (b) of the GSAR
Termination for Convenience of the Government clause at 552.249-70.
(c) Any termination liability charges existing at the end of the
evaluated contract period will be considered in the evaluation of
offers.
(End of clause)
552.252-5 Authorized Deviations in Provisions.
As prescribed in 552.107-70(a), insert the following provision:
Authorized Deviations in Provisions (Deviation FAR 52.252-5) (Sep 1999)
(a) Deviations to FAR provisions.
(1) This solicitation indicates any authorized deviation to a
Federal Acquisition Regulation (48 CFR Chapter 1) provision by the
addition of ``(DEVIATION)'' after the date of the provision, if the
provision is not published in the General Services
[[Page 37260]]
Administration Acquisition Regulation (48 CFR Chapter 5).
(2) This solicitation indicates any authorized deviation to a
Federal Acquisition Regulation (FAR) provision that is published in
the General Services Administration Acquisition Regulation by the
addition of ``(DEVIATION (FAR provision no.))'' after the date of
the provision.
(b) Deviations to GSAR provisions. This solicitation indicates
any authorized deviation to a General Services Administration
Acquisition Regulation provision by the addition of ``(DEVIATION)''
after the date of the provision.
(c) ``Substantially the same as'' provisions. Changes in wording of
provisions prescribed for use on a ``substantially the same as'' basis
are not considered deviations.
(End of provision)
552.252-6 Authorized Deviations in Clauses.
As prescribed in 552.107-70(b), insert the following clause:
Authorized Deviations in Clauses (Deviation FAR 52.252-6) (Sep 1999)
(a) Deviations to FAR clauses.
(1) This solicitation or contract indicates any authorized
deviation to a Federal Acquisition Regulation (48 CFR Chapter 1)
clause by the addition of ``(DEVIATION)'' after the date of the
clause, if the clause is not published in the General Services
Administration Acquisition Regulation (48 CFR Chapter 5).
(2) This solicitation indicates any authorized deviation to a
Federal Acquisition Regulation (FAR) clause that is published in the
General Services Administration Acquisition Regulation by the
addition of ``(DEVIATION (FAR clause no.))'' after the date of the
clause.
(b) Deviations to GSAR clauses: This solicitation indicates any
authorized deviation to a General Services Administration
Acquisition Regulation clause by the addition of ``(DEVIATION)''
after the date of the clause.
(c) ``Substantially the same as'' clauses. Changes in wording of
clauses prescribed for use on a ``substantially the same as'' basis
are not considered deviations.
(End of clause)
552.270-1 Instructions to Offerors--Acquisition of Leasehold Interests
in Real Property.
As prescribed in 570.602, 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 as allowed by a
Contracting Officer as the result or 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
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 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 of 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
[[Page 37261]]
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 revised proposals only if requested or
allowed by the Contracting Officer.
(6) The Government will construe an offer to be in full and
complete 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 use 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 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 price proposed are materially unbalanced between line terms
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 understand 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 making of all offerors, when any making 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 570.602, 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 (MAR 1998). As prescribed in 570.602, 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.
552.270-2 Historic Preference.
As prescribed in 570.602, insert the following provision:
Historic Preference (Sep 1999)
(a) The Government will give preference to offers of space in
buildings on, or formally listed as eligible for inclusion in, the
National Register of Historic Places and to historically significant
buildings in historic districts listed in the National Register.
This preference extends to historic buildings and will result in
award if both of the following are met:
(1) The offer for space meets the terms and conditions of this
solicitation as well as any other offer received. The Contracting
Officer has discretion to accept alternatives to certain
architectural characteristics and safety features defined elsewhere
in this solicitation to maintain the historical integrity of the
building such as high ceilings, wooden floors, etc.
(2) The rental is no more than 10 percent higher on a total
annual usable square foot cost to the Government than the lowest
otherwise acceptable offer.
(b) If the Government receives more than one offer of an
historic building and they meet the above criteria, the Government
will award to the lowest priced historic property offered.
(End of provision)
552.270-3 Parties to Execute Lease.
As prescribed in 570.602, insert the following provision:
Parties to Execute Lease (Sep 1999)
(a) If the lease is executed by an attorney, agent, or trustee
on behalf of the Lessor, an authenticated copy of his power of
attorney, or other evidence to act on behalf of the Lessor, shall
accompany the lease.
(b) If the Lessor is a partnership, the lease shall be signed
with the partnership name, followed by the name of the legally
authorized partner signing the same, and, if requested by the
Government, a copy of either the partnership agreement or current
Certificate of Limited Partnership shall accompany the lease.
(c) If the Lessor is a corporation, the lease shall be signed
with the corporate name,
[[Page 37262]]
followed by the signature and title of the officer or other person
signing the lease on its behalf, duly attested, and, if requested by
the Government, evidence of this authority to so act shall be
furnished.
(End of provision)
552.270-4 Definitions.
As prescribed in 570.603, insert the following clause:
Definitions (Sep 1999)
The following terms and phrases (except as otherwise expressly
provided or unless the context otherwise requires) for all purposes
of this lease shall have the respective meanings hereinafter
specified:
(a) ``Commencement Date'' means the first day of the term.
(b) ``Contract'' and ``Contractor'' means ``Lease'' and
``Lessor,'' respectively.
(c) ``Contracting Officer'' means a person with the authority to
enter into, administer, and/or terminate contracts and make related
determinations and findings. The term includes certain authorized
representatives of the Contracting Officer acting within the limits
of their authority as delegated by the Contracting Officer.
(d) ``Delivery Date'' means the date specified in or determined
pursuant to the provisions of this lease for delivery of the
premises to the Government, improved in accordance with the
provisions of this lease and substantially complete, as such date
may be modified in accordance with the provisions of this lease.
(e) ``Delivery Time'' means the number of days provided by this
lease for delivery of the premises to the Government, as such number
may be modified in accordance with the provision so this lease.''
(f) ``Excusable Delays'' means delays arising without the fault
or negligence of Lessor and Lessor's subcontractors and suppliers at
any tier, and shall include, without limitation:
(1) acts of God or of the public enemy,
(2) acts of the United States of America in either its sovereign
or contractual capacity,
(3) acts of another contractor in the performance of a contract
with the Government,
(4) fires,
(5) floods,
(6) epidemics,
(7) quarantine restrictions,
(8) strikes,
(9) freight embargoes,
(10) unusually severe weather, or
(11) delays of subcontractors or suppliers at any tier arising
from unforeseeable causes beyond the control and without the fault
or negligence of both the Lessor and any such subcontractor or
supplier.
(g) ``Lessor'' means the sub-lessor if this lease is a sublease.
(h) ``Lessor shall provide'' means the Lessor shall furnish and
install at Lessor's expense.
(i) ``Notice'' means written notice sent by certified or
registered mail, Express Mail or Comparable service, or delivered by
hand. Notice shall be effective on the date delivery is accepted or
refused.
(j) ``Premises'' means the space described in this lease.
(k) ``Substantially complete'' and ``substantial completion''
means that the work, the common and other areas of the building, and
all other things necessary for the Government's access to the
premises and occupancy, possession, use and enjoyment thereof, as
provided in this lease, have been completed or obtained, excepting
only such minor matters as do not interfere with or materially
diminish such access, occupancy, possession, use of enjoyment.
(l) ``Usable square feet'' means the ANSI/BOMA Z65.1-1996
definition for BOMA usable office area, which means ``The area where
a tenant normally houses personnel and/or furniture, for which a
measurement is to be computed.''
(m) ``Work'' means all alterations, improvements, modifications,
and other things required for the preparation or continued occupancy
of the premises by the Government as specified in this lease.
(End of clause)
5512.270-5 Subletting and Assignment.
As prescribed in 570.603, insert the following clause:
Subletting and Assignment (Sep 1999)
The Government may sublet any part of the premises but shall not
be relieved from any obligations under this lease by reason of any
such subletting. The Government may at any time assign this lease,
and be relieved from all obligations to Lessor under this lease
excepting only unpaid rent and other liabilities, if any that have
accrued to the date of said assignment. Any assignment shall be
subject to prior written consent of Lessor, which shall not be
unreasonably withheld.
