**A G R I C U L T U R E**

**A C Q U I S I T I O N**

**R E G U L A T I O N**

**48 CFR Chapter 4, Parts 401 through 453**

**ISSUED BY: Office of the Assistant Secretary for Administration**

**Policy Analysis & Coordination Center**

**Procurement & Property Management**

**Procurement Policy Division**

**1996 EDITION**

**EFFECTIVE DATE: November 14, 1996**

FOREWORD

The Agriculture Acquisition Regulation (AGAR), located in the Code of
Federal

Regulations (CFR) at Title 48, Chapter 4, is issued under the
authorities of the Secretary

of Agriculture. The AGAR prescribes policies and procedures that
implement and

supplement the Federal Acquisition Regulation (FAR), which is the
primary regulation

for use by all Federal Executive agencies in the acquisition of supplies
and services with appropriated funds. All references in this loose-leaf
version to "Chapter 4\" or "this

Chapter" refer to the AGAR.

The AGAR has been revised as part of the National Performance Review
(NPR) program

to eliminate unnecessary regulations and improve those that remain in
effect.

This 1996 loose-leaf edition of the AGAR supersedes the previous
editions.

Due to the dynamic nature of acquisition rules, the AGAR will be revised
as necessary to implement FAR changes or to add supplementary material
for which there is no FAR counterpart. In accordance with 41 U.S.C.
418b, the Department will publish in the

[Federal Register]{.underline} (48 CFR Chapter 4) those AGAR policies,
procedures, and forms,

which have a significant effect beyond the internal operating procedures
of the

Department, or a significant cost or administrative impact on
contractors or prospective

contractors. However, the Department may elect to publish or not to
publish those rules

in the [Federal Register]{.underline}, which do not meet the above
criteria of significant effect, cost, or administrative impact.

######## AGRICULTURE ACQUISITION REGULATION

**General Structure**

**SUBCHAPTER A\--GENERAL**

Part 401\--Agriculture Acquisition Regulation System

Part 402\--Definitions of Words and Terms

Part 403\--Improper Business Practices and Personal Conflicts of
Interest

Part 404\--Administrative Matters

**SUBCHAPTER B\--COMPETITION AND ACQUISITION PLANNING**

Part 405\--Publicizing Contract Actions

Part 406\--Competition Requirements

Part 407\--Acquisition Planning

Part 408\--Required Sources of Supplies and Services

Part 409\--Contractor Qualifications

Part 410\-- Market Research

Part 411\--Describing Agency Needs

Part 412\--Acquisition of Commercial Items

**SUBCHAPTER C\--CONTRACTING METHODS AND CONTRACT TYPES**

Part 413\--Simplified Acquisition Procedures

Part 414\--Sealed Bidding

Part 415\--Contracting by Negotiation

Part 416\--Types of Contracts

Part 417\--Special Contracting Methods

Part 418\--\[Reserved\]

**SUBCHAPTER D\--SOCIOECONOMIC PROGRAMS**

Part 419\--Small Business Programs

Part 420\--\[Reserved\]

Part 421\--\[Reserved\]

Part 422\--Application of Labor Laws to Government Acquisitions

Part 423\--Environment, Energy And Water Efficiency, Renewable Energy

Technologies, Occupational Safety, and Drug-Free Workplace

Part 424\--Protection of Privacy and Freedom of Information

Part 425\--Foreign Acquisition

Part 426-- \[Reserved\]

**SUBCHAPTER E\--GENERAL CONTRACTING REQUIREMENTS**

Part 427\--Patents, Data, and Copyrights

Part 428\--Bonds and Insurance

Part 429\--\[Reserved\]

Part 430\--Cost Accounting Standards Administration

Part 431\--Contract Cost Principles and Procedures

Part 432\--Contract Financing

Part 433\--Protests, Disputes and Appeals

**SUBCHAPTER F\--SPECIAL CATEGORIES OF CONTRACTING**

Part 434\--Major System Acquisition

Part 435\--Research and Development Contracting

Part 436\--Construction and Architect-Engineer Contracts

Part 437\--Service Contracting

Part 438\--\[Reserved\]

Part 439\-- Acquisition of Information Technology

Part 440\--\[Reserved\]

Part 441\--Acquisition of Utility Services

**SUBCHAPTER G\--CONTRACT MANAGEMENT**

Part 442\--Contract Administration

Part 443\--\[Reserved\]

Part 444\--\[Reserved\]

Part 445\--Government Property

Part 446\--Quality Assurance

Part 447\--Transportation

Part 448\--\[Reserved\]

Part 449\--Termination of Contracts

Part 450\--Extraordinary Contractual Actions

Part 451\--\[Reserved\]

**SUBCHAPTER H\--CLAUSES AND FORMS**

Part 452\--Solicitation Provisions and Contract Clauses

Part 453\--Forms

**STRUCTURE OF THE AGAR TO THE SUBPART LEVEL**

**SUBCHAPTER A\--GENERAL**

**PART 401\--AGRICULTURE ACQUISITION REGULATION SYSTEM**

401.1 Purpose, Authority, Issuance

401.2 Administration

401.3 Agency Acquisition Regulations

401.4 Deviations from the FAR and AGAR

401.5 \[Reserved\]

401.6 Contracting Authority and Responsibilities

401.7 \[Reserved\]

**PART 402\--DEFINITIONS OF WORDS AND TERMS**

402.1 Definitions

402.2 \[Reserved\]

**PART 403\--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST**

403.1 Safeguards

403.2 Contractor Gratuities to Government Personnel

403.3 Reports of Suspected Antitrust Violations

403.4 Contingent Fees

403.5 Other Improper Business Practices

403.6 Contracts with Government Employees or Organizations Owned or
Controlled by Them

403.7 \[Reserved\]

403.8 Limitation on the Payment of Funds to Influence Federal
Transactions

403.9 \[Reserved\]

**PART 404\--ADMINISTRATIVE MATTERS**

404.1 \[Reserved\]

404.2 Contract Distribution

404.3 \[Reserved\]

404.4 Safeguarding Classified Information Within Industry

404.5 \[Reserved\]

404.6 Contract Reporting

404.7 \[Reserved\]

404.8 Contract Files

404.9 \[Reserved\]

404.11 Central Contractor Registration

404.70 Precontract Notices

**SUBCHAPTER B\--COMPETITION AND ACQUISITION PLANNING**

**PART 405\--PUBLICIZING CONTRACT ACTIONS**

405.1 \[Reserved\]

405.2 \[Reserved\]

405.3 Synopses of Contract Awards

405.4 Release of Information

405.5 Paid Advertisements

**PART 406\--COMPETITION REQUIREMENTS**

406.1 \[Reserved\]

406.2 Full and Open Competition After Exclusion of Sources

406.3 Other Than Full and Open Competition

406.4 \[Reserved\]

406.5 Competition Advocates

**PART 407\--ACQUISITION PLANNING**

407.1 Acquisition Plans

407.2 \[Reserved\]

407.3 \[Reserved\]

407.4 \[Reserved\]

407.5 Inherently Governmental Functions

**PART 408\--REQUIRED SOURCES OF SUPPLIES AND SERVICES**

408.1 \[Reserved\]

408.2 \[Reserved\]

408.3 \[Reserved\]

408.4 Federal Supply Schedules

408.5 \[Reserved\]

408.6 \[Reserved\]

408.7 Acquisition from Nonprofit Agencies Employing People Who are Blind
or Severely Disabled

408.8 Acquisition of Printing and Related Supplies

408.9 \[Reserved\]

408.10 \[Reserved\]

408.11 Leasing of Motor Vehicles

**PART 409\--CONTRACTOR QUALIFICATIONS**

409.1 \[Reserved\]

409.2 \[Reserved\]

409.3 \[Reserved\]

409.4 Debarment, Suspension and Ineligibility

409.5 Organizational and Consultant Conflicts of Interest

409.6 \[Reserved\]

409.7 \[Reserved\]

**PART 410\-- MARKET RESEARCH**

**PART 411\--DESCRIBING AGENCY NEEDS**

411.1 Selecting and Developing Requirements Documents

411.2 Using and Maintaining Requirements Documents

411.3 \[Reserved\]

411.4 Delivery or Performance Schedules

411.5 \[Reserved\]

411.6 Priorities and Allocations

411.7 \[Reserved\]

**PART 412\--ACQUISITION OF COMMERCIAL ITEMS**

412.1 \[Reserved\]

412.2 \[Reserved\]

412.3 Solicitations Provisions and Contract Clauses for the Acquisition
of Commercial Items

412.4 \[Reserved\]

412.5 \[Reserved\]

412.6 \[Reserved\]

**SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES**

######## 

######## PART 413---SIMPLIFIED ACQUISITION PROCEDURES

413.1 \[Reserved\]

413.2 \[Reserved\]

413.3 Simplified Acquisition Methods

413.4 \[Reserved\]

413.5 \[Reserved\]

######## 

######## PART 414\--SEALED BIDDING

414.1 \[Reserved\]

414.2 Solicitation of Bids

414.3 \[Reserved\]

414.4 Opening of Bids and Award of Contract

414.5 \[Reserved\]

**PART 415\--CONTRACTING BY NEGOTIATION**

415.1 \[Reserved\]

415.2 Solicitation and Receipt of Proposals and Information

415.3 Source Selection

415.4 Contract Pricing

415.5 Preaward, Award, and Postaward Notifications, Protests and
Mistakes

415.6 Unsolicited Proposals

**PART 416\--TYPES OF CONTRACTS**

416.1 \[Reserved\]

416.2 Fixed-Price Contracts

416.3 \[Reserved\]

416.4 Incentive Contracts

416.5 Indefinite Delivery Contracts

416.6 Time-And-Materials, Labor-Hour, and Letter Contracts

416.7 Agreements

**PART 417\--SPECIAL CONTRACTING METHODS**

417.1 \[Reserved\]

417.2 Options

417.3 \[Reserved\]

417.4 \[Reserved\]

417.5 \[Reserved\]

417.6 \[Reserved\]

**PART 418\--\[RESERVED\]**

**SUBCHAPTER D\--SOCIOECONOMIC PROGRAMS**

**PART 419\--SMALL BUSINESS PROGRAMS**

419.1 \[Reserved\]

419.2 Policies

419.3 \[Reserved\]

419.4 \[Reserved\]

419.5 Set-Asides for Small Business

419.6 Certificates of Competency and Determinations of Eligibility

419.7 \[Reserved\]

419.8 \[Reserved\]

419.9 \[Reserved\]

419.10 \[Reserved\]

**PART 420\--\[RESERVED\]**

**PART 421\--\[RESERVED\]**

**PART 422\--APPLICATION OF LABOR LAWS TO GOVERNMENT**

**ACQUISITIONS**

422.1 Basic Labor Policies

422.2 \[Reserved\]

422.3 Contract Work Hours and Safety Standards Act

422.4 Labor Standards for Contracts Involving Construction

422.5 \[Reserved\]

422.6 Walsh-Healey Public Contracts Act

422.7 \[Reserved\]

422.8 Equal Employment Opportunity

422.9 \[Reserved\]

422.10 \[Reserved\]

422.11 \[Reserved\]

422.12 \[Reserved\]

422.13 Special Disabled Veterans, Veterans of the Vietnam Era , and
Other Eligible Veterans

422.14 Employment of Workers with Disabilities

422.15 \[Reserved\]

**PART 423\--ENVIRONMENT, ENERGY AND WATER EFFICIENCY,**

**RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL**

**SAFETY, AND DRUG-FREE WORKPLACE**

423.1 \[Reserved\]

423.2 Energy And Water Efficiency And Renewable Energy

423.3 \[Reserved\]

423.4 Use of Recovered Materials

423.5 Drug-Free Workplace

423.6 Notice of Radioactive Material

423.7 Contracting for Environmentally Preferable Products and Services

423.8 \[Reserved\]

423.9 \[Reserved\]

**PART 424\--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION**

424.1 Protection of Individual Privacy

424.2 Freedom of Information Act

**PART 425\--FOREIGN ACQUISITION**

425.1 Buy American Act\--Supplies

425.2 Buy American Act\--Construction Materials

425.3 \[Reserved\]

425.4 \[Reserved\]

425.5 \[Reserved\]

425.6 Trade Sanctions

425.7 \[Reserved\]