(End of clause)
552.270-6 Maintenance of Building and Premises--Right of Entry.
As prescribed in 570.603, insert the following clause:
Maintenance of Building and Premises--Right of Entry (Sep 1999)
Except in case of damage arising out of the willful act or
negligence of a Government employee, Lessor shall maintain the
premises, including the building and all equipment, fixtures, and
appurtenances furnished by the lessor under this lease, in good
repair and condition so that they are suitable in appearance and
capable of supplying such heat, air conditioning, light,
ventilation, access and other things to the premises, without
reasonably preventable or recurring disruption, as is required for
the Government's access to, occupancy, possession, use and enjoyment
of the premises as provided in this lease. For the purpose of so
maintaining the premises, the Lessor may at reasonable times enter
the premises with the approval of the authorized Government
representative in charge.
(End of clause)
552.270-7 Fire and Casualty Damage.
As prescribed in 570.603, insert the following clause:
Fire and Casualty Damage (Sep 1999)
If the entire premises are destroyed by fire or other casualty,
this lease will immediately terminate. In case of partial
destruction or damage, so as to render the premises untenantable, as
determined by the Government, the Government may terminate the lease
by giving written notice to the Lessor within 15 calendar days of
the fire or other casualty; if so terminated, no rent will accrue to
the Lessor after such partial destruction or damage; and if not so
terminated, the rent will be reduced proportionately by supplemental
agreement hereto effective from the date of such partial destruction
or damage. Nothing in this lease shall be construed as relieving
Lessor from liability for damage to or destruction of property of
the United States of America caused by the willful or negligent act
or omission of Lessor.
(End of clause)
552.270-8 Compliance with Applicable Law.
As prescribed in 570.603, insert the following clause:
Compliance With Applicable Law (Sep 1999)
Lessor shall comply with all Federal, state and local laws
applicable to the Lessor as owner or lessor, or both, of the
building or premises, including, without limitation, laws applicable
to the construction, ownership, alteration or operation of both or
either thereof, and will obtain all necessary permits, licenses and
similar items at Lessor's expense. The Government will comply with
all Federal, state and local laws applicable to and enforceable
against it as a tenant under this lease; provided that nothing in
this lease shall be construed as a waiver of any sovereign immunity
of the Government. This lease shall be governed by Federal law.
(End of clause)
552.270-9 Inspection--Right of Entry.
As prescribed in 570.603, insert the following clause:
Inspection--Right of Entry (Sep 1999)
(a) At any time and from time to time after receipt of an offer
(until the same has been duly withdrawn or rejected), after
acceptance thereof and during the term, the agents, employees and
contractors of the Government may, upon reasonable prior notice to
Offeror or Lessor, enter upon the offered premises or the premises,
and all other areas of the building access to which is necessary to
accomplish the purposes of entry, to determine the potential or
actual compliance by the Offeror or Lessor with the requirements of
the solicitation or this lease, which purposes shall include, but
not be limited to:
(1) Inspecting, sampling and analyzing suspected asbestos-
containing materials and air monitoring for asbestos fibers;
(2) Inspecting the heating, ventilation and air conditioning
system, maintenance records, and mechanical rooms for the offered
premises or the premises;
(3) Inspecting for any leaks, spills, or other potentially
hazardous conditions which may
[[Page 37263]]
involve tenant exposure to hazardous or toxic substances; and
(4) Inspecting for any current or past hazardous waste
operations, to ensure that appropriate mitigative actions were taken
to alleviate any environmentally unsound activities in accordance
with Federal, State and local law.
(b) Nothing in this clause shall be construed to create a
Government duty to inspect for toxic materials or to impose a higher
standard of care on the Government than on other lessees. The
purpose of this clause is to promote the ease with which the
Government may inspect the building. Nothing in this clause shall
act to relieve the Lessor of any duty to inspect or liability which
might arise as a result of Lessor's failure to inspect for or
correct a hazardous condition.
(End of clause)
552.270-10 Failure in Performance.
As prescribed in 570.603, insert the following clause:
Failure in Performance (Sep 1999)
The covenant to pay rent and the covenant to provide any
service, utility, maintenance, or repair required under this lease
are interdependent. In the event of any failure by the Lessor to
provide any service, utility, maintenance, repair or replacement
required under this lease the Government may, by contract or
otherwise, perform the requirement and deduct from any payment or
payments under this lease, then or thereafter due, the resulting
cost to the Government, including all administrative costs. If the
Government elects to perform any such requirement, the Government
and each of its contractors shall be entitled to access to any and
all areas of the building, access to which is necessary to perform
any such requirement, and the Lessor shall afford and facilitate
such access. Alternatively, the Government may deduct from any
payment under this lease, then or thereafter due, an amount which
reflects the reduced value of the contract requirement not
performed. No deduction from rent pursuant to this clause shall
constitute a default by the Government under this lease. These
remedies are not exclusive and are in addition to any other remedies
which may be available under this lease or at law.
(End of clause)
552.270-11 Successors Bound.
As prescribed in 570.603, insert the following clause:
Successors Bound (Sep 1999)
This lease shall bind, and inure to the benefit of, the parties
and their respective heirs, executors, administrators, successors
and assigns.
(End of clause)
552.270-12 Alterations.
As prescribed in 570.603, insert the following clause:
Alterations (Sep 1999)
The Government shall have the right during the existence of this
lease to make alterations, attach fixtures, and erect structures or
signs in or upon the premises hereby leased, which fixtures,
additions or structures so placed in, on, upon, or attached to the
said premises shall be and remain the property of the Government and
may be removed or otherwise disposed of by the Government. If the
lease contemplates that the Government is the sole occupant of the
building, for purposes of this clause, the leased premises include
the land on which the building is sited and the building itself.
Otherwise, the Government shall have the right to tie into or make
any physical connection with any structure located on the property
as is reasonably necessary for appropriate utilization of the leased
space.
(End of clause)
552.270-13 Proposals for Adjustment.
As prescribed in 570.603, insert the following clause:
Proposals for Adjustment (Sep 1999)
(a) The Contracting Officer may, from time to time during the
term of this lease, require changes to be made in the work or
services to be performed and in the terms or conditions of this
lease. Such changes will be required under the Changes clause.
(b) If the Contracting Officer makes a change within the general
scope of the lease, the Lessor shall submit, in a timely manner, an
itemized cost proposal for the work to be accomplished or services
to be performed when the cost exceeds $100,000. The proposal,
including all subcontractor work, will contain at least the
following details--
(1) Material quantities and unit costs;
(2) Labor costs (identified with specific item or material to be
placed or operation to be performed);
(3) Equipment costs;
(4) Worker's compensation and public liability insurance;
(5) Overhead;
(6) Profit; and
(7) Employment taxes under FICA and FUTA.
(c) The following Federal Acquisition Regulation (FAR)
provisions also apply to all proposals exceeding $500,000 in cost--
(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).
(d) Lessors shall also refer to 48 CFR Part 31, Contract Cost
Principles, for information on which costs are allowable,
reasonable, and allocable in Government work.
(End of clause)
552.270-14 Changes.
As prescribed in 570.603, insert the following clause:
Changes (Sep 1999)
(a) The Contracting Officer may at any time, by written order,
make changes within the general scope of this lease in any one or
more of the following:
(1) Specifications (including drawings and designs).
(2) Work or services.
(3) Facilities or space layout.
(4) Amount of space, provided the Lessor consents to the change.
(b) If any such change causes an increase or decrease in
Lessor's cost of or the time required for performance under this
lease, whether or not changed by the order, the Contracting Officer
shall modify this lease to provide for one or more of the following:
(1) A modification of the delivery date.
(2) An equitable adjustment in the rental rate.
(3) A lump sum equitable adjustment.
(4) An equitable adjustment of the annual operating costs per
usable square foot specified in this lease.