425.8 \[Reserved\]

425.9 \[Reserved\]

425.10 Additional Foreign Acquisition Regulations

**PART 426-- \[RESERVED\]**

**SUBCHAPTER E\--GENERAL CONTRACTING REQUIREMENTS**

**PART 427\--PATENTS, DATA AND COPYRIGHTS**

427.1 General

427.2 \[Reserved\]

427.3 \[Reserved\]

427.4 \[Reserved\]

427.5 \[Reserved\]

427.6 \[Reserved\]

**PART 428\--BONDS AND INSURANCE**

428.1 Bonds And Other Financial Protections

428.2 Sureties And Other Security For Bonds

428.3 Insurance

######## PART 429\--\[RESERVED\]

**PART 430\-\--COST ACCOUNTING STANDARDS ADMINISTRATION**

430.1 \[Reserved\]

430.2 CAS Program Requirements

430.3 \[Reserved\]

430.4 \[Reserved\]

430.5 \[Reserved\]

430.6 \[Reserved\]

**PART 431\--CONTRACT COST PRINCIPLES AND PROCEDURES**

431.1 Applicability

431.2 \[Reserved\]

431.3 \[Reserved\]

431.4 \[Reserved\]

431.5 \[Reserved\]

431.6 \[Reserved\]

431.7 \[Reserved\]

**PART 432\--CONTRACT FINANCING**

432.1 Non-Commercial Item Purchase Financing

432.2 Commercial Item Purchase Financing

432.3 Loan Guarantees for Defense Production

432.4 Advance Payments for Non-Commercial Items

432.5 \[Reserved\]

432.6 Contract Debts

432.7 Contract Funding

432.8 Assignment of Claims

432.9 Prompt Payment

432.10 Performance-Based Payments

432.11 \[Reserved\]

**PART 433\--PROTESTS, DISPUTES AND APPEALS**

433.1 Protests

433.2 Disputes and Appeals

**SUBCHAPTER F\--SPECIAL CATEGORIES OF CONTRACTING**

**PART 434\--MAJOR SYSTEM ACQUISITION**

434.0 General

434.1 \[Reserved\]

**PART 435\--RESEARCH AND DEVELOPMENT CONTRACTING**

**PART 436**\--**CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS**

436.1 \[Reserved\]

436.2 Special Aspects of Contracting for Construction

436.3 \[Reserved\]

436.4 \[Reserved\]

436.5 Contract Clauses

436.6 Architect-Engineer Services

436.7 \[Reserved\]

**PART 437\--SERVICE CONTRACTING**

437.1 Service Contracts - General

437.2 Advisory and Assistance Services

437.3 \[Reserved\]

437.4 \[Reserved\]

**PART 438\--\[RESERVED\]**

**PART 439\-- ACQUISITION OF INFORMATION TECHNOLOGY**

439.1 General

**PART 440\--\[RESERVED\]**

**PART 441\--ACQUISITION OF UTILITY SERVICES**

441.1 \[Reserved\]

441.2 Acquiring Utility Services

441.3 \[Reserved\]

441.4 \[Reserved\]

441.5 \[Reserved\]

441.6 \[Reserved\]

441.7 \[Reserved\]

**SUBCHAPTER G\--CONTRACT MANAGEMENT**

**PART 442\--CONTRACT ADMINISTRATION**

442.1 Interagency Contract Administration and Audit Services

442.2 \[Reserved\]

442.3 \[Reserved\]

442.4 \[Reserved\]

442.5 \[Reserved\]

442.6 \[Reserved\]

442.7 \[Reserved\]

442.8 \[Reserved\]

442.9 \[Reserved\]

442.10 \[Reserved\]

442.11 \[Reserved\]

442.12 \[Reserved\]

442.13 \[Reserved\]

442.14 \[Reserved\]

442.15 Contractor Performance Information

442.16 \[Reserved\]

**PART 443\--\[RESERVED\]**

**PART 444\--\[RESERVED\]**

**PART 445\--GOVERNMENT PROPERTY**

445.1 \[Reserved\]

445.2 \[Reserved\]

445.3 Providing Government Property to Contractors

445.4 Contractor Use and Rental of Government Property

445.5 \[Reserved\]

445.6 \[Reserved\]

**PART 446**\--**QUALITY ASSURANCE**

446.1 \[Reserved\]

446.2 \[Reserved\]

446.3 Contract Clauses

446.4 \[Reserved\]

446.5 \[Reserved\]

446.6 \[Reserved\]

446.7 \[Reserved\]

446.8 \[Reserved\]

**PART 447**\--**TRANSPORTATION**

447.1 \[Reserved\]

447.2 \[Reserved\]

447.3 Transportation in Supply Contracts

447.4 \[Reserved\]

447.5 \[Reserved\]

**PART 448\--\[RESERVED\]**

**PART 449\--TERMINATION OF CONTRACTS**

449.1 General Principles

449.2 \[Reserved\]

449.3 \[Reserved\]

449.4 Termination for Default

449.5 Contract Termination Clauses

449.6 \[Reserved\]

**PART 450\--EXTRAORDINARY CONTRACTUAL ACTIONS**

450.1 \[Reserved\]

450.2 Delegation of and Limitations on Exercise of Authority

450.3 Contract Adjustments

450.4 \[Reserved\]

**PART 451\--\[RESERVED\]**

**SUBCHAPTER H\--CLAUSES AND FORMS**

**PART 452\--SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

452.1 \[Reserved\]

452.2 Texts of Provisions and Clauses

452.3 \[Reserved\]

**PART 453\--FORMS**

453.1 General

453.2 Prescription of Forms

453.3 Illustrations of Forms

**SUBCHAPTER A\--GENERAL**

**PART 401\--AGRICULTURE ACQUISITION REGULATION SYSTEM**

**TABLE OF CONTENTS**

Sec.

401.000 Scope of Part.

**SUBPART 401.1\--PURPOSE, AUTHORITY, ISSUANCE**

401.101 Purpose.

401.103 Authority.

401.104 Applicability.

401.105 Issuance.

401.105-1 Publication and code arrangement.

401.105-2 Arrangement of regulations.

401.105-3 Copies.

401.106 OMB approval under the Paperwork Reduction Act.

401.170 Electronic access to regulatory information.

**SUBPART 401.2\--ADMINISTRATION**

401.201 Maintenance of the FAR.

401.201-1 The two councils.

**SUBPART 401.3\--AGENCY ACQUISITION REGULATIONS**

401.301 Policy.

401.304 Agency control and compliance procedures.

401.370 Exclusions.

401.371 AGAR Advisories.

401.372 Departmental directives.

**SUBPART 401.4\--DEVIATIONS FROM THE FAR AND AGAR**

401.402 Policy.

401.403 Individual deviations.

401.404 Class deviations.

**SUBPART 401.6\--CONTRACTING AUTHORITY AND RESPONSIBILITIES**

401.601 General.

401.602 Contracting officers.

401.602-3 Ratification of unauthorized commitments.

401.603 Selection, appointment, and termination of appointment.

401.603-1 General.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

# **PART 401**

**AGRICULTURE ACQUISITION REGULATION SYSTEM**

**401.000 Scope of Part.**

This part presents basic policies and general information about the

Department of Agriculture\'s (USDA) Acquisition Regulation, subsequently
referred to as the AGAR. The AGAR is an integral part of the Federal

Acquisition Regulations System.

**SUBPART 401.1\--PURPOSE, AUTHORITY, ISSUANCE**

**401.101 Purpose.**

\(a\) The AGAR provides for the codification and publication of uniform
policies and procedures for acquisitions

by contracting activities within USDA.

\(b\) The purpose of the AGAR is to implement the Federal Acquisition
Regulation (FAR), where further implementation is needed, and to
supplement the FAR when coverage is needed for subject matter not
covered in the FAR. The AGAR is not by itself a complete document, as it
must be used in conjunction with the FAR.

**401.103 Authority.**

The AGAR and amendments thereto are issued under 5 U.S.C. 301 and

40 U.S.C. 486(c). The Senior

Procurement Executive (SPE) has the delegated authority to promulgate
Departmental acquisition regulations.

**401.104 Applicability.**

The FAR and AGAR apply to all USDA acquisitions of supplies and services
(including construction) which obligate appropriated funds, unless
otherwise specified in this chapter or excepted by law.

**401.105 Issuance.**

**401.105-1 Publication and code arrangement.**

\(a\) The AGAR is codified in the

Code of Federal Regulations (CFR) as Chapter 4 of Title 48, Federal
Acquisi-

tion Regulations System, to implement

and supplement Chapter 1 which constitutes the FAR. Parts 400 through
499 have been assigned to USDA by the Office of the Federal Register.

\(b\) The AGAR and its subsequent changes are published in: (1) daily
issues

of the Federal Register, (2) cumulative form in the CFR, and (3)
electronic form on the USDA Departmental Administration Procurement
Homepage (see AGAR 401.170).

\(c\) Section 553(a)(2) of the Administrative Procedure Act,

5 U.S.C. 553, provides an exception from the standard public rulemaking
procedures to the extent that the rule involves a matter relating to
agency management or personnel or to public property, loans, grants,
benefits, or

contracts. In 1971, Secretary of Agriculture Hardin announced a
voluntary partial waiver from the Administrative Procedure Act
exception,

and USDA agencies generally are required to provide notice and an
opportunity for public comment on proposed rules (36 FR 13804, July 24,
1971). The AGAR has been promulgated and may be revised from time to
time in accordance with the rulemaking procedures of the Administrative
Procedure Act. The USDA also is required to publish for public comment
procurement regulations in the Federal Register, pursuant to the Office
of Federal Procurement Policy Act (41 U.S.C. 418b), and FAR 1.301.

**401.105-2 Arrangement of**

**regulations.**

AGAR coverage parallels the

FAR in format, arrangement, and numbering system. However,

subdivisions below the section and subsection levels may not always

correlate directly to FAR designated paragraphs and subparagraphs.

**401.105-3 Copies.**

Copies of the AGAR published

in CFR form may be purchased from the Superintendent of Documents,
Govern-

ment Printing Office, Washington, D.C. 20402. Requests should reference
Chapter 4 of Title 48 CFR.

**401.106 OMB approval under the Paperwork Reduction Act.**

The following OMB control

numbers apply to USDA solicitations

and specified information collections

within the AGAR:

  ------------------------------- ---------------------------------------
  **AGAR segment**                **OMB Control Number**

  411.170                         0505-0014

  415.2                           0505-0013

  436.575                         0505-0011

  437.110                         0505-0015

  437.270                         0505-0016

  452.211-1                       0505-0014

  452.215-71                      0505-0013

  452.236-75                      0505-0011

  452.237-74                      0505-0015

  452.237-76                      0505-0016
  ------------------------------- ---------------------------------------

**401.170 Electronic access to regulatory information.**

The USDA Departmental Administration Procurement Homepage provides
access to the AGAR, AGAR amendments (circulars), AGAR Advisories, and
other USDA procure-ment policy and guidance in electronic form. The
Internet address for the

Procurement Homepage is URL http://www.usda.gov/procurement/

**SUBPART 401.2---ADMINISTRATION**

**401.201 Maintenance of the FAR.**

**401.201-1 The two councils.**

\(a\) USDA\'s representative on the

Civilian Agency Acquisition Council is designated by the SPE.

\(b\) The Procurement Policy Division will coordinate proposed FAR
revisions within USDA.

**SUBPART 401.3\--AGENCY ACQUISITION REGULATIONS**

**\[The next page is 401-3.**

**401.301 Policy.**

\(a\) The SPE, subject to the

authorities in 401.103 and FAR 1.301, may issue and publish Departmental
regulations, that together with the FAR, constitute Department-wide
policies, procedures, solicitation provisions, and contract clauses
governing the

contracting process or otherwise controlling the relationship between

USDA (including any of its contracting activities) and contractors or
prospective contractors.

\(b\) Each designated head of a contracting activity (HCA) is authorized

to issue or authorize the issuance of, at

any organizational level, internal

guidance which does not have a

significant effect beyond the internal operating procedures of the
activity, or a significant cost or administrative impact

on offerors or contractors. Internal guidance issued by contracting
activities will not be published in the [Federal Register]{.underline}.
HCA\'s shall ensure that the guidance, procedures, or instructions
issued\--

\(1\) Are consistent with the policies and procedures contained in this
regulation;

\(2\) Follow the format, arrangement, and numbering system of

this regulation to the extent practicable;

\(3\) Contain no material which duplicates, paraphrases, or is

inconsistent with this chapter; and

\(4\) Are numbered and

identified by use of alphabetical suffixes

to the chapter number as follows:

4A \[Reserved\]

4B Agricultural Research Service.

4C Farm Service Agency.

4D Rural Development (mission area).

4E Food Safety and Inspection Service.

4F \[Reserved\].

4G Forest Service.

4H \[Reserved\].

4I Natural Resources Conservation Service.

4J \[Reserved\]

4K Food and Nutrition Service.

4L Animal and Plant Health Inspection Service.

4M \[Reserved\].

4N Departmental Administration.

4O \[Reserved\]

4P \[Reserved\].

4R Office of Inspector General.

4S \[Reserved\].

**401.304 Agency control and**

**compliance procedures.**

\(a\) The AGAR System is under the direct oversight and control of the
SPE, who is responsible for review and

issuance of all Department-wide acquisition regulations published in the
[Federal Register]{.underline} to assure compliance with FAR Part 1.

\(b\) The SPE is also responsible for review and issuance of
unpublished, Department-wide internal guidance

under the AGAR System.

\(c\) HCA\'s are responsible for establishment and implementation of
formal procedures for oversight and control of unpublished internal
guidance issued within the contracting activity to implement FAR or AGAR
requirements. These procedures shall be subject to the review and
approval by the SPE.

\(d\) The SPE is responsible for evaluating coverage under the AGAR
System to determine applicability to other agencies and for recommending
coverage to the FAR Secretariat for inclusion in the FAR.

\(e\) Recommendations for revision

of existing FAR coverage or new FAR coverage shall be submitted by the
HCA to the SPE for further action.

**401.370 Exclusions.**

Subject to the policies of FAR subpart 1.3, certain USDA acquisition

policies and procedures may be excluded from the AGAR under
appropriately justified circumstances, such as:

\(a\) Subject matter which is effective for a period less than 12
months.

\(b\) Subject matter which is

instituted on an experimental basis for a reasonable period.

\(c\) Acquisition procedures instituted on an interim basis to comply
with the requirements of statute, regulation, Executive Order, OMB
Circular, or OFPP Policy Letter.

**401.371 AGAR Advisories.**

The SPE may issue AGAR Advisories, consistent with the policies of the
FAR and the AGAR, for the following purposes:

\(a\) to communicate Department-

wide policy and/or procedural guidance to contracting activities;

\(b\) to delegate to procurement officials authority to make determina-

tions or to take action to implement the policies of the FAR or the
AGAR; and,

\(c\) to establish internal policy and procedures on an interim basis,
prior to incorporation in the AGAR or in a Departmental Directive.

\(d\) AGAR Advisories are only available in electronic format on the
USDA Procurement Website at http://www.usda.gov/procurement/.

**401.372 Departmental directives.**

Subject to the policies of FAR 1.3,

USDA from time to time may issue

internal directives to establish

procedures, standards, guidance, or methods of performing duties,
functions,

or operations. Such directives include Departmental Regulations (DR\'s),
Departmental Notices, and Secretary\'s Memoranda.

**SUBPART 401.4\--DEVIATIONS FROM THE FAR AND AGAR**

**401.402 Policy.**

Requests for authority to deviate

from the provisions of the FAR or the AGAR shall be submitted in writing
as

far in advance as the exigencies of the situation will permit. Each
request for deviation shall contain the following:

\(a\) A statement of the deviation desired, including identification of
the specific paragraph number(s) of the FAR and AGAR;

\(b\) The reason why the deviation is considered necessary or would be
in the best interest of the Government;

\(c\) If applicable, the name of the contractor and identification of
the

contract affected;

\(d\) A statement as to whether the deviation has been requested
previously and, if so, circumstances of the previous request;

\(e\) A description of the intended effect of the deviation;

\(f\) A statement of the period of time for which the deviation is
needed; and

\(g\) Any pertinent background information which will contribute to a

full understanding of the desired

deviation.

**401.403 Individual Deviations.**

In individual cases, deviations from either the FAR or the AGAR will be
authorized only when essential to effect

a necessary acquisition or where special circumstances make such
deviations

clearly in the best interest of the Government. Except for cost
principles, HCA\'s may approve individual

deviations from the AGAR, after coordinating with the General Counsel

and the SPE. No deviations from the

FAR or AGAR may be authorized at the contracting office level. A copy of
each deviation and its supporting documenta-

tion shall be provided to the SPE. Deviations from the FAR shall not be

made unless such action is authorized by the SPE after consultation with
the

Office of the General Counsel and any other appropriate office, on the
basis of a written justification stating clearly the special
circumstances involved.

**401.404 Class deviations.**

Where deviations from the FAR or AGAR are considered necessary for
classes of contracts, requests for

authority to deviate shall be submitted in writing to the SPE for
approval. The

SPE may authorize class deviations from

the FAR without consulting the Chairperson of the Civilian Agency
Acquisition Council where urgency precludes consultation. The SPE shall
subsequently inform the Chairperson of

the Civilian Agency Acquisition Council

of the deviation including the circum-

stances under which it was required.

**SUBPART 401.6\--CONTRACTING AUTHORITY AND RESPONSIBILITIES**

**401.601 General.**

\(a\) The authority and responsibility vested in the Secretary to manage

USDA\'s acquisition function is delegated through the Assistant
Secretary for Administration to the SPE. This broad authority includes,
but is not limited to,

the following responsibilities:

\(1\) Prescribing and publishing Departmental acquisition policies,
regu-

lations, and procedures.

\(2\) Taking any necessary

actions consistent with policies,

regulations, and procedures with respect

to purchases, contracts, leases, and other transactions.

\(3\) Designating contracting officers.

\(4\) Establishing clear lines of contracting authority.

\(5\) Evaluating and monitoring

the performance of USDA\'s acquisition system.

\(6\) Managing and enhancing career development of the contracting work
force.

\(7\) Participating in the development of Government-wide acquisition
policies, regulations, and standards; and determining specific areas
where government-wide performance standards should be established and
applied.

\(8\) Determining areas of Department-unique standards and developing
unique Department-wide standards.

\(9\) Certifying to the Secretary that the acquisition system meets

approved standards.

\(b\) The SPE may delegate

contracting authority to the Heads of Contracting Activities (HCA\'s)
and the responsibility to manage their

acquisition function.

\(c\) Unless prohibited by the FAR,

the AGAR, or by other applicable

statutes and regulations, the SPE may redelegate to HCA\'s the authority
to

make determinations as the agency head

in order to implement the policies and procedures of the FAR. Such

delegations shall be in writing, but need

not be published.

\(d\) Unless prohibited by the FAR,

the AGAR, or by other applicable

statutes or regulations, each HCA may designate one individual from the
contracting activity to carry out the functions of the HCA (HCAD). The
HCAD may exercise all authority delegated to the HCA.

**401.602 Contracting officers.**

**401.602-3 Ratification of**

**unauthorized commitments.**

\(a\) [Definitions.]{.underline} \"Ratification,\" as

used in this section, means the signed, documented action taken by an

authorized official to approve and

sanction a previously unauthorized commitment.

\"Unauthorized commitment,\" as

used in this section, means an agreement made by a Government
representative

who lacked the authority to enter into a contract on behalf of the
Government.

\(b\) [Policy.]{.underline} The HCA may delegate ratification authority
to the chief of the contracting office.

\(c\) [Procedure.]{.underline} Whenever an official of the cognizant
contracting activity who

is authorized to ratify unauthorized commitments learns that a person or
firm has assumed work as a result of an unauthorized commitment, that
official

shall take the following actions:

\(1\) Immediately inform any person who is performing work as a

result of an unauthorized commitment

that the work is being performed at that person\'s risk;

\(2\) Inform the individual who made the unauthorized commitment of

the seriousness of the act and the

possible consequences;

\(3\) Ensure that the individual

who made the unauthorized commitment furnishes all records and documents
concerning the commitment and a complete, written statement of facts,
including, but not limited to: a statement

as to why a contracting officer was not used; why the vendor was
selected and a list of sources considered; a description

of work to be performed or products to

be furnished; the estimated or agreed

price; whether an appropriation is

available for the work; and whether performance has begun. Under

exceptional circumstances, such as when the individual who made the

unauthorized commitment is no longer available to attest to the
circumstances of

the unauthorized commitment, the

ratifying official may waive these requirements; and

\(4\) Decide whether ratification

is proper and proceed as follows:

\(i\) If ratification is not justifiable, provide the cognizant

program office, contracting office, and

the unauthorized contractor with an explanation of the decision not to
ratify.

\(ii\) If ratification appears adequately justified, ratify the action
and retain or assign the contract to a

successor contracting officer if

necessary.

\(iii\) Maintain related approval, decisional, and background documents
in the contract file for audit purposes.

\(iv\) Notify the cognizant program supervisor or line officer about the
final disposition of the case; the notification may include a

recommendation that the unauthorized commitment should be further

considered a violation of USDA\'s employee conduct regulations.

**401.603 Selection, appointment, and termination of appointment.**

**401.603-1 General.**

An HCA may delegate contracting authority to the extent authorized by
the SPE in a general delegation of

acquisition authority, by appointing qualified individuals as
contracting

officers, in accordance with the USDA Contracting Officer Warrant
System, Departmental Regulation 5001-1.

**PART 402\--DEFINITIONS OF WORDS AND TERMS**

**TABLE OF CONTENTS**

Sec.

402.000 Scope of part.

**SUBPART 402.1\--DEFINITIONS**

402.101 Definitions.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 402**

**DEFINITIONS OF WORDS AND TERMS**

**402.000 Scope of part.**

As used throughout this chapter, the following words and terms are used
as defined in this subpart unless the context

in which they are used clearly requires a different meaning, or a
different

definition is prescribed for a particular

part or portion of a part.

**SUBPART 402.1\--DEFINITIONS**

**402.101 Definitions.**

\"Agency head\" or \"Head of the Agency\" means the Secretary of
Agriculture, Deputy Secretary, or the Assistant Secretary for
Administration.

\"Acquisition official\" means an individual who has been delegated
authority to manage or to exercise acquisition functions and

responsibilities.

\"Head of the contracting activity\" (HCA) means the official who has

overall responsibility for managing the contracting activity (i.e.,
Chief, Forest Service; Administrator, Agricultural Research Service;
etc.), or the individual designated by such an official to carry

out the functions of the HCA.

\"Senior Procurement Executive\" (SPE) means the agency official

appointed as such by the head of the agency pursuant to Executive Order

12931\. The Director, Office of Procurement and Property Management, has
been designated as the USDA SPE.

**PART 403\--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST**

**TABLE OF CONTENTS**

**SUBPART 403.1\--SAFEGUARDS**

Sec.

403.101 Standards of conduct.

403.101-3 Agency regulations.

403.104 Procurement integrity.

403.104-5 \[Reserved\]

403.104- 7 Violations or possible violations.

**SUBPART 403.2\--CONTRACTOR GRATUITIES TO GOVERNMENT PERSONNEL**

403.203 Reporting suspected violations of the gratuities clause.

403.204 Treatment of violations.

**SUBPART 403.3\--REPORTS OF SUSPECTED ANTITRUST VIOLATIONS**

403.303 Reporting suspected antitrust violations.

**SUBPART 403.4\--CONTINGENT FEES**

403.405 Misrepresentations or violations of the Covenant Against
Contingent

Fees.

**SUBPART 403.5\--OTHER IMPROPER BUSINESS PRACTICES**

403.502 Subcontractor kickbacks.

**SUBPART 403.6\--CONTRACTS WITH GOVERNMENT EMPLOYEES OR ORGANIZATIONS
OWNED OR CONTROLLED BY THEM**

403.602 Exceptions.

403.603 Responsibilities of the contracting officer.

**SUBPART 403.8\--LIMITATION ON THE PAYMENT OF FUNDS TO INFLUENCE
FEDERAL TRANSACTIONS**

403.806 Processing suspected violations.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 403**

**IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST**

**SUBPART 403.1\--SAFEGUARDS**

**403.101 Standards of Conduct**

**403.101-3 Agency Regulations.**

\(a\) The standards of conduct for

USDA procurement officials are the uniform standards established by the

Office of Government Ethics in 5 CFR

Part 2635, [Standards of Ethical Conduct for Employees of the Executive
Branch]{.underline}, and FAR 3.104, [Procurement Integrity]{.underline}.