(c) The Lessor must assert its right to an adjustment under this
clause within 30 days from the date of receipt of the change order
and must submit a proposal for adjustment. Failure to agree to any
adjustment shall be a dispute under the Disputes clause. However,
nothing in this clause excuses the lessor from proceeding with the
change as directed.
(d) Absent such written change order, the Government is not
liable to Lessor under this clause.
(End of clause)
552.270-15 Liquidated Damages.
As prescribed in 570.603, insert the following clause:
Liquidated Damages (Sep 1999)
In case of failure on the part of the Lessor to complete the
work within the time fixed in the lease contract or letter of award,
the Lessor shall pay the Government as fixed and agreed liquidated
damages, pursuant to this clause, the sum $______ for each and every
calendar day that the delivery is delayed beyond the date specified
for delivery of all the space ready for occupancy by the Government.
this remedy is not exclusive and is in addition to any other
remedies which may be available under this lease or at law.
(End of clause)
552.270-16 Adjustment for Vacant Premises.
As prescribed in 570.603, insert the following clause:
Adjustment for Vacant Premises (Sep 1999)
(a) If the Government fails to occupy any portion of the leased
premises or vacates the premises in whole or in part before the
lease term expires, the rental rate will be reduced.
(b) The rental rate will be reduced by that portion of the costs
per usable square foot of operating expenses not required to
maintain the space. The reduction takes effect 30 calendar days
after the Government gives notice to the Lessor, and continues in
effect until the Government occupies the premises or the lease
expires or is terminated.
(End of clause)
552.270-17 Delivery and Condition.
As prescribed in 570.603, insert the following clause:
[[Page 37264]]
Delivery and Condition (Sep 1999)
(a) Unless the Government elects to have the space occupied in
increments, the space must be delivered ready for occupancy as a
complete unit. The Government reserves the right to determine when
the space is substantially complete.
(b) If the premises do not in every respect comply with the
provisions of this lease the Contracting Officer may, in accordance
with the Failure in Performance clause of this lease, elect to
reduce the rent payments.
(End of clause)
552.270-18 Default in Delivery--Time Extensions.
As prescribed in 570.603, insert the following clause:
Default In Delivery--Time Extensions (Sep 1999)
(a) With respect to Lessor's obligation to deliver the premises
substantially complete by the delivery date, time is of the essence.
If the Lessor fails to work diligently to ensure its substantial
completion by the delivery date or fails to substantially complete
the work by such date, the Government may by notice to the Lessor
terminate this lease. Such termination is effective when received by
Lessor. The Lessor and the Lessor's sureties, if any, are jointly
and severally liable for any damages to the Government resulting
from such termination, as provided in this clause. The Government is
entitled to the following damages:
(1) The Government's aggregate rent, estimated real estate tax,
and operating cost adjustments for the firm term and all option
terms of its replacement lease or leases, in excess of the aggregate
rent and estimated real estate tax and operating cost adjustments
for the term. If the Government procures replacement premises for a
term (including all option terms) in excess of this lease term, the
Lessor is not liable for excess Government rent or adjustments
during such excess lease term.
(2) All administrative and other costs the Government incurs in
procuring a replacement lease or leases.
(3) Other, additional relief provided for in this lease, at law,
or in equity.
(b) Damages to which the Government is entitled under this
clause are due and payable thirty (30) days following the date
Lessor receives notice from the Contracting Officer specifying such
damages.
(c) Delivery by Lessor of less than the minimum usable square
footage required by this lease shall in no event be construed as
substantial completion, except as the Contracting Officer permits.
(d) The Government shall not terminate this lease under this
clause nor charge the Lessor with damages under this clause, if (1)
the delay in substantially completing the work arises from excusable
delays, and (2) the Lessor within 10 days from the beginning of any
such delay (unless extended in writing by the Contracting Officer)
provides notice to the Contracting Officer of the causes of delay.
The Contracting Officer shall ascertain the facts and the extent of
delay. If the facts warrant, the Contracting Officer shall extend
the delivery date, to the extent of such delay at no additional
costs to the Government. A time extension is the sole remedy of the
Lessor.
(End of clause)
552.270-19 Progressive Occupancy.
As prescribed in 570.603, insert the following clause:
Progressive Occupancy (Sep 1999)
The Government shall have the right to elect to occupy the space
in partial increments prior to the substantial completion of the
entire leased premises, and the Lessor agrees to schedule its work
so as to deliver the space incrementally as elected by the
Government. The Government shall pay rent commencing with the first
business day following substantial completion of the entire leased
premise unless the Government has elected to occupy the leased
premises incrementally. In case of incremental occupancy, the
Government shall pay rent pro rata upon the first business day
following substantial completion of each incremental unit. Rental
payments shall become due on the first workday of the month
following the month in which an increment of space is substantially
complete, except that should an increment of space be substantially
completed after the fifteenth day of the month, the payment due date
will be the first workday of the second month following the month in
which it was substantially complete. The commencement date of the
firm lease term will be a complete determined from all rent
commencement dates.
(End of clause)
552.270-20 Payment.
As prescribed in 570.603, insert the following clause:
Payment (Sep 1999)
(a) When space is offered and accepted, usable square footage
delivered will be confirmed by either:
(1) The Government's measurement of plans submitted by the
successful offeror as approved by the Government, and an inspection
of the space to verify that the delivered space conforms with such
plans.
(2) A mutual on-site measurement of the space if the Contracting
Officer determines it necessary.
(b) The Government will not pay for space in excess of the
amount of usable square footage stated in the lease.
(c) If the amount of usable square footage delivered is less
than the amount agreed to in the lease, the lease will be modified
to reflect the amount of usable space delivered and the annual
rental will be adjusted as follows:
Usable square feet (USF) not delivered multiplied by one plus
the common area factor (CAF), multiplied by the rate per rentable
square foot (RSF). That is:
USF X(1+CAF) X Rate per RSF=Reduction in Annual Rent.
(End of clause)
552.270-21 Effect of Acceptance and Occupancy.
As prescribed in 570.603, insert the following clause:
Effect of Acceptance and Occupancy (Sep 1999)
Neither the Government's acceptance of the premises for
occupancy, nor the Government's occupancy thereof, shall be
construed as a waiver of any requirement of or right of the
Government under this Lease, or as otherwise prejudicing the
Government with respect to any such requirement or right.
(End of clause)
552.270-22 Default by Lessor During the Term.
As prescribed in 570.603, insert the following clause:
Default By Lessor During the Term (Sep 1999)
(a) Each of the following shall constitute a default by Lessor
under this lease:
(1) Failure to maintain, repair, operate or service the premises
as and when specified in this lease, or failure to perform any other
requirement of this lease as and when required provided any such
failure shall remain uncured for a period of thirty (30) days next
following Lessor's receipt of notice thereof from the Contracting
Officer or an authorized representative.
(2) Repeated and unexcused failure by Lessor to comply with one
or more requirements of this lease shall constitute a default
notwithstanding that one or all such failures shall have been timely
cured pursuant to this clause.
(b) If a default occurs, the Government may, by notice to
Lessor, terminate this lease for default and if so terminated, the
Government shall be entitled to the damages specified in the Default
in Delivery-Time Extensions clause.
(End of clause)
552.270-23 Subordination, Nondisturbance and Attornment.
As prescribed in 570.603, insert the following clause:
Subordination, Nondisturbance and Attornment (Sep 1999)
(a) Lessor warrants that it holds such title to or other
interest in the premises and other property as is necessary to the
Government's access to the premises and full use and enjoyment
thereof in accordance with the provisions of this lease. Government
agrees, in consideration of the warranties and conditions set forth
in this clause, that this lease is subject and subordinate to any
and all recorded mortgages, deeds of trust and other liens now or
hereafter existing or imposed upon the premises, and to any renewal,
modification or extension thereof. It is the intention of the
parties that this provision shall be self-operative and that no
further instrument shall be required to effect the present or
subsequent subordination of this lease. Government agrees, however,
within twenty (20) business days next
[[Page 37265]]
following the Contracting Officer's receipt of a written demand, to
execute such instruments as Lessor may reasonably request to
evidence further the subordination of this lease to any existing or
future mortgage, deed of trust or other security interest pertaining
to the premises, and to any water, sewer or access easement
necessary or desirable to serve the premises or adjoining property
owned in whole or in part by Lessor if such easement does not
interfere with the full enjoyment of any right granted the
Government under this lease.