\(b\) Procurement officials and other employees who require advice

concerning the application of standards

of conduct to any acquisition issue shall obtain ethics advisory
opinions from

ethics advisory officials in their agency personnel offices.

**403.104 Procurement integrity.**

**403.104-5 \[Reserved\]**

**403.104- 7 Violations or possible violations.**

The contracting officer shall forward information concerning any
violation or possible violation of the

Procurement Integrity Act

(41 U.S.C. 423) to the chief of the contracting office.

**SUBPART 403.2\--CONTRACTOR GRATUITIES TO GOVERNMENT PERSONNEL**

**403.203 Reporting suspected**

**violations of the gratuities clause.**

A suspected violation of the contract clause, FAR 52.203-3, Gratuities,
shall

be reported immediately to the cognizant contracting officer in writing,
stating the circumstances surrounding the

incident(s), the date(s), and names of all parties involved. The
contracting officer shall review the report for completeness, add any
additional information deemed necessary and a recommendation for

action, and submit the report to the

HCA.

**403.204 Treatment of violations.**

The HCA shall review the report

and consult with the Offices of General Counsel and Inspector General to

determine whether further action should

be pursued. If it is found that the facts

and circumstances warrant further

action, the HCA shall give the contractor

a formal written notice which

summarizes the reported violation and affords the contractor the
opportunity to make a written or oral response within a reasonable,
specified period after receipt

of the notice. The notice shall be sent by certified mail with return
receipt

requested. Oral presentations shall

follow the procedures outlined in FAR 3.204(b). The HCA shall furnish
copies

of any adverse determination to the contracting officer and the
Department Debarring Officer for their subsequent considerations under
FAR 3.204(c)(1)

and (2), respectively.

**SUBPART 403.3\--REPORTS OF SUSPECTED ANTITRUST VIOLATIONS**

**403.303 Reporting suspected antitrust violations.**

Contracting officers shall report the circumstances of suspected
violations of antitrust laws to the Office of Inspector General in
accordance with procedures

in Departmental Regulations (1700

series).

**SUBPART 403.4\--CONTINGENT FEES**

**403.405 Misrepresentations or violations of the Covenant Against
Contingent Fees.**

( a) A suspected misrepresentation

or violation of the Covenant Against Contingent Fees shall be documented
in writing by the contracting officer and

reported immediately to the chief of the contracting office. The chief
of the contracting office shall determine if a violation has occurred
and report any violation to the Office of Inspector

General. The chief of the contracting

office shall take action in accordance

with FAR 3.405(b).

\(b\) If the chief of the contracting

office decides to refer the case to the Department of Justice, it should
be

referred through the Office of Inspector General with a copy of the
report and referral submitted through the HCA to

the Senior Procurement Executive.

**SUBPART 403.5\--OTHER**

**IMPROPER BUSINESS**

**PRACTICES**

**403.502 Subcontractor kickbacks.**

Contracting officers shall report the circumstances of suspected
violations of

the Anti-Kickback Act (41 U.S.C. 51-

58\) to the Office of Inspector General in accordance with procedures in
Departmental Regulations (1700 series).

**SUBPART 403.6\--CONTRACTS**

**WITH GOVERNMENT**

**EMPLOYEES OR**

**ORGANIZATIONS OWNED OR CONTROLLED BY THEM**

**403.602 Exceptions.**

The HCA is authorized to except a contract from the policy in FAR 3.601.

**403.603 Responsibilities of the contracting officer.**

The contracting officer, when requesting authorization under 403.602,
shall prepare a written determination and findings for the signature of
the HCA.

The determination shall document compliance with FAR 3.603, specifying

the compelling reason(s) for award, and shall be placed in the contract
file.

**SUBPART 403.8\--LIMITATION ON THE PAYMENT OF FUNDS TO INFLUENCE
FEDERAL TRANSACTIONS**

**403.806 Processing suspected violations.**

Suspected violations of the requirements of 31 U.S.C. 1352 shall be
referred to the Office of Inspector

General in accordance with procedures

in Departmental Regulations (1700

series).

**PART 404\--ADMINISTRATIVE MATTERS**

**TABLE OF CONTENTS**

**SUBPART 404.2---CONTRACT DISTRIBUTION**

Sec.

404.203 Taxpayer identification information

**SUBPART 404.4\--SAFEGUARDING CLASSIFIED INFORMATION WITHIN INDUSTRY**

404.403 Responsibilities of contracting officers.

**SUBPART 404.6---GOVERNMENT CONTRACT REPORTING**

404.601 \[Reserved\]

404.602 Federal Procurement Data System.

**SUBPART 404.8\-- GOVERNMENT CONTRACT FILES**

870. Document numbering system.

**SUBPART 404.11---CENTRAL CONTRACTOR REGISTRATION**

404.1103 Procedures.

**SUBPART 404.70\--PRECONTRACT NOTICES**

404.7001 Solicitation Provision.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 404**

**ADMINISTRATIVE MATTERS**

**SUBPART 404.4\--SAFEGUARDING CLASSIFIED INFORMATION WITHIN INDUSTRY**

**SUBPART 404.2 CONTRACT DISTRIBUTION**

**404.203 Taxpayer identification information.**

\(a\) If the contractor furnishes taxpayer identification number (TIN)
and type of organization information pursuant to solicitation provision
52.204-3 or 52.212-3, and the USDA Office of the Chief Financial
Officer, Controller Operations Division, New Orleans will be the payment
office, that information will be entered into the Foundation Financial
Information System (FFIS) in accordance with FFIS Vendor Table
Maintenance Procedures set forth in FFIS Bulletins issued by the Office
of the Chief Financial Officer and AGAR Advisories issued by the Office
of Procurement and Property Management.

\(b\) Separate submission of the TIN or type of organization
information, in accordance with 52.204-3 or 52.212-3, is not required
for contractors registered in the Central Contractor Registration (CCR)
database.

**SUBPART 404.4---SAFEGAURDING**

**CLASSIFIED INFORMATION WITHIN INDUSTRY**

**404.403 Responsibilities of**

**contracting officers.**

When a proposed solicitation is

likely to require access to classified information, the contracting
officer shall consult with the Information Security Staff, Personnel and
Document Security Division, Office of Procurement and Property
Management, regarding

the procedures that must be followed.

**SUBPART 404.6\--CONTRACT REPORTING**

**404.601 \[Reserved\]**

**404.602 Federal Procurement Data System.**

\(a\) Contracting activities shall report contract actions into the
Federal Procurement Data System in accordance with the instructions
issued or distributed by the SPE.

\(b\) The unique identifier for each contract action reported to the
Federal Procurement Data System shall begin with the two-letter USDA
Agency Prefix "AG".

**SUBPART 404.8---GOVERNMENT CONTRACT FILES**

870. **Document numbering system.**

The SPE shall issue AGAR Advisories to establish and maintain a
numbering system for USDA contracts, modifications, and delivery/task
orders. USDA contracting offices shall number contracts, modifications,
and orders in accordance with this numbering system.

### **SUBPART 404.11---CENTRAL CONTRACTOR REGISTRATION**

> **404.1103 Procedures.**
>
> \(a\) Contracting officers and other USDA employees shall not enter
> information into the Central Contractor Registration (CCR) database on
> behalf of prospective contractors. Prospective contractors who are
> unable to register on-line at the CCR website should be advised to
> submit a written application to CCR for registration into the CCR
> database. USDA employees may assist prospective contractors by
> downloading the registration template, CCR handbook and other
> information from the CCR website and providing copies of that material
> to requesters. Written applications for registration may be submitted
> to Department of Defense Central Contractor Registration, 74
> Washington Ave., Suite 7, Battle Creek, MI 49017-3084.
>
> \(b\) Verification that the prospective contractor is registered in
> the CCR

database shall be done via the CCR

Internet website http://www.ccr.gov.

This verification process using the CCR website applies both to
acquisitions executed using USDA legacy procurement systems and the USDA
Integrated Acquisition System.

> \(c\) AGAR Advisories issued by the Office of Procurement and Property
> Management will address internal procedures for integration of
> contractor information in the CCR database with the USDA FFIS payment
> system.

**SUBPART 404.70\--PRECONTRACT NOTICES**

**404.7001 Solicitation Provision.**

The contracting officer shall insert the provision at 452.204-70,
Inquiries, in all solicitations.

**SUBCHAPTER B\--COMPETITION AND ACQUISITION PLANNING**

**PART 405\--PUBLICIZING CONTRACT ACTIONS**

**TABLE OF CONTENTS**

**SUBPART 405.3\--SYNOPSES OF CONTRACT AWARDS**

Sec.

405.303 Announcement of contract awards.

**SUBPART 405.4\--RELEASE OF INFORMATION**

405.403 Requests from Members of Congress.

405.404 Release of long-range acquisition estimates.

405.404-1 Release procedures.

**SUBPART 405.5\--PAID ADVERTISEMENTS**

405.502 Authority.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 405**

**PUBLICIZING CONTRACT ACTIONS**

**SUBPART 405.3\--**

**SYNOPSES OF CONTRACT AWARDS**

**405.303 Announcement of contract awards.**

Contracting officers shall make information available on any contract

award with an estimated total value over

\$1 million (including options) to their

agency congressional liaison office in sufficient time for the agency to

announce it by 5:00 p.m. Washington,

DC time on the day of award. The

agency congressional liaison office shall, concurrent with the public
announce-

ment, provide the award announcement information to the USDA
Congressional Relations Office.

**SUBPART 405.4\--RELEASE OF INFORMATION**

**405.403 Requests from Members of Congress.**

The head of the contracting activity (HCA) is the agency head designee

pursuant to FAR 5.403.

**405.404 Release of long-range acquisition estimates.**

**405.404-1 Release procedures.**

\(a\) HCA\'s shall establish written procedures to control the release
of

long-range acquisition estimates as authorized under FAR 5.404-1.

\(b\) Classified information shall not

be released without the approval of the Information Security Staff,
Personnel and Document Security Division, Office of Procurement and
Property Management. Departmental Manuals and Regulations (3400 series)
contain guidance on classified information.

**SUBPART 405.5\--PAID ADVERTISEMENTS**

**405.502 Authority.**

\(a\) The authority vested in the

agency head to authorize publication of paid advertisements in
newspapers (44 U.S.C. 3702) is delegated, with power of redelegation, to
HCA\'s. HCA

redelegation of this authority shall be in writing.

\(b\) Policies and procedures

regarding prior authorization required

for media other than newspapers are contained in USDA Departmental
Regulations 1400 series.

**PART 406\--COMPETITION REQUIREMENTS**

**TABLE OF CONTENTS**

**SUBPART 406.2\--FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES**

Sec.

406.202 Establishing or maintaining alternative sources.

**SUBPART 406.3\--OTHER THAN FULL AND OPEN COMPETITION**

406.302 Circumstances permitting other than full and open competition.

406.302-70 Otherwise authorized by law.

**SUBPART 406.5\--COMPETITION ADVOCATES**

406.501 Requirements.

Authority: 5 U.S.C. and 40 U.S.C. 486(c).

**PART 406**

**COMPETITION REQUIREMENTS**

**SUBPART 406.2\--FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES**

**406.202 Establishing or maintaining alternative sources.**

The Senior Procurement Executive

is authorized to make determinations pursuant to FAR 6.202(a) and sign
the determination and findings required by FAR 6.202(b).

**SUBPART 406.3\--OTHER THAN FULL AND OPEN COMPETITION**

**406.302 Circumstances permitting other than full and open
competition.**

**406.302-70 Otherwise authorized by law.**

\(a\) [Authority.]{.underline} Section 1472 of the National Agricultural
Research,

Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3318) (the Act)

authorizes the Secretary of Agriculture

to award contracts, without competition,

to further research, extension, or

teaching programs in the food and agricultural sciences.

\(b\) [Limitations.]{.underline} The use of this authority is limited to
those instances

where it can be determined that

contracting without full and open competition is in the best interest of
the Government and necessary to the

accomplishment of the research,

extension, or teaching program.

Therefore:

\(1\) Contracts under the

authority of the Act shall be awarded on

a competitive basis to the maximum practicable extent.

\(2\) When full and open competition is not deemed appropriate,

the contracting officer shall make a

written justification on a case-by-case

basis in accordance with procedures in FAR 6.303 and 6.304.

**SUBPART 406.5\--COMPETITION ADVOCATES**

**406.501 Requirements.**

\(a\) The Chief, Procurement Policy Division, Office of Procurement and
Property Management, has been

designated as the Competition Advocate for USDA.

\(b\) Each HCA shall designate a competition advocate for the
contracting activity. The HCA shall forward a copy of the designation
memorandum to the Competition Advocate for USDA.

**PART 407\--ACQUISITION PLANNING**

**TABLE OF CONTENTS**

**SUBPART 407.1\--ACQUISITION PLANS**

Sec.

407.103 Agency-head responsibilities.

407.170 Advance acquisition plans.

**SUBPART 407.3\-- \[Reserved\]**

**SUBPART 407.5\--INHERENTLY GOVERNMENTAL FUNCTIONS**

407.503 Policy.

Authority: 5 U.S.C. 301 and 40 U.S.C.

**PART 407**

**ACQUISITION PLANNING**

**SUBPART 407.1\--ACQUISITION PLANS**

**407.103 Agency-head responsibilities.**

Heads of Contracting Activities

(HCA\'s) shall develop procedures

to comply with FAR 7.103.

**407.170 Advance acquisition plans.**

Each HCA shall maintain an advance acquisition planning system.

**SUBPART 407.3\-- \[Reserved\]**

**SUBPART 407.5\--INHERENTLY GOVERNMENTAL FUNCTIONS**

**407.503 Policy.**

\(a\) HCA\'s shall establish

procedures to ensure that requesting

activities provide the written determina-

tion required by FAR 7.503(e), when

submitting requests for procurement of

services.

\(b\) In the event of a disagreement

as to whether the functions to be

performed are inherently governmental,

the HCA may refer the matter to the

Senior Procurement Executive (SPE) for

resolution. When submitting

disagreements to the SPE for resolution

the HCA shall provide a summary of the

areas of disagreement, supported by the

following:

\(1\) the HCA's assessment of

whether the services are "inherently

governmental";

\(2\) the basis for that

assessment (include references to the

definition and policy in FAR subpart 7.5

and/or Office of Federal Procurement

Policy letter 92-1);

\(3\) a copy of the statement of

work; and,

\(4\) the requesting activity's

written determination in accordance with FAR 7.503(e).

\(c\) Such disagreements shall be

resolved prior to issuance of the

solicitation.

**PART 408\--REQUIRED SOURCES OF SUPPLIES AND SERVICES**

**TABLE OF CONTENTS**

**SUBPART 408.4\--FEDERAL SUPPLY SCHEDULES**

Sec.

408.404 Using schedules.

408.404-3 Requests for waivers.

**SUBPART 408.7\--ACQUISITION FROM NONPROFIT AGENCIES**

**EMPLOYING PEOPLE WHO ARE BLIND OR SEVERELY DISABLED**

408.701 Definitions.

408.705 Procedures.

408.705-2 Direct order process.

408.705-3 Allocation process.

408.705-4 Compliance with orders.

408.706 Purchase exemptions.

408.707 Prices.

408.711 Quality complaints.

408.712 Specification changes.

408.714 Communications with the central nonprofit agencies and the
Committee.

**SUBPART 408.8\--ACQUISITION OF PRINTING AND RELATED SUPPLIES**

408.802 Policy.

**SUBPART 408.11\--LEASING OF MOTOR VEHICLES**

408.1103 Contract requirements.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 408**

**REQUIRED SOURCES OF SUPPLIES AND SERVICES**

**SUBPART 408.4\--FEDERAL**

**SUPPLY SCHEDULES**

**408.404 Using schedules.**

**408.404-3 Requests for waivers.**

A copy of the request for a waiver and the approval shall be placed in
the contract file to support the acquisition of items off schedule.

**SUBPART 408.7\--ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE
WHO ARE BLIND OR SEVERELY DISABLED**

**408.701 Definitions.**

\"Committee Member\" is the Presidential appointee representing

USDA as a member of the Committee

for Purchase from People Who Are

Blind or Severely Disabled.

\"Organization head\" is the Under Secretary or Assistant Secretary of a
mission area or the head of a USDA staff office.

**408.705 Procedures.**

\(a\) The organization head shall appoint one person as
Javits-Wagner-O\'Day Act (JWOD) Liaison to

represent the organization and to coordinate the organization\'s actions

with the Committee Member.

(b) JWOD Liaisons may represent more than one organization. Liaisons
    need not be acquisition officials.

\(c\) The organization head shall issue and maintain a performance plan
to promote and enhance the organization\'s acquisitions from JWOD
participating nonprofit agencies.

\(d\) The performance plan shall: (1) announce the organization\'s
support for the JWOD Act; (2) establish a promotion program for the
products and services provided by the JWOD participating nonprofit
agencies; (3) provide for the JWOD Liaison\'s role in acquisition
planning; (4) establish measurable program goals for growth or other
accomplishment in the organization\'s JWOD program actions; and (5)
establish an awards program for

successful participation in the JWOD program.

**408.705-2 Direct order process.**

\(a\) The chief of a contracting office may apply to a central nonprofit
agency

for authorization to order specific

supplies or services directly from a

JWOD participating nonprofit agency.

\(b\) A copy of the application

should be provided to the JWOD Liaison who will inform the USDA
Committee Member.

**408.705-3 Allocation process.**

\(a\) The chief of a contracting office may apply to a central nonprofit
agency

for a production allocation of specific supplies or services to a JWOD
participating nonprofit agency.

\(b\) A copy of the application should be provided to the JWOD Liaison
who will inform the USDA Committee

Member.

**408.705-4 Compliance with orders.**

Prior to attempting to resolve a

failure to perform by a participating nonprofit agency with the
Committee,

the chief of the contracting office should provide advance notice to the
JWOD Liaison who will inform the USDA Committee Member.

**408.706 Purchase exemptions.**

Prior to applying to the Committee

for a purchase exemption, the chief of

the contracting office should provide advance notice to the JWOD Liaison
who will inform the USDA Committee Member.

**408.707 Prices.**

Prior to applying for a price

revision, the chief of the contracting

office should provide advance notice to

the JWOD Liaison who will inform the USDA Committee Member.

**408.711 Quality complaints.**

Prior to attempting to resolve a

complaint regarding the quality of goods

or services provided by participating nonprofit agency with the
Committee,

the chief of the contracting office should provide advance notice to the
JWOD Liaison who will inform the USDA Committee Member.

**408.712 Specification changes.**

Prior to providing 90-days advance notification to the Committee on
actions that affect supplies and services on the Procurement List, the
chief of the contracting office should provide

advance notice to the JWOD Liaison who will inform the USDA Committee
Member.

**408.714 Communications with the central nonprofit agencies and the
Committee.**

Any matter requiring referral to the Committee shall be provided to the

JWOD Liaison who will coordinate the matter with the Committee Member.

**SUBPART 408.8\--ACQUISITION OF PRINTING AND RELATED SUPPLIES**

**408.802 Policy.**

\(a\) The Director, Office of Communications (OC) has been designated as
the central printing

authority in USDA, with the authority to represent the USDA before the
Joint Committee on Printing (JCP), the

Government Printing Office, and other Federal and State agencies on all
matters related to printing.

\(b\) Prior to contracting for any of

the items defined in FAR 8.801, the contracting officer shall verify
that the requisite approval has been received by the publication liaison
officer or requisitioner.

\(c\) The approval from OC or the approval authority designated by OC

shall be maintained in the contract file.

**SUBPART 408.11\--LEASING OF MOTOR VEHICLES**

**408.1103 Contract requirements.**

If the requirement includes the need for the vendor to provide
operational maintenance such as fueling, lubrication, or other fluid
changes or replenishment, the contracting officer shall include in the
contract:

\(1\) a requirement for the use of fluids and lubricants containing the
maximum available, amounts of recovered materials and alternative fuels
whenever available; and

\(2\) a preference for retreaded tires meeting the Federal retread
specifications, tires with the maximum recovered material content, or
retreading services for the tires on the vehicle.

**PART 409\--CONTRACTOR QUALIFICATIONS**

**TABLE OF CONTENTS**

**SUBPART 409.4\--DEBARMENT, SUSPENSION AND INELIGIBILITY**

409.403 Definitions.

409.404 List of Parties Excluded from Federal Procurement and
Nonprocurement Programs.

409.405 Effect of listing.

409.405-1 Continuation of current contracts.

409.405-2 Restrictions on subcontracting.

409.406 Debarment.

409.406-3 Procedures.

409.407 Suspension.

409.407-3 Procedures.

409.470 Appeals.

**SUBPART 409.5\--ORGANIZATIONAL AND CONSULTANT CONFLICTS OF INTEREST**

409.503 Waiver.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 409**

**CONTRACTOR QUALIFICATIONS**

**SUBPART 409.4\--DEBARMENT, SUSPENSION AND INELIGIBILITY**

**409.403 Definitions.**

\"Debarring official.\" Pursuant to

the Secretary\'s delegations of authority

in 7 CFR 2.24, the Senior Procurement Executive (SPE) is designated as
the debarring official (Department

Debarring Officer) with the following exceptions:

\(a\) for commodity contracts

awarded on behalf of the Commodity Credit Corporation (CCC), the
Executive Vice President, CCC, or his designee is designated as the
debarring official pursuant to 7 CFR part 1407.

\(b\) for contracts awarded under the School Lunch and Surplus Removal
Programs (42 U.S.C. 1755 and 7 U.S.C. 612c), the Department Debarring
Officer has delegated debarring authority to the Agricultural Marketing
Service (AMS).

**409.404 List of Parties Excluded from Federal Procurement and
Nonprocurement Programs.**

The Department Debarring Officer

is USDA\'s single point of contact with GSA for debarment and suspension
actions taken under this subpart. The

debarring official for AMS shall notify

the Department Debarring Officer of

each debarment and suspension action

by promptly submitting a copy of the debarment or suspension notice and
any later changes to the debarment or suspension status. The Department
Debarring Officer will forward a copy of each notice to GSA for
inclusion in the Government-wide list.

**409.405 Effect of listing.**

Compelling reasons are considered

to be present where failure to contract

with the debarred or suspended

contractor would seriously harm the agency\'s programs and prevent
accomplishment of mission

requirements. The SPE is authorized to make the determinations under FAR
9.405. Requests for such determinations shall be submitted through the
head of

the contracting activity (HCA) to the

SPE.

**409.405-1 Continuation of current contracts.**

The HCA is authorized to make the determinations under FAR 9.405-1.

**409.405-2 Restrictions on subcontracting.**

The HCA is authorized to approve subcontracts with debarred or

suspended subcontractors under FAR 9.405-2.

**409.406 Debarment.**

**409.406-3 Procedures.**

\(a\) [Investigation and referral.]{.underline} When

a contracting officer becomes aware of

possible irregularities or any information

which may be sufficient cause for

debarment, the case shall be immediately

referred through the HCA to the

debarring official. The case must be

accompanied by a complete statement of

the facts (including a copy of any

criminal indictments, if applicable)

along with a recommendation for action.

Where the statement of facts indicates

the irregularities to be possible criminal

offenses, or for any other reason further

investigation is considered necessary, the

matter shall be referred to the HCA who

should consult with the Office of

Inspector General to determine if further

investigation is required prior to

referring to the debarring official.

\(b\) [Decision-making process.]{.underline} If,

after reviewing the recommendations

and consulting with the Office of

Inspector General and Office of the

General Counsel, as appropriate, the

debarring official determines debarment

is justified, the debarring official shall

initiate the proposed debarment in

accordance with FAR 9.406-3(c) and

notify the HCA of the action taken.

\(c\) [Fact-finding proceeding.]{.underline} For

actions listed under FAR 9.406-3(b)(2),

the contractor shall be given the

opportunity to appear at an informal

hearing. The hearing should be held at a

location and time that is convenient to

the parties concerned, if at all possible.