(b) No such subordination, to either existing or future
mortgages, deeds of trust or other lien or security instrument shall
operate to affect adversely any right of the Government under this
lease so long as the Government is not in default under this lease.
Lessor will include in any future mortgage, deed of trust or other
security instrument to which this lease becomes subordinate, or in a
separate nondisturbance agreement, a provision to the foregoing
effect. Lessor warrants that the holders of all notes or other
obligations secured by existing mortgages, deeds of trust or other
security instruments have consented to the provisions of this
clause, and agrees to provide true copies of all such consents to
the Contracting Officer promptly upon demand.
(c) In the event of any sale of the premises or any portion
thereof by foreclosure of the lien of any such mortgage, deed of
trust or other security instrument, or the giving of a deed in lieu
of foreclosure, the Government will be deemed to have attorned to
any purchaser, purchasers, transferee or transferees of the premises
or any portion thereof and its or their successors and assigns, and
any such purchasers and transferees will be deemed to have assumed
all obligations of the Lessor under this lease, so as to establish
direct privity of estate and contract between Government and such
purchasers or transferees, with the same force, effect and relative
priority in time and right as if the lease had initially been
entered into between such purchasers or transferees and the
Government; provided, further, that the Contracting Officer and such
purchasers or transferees shall, with reasonable promptness
following any such sale or deed delivery in lieu of foreclosure,
execute all such revisions to this lease, or other writings, as
shall be necessary to document the foregoing relationship.
(d) None of the foregoing provisions may be deemed or construed
to imply a waiver of the Government's rights as a sovereign.
(End of clause)
552.270-24 Statement of Lease.
As prescribed in 570.603, insert the following clause:
Statement of Lease (Sep 1999)
(a) The Contracting Officer will, within thirty (30) days next
following the Contracting Officer's receipt of a joint written
request from Lessor and a prospective lender or purchaser of the
building, execute and deliver to Lessor a letter stating that the
same is issued subject to the conditions stated in this clause and,
if such is the case, that (1) the lease is in full force and effect;
and (2) the date to which the rent and other charges have been paid
in advance, if any; and (3) whether any notice of default has been
issued.
(b) Letters issued pursuant to this clause are subject to the
following conditions:
(1) That they are based solely upon a reasonably diligent review
of the Contracting Officer's lease file as of the date of issuance;
(2) That the Government shall not be held liable because of any
defect in or condition of the premises or building;
(3) That the Contracting Officer does not warrant or represent
that the premises or building comply with applicable Federal, State
and local law; and
(4) That the Lessor, and each prospective lender and purchaser
are deemed to have constructive notice of such facts as would be
ascertainable by reasonable prepurchase and precommitment inspection
of the Premises and Building and by inquiry to appropriate Federal,
State and local Government officials.
(End of clause)
552.270-25 Substitution of Tenant Agency.
As prescribed in 570.603, insert the following clause:
Substitution of Tenant Agency (Sep 1999)
The Government may, at any time and from time to time,
substitute any Government agency or agencies for the Government
agency or agencies, if any, named in the lease.
(End of clause)
552.270-26 No Waiver.
As prescribed in 570.603, insert the following clause:
No Waiver (Sep 1999)
No failure by either party to insist upon the strict performance
of any provision of this lease or to exercise any right or remedy
consequent upon a breach thereof, and no acceptance of full or
partial rent or other performance by either party during the
continuance of any such breach shall constitute a waiver of any such
breach of such provision.
(End of clause)
552.270-27 Integrated Agreement.
As prescribed in 570.603, insert the following clause:
Integrated Agreement (Sep 1999)
This Lease, upon execution, contains the entire agreement of the
parties and no prior written or oral agreement, express or implied,
shall be admissible to contradict the provisions of the Lease.
(End of clause)
552.270-28 Mutuality of Obligation.
As prescribed in 570.603, insert the following clause:
Mutuality of Obligation (Sep 1999)
The obligations and covenants of the Lessor, and the
Government's obligation to pay rent and other Government obligations
and covenants, arising under or related to this Lease, are
interdependent. The Government may, upon issuance of and delivery to
Lessor of a final decision asserting a claim against Lessor, set off
such claim, in whole or in part, as against any payment or payments
then or thereafter due the Lessor under this lease. No setoff
pursuant to this clause shall constitute a breach by the Government
of this lease.
(End of clause)
552.270-29 Acceptance of Space.
As prescribed in 570.603, insert the following clause:
Acceptance of Space (Sep 1999)
(a) When the Lessor has completed all alterations, improvements,
and repairs necessary to meet the requirements of the lease, the
Lessor shall notify the Contracting Officer. The Contracting Officer
or designated representative shall promptly inspect the space.
(b) The Government will accept the space and the lease term will
begin after determining that the space is substantially complete and
contains the required usable square footage as indicated in
Paragraph 1.1, Amount and Type of Space, of this solicitation.
(End of clause)
PART 553 FORMS
Subpart 553.2 Illustrations of Forms
553.300 Scope of subpart.
Standard and GSA forms prescribed or referenced in the text of this
chapter are illustrated in and made a part of the General Services
Administration Acquisition Manual. The forms are not illustrated in
Title 48, Chapter 5, of the Code of Federal Regulations. Copies may be
obtained from the Director of the Office of GSA Acquisition Policy
(MVP), 1800 F Street, NW, Washington, DC 20405.
Subchapter I--Special Contracting Programs
PART 570 ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY
570.1 General
570.101 Applicability
570.102 Definitions
570.103 Authority to lease
570.104 Competition
570.105 Methods of contracting
570.105-1 Contracting by negotiation
570.105-2 Two-phase design-build selection procedures
570.105-3 Sealed bidding
570.106 Publicizing/Advertising
570.107 Oral presentation
570.108 Responsibility determination
570.109 Certifications
570.110 Cost or pricing data and information other than cost or
pricing data
570.111 Inspection and acceptance
570.112 Awards to Federal employees
570.113 Disclosure of mistakes after award
[[Page 37266]]
570.114 Protests
570.2 Simplified Lease Acquisition Procedures
570.201 Purpose
570.202 Policy
570.203 Procedures
570.203-1 Market survey
570.203-2 Competition
570.203-3 Soliciting offers
570.203-4 Negotiation, evaluation, and award
570.3 Contracting Procedures for Leasehold Interests in Real
Property
570.301 Market Survey
570.302 Description of requirements
570.303 Solicitation for offers
570.303-1 Preparing the SFO
570.303-2 Issuing the SFO
570.303-3 Late offers, modifications of offers, and withdrawals of
offers
570.303-4 Changes to SFOs
570.304 General source selection procedures
570.305 Two-phase design-build selection procedures
570.306 Evaluating offers
570.307 Negotiations
570.308 Award
570.309 Debriefings
570.4 Special Aspects of Contracting for Continued Space
Requirements
570.401 Renewal options
570.402 Succeeding leases
570.402-1 General
570.402-2 Publicizing/Advertising
570.402-3 Market survey
570.402-4 No potential acceptable locations
570.402-5 Potential acceptable locations
570.402-6 Cost-benefit analysis
570.403 Expansion requests
570.404 Superseding leases
570.405 Lease extensions
570.5 Special Aspects of Contracting for Lease Alterations
570.501 General
570.502 Alterations by the lessor
570.502-1 Justification and approval requirements
570.502-2 Procedures
570.503 Alterations by the Government or through a separate
contract
570.6 Solicitation Provisions and Contract Clauses
570.601 FAR provisions and clauses
570.602 GSAR solicitation provisions
570.603 GSAR contract clauses
570.604 Deviations to provisions and clauses
570.7 Forms
570.701 Standard forms
570.702 GSA forms
SUBCHAPTER I--SPECIAL CONTRACTING PROGRAMS
PART 570 ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY
Subpart 570.1 General
570.101 Applicability.
(a) This part applies to acquisitions of leasehold interests in
real property except:
(1) Leasehold interests acquired by the power of eminent domain or
by donation.