The contractor and any specifically

named affiliates may be represented by

counsel or any duly authorized

representative. Witnesses may be called

by either party. The proceedings shall

be conducted expeditiously and in such a

manner that each party will have an

opportunity to present all information

considered pertinent to the proposed

debarment. The contractor shall be

provided a copy of a transcript of the

proceedings under the conditions

established in FAR 9.406-3(b)(2)(ii).

**409.407 Suspension.**

**409.407-3 Procedures.**

\(a\) [Investigation and referral.]{.underline} When

a contracting officer becomes aware of

possible irregularities or any information

which may be sufficient cause for

suspension, the case shall be immediate-

ly referred through the HCA to the

debarring official. The case must be

accompanied by a complete statement of

the facts along with a recommendation

for action. Where the statement of facts

indicates the irregularities to be possible

criminal offenses, or for any other reason

further investigation is considered

necessary, the matter shall be referred to

the HCA who should consult with the

Office of Inspector General to determine

if further investigation is required prior

to referring it to the debarring official.

\(b\) [Decision-making process.]{.underline}

If, after reviewing the recommendations and consulting with the Office
of

Inspector General and Office of the General Counsel, as appropriate, the
debarring official determines suspension

is justified, the debarring official shall

initiate the proposed suspension in accordance with FAR 9.407-3(c) and
notify the HCA of the action taken.

\(c\) [Fact-finding proceedings.]{.underline}

For actions listed under FAR

9.407-3(b)(2), the contractor shall be

given the opportunity to appear at an informal hearing, similar in
nature to the hearing for debarments as discussed in

409.406-3(c).

**409.470 Appeals.**

A debarred or suspended contractor may appeal the debarring official\'s

decision by mailing or otherwise

furnishing a written notice within 90

days from the date of the decision to the U.S. Department of Agriculture
Board of Contract Appeals, Washington, D.C. 20250. A copy of the notice
of appeal shall be furnished to the debarring

officer from whose decision the appeal is taken. Appeals under Subpart
409.4

shall be governed by the rules and procedures of the U.S. Department of
Agriculture Board of Contract Appeals

set forth in 7 CFR, Part 24.

**SUBPART 409.5\--ORGANIZATIONAL AND CONSULTANT CONFLICTS OF**

**INTEREST**

**409.503 Waiver.**

\(a\) The HCA, on a non-delegable basis, is authorized to waive any
general

rule or procedure in FAR 9.5 when in the Government\'s interest.

\(b\) Each request for waiver shall include:

\(1\) The general rule or

procedure proposed to be waived;

\(2\) An analysis of the potential conflict, including the benefits and

detriments to the Government and prospective contractors;

\(3\) A discussion of why the conflict cannot be avoided, neutralized,

or mitigated; and

\(4\) Advice of counsel obtained under FAR 9.504(b).

######## PART 410---MARKET RESEARCH

**TABLE OF CONTENTS**

**Sec.**

410.001 Policy.

410.002 Procedures.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c)

**PART 410**

**MARKET RESEARCH**

**410.001 Policy.**

In addition to those uses listed in FAR 10.001, agencies must use the
results of market research to--

(a) Ensure the minimum use of hazardous or toxic materials;

> \(b\) Ensure the maximum use of biobased products and biofuels; and
>
> \(c\) Identify products and services
>
> on or eligible for addition to the Javits-Wagner-O'Day Act Procurement
> List in order to achieve USDA's goal to increase participation in this
> program.

**410.002 Procedures.**

Market research must include obtaining information on the commercial
quality assurance practices as an alternative for Government inspection
and testing prior to tender for acceptance.

**PART 411\--DESCRIBING AGENCY NEEDS**

**TABLE OF CONTENTS**

**SUBPART 411.1\--SELECTING AND DEVELOPING REQUIREMENTS DOCUMENTS**

Sec.

411.101 Order of precedence for requirements documents.

411.103 Market acceptance.

411.106 Purchase descriptions for service contracts.

411.170 Brand name or equal.

411.171 Solicitation provisions and contract clauses.

**SUBPART 411.2\--USING AND MAINTAINING REQUIREMENTS DOCUMENTS**

411.202 Maintenance of standardization documents.

**SUBPART 411.4\--DELIVERY OR PERFORMANCE SCHEDULES**

411.404 Contract Clauses.

**SUBPART 411.6\--PRIORITIES AND ALLOCATIONS**

411.600 Scope of subpart.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

######### **PART 411**

**DESCRIBING AGENCY NEEDS**

**SUBPART 411.1\--SELECTING AND DEVELOPING REQUIREMENTS DOCUMENTS**

101. **Order of precedence for requirements documents.**

\(a\) Office of Management and Budget (OMB) Circular A-119 establishes a
Federal policy requiring the use of voluntary consensus standards in
lieu of government-unique standards except where inconsistent with law
or otherwise impractical.

\(b\) The HCA is authorized to submit the determination required by OMB
Circular A-119 that a voluntary standard is inconsistent with law or
otherwise impracticable. The HCA must submit the determination to OMB
through the National Institute of Standards and Technology in accordance
with the Circular with a copy provided to the SPE.

**411.103 Market acceptance.**

\(a\) The head of the contracting

activity (HCA) may determine that

offerors must demonstrate, in accordance

with FAR 11.103(a), the market

acceptability of their items to be offered.

\(b\) The contracting officer shall

place a copy of this determination,

signed by the HCA, in the solicitation

file.

**411.106 Purchase descriptions for service contracts.**

When contract personnel are to be

used, the requiring official shall record

on the requisition his or her

determination whether harm to the

Government might occur should

contractor personnel fail to identify

themselves as non-Government officials.

**411.170 Brand name or equal.**

\(a\) A \"brand name or equal\"

purchase description shall include the

following type of information:

\(i\) Identification of the item by

generic description.

\(ii\) Make, model number,

catalog designation, or other

description, and identification of a commercial catalog where it is
listed.

\(iii\) Name of manufacturer, producer, or distributor of the item and
complete address.

\(iv\) All salient characteristics

of the \"brand name or equal\" product or products which have been
determined by the requisitioner to be essential to the Government\'s
minimum requirements.

**411.171 Solicitation provisions and contract clauses.**

\(a\) Contracting officers shall

insert the provision at 452.211-70,

Brand Name or Equal, in solicitations,

other than those for construction, where \"brand name or equal\"
purchase descriptions are used.

\(b\) Contracting officers shall

insert the clause at 452.211-71, Equal

Products Offered, in solicitations, other than those for construction,
where the

provision at 452.211-70 is included.

\(c\) Contracting officers shall

insert the clause at 452.211-72,

Statement of Work/Specifications, when the description (statement of
work) or specification(s) is included in Section J

of the solicitation.

\(d\) Contracting officers shall

insert the clause at 452.211-73,

Attachment to Statement of Work/Specifications, when there are
attachments to the description (statement

of work) or specifications.

**SUBPART 411.2\-\--USING AND MAINTAINING REQUIREMENTS DOCUMENTS**

**411.202 Maintenance of standardization documents.**

Recommendations for changes to

standardization documents are to be

submitted through the Senior

Procurement Executive, who will

coordinate the submission of these

recommendations to the cognizant

preparing activity.

**SUBPART 411.4\-\--DELIVERY OR PERFORMANCE SCHEDULES**

**411.404 Contract Clauses.**

\(a\) The contracting officer shall

insert the clause at 452.211-74, Period of

Performance, when it is necessary to

specify a period of performance,

beginning on the date of award, date of

receipt of notice of award, or a specified

date.

\(b\) The contracting officer shall

insert the clause at 452.211-75, Effective

Period of the Contract, when it is

necessary to specify the effective period

of the contract.

**SUBPART 411.6\-\--PRIORITIES AND ALLOCATIONS**

**411.600 Scope of subpart.**

The Defense Priorities and

Allocation System (DPAS) excludes USDA activities (see 15 CFR

700.18(b)). USDA Contracting Officers are not authorized to place rated
orders under DPAS.

**PART 412\--ACQUISITION OF COMMERCIAL ITEMS**

**TABLE OF CONTENTS**

**SUBPART 412.3\--SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

**FOR THE ACQUISITION OF COMMERCIAL ITEMS**

Sec.

412.302 Tailoring of provisions and clauses for the acquisition of
commercial items.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 412**

**ACQUISITION OF COMMERCIAL ITEMS**

**SUBPART 412.3\--SOLICITATION PROVISIONS AND CONTRACT CLAUSES FOR THE
ACQUISITION OF COMMERCIAL ITEMS**

**412.302 Tailoring of provisions and clauses for the acquisition of
commercial items.**

The head of the contracting activity

is authorized to approve waivers in accordance with FAR 12.302(c). The
approved waiver may be either for an individual contract or for a class
of contracts for the specific item. The approved waiver and supporting
documentation shall be incorporated into the contract file.

**SUBCHAPTER C\--CONTRACTING METHODS AND CONTRACT TYPES**

**PART 413\--SIMPLIFIED ACQUISITION PROCEDURES**

**TABLE OF CONTENTS**

**SUBPART 413.3\--SIMPLIFIED ACQUISITION METHODS**

Sec.

413.301 Governmentwide commercial purchase card.

413.306 SF 44, Purchase Order-Invoice-Voucher.

413.307 Forms.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 413**

**SIMPLIFIED ACQUISITION**

**PROCEDURES**

**SUBPART 413.3\--SIMPLIFIED ACQUISITION METHODS**

**413.301 Governmentwide commercial purchase card.**

USDA policy and procedures on use

of the Governmentwide commercial purchase card are established in

Departmental Regulation Series 5000.

**413.306 SF 44, Purchase Order-Invoice-Voucher.**

The Standard Form 44 (and the

previously prescribed USDA Form AD-

744\) is not authorized for use within

USDA.

**413.307 Forms.**

Form AD-838, Purchase Order, is

prescribed for use by USDA in lieu of

Optional Forms (OFs) 347 and 348, except that use of the OF 347 and OF
348 is authorized when utilizing the USDA Integrated Acquisition System.

**PART 414\--SEALED BIDDING**

**TABLE OF CONTENTS**

**SUBPART 414.2\--SOLICITATION OF BIDS**

Sec.

414.201 Preparation of invitations for bids.

414.201-6 Solicitation provision.

**SUBPART 414.4\--OPENING OF BIDS AND AWARD OF CONTRACT**

414.404 Rejection of bids.

414.404-1 Cancellation of invitations after opening.

414.407 Mistakes in bids.

414.407-3 Other mistakes disclosed before award.

414.407-4 Mistakes after award.

414.409 Information to bidders.

414.409-2 Award of classified contracts.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 414**

**SEALED BIDDING**

**SUBPART 414.2\--SOLICITATION OF BIDS**

**414.201 Preparation of invitations for bids.**

**414.201-6 Solicitation provisions.**

The contracting officer shall insert

the provision 452.214-70, Award by Lot, when multiple items are
segregated into clearly identifiable lots and the

contracting officer wants to reserve the right to award by item within a
lot, if

award in that manner would be advantageous to the Government.

**SUBPART 414.4\--OPENING OF BIDS AND AWARD OF CONTRACT**

**414.404 Rejection of bids.**

**414.404-1 Cancellation of invitations after opening.**

An acquisition official at a level

above the contracting officer is

authorized to make the determinations under FAR 14.404-1(c) and (e)(1).

**414.407 Mistakes in bids.**

**414.407-3 Other mistakes disclosed before award.**

The authority to make the determinations under FAR 14.407-3(a),

(b), and (d) is delegated, without power

of redelegation, to the head of the

contracting activity. The authority to

make the determination under FAR 14.407-3(c) is delegated to the

contracting officer. Each determination pursuant to FAR 14.407-3 shall
have the concurrence of the Office of the General Counsel (OGC).

**414.407-4 Mistakes after award.**

If a mistake in bid is disclosed after award, the contracting officer
shall make

a final determination in accordance with

the provisions of FAR 14.407-4 (b) and (c) and shall coordinate each
proposed determination with OGC. Such coordination shall, at a minimum,

consist of the contracting officer

providing the proposed determination

and the case file to OGC for comment.

**414.409 Information to bidders.**

**414.409-2 Award of classified contracts.**

Disposition of classified information shall be in accordance with

Departmental Regulation and Manual (3400 Series) and in accordance with
direction issued by the Information Security Staff, Personnel and
Document Security Division, Office of Procurement and Property
Management.