(2) Acquisition of leasehold interests in bare or unimproved land.
(b) In addition, the GSAR rules in the following table apply. Other
provisions of 48 CFR Chapter 5 (GSAR) do not apply to leases of real
property unless specifically cross-referenced in this part 570.
GSAR Rules Applicable to Acquisitions of Leasehold Interests in Real
Property
501 514.201-7(b) 517.207 533
502 514.407 519.7 536.271
503 515.204-1 519.12 537.2
504.5 515.209-70 522.8 552
505 515.305 532.1 553
509.4 517.202 532.908 ................
570.102 Definitions.
Acquisition means the acquiring by lease of an interest in improved
real property for use by the Federal Government, whether the space
already exists or must be constructed.
Contract means lease.
Contractor means lessor.
Landlord or lessor means any individual, firm, partnership, trust,
association, State or local government, or other legal entity that
leases real property to the Government.
Lease or leasehold interest in real property means a conveyance to
the Government of the right of exclusive possession of real property
for a definite period of time by a landlord. It may include operational
services provided by the landlord.
Lessee or tenant means the United States of America.
Operational services means services that support use of a leased
property, such as heating, ventilation, air condition, utilities, and
custodial services.
Rent and related services means that consideration paid for the use
of leased property plus the costs of operational services whether
furnished by the lessor, the Government, or both.
Simplified lease acquisition procedures mean the procedures for
awarding leases at or below the simplified lease acquisition threshold.
Simplified lease acquisition threshold Means $100,000 average
annual rent for the term of the lease, including option periods and
excluding the cost of operational services.
Small business means a concern including affiliates, which is
organized for profit, is independently-owned and operated, is not
dominant in the field of leasing commercial real estate, and has annual
average gross receipts of $15 million or less for the preceding three
fiscal years.
Solicitation for Offers (SFO) means invitation for bids in sealed
bidding or request for proposals in negotiations.
Space in buildings means the premises leased, or to be leased,
including improvements. Its quantity is normally expressed in square
feet. It does not include space acquired by the power of eminent
domain, donation, or condemnation, nor acquisitions of bare or
unimproved land.
Substantially as follows or substantially the same as, when used in
prescribing a provision or clause, means that you may prepare and use a
variation of that provision or clause to accommodate requirements
peculiar to an individual acquisition. The variation must include the
salient features of the FAR or GSAR provision or clause. It must also
be consistent with the intent, principle, and substance of the FAR or
GSAR provision or clause and related coverage on the subject matter.
570.103 Authority to lease.
(a) The Federal Property and Administrative Services Act of 1949
(40 U.S.C. 490(h)(1)), as amended, and Section 1 of the Reorganization
Plan No. 18 of 1950 (40 U.S.C. 490 Note) authorize the Administrator of
General Services to acquire leasehold interests in real property for
use by Federal agencies. The authority is limited to leases for
buildings and improvement that bind the Government for periods not
exceeding 20 years.
(b) You have exclusive authority to enter into and administer
leases on the Government's behalf to the extent provided in your
certificate of appointment as a contracting officer.
570.104 Competition.
Unless you use the simplified procedures in subpart 570.2, the
competition requirements of FAR part 6
[[Page 37267]]
apply to acquisition of leasehold interests in real property.
570.105 Methods of contracting.
570.105-1 Contracting by negotiation.
Contracting by negotiation is usually appropriate for acquiring
space in a building through a lease contract. You will usually need to
conduct discussions with offerors about their proposals and consider
factors other than price in making the award.
570.105-2 Two-phase design-build selection procedures.
Unless you use another acquisition procedure authorized by law, you
must use the two-phase design-build selection procedures in section
303M of the Federal Property and Administrative Services Act of 1949,
as amended, for lease construction projects. This includes lease
construction projects with options to purchase the real property
leased. Use the procedures in section 303M when you meet the conditions
in paragraphs (a) and (b) of this section:
(a) You anticipate the lease will involve the design and
construction of a public building, facility, or work for lease to the
Government.
(b) You determine the procedures are appropriate for entering into
a lease construction contract based on the following:
(1) You expect to receive three or more offers.
(2) Offerors will need to perform design work before developing a
price.
(3) Offerors will incur a substantial amount of expense in
preparing offers.
(4) You consider criteria such as the following:
(i) The extent to which the project requirements have been
adequately defined.
(ii) The time constraints for delivery of the project.
(iii) The capability and experience of potential contractors.
(iv) The suitability of the project for use of the two-phase
selection procedures.
(v) The capability of the agency to manage the two-phase selection
process.
(vi) Other criteria established by the HCA.
570.105-3 Sealed bidding.
For sealed bidding, use the procedures in FAR part 14. In most
cases you should not use sealed bidding to acquire space in buildings
unless you meet all the following conditions:
(a) You have a preselected site.
(b) A building will be constructed on the site using Government
furnished plans and specifications.
(c) The Government will lease the building.
570.106 Publicizing/Advertising.
(a) Subparts 505.101, 505.202, and 505.203 define requirements for
publicizing lease actions.
(b) Instead of issuing separate advertisements for multiple, known
leasing actions, you may include the actions in one consolidated
advertisement.
570.107 Oral presentations.
You may use oral presentations for acquisitions of leasehold
interests in real property. Follow the procedures in FAR 15.102.
570.108 Responsibility determination.
(a) Determine that the prospective awardee is responsible with
respect to the lease under consideration. The standards in FAR 9.104
apply. As part of the determination that a prospective contractor is
otherwise qualified and eligible for award, review the List of Parties
Excluded from Federal Procurement and Nonprocurement Programs.
(b) Your signature on the contract is deemed an affirmative
determination.
(c) If you find an offeror nonresponsible, sign and place in the
contract file a determination of nonresponsibility. State the basis for
the determination.
(d) If you find a small business concern nonresponsible, the
procedures at FAR 19.6 apply. Place all documents and reports
supporting a determination of responsibility or nonresponsibility in
the lease file.
570.109 Certifications.
Before awarding a lease, review applicable certifications for
compliance with statute and regulations.
570.110 Cost or pricing data and information other than cost or
pricing data.
(a) The policies and procedures of FAR 15.403 apply to lease
contract actions.
(b) FAR 15.403-1 defines exceptions to and waivers for submitting
cost or pricing data. Most leasing actions will have adequate price
competition. For price analysis, you may use a market survey or an
appraisal conducted using accepted real property appraisal procedures
to establish a market price for comparison.
(c) In exceptional cases, the requirement for submission of
certified cost or pricing data may be waived under FAR 15.403-1(c)(4).
(d) If cost or pricing data are required, follow the procedures in
FAR 15.403-4 and 15.406-2.
570.111 Inspection and acceptance.
Before you accept space, obtain an inspection to ensure that the
space complies with the Government's requirements and specifications.
Document the inspection and acceptance in the contract file.
570.112 Awards to Federal employees.
If you receive an offer from an officer or employee of the
Government, follow the procedures in FAR 3.6.
570.113 Disclosure of mistakes after award.
If you discover a mistake in a lessor's offer after award, follow
the procedures in FAR 14.407-4 and subpart 514.407-4.
570.114 Protests.
FAR 33.1 and 533.1 apply to protests of lease acquisitions.
Subpart 570.2--Simplified Lease Acquisition Procedures
570.201 Purpose.
This subpart prescribes simplified procedures for small leases.
These procedures reduce administrative costs, while improving
efficiency and economy, when acquiring small leasehold interests in
real property.
570.202 Policy.
Use simplified lease acquisition procedures to the maximum extent
practicable for actions at or below the simplified lease acquisition
threshold.
570.203 Procedures.
570.203-1 Market survey.
Conduct a market survey to identify potential sources. Use
information available in GSA or from other sources to identify
locations that will meet the Government's requirements.
570.203-2 Competition.
(a) Solicit at least three sources to promote competition to the
maximum extent practicable. If you have repeated requirements for space
in the same market, and if practicable, invite two sources not included
in the most recent solicitation to submit offers.
(b) If you solicit only one source, document the file to explain
the lack of competition.
570.203-3 Soliciting offers.
(a) Solicit offers by providing each prospective offeror a proposed
short form lease or SFO. The short form lease or SFO must provide all
the following information:
(1) A description of the Government's requirements.
[[Page 37268]]
(2) All award factors, including price or cost, and any significant
subfactors you will consider in awarding the lease.
(3) A statement of the relative importance of the evaluation
factors and subfactors.
(4) A statement of whether all evaluation factors other than cost
or price, when combined, are either:
(i) Significantly more important than cost or price.
(ii) Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(5) Either in full text or by reference, applicable FAR provisions
and contract clauses required by 570.6.
(b) As necessary, review with prospective offerors the Government's
requirements, pricing matters, evaluation procedures and submissions of
offers.
570.203-4 Negotiations, evaluation, and award.
(a) If you need to conduct negotiations, use the procedures in
570.307.
(b) Evaluate offers in accordance with the solicitation. Evaluate
prices and document the lease file to demonstrate whether the proposed
contract prices are fair and reasonable.
(c) If the total price, including options, exceeds $500,000,
consider whether you need cost and pricing data to determine that the
price is fair and reasonable. In most cases the exceptions at FAR
15.403-1 will apply.
(d) If the total contract value of the lease, including options,
will exceed $500,000, the proposed awardee must provide an acceptable
small business subcontracting plan. This requirement does not apply if
the proposed awardee is a small business concern.
(e) Make award to the responsible offeror whose proposal is most
advantageous to the Government considering price and other factors
included in the solicitation.
Subpart 570.3--Contracting Procedures for Leasehold Interests in
Real Property
570.301 Market survey.
Conduct a market survey to identify potential sources. Use
information available in GSA or from other sources to identify
locations capable of meeting the Government's requirements.
570.302 Description of requirements.
(a) The description of requirements depends on the nature of the
space the agency needs and the market available to satisfy that need.
(b) The description of requirements must include all the following:
(1) A statement of the purpose of the lease.
(2) Functional, performance, or physical requirements.
(3) Any special requirements.
(4) The delivery schedule.
(c) The description must promote full and open competition. Include
restrictive provisions or conditions only to the extent necessary to
satisfy the agency's needs or as authorized by law.
570.303 Solicitation for offers.
570.303-1 Preparing the SFO.
The SFO forms the basis for the lease negotiation process and
becomes part of the lease. Document each SFO in writing or
electronically. Include the information necessary to enable prospective
offerors to prepare proposals. Each SFO, at a minimum, must provide all
the following:
(a) Describe the Government's requirements.
(b) State the method the Government will use to measure space.
(c) Explain how to structure offers.
(d) Specify a date, time, and place for submission of offers.
(e) Explain how the Government will evaluate offers.
(f) Describe the source selection procedures the Government will
use.
(g) Include a statement outlining the information the Government
may disclose in debriefings.
(h) Include appropriate forms prescribed in 570.7.
570.302-3 Issuing the SFO.
Release the SFO to all prospective offerors at the same time.
570.303-3 Late offers, modifications of offers, and withdrawals of
offers.
Follow the procedures in FAR 15.208.
570.303-4 Changes to SFOs.
(a) If the Government's requirements change, either before or after
receipt of proposals, issue an amendment. Document the amendment using
the same method as for the SFO, written or electronic.
(b) If time is critical, you may provide information on SFO
amendments orally.
(1) Make a record of the information provided.
(2) Provide, or attempt to provide, the notice to all offerors or
prospective offerors on the same day.
(3) Promptly confirm the information provided orally in a written
amendment.
(c) Distribute an amendment as follows:
(1) If before the proposal due date, send the amendment to all
prospective offerors who were sent a copy of the SFO.
(2) If after proposal receipt, send the amendment to each offeror
who submitted a proposal.
(d) If an amendment is so substantial that it requires a complete
revision of the SFO, cancel the SFO and issue a new one.
570.304 General source selection procedures.
(a) These procedures apply to acquisitions of leasehold interests
except if you use either:
(1) Simplified lease acquisition procedures authorized by 570.2.
(2) Two-phase design-build selection procedures authorized by
570.105-2.
(b) The contracting officer is designated as the source selection
official unless the HCA appoints another individual for a particular
leasing action or group of leasing actions.
(c) You must include price or cost to the Government and past
performance as evaluation factors in every case.
(d) The SFO must comply with FAR 15.304 and either:
(1) FAR 15.101-1 if you will use the tradeoff process.
(2) FAR 15.101-2 if you will use the lowest price technically
acceptable source selection process.
570.305 Two-phase design-build selection procedures.
(a) These procedures apply to acquisitions of leasehold interests
if you use the two-phase design-build selection procedures authorized
by 570.105-2.
(b) The SFO must include all the following information:
(1) The scope of work.
(2) The evaluation factors and subfactors to be used in evaluating
phase-one proposals and their relative importance.
(3) The maximum number of offerors to be selected to submit
competitive proposals in phase-two.
(4) The evaluation factors, including cost or price, and subfactors
to be used in evaluating phase-two proposals and selecting the
successful offeror, and their relative importance.
(c) The following procedures apply to phase-one evaluation factors:
(1) Phase one factors include:
(i) Specialized experience and technical competence.
(ii) Capability to perform.
(iii) Past performance of the offeror's team (including architect-
engineer and construction members of the team).
(iv) Other appropriate factors, such as site or location.
[[Page 37269]]
(2) Do not require offerors to submit detailed design information
or cost or price information in phase one. Do not use cost related or
price related evaluation factors.
(d) Set the maximum number of offerors to be selected for phase-two
to not exceed five (5) unless you determine that a number greater than
five is both:
(1) In the government's interest.
(2) Consistent with the purpose and objectives of the two-phase
selection process.
(e) In phase-two, require detailed technical and price proposals.
Evaluate the proposals using the procedures in 570.306.
570.306 Evaluating offers.
(a) You must evaluate offers solely in accordance with the factors
and subfactors stated in the SFO.
(b) Evaluate prices and document the lease file to demonstrate that
the proposed contract price is fair and reasonable.
(c) Evaluate past performance in accordance with FAR 15.305(a)(2).
(d) Document the evaluation of award factors other than price
listed in the solicitation. The file must include the basis for
evaluation, an analysis of each offer, and a summary of findings.
570.307 Negotiations.
(a) Follow the procedures in FAR 15.306 and 15.307 for exchanges
(including clarifications, communications, negotiations, 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).
570.308 Award.
(a) Make award to the responsible offeror whose proposal represents
the best value after evaluation in accordance with the factors and
subfactors in the SFO.
(b) Make award in writing and in the timeframe specified in the
SFO.
(1) If you cannot make an award in that time, request in writing
from each offeror an extension of the acceptance period through a
specific date.
(2) If time is critical, you may request the extensions orally. You
must make a record of the requested and confirm it promptly in writing.
(c) Notify unsuccessful offerors in writing or electronically in
accordance with FAR 15.501 and 15.503(b).
(d) 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.
570.309 Debriefings.
The procedures of FAR 15.505 and 15.506 apply to leasing actions.
Subpart 570.4--Special Aspects of Contracting for Continued Space
Requirements
570.401 Renewal options.
(a) Exercise of options. Before exercising an option to renew,
follow the procedures in 517.202 and 517.207. The contract must first
provide the right to renew the lease.
(b) Market survey. Before exercising an option to renew a lease,
review current market information to ensure the rental rate in the
option is fair and reasonable.