**PART 415\--CONTRACTING BY NEGOTIATION**

**TABLE OF CONTENTS**

**SUBPART 415.2\--SOLICITATION AND RECEIPT OF PROPOSALS AND
INFORMATION**

Sec.

415.204 Contract format.

415.207 Handling proposals and information.

415.209 Solicitation provisions and contract clauses.

**SUBPART 415.3\--SOURCE SELECTION**

Sec.

415.303 Responsibilities.

415.305 Proposal evaluation.

**SUBPART 415.4\--CONTRACT PRICING**

Sec.

415.404-4 Profit.

**SUBPART 415.5\--PREAWARD, AWARD, AND POSTAWARD**

**NOTIFICATIONS, PROTESTS AND MISTAKES**

Sec.

415.570 Post-award conference.

**SUBPART 415.6\--UNSOLICITED PROPOSALS**

Sec.

415.604 Agency points of contact.

415.606 Agency procedures.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 415**

**CONTRACTING BY NEGOTIATION**

**SUBPART 415.2\--SOLICITATION AND RECEIPT OF PROPOSALS AND
INFORMATION**

**415.204 Contract format.**

The Senior Procurement Executive is authorized to exempt contracts from
the uniform contract format.

**415.207 Handling proposals and information**.

\(a\) Throughout the source selection process, agency personnel and
non-Government evaluators with access to proposal information shall
disclose

neither the number of offerors nor their identity except as authorized
by FAR subpart 15.5. (See also FAR 5.403)

\(b\) The contracting officer shall obtain

the following written agreement from the non-Government evaluator prior
to the release of any proposal to that evaluator.

AGREEMENT GOVERNING THE

USE AND DISCLOSURE OF

PROPOSALS

RFP#\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Offeror\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

1\. To the best of my knowledge and belief, no conflict of interest
exists that

may diminish my capacity to perform an impartial and objective review of
the offeror\'s proposal, or may otherwise

result in a biased opinion or an unfair advantage. If a potential
conflict of

interest arises or if I identify such a

conflict, I agree to notify the

Government promptly concerning the potential conflict. In determining

whether any potential conflict of interest exists, I agree to review
whether my or

my employer\'s relationships with other persons or entities, including,
but not limited to, ownership of stocks, bonds, other outstanding
financial interests or commitments, employment

arrangements (past, present, or under consideration), and, to the extent
known by me, all financial interests and employment arrangements of my
spouse, minor children, and other members of

my immediate household, may place me in a position of conflict, real or
apparent, with the evaluation proceedings.

2\. I agree to use proposal information only for evaluation purposes. I

understand that any authorized

restriction on disclosure placed upon the proposal by the prospective
contractor or subcontractor or by the Government shall be applied to any
reproduction or abstracted information of the proposal. I agree to use
my best effort to safeguard such information physically, and not to
disclose the contents of, or release any information relating to, the
proposal(s) to anyone outside of the Source Evaluation Board or other
panel assembled for this acquisition, the Contracting Officer, or other
individuals designated by the Contracting Officer.

3\. I agree to return to the Government

all copies of proposals, as well as any abstracts, upon completion of
the evaluation.

(Name and Organization)

(Date)

(End of provision)

\(c\) The release of a proposal to a non- Government evaluator for
evaluation does not constitute the release of information for purposes
of the Freedom of Information Act (5 U.S.C. 552).

\(d\) The contracting officer shall attach

a cover page bearing the following

notice: GOVERNMENT NOTICE FOR HANDLING PROPOSALS - This proposal shall
be used and disclosed for evaluation purposes only. Attach a copy

of this Government notice to every reproduction or abstract of the
proposal. Any authorized restrictive notices which

the submitter places on this proposal

shall be strictly complied with.

Disclosure of this proposal outside the Government for evaluation
purposes

shall be made only to the extent

authorized by, and in accordance with, FAR 3.104- 4, FAR 15.207, and
AGAR 415.207.

**415.209 Solicitation provisions and contract clauses.**

\(a\) The provision at 452.215-71, Instructions for the Preparation of
Technical and Business Proposals, may

be used when offerors will be required to submit technical and business
proposals. Contracting officers should tailor the clause to reflect the
degree of

information required for the specific acquisition.

\(b\) The contracting officer shall insert

the provision at 452.215-72,

Amendments to Proposals, in

solicitations which require the submittal

of lengthy, complex technical proposals.

**SUBPART 415.3\--SOURCE SELECTION**

**415.303 Responsibilities.**

The head of the contracting activity (HCA) is authorized to appoint an
individual other than the contracting

officer as the source selection authority.

**415.305 Proposal evaluation.**

HCAs are responsible for establishing procedures regarding the release
of cost information to the members of the

technical evaluation team.

**SUBPART 415.4\--CONTRACT PRICING**

**415.404-4 Profit.**

\(a\) (1) USDA will use a structured approach to determine the profit or
fee prenegotiation objective in acquisition actions when price
negotiation is based

on cost analysis.

\(2\) The following types of

acquisitions are exempt from the requirements of the structured
approach, but the contracting officer shall comply

with FAR 15.404-4(d) when analyzing profit for these contracts or
actions:

\(i\) Architect-engineer contracts;

\(ii\) Construction contracts;

\(iii\) Contracts primarily requiring delivery of material supplied by
subcontractors;

\(iv\) Termination settlements; and

\(v\) Cost-plus-award-fee contracts;

\(b\) Unless otherwise restricted by contracting activity procedures,
the Contracting Officer may use another Federal agency's structured
approach if that approach has been formalized and is maintained as part
of that Agency's acquisition regulations (i.e., included in

that Agency's assigned chapter of Title

48 of the Code of Federal Regulations).

\(c\) The HCA is responsible for establishing procedures to ensure
compliance with this subpart.

**SUBPART 415.5\--PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS
AND MISTAKES**

**415.570 Post-Award Conference.**

If a postaward conference is necessary, the contracting officer shall
insert clause 452.215-73, Post-Award Conference.

**SUBPART 415.6\--UNSOLICITED PROPOSALS**

**415.604 Agency points of contact.**

HCAs are responsible for establishing procedures to ensure compliance
with

the requirements of FAR 15.604.

**415.606 Agency procedures.**

HCAs are responsible for establishing

the procedures for control of unsolicited proposals required by FAR
15.606(a)

and for identifying the contact points as required by FAR 15.606(b).

**PART 416\--TYPES OF CONTRACTS**

**TABLE OF CONTENTS**

Sec.

416.000 Scope of part.

**SUBPART 416.2\--FIXED-PRICE CONTRACTS**

416.203 Fixed-price contracts with economic price adjustment.

416.203-4 Contract clauses.

**SUBPART 416.4---INCENTIVE CONTRACTS**

416.405 Cost-reimbursement incentive contracts.

416.405-2 Cost-plus-award-fee contracts.

416.406 Contract clauses.

416.470 Solicitation provision.

**SUBPART 416.5\--INDEFINITE DELIVERY CONTRACTS**

416.505 Ordering.

416.506 Solicitation provision and contract clauses.

## **SUBPART 416.6\--TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER**

**CONTRACTS**

416.603 Letter contracts.

416.603-2 Application.

416.603-4 Contract clauses.

416.670 Contract clauses.

**SUBPART 416.7---AGREEMENTS**

416.702 Basic agreements.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 416**

### **TYPES OF CONTRACTS**

**416.000 Scope of part.**

Heads of contracting activities

(HCA\'s) are authorized to establish

written procedures allowing the use of

any contract type described in FAR part

16 for acquisitions made under

simplified acquisition procedures in

FAR part 13.

**SUBPART 416.2\--FIXED-PRICE CONTRACTS**

**416.203 Fixed-price contracts with economic price adjustment.**

**416.203-4 Contract clauses.**

An economic price adjustment clause based on cost indexes of labor or
material may be used under the conditions listed in FAR 16.203-4(d)
after approval by the HCA and consultation with the Office of

the General Counsel.

**SUBPART 416.4\--INCENTIVE CONTRACTS**

**416.405 Cost-reimbursement incentivecontracts.**

**416.405-2 Cost-plus-award-fee contracts.**

The HCA may designate an

acquisition official other than the

contracting officer as the fee

determination official (FDO) to make the

final determination of the award fee.

The designated official must have warranted contracting authority at the

same level as the contracting officer or higher, and shall not have
participated in preparing the contractor performance evaluation. If the
HCA does not

designate an FDO, the chief of the contracting office shall act as the
FDO.

**416.406 Contract clauses.**

The contracting officer shall insert a clause substantially the same as
the

clause at 452.216-70, Award Fee, in solicitations and contracts which
contemplate the award of cost-plus-

award-fee contracts.

**416.470 Solicitation provision.**

The contracting officer shall insert

the provision at 452.216-71, Base Fee

and Award Fee Proposal, in solicitations which contemplate the award of
a cost-plus-award-fee contract.

**SUBPART 416.5\--INDEFINITE DELIVERY CONTRACTS**

**416.505 Ordering.**

\(a\) The Chief, Procurement Policy Division, Office of Procurement and
Property Management, has been designated as the Departmental Task Order
Ombudsman.

\(b\) Each HCA shall designate a task order ombudsman for the
contracting activity. The HCA shall forward a copy of the designation
memorandum to the Departmental Task Order Ombudsman. Contracting
activity

ombudsmen shall review and resolve complaints from contractors
concerning

task or delivery orders placed by the contracting activity.

\(c\) Any contractor who is not

satisfied with the resolution of a

complaint by a contracting activity ombudsman may request the

Departmental Task Order Ombudsman

to review the complaint.

**416.506 Solicitation provision and contract clauses.**

\(a\) The contracting officer shall

insert a provision substantially the same

as the provision at 452.216-72,

Evaluation Quantities-Indefinite-

Delivery Contract, in solicitations which contemplate the award of
indefinite-

quantity or requirements contracts to establish the basis on which
offers will

be evaluated.

\(b\) The contracting officer shall

insert the clause at 452.216-73,

Minimum and Maximum Contract

Amounts, in indefinite-delivery,

indefinite-quantity contracts when the

clause at FAR 52.216-18 is used.

**SUBPART 416.6\--TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS**

**416.603 Letter contracts.**

**416.603-2 Application.**

The HCA is authorized to extend the period for defining a letter
contract

required by FAR 16.603-2(c) in extreme cases where it is determined in
writing

that such action is in the best interest of

the Government.

**416.603-4 Contract clauses.**

The contracting officer shall insert

the clause at 452.216-75, Letter

Contract, in a definitive contract superseding a letter contract.

**416.670 Contract Clauses.**

The contracting officer shall limit

the Government\'s obligation under a

time-and-materials or labor-hour

contract by inserting the clause at

452.216-74, Ceiling Price.

**SUBPART 416.7\--AGREEMENTS**

**416.702 Basic Agreements.**

Promptly after execution by the Government, the HCA shall furnish to

the Senior Procurement Executive a

copy of each basic agreement negotiated with contractors in accordance
with FAR 16.702.

**PART 417\--SPECIAL CONTRACTING METHODS**

**TABLE OF CONTENTS**

**SUBPART 417.2\--OPTIONS**

Sec.

417.204 Contracts.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 417**

**SPECIAL CONTRACTING METHODS**

**SUBPART 417.2\--OPTIONS**

**417.204 Contracts.**

The head of the contracting activity

is authorized to approve contracts which exceed the 5 year limitation in
FAR 17.204(e).

SUBCHAPTER D\--SOCIOECONOMIC PROGRAMS

**PART 419\--SMALL BUSINESS PROGRAMS**

**TABLE OF CONTENTS**

**SUBPART 419.2\--POLICIES**

Sec.

419.201 General policy.

419.201-70 Office of Small and Disadvantaged Business Utilization
(OSDBU).

419.201-71 Small business coordinators.

419.201-73 Reports.

**SUBPART 419.5\--SET-ASIDES FOR SMALL BUSINESS**

419.508 Solicitation provisions and contract clauses.

**SUBPART 419.6\--CERTIFICATES OF COMPETENCY AND DETERMINATIONS OF
RESPONSIBILITY**

419.602 Procedures.

419.602-1 Referral.