570.402 Succeeding leases.
570.402-1 General.
(a) If a succeeding lease for the continued occupancy of space in a
building does not exceed the simplified lease acquisition threshold,
you may use the simplified procedures in 570.2. Explain the absence of
competition in the contract file.
(b) If a succeeding lease will exceed the simplified lease
acquisition threshold, you may enter into the lease under either of the
following conditions:
(1) You do not identify any potential acceptable locations.
(2) You identify potential acceptable locations, but a cost-benefit
analysis indicates that award to an offeror other than the present
lessor will result in substantial relocation costs or duplication of
costs to the Government, and the Government cannot expect to recover
such costs through competition.
570.402-2 Publicizing/Advertising.
Publish a notice if required by 505.101(c). The notice should:
(a) Indicate the Government's lease is expiring.
(b) Describe the requirement in terms of type and quantity of
space.
(c) Indicate the Government is interested in considering
alternative space if economically advantageous.
(d) Advise prospective offerors that the Government will consider
the cost of moving, alterations, etc., when deciding whether it should
relocate.
(e) Provide a contact person for those interested in providing
space to the Government.
570.402-3 Market survey.
Conduct a market survey following 570.301.
570.402-4 No potential acceptable locations.
If you do not identify any potential acceptable locations through
the advertisement or the market survey, you may prepare a justification
to negotiate directly with the present lessor. Fully document the
efforts to locate alternative sources. Prepare the justification and
obtain approval following FAR 6.3 and 506.3.
570.402-5 Potential acceptable locations.
If you identify potential acceptable locations through the
advertisement or market survey, conduct a cost-benefit analysis
following the procedures in 570.402-6. Based on the results of the
cost-benefit analysis, take appropriate action as follows:
(a) If the cost-benefit analysis indicates that the Government will
recover relocation costs and duplication of costs through competition,
develop an SFO and negotiate with all interested parties following
570.3.
(b) If the cost-benefit analysis indicates that the Government
cannot expect to recover relocation costs and duplication of costs
through competition, prepare a justification for approval in accordance
with FAR 6.3 and 506.3. Explain both:
(1) How you performed the cost-benefit analysis.
(2) That the cost-benefit analysis indicates that award to any
other offeror will likely result in substantial costs to the Government
that the Government cannot expect to recover through competition.
570.402-6 Cost-benefit analysis.
(a) The cost-benefit analysis must consider all the following:
(1) The prices of other potentially available properties.
(2) Relocation costs, including estimated costs for moving,
telecommunications, and alterations, amortized over the firm term of
the lease.
(3) Duplication of costs to the Government.
(4) Other appropriate considerations.
(b) Establish the prices for other potentially available properties
by requesting each prospective offeror to provide an informational
quotation for standard space for comparison purposes.
(1) Adjust the prices quoted for standard space for any special
requirements.
(2) You do not need a formal SFO to obtain the informational
quotation. However, you must provide a general description of the
Government's needs.
[[Page 37270]]
(3) If you obtain oral quotations, document the following
information, as a minimum:
(i) Name and address of the firm solicited.
(ii) Name of the firm's representative providing the quote.
(iii) Price(s) quoted.
(iv) Description of the space and services for which the quote is
provided.
(v) Name of the Government employee soliciting the quotation.
(vi) Date of the conversation.
(4) Compare the informational quotations to the present lessor's
price, adjusted to reflect the anticipated price for a succeeding
lease.
570.403 Expansion requests.
(a) If the expansion space is in the general scope of the lease,
you may acquire the space through a modification without further
justification under FAR 6.3.
(b) If the expansion space needed is outside the general scope of
the lease, determine whether it is more prudent to provide the
expansion space by supplemental agreement to the existing lease or to
satisfy the requirement by competitive means.
(1) Conduct a market survey to determine the availability of
suitable alternative locations.
(2) If you identify alternate locations that can satisfy the total
requirement, perform a cost-benefit analysis to determine whether it is
in the Government's best interest to relocate. Consider, as
appropriate.
(i) The cost of the alternate space compared to the cost of
expanding at the existing location.
(ii) The cost of moving.
(iii) The cost of duplicating existing improvements.
(iv) The cost of the unexpired portion of the firm lease term. If a
termination is possible, use the actual cost of such an action.
(v) the cost of disruption to the agency's operation.
(c) If you determine not to use competitive procedures and the
expansion space is outside the general scope of the lease:
(1) If the estimated value of the acquisition does not exceed the
simplified lease acquisition threshold, document the file as required
by 570.203-2(b).
(2) If the estimated value of the acquisition exceeds the
simplified lease acquisition threshold, prepare a justification for
approval under FAR 6.3 and 506.3.
570.404 Superseding leases.
(a) Consider executing a superseding lease to replace an existing
lease when the Government need numerous or detailed modifications to
the space that would cause complications or substantially change the
present lease.
(b) If the value of the superseding lease exceeds the simplified
lease acquisition threshold, the justification and approval
requirements in FAR 6.3 and 506.3 apply. If the cost does not exceed
the simplified lease acquisition threshold, you may use the simplified
procedures in 570.2 and explain the absence of competition in the file.
570.405 Lease extensions.
(a) This section applies to extension of the term of a lease to
provide for continued occupancy on a short-term basis.
(b) If the value of a lease extension will exceed the simplified
lease acquisition threshold, the justification and approval
requirements in FAR 6.3 and 506.3 apply. For extensions that will not
exceed the simplified lease acquisition threshold, you may use the
simplified procedures in 570.2 and explain the absence of competition
in the file.
(c) FAR 6.302-1 permits contracting without providing for full and
open competition when the property or services needed by the agency are
available from only one responsible source and no other type of
property or services will satisfy the needs of the agency. This
authority may apply to lease extensions in situations such as the
following:
(1) The agency occupying the leased space is scheduled to move into
other Federally controlled space, but encounters unexpected delays in
preparing the new space for occupancy.
(2) The Government encounters unexpected delays outside of its
control in acquiring replacement space.
(3) The Government is consolidating various agencies occupying the
leased space and you need to extend the terms of some leases to
establish a common expiration date.
Subpart 570.5--Special Aspects of Contracting for Lease Alterations
570.501 General.
(a) Acquire alterations through a modification to an existing lease
if you meet all the following conditions:
(1) The alterations fall in the general scope of the lease.
Consider whether the work can be regarded as fairly and reasonably an
inseparable part of the lease requirement originally contracted for.
(2) The lessor is willing to perform the proposed alterations at a
fair and reasonable price.
(3) It is in the Government's interest to acquire the alterations
from the lessor.
(b) If proposed alterations are outside the general scope of the
existing lease, decide whether to acquire the alterations through
either:
(1) A supplemental lease agreement, justified and approved under
570.502-1.
(2) Government performance or a separate contract. The lease must
first provide the Government the right to perform alterations to the
leased space.
570.502 Alterations by the lessor.
These procedures apply to alterations you acquire directly from a
lessor by modification or supplement lease agreement.
570.502-1 Justification and approval requirements.
If the proposed alterations are outside the general scope of the
lease and you plan to acquire them from the lessor without competition,
the following justification and approval requirements apply:
(a) If the alteration project will exceed the simplified lease
acquisition threshold, the justification and approval requirements in
FAR 6.3 and 506.3 apply.
(b) If the alteration project will exceed $2,500, but not the
simplified lease acquisition threshold, you may use simplified
acquisition procedures and explain the absence of competition in the
file.
(c) If the alternation project will not exceed $2,500, no
justification and approval is required.
570.502-2 Procedures.
(a) Scope of work. Prepare a scope of work for each alteration
project.
(b) Independent Government estimate. Obtain an independent
Government estimate for each alteration project, including changes to
existing alteration agreements with the lessor.
(c) Request for proposal.
(1) Provide the scope of work to the lessor, including any plans
and specifications, and request a proposal. Indicate in the request for
proposal if the Government will make progress payments and provide for
retainage, when appropriate.
(2) Request sufficient cost or price information to permit a price
analysis.
(d) Audits. If you require cost or pricing data and the alteration
project will exceed $500,000, request an audit.
(3) Proposal evaluation.
[[Page 37271]]
(1) Determine if the proposal meets the Government's requirements.
(2) Analyze price or cost. At a minimum, compare the proposed cost
to the independent estimate and, if applicable, any audit received.
(3) Analyze profit following FAR 15.404-4.
(4) Document your analysis under this paragraph and the resulting
negotiation objectives.
(f) Price negotiations.
(1) Exercise sound judgment. You may make reasonable compromises as
necessary.
(2) The negotiated price should provide the lessor with the
greatest incentive for efficient and economical performance.
(3) Document negotiations in the contract file.
(g) Award. Use GSA Form 276, Supplemental Lease Agreement. If the
modification does not exceed the simplified acquisition threshold, you
may use GSA Form 300, Order for Supplies or Services. Reference the
lease on the form.
(h) Inspection and payment. Do not make final payment for
alterations until the work is:
(1) Inspected by a qualified Government employee or independent
Government contractor.
(2) Confirmed as completed in a satisfactory manner.
570.503 Alterations by the Government or through a separate contract.
(a) If the Government chooses to exercise its right to make the
alterations rather than contracting directly with the lessor, the
Government may either:
(1) Have Federal employees perform the work.
(2) Contract out the work using standard contracting procedures
that apply to a construction contract performed on Federal property.
(b) If the Government decides to contract for the work, invite the
lessor, as well as all other prospective contractors, to submit an
offer for the project.
Subpart 570.6--Solicitation Provisions and Contract Clauses
570.601 FAR provisions and clauses.
Include provisions or clauses substantially the same as the
following FAR provisions and clauses.
------------------------------------------------------------------------
If . . . Then include . . .
------------------------------------------------------------------------
(a) the estimated value of 52.204-3 Taxpayer Identification.
the acquisition exceeds 52.219-1 Small Business Program
$2,500. Representations.
52.222-36 Affirmative Action for Workers
with Disabilities.
52.232-23 Assignment of Claims.
52.233-1 Disputes.
(b) the estimated value of 52.222-21 Prohibition of Segregated
the acquisition exceeds Facilities.
$10,000. 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.
(c) the estimated value of 52.209-6 Protecting the Government's
the acquisition exceeds Interest when Subcontracting with
$25,000. Contractors Debarred, Suspended, or
Proposed for Debarment.
(d) the estimated value of 52.203-11 Certification and Disclosure
the acquisition exceeds Regarding Payments to Influence Certain
$100,000. Federal Transactions.
(e) the estimated value of 52.203-2 Certificate of Independent
the acquisition exceeds the Price Determination.
simplified lease acquisition 52.203-7 Anti-Kickback Procedures.
threshold. 52.209-5 Certification Regarding
Debarment, Suspension, Proposed
Debarment, and Other Responsibility
Matters.
52.215-2 Audit and Records--Negotiation.
52.219-8 Utilization of Small Business
Concerns.
52.223-6 Drug-Free Workplace.
52.233-2 Service of Protest.
(f) the estimated value of 52.219-9 Small Business Subcontracting
the acquisition exceeds Plan.
$500,000. 52.219-16 Liquidated Damages--
Subcontracting Plan.
(g) the estimated value of 52.219-24 Small Disadvantaged Business
the acquisition exceeds Participation Program--Targets.
$500,000 and the acquisition 52.219-25 Small Disadvantaged Business
includes an evaluation Participation Program--Disadvantaged
factor that considers the Status and Reporting.
extent of participation of
small disadvantaged business
concerns in accordance with
FAR 19.12.
(h) the estimated value of 52.222-24 Preaward On-Site Equal
the acquisition exceeds $10 Opportunity Compliance Review.
million.
(i) you require cost or 52.215-10 Price Reduction for Defective
pricing data for work or Cost or Pricing Data.
services exceeding $500,000. 52.215-12 Subcontractor Cost or Pricing
Data.
(j) you authorize submission 52.215-5 Facsimile Proposals.
of facsimile proposals.
(k) a negotiated acquisition 52.219-26 Small Disadvantaged Business
provides monetary incentives Participation Program--Incentive
based on actual achievement Subcontracting.
of small disadvantaged
business subcontracting
targets under FAR 19.1203
and 519.1203.
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[[Page 37272]]
570.602 GSAR solicitation provisions.
Each SFO must include provisions substantially the same as the
following, unless you determine that the provision is not appropriate:
552.270-1 Instructions to Offerors--Acquisition of Leasehold
Interests in Real Property. Use Alternate I if you decide that it is
advantageous to the Government to allow offers to be submitted up to
the exact time specified for award. Use Alternate II if the
Government intends to award without discussions. These two
alternates are not exclusive.
552.270-2 Historic Preference.
552.270-3 Parties to Execute Lease.
570.603 GSAR contract clauses.
Insert clauses substantially the same as the following in
solicitations and contracts for leasehold interests in real property
that exceed the simplified lease acquisition threshold, unless you
determine that a clause is not appropriate. You do not require a
deviation under 570.604 to determine that a clause in this section is
not appropriate. Use the clauses at your discretion in actions at or
below the simplified lease acquisition threshold.
552.270-4 Definitions. You must use this clause if you use 570.270-
28.
552.270-5 Subletting and Assignment.
552.270-6 Maintenance of Building and Premises--Right of Entry.
552.270-7 Fire and Casualty Damage.
552.270-8 Compliance with Applicable Law.
552.270-9 Inspection--right of Entry.
552.270-10 Failure in Performance.
552.270-11 Successors Bound.
552.270-12 Alterations.
552.270-13 Proposals for Adjustment.
552.270-14 Changes.
552.270-15 Liquidated Damages. Insert this clause in solicitations
and contracts if you have a critical requirement to meet the
delivery date and you cannot establish an actual cost for the loss
to the Government resulting from late delivery.
552.270-16 Adjustment for Vacant Premises.
552.270-17 Delivery and Condition.
552.270-18 Default in Delivery--Time Extensions.
552.270-19 Progressive Occupancy.
552.270-20 Payment.
552.270-21 Effect of Acceptance and Occupancy.
552.270-22 Default by Lessor During the Term.
552.270-23 Subordination, Nondisturbance and Attornment
552.270-24 Statement of Lease.
552.270-25 Substitution of Tenant Agency.
552.270-26 No Waiver.
552.270-27 Integrated Agreement.
552.270-28 Mutuality of Obligation.
552.270-29 Acceptance of Space.
570.604 Deviations to provisions and clauses.
(a) You need a deviation approved under 501.4 to omit any required
provision or clause.
(b) You also need an approved deviation to modify the language of a
provision or clause mandated by statute (e.g., GSAR 552.203-5, Covenant
Against Contingent Fees, FAR 52.215-2, Audit and Records--Negotiation).
The authorizing statue must allow for a waiver.
(c) Certain clauses required by non-GSA regulations require
approval of the issuing agency before you can delete or modify them.
For example, 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 Workers with Disabilities, 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.
Subpart 570.7 Forms
570.701 Standard forms.
Use Standard Form 2, U.S. Government Lease for Real Property, to
award leases unless you use GSA Form 3626 (see 570.702). Delete the
reference to the Standard Form 2-A in paragraph 7.
570.702 GSA forms.
(a) You may use GSA Form 3626, U.S. Government Lease for Real
Property (Short Form), to award leases if you use the simplified
leasing procedures in 570.2 or if you determine it advantageous to use.
(b) You may use GSA Form 276, Supplemental Lease Agreement, for
actions requiring the agreement of both parties. This includes actions
such as amending an existing lease to acquire additional space,
obtaining partial release of space, revising the terms of a lease,
settling restoration claims, and acquiring alterations.
(c) You may use GSA Form 1364, Proposal To Lease Space, to obtain
offers from prospective offerors.
[FR Doc. 99-15961 Filed 7-8-99; 8:45 am]
BILLING CODE 6820-61-M