419.602-3 Resolving differences between the agency and the Small
Business Administration.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 419**

**SMALL BUSINESS PROGRAMS**

#### **SUBPART 419.2---POLICIES**

**419.201 General Policy.**

It is the policy of USDA to provide

maximum practicable contracting and subcontracting opportunities to
small business (SB), small disadvantaged business (SDB), HUBZone small
business, women-owned business (WOB), veteran-owned small business
(VOSB), and service-disabled veteran-owned small business (SDVOSB)
concerns.

**419.201-70 Office of Small and Disadvantaged Business Utilization
(OSDBU).**

The Office of Small and Disadvantaged Business Utilization (OSDBU)
develops rules, policy, procedures and guidelines for the

effective administration of USDA's

small business program that includes all categories named under Part
419.201.

**419.201-71 Small Business Coordinators.**

The head of the contracting activity (HCA) or a representative of the
HCA shall designate in writing a small business

coordinator in each contracting office. Supervisors of small business

coordinators are encouraged to provide sufficient time for the
coordinators to

carry out their small business program duties. Coordinators' duties
shall

include, but not be limited to, the

following:

\(a\) Reviewing each proposed

acquisition expected to exceed the

simplified acquisition threshold prior to

its solicitation. The coordinator shall:

\(1\) Recommend section 8(a), HUBZone, or SDVOSB action and identify
potential contractors, or

\(2\) Identify available SDB, WOB, and VOSB to be solicited by
competitive procedures. Coordinators shall document the contract file
with recommendations made and actions taken.

\(b\) Participating in goal-setting procedures and planning activities
and establishing aggressive SDB, WOB, and SDVOSB goals based on the
annual review of advance acquisition plans.

\(c\) Participating in the review of those contracts which require the
successful offeror to submit written plans for the utilization of small
businesses as subcontractors to include all preference program areas in
419.201.

\(d\) Ensuring that purchases exceeding \$2,500 and not exceeding the
simplified acquisition threshold are reserved exclusively for small
businesses,

including all preference program areas named in 419.201. This policy
shall be

implemented unless the contracting

officer is unable to obtain offers from

two or more small business concerns that are competitive with market
prices and

in terms of quality and delivery of the

goods or services being purchased.

\(e\) Maintaining comprehensive source listings of small businesses.

\(f\) Upon written request, providing small businesses (in the
preference program areas named in 419.201) the bidders' mailing lists of
individuals receiving solicitations which will contain the
subcontracting clause entitled \"Utilization of Small Business Concerns"
(FAR 52.219-8). These lists may be limited to those supplies or services
of major interest to the requesting firms.

\(g\) Developing a program of contacts with local, small (to include all
preference program areas named in 419.201) trade, business, and
professional associations and organizations and Indian tribal councils
to apprise them of USDA\'s program needs and recurring contract
requirements.

\(h\) Periodically meeting with program managers to discuss requirements
of the small business preference program, to explore the feasibility of
breaking large complex requirements into smaller lots suitable for
participation by small firms, and to encourage program managers to meet
with these firms so that their capabilities can be demonstrated.

\(i\) Establishing internal operating procedures which implement the
requirements of the regulations as set

forth in this Part 419.

\(j\) Compiling data and preparing all reports pertaining to the small

business program activities, and ensuring that these reports are
accurate, complete and up-to-

date.

\(k\) Assisting and counseling small business firms.

\(l\) Reviewing proposed large contract requirements that may be bundled
to determine the potential for breaking out components suitable for
purchase from small business firms.

\(m\) Ensuring that the SBA Resident Procurement Center Representative
(PCR) is provided an opportunity and reasonable time to review any
solicitation that meets the dollar threshold for small business
(including all preference program areas named in 419.201) subcontracting
plans.

**419.201-73 Reports.**

The Director, OSDBU, shall be responsible for submitting reports

concerning USDA\'s progress and achievements in the procurement

preference program.

**SUBPART 419.5\--SET-ASIDES FOR SMALL BUSINESS**

**419.508 Solicitation provisions and contract clauses.**

The contracting officer shall insert

the provision at 452.219-70, Size

Standard and NAICS Code Information, in solicitations that are set aside
for small businesses.

**SUBPART 419.6\--CERTIFICATES**

**OF COMPETENCY AND DETERMINATIONS OF\
RESPONSIBILITY**

**419.602 Procedures.**

**419.602-1 Referral.**

Contracting officers shall refer determinations of non-responsibility
regarding small businesses directly to the SBA Regional Office servicing
the

location where the contractor\'s office (home) is located.

**419.602-3 Resolving differences between the agency and the Small
Business Administration.**

The HCA is authorized to appeal the issuance of a COC to SBA
Headquarters

as provided by FAR 19.602-3(a).

**PART 422\--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS**

**TABLE OF CONTENTS**

**SUBPART 422.1\--BASIC LABOR POLICIES**

Sec.

422.103 Overtime.

422.103-4 Approvals.

**SUBPART 422.3\--CONTRACT WORK HOURS AND SAFETY STANDARDS ACT**

422.302 Liquidated damages and overtime pay.

**SUBPART 422.4\--LABOR STANDARDS FOR CONTRACTS INVOLVING CONSTRUCTION**

422.404 Davis-Bacon wage determinations.

422.404-6 Modifications of wage determinations.

422.406 Administration and enforcement.

422.406-8 Investigations.

**SUBPART 422.6\--WALSH-HEALEY PUBLIC CONTRACTS ACT**

422.604 Exemptions.

422.604-2 Regulatory exemptions.

422.608 \[Reserved\]

**SUBPART 422.8\--EQUAL EMPLOYMENT OPPORTUNITY**

422.803 Responsibilities.

422.804 Affirmative action programs.

422.804-2 Construction.

422.807 Exemptions.

**SUBPART 422.13\--SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM
ERA, AND OTHER ELIGIBLE VETERANS**

422.1305 Waivers.

422.1308 Complaint procedures.

**SUBPART 422.14\--EMPLOYMENT OF WORKERS WITH DISABILITIES**

422.1403 Waivers.

422.1406 Complaint procedures.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 422**

**APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS**

**SUBPART 422.1\--BASIC LABOR POLICIES**

**422.103 Overtime.**

**422.103-4 Approvals.**

Requests for the use of overtime

shall be approved by an acquisition

official at a level above the contracting officer in accordance with the

procedures in FAR 22.103-4(a) and (b).

**SUBPART 422.3\--CONTRACT WORK HOURS AND SAFETY STANDARDS ACT**

**422.302 Liquidated damages and overtime pay.**

Heads of contracting activities (HCA\'s) are authorized to review
determinations of liquidated damages

due under section 104(c) of the Contract Work Hours and Safety Standards
Act, and to take remedial action, if

appropriate, in accordance with FAR 22.302(c). Contractors or
subcontractors may request review of administrative determinations of
liquidated damages by written notice to the contracting officer. The
contracting officer shall promptly forward appeals of liquidated damages
determinations to the HCA.

**SUBPART 422.4\--LABOR STANDARDS FOR CONTRACTS INVOLVING CONSTRUCTION**

**422.404 Davis-Bacon Act wage determinations.**

**422.404-6 Modifications of wage determinations.**

HCA\'s are authorized to request extension of the 90 day period for
award after bid opening as provided in FAR 22.404-6(b)(6).

**422.406 Administration and enforcement.**

**422.406-8 Investigations.**

Reports of violations shall be forwarded to the HCA, who shall

process such reports in accordance with FAR 22.406-8(d).

**SUBPART 422.6\--WALSH-HEALEY PUBLIC CONTRACTS ACT**

**422.604 Exemptions.**

**422.604-2 Regulatory exemptions.**

The Assistant Secretary for Administration can request the Secretary

of Labor to exempt contracts from the Walsh-Healey Public Contracts Act
pursuant to FAR 22.604-2(b). A written finding justifying the request
for

exemption shall be prepared for the Assistant Secretary\'s signature and
submitted by the HCA to the Senior

Procurement Executive (SPE) for

referral to the Assistant Secretary.

**422.608 Reserved**

**SUBPART 422.8\--EQUAL EMPLOYMENT OPPORTUNITY**

**422.803 Responsibilities.**

The contracting office shall submit questions involving the
applicability of Executive Order 11246 and FAR subpart 22.8 through the
HCA to the SPE for resolution.

**422.804 Affirmative action programs.**

**422.804-2 Construction.**

The HCA shall ensure that each contracting office, awarding nonexempt
construction contracts, maintains a current listing of covered
geographical areas subject to affirmative action requirements specifying
goals for minorities and women in covered construction trades.

**422.807 Exemptions.**

\(a\) The Deputy Assistant Secretary for Administration is authorized to
make the determination in FAR 22.807(a)(1) that a contract is essential
to the national

security.

\(b\) The contracting officer shall

submit requests for exemptions under

FAR 22.807(a)(1), (a)(2), and (b)(5)

through the HCA to the SPE for determination by the Assistant Secretary

for Administration or referral to the Deputy Assistant Secretary for
Federal Contract Compliance Programs, Department of Labor, as
appropriate.

**SUBPART 422.13\--SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM
ERA, AND OTHER ELIGIBLE VETERANS**

**422.1305 Waivers.**

\(a\) The Assistant Secretary for Administration is authorized to make
the waiver determination in FAR 22.1305(b) that a contract is essential
to the national

security.

\(b\) The contracting officer shall

submit requests for exemptions under

FAR 22.1305(a) and (b) through the HCA to the SPE for determination by
the Assistant Secretary for Administration or referral to the Deputy
Assistant Secretary for Federal Contract Compliance Programs, Department
of Labor, as appropriate.

**422.1308 Complaint procedures.**

The contracting officer shall

forward complaints received about the administration of the Vietnam Era

Veterans Readjustment Assistance Act directly to the Department of Labor

as prescribed in FAR 22.1308.

**SUBPART 422.14\--EMPLOYMENT OF WORKERS WITH DISABILITIES**

**422.1403 Waivers.**

\(a\) The Assistant Secretary for Administration is authorized to make
the waiver determinations under FAR 22.1403(a) and FAR 22.1403(b) with
the concurrence of the Deputy Assistant Secretary for Federal Contract
Compliance Programs, Department of Labor.

\(b\) The contracting officer shall

submit requests for waivers through the HCA to the SPE for determination
by

the Assistant Secretary for

Administration.

**422.1406 Complaint procedures.**

The contracting officer shall

forward complaints received about the administration of Section 503 of
the Rehabilitation Act of 1973, as amended,

directly to the OFCCP as prescribed in FAR 22.1406.

**PART 423\--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE**

**TABLE OF CONTENTS**

**SUBPART 423.1\-- \[Reserved\]**

**SUBPART 423.2\--ENERGY AND WATER EFFICIENCY AND RENEWABLE ENERGY**

Sec.

423.202 Policy.

**SUBPART 423.4\--USE OF RECOVERED MATERIALS**

423.400 Scope of subpart.

423.402 \[Reserved\]

423.403 Policy.

423.404 Agency affirmative procurement programs.

423.405 Procedures.

**SUBPART 423.5\--DRUG-FREE WORKPLACE**

423.506 Suspension of payments, termination of contract, and debarment
and suspension actions.

**SUBPART 423.6\--NOTICE OF RADIOACTIVE MATERIAL**

423.601 Requirements.

**SUBPART 423.7\--CONTRACTING FOR ENVIRONMENTALLY PREFERABLE PRODUCTS
AND SERVICES**

423.703 Policy.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 423**

**ENVIRONMENT,**

**ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES,
OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE**

**SUBPART 423.1\-- \[Reserved\]**

**SUBPART 423.2\--ENERGY AND WATER EFFICIENCY AND RENEWABLE ENERGY**

**423.202 Policy.**

Information on Energy Star, energy efficient, water efficient, and low
standby products covered by this policy is available via the Internet at
http://www.eere.energy.gov/femp/technologies/eeproducts.cfm.

**SUBPART 423.4\--USE OF RECOVERED MATERIALS**

**423.400 Scope of subpart.**

This subpart implements and supplements FAR policies and

procedures for acquiring products and services when preference is given
to

offers of products containing recovered materials. This subpart further

supplements FAR subpart 23.4 by providing guidance for affirmative
procurement programs in accordance with Executive Order 13101 and 42
U.S.C. 6962.

**423.402 \[Reserved\]**

**423.403 Policy.**

It is the policy of USDA to acquire and use Environmental Protection
Agency (EPA) designated recycled content products.

**423.404 Agency affirmative procurement programs**

The USDA affirmative procurement program (APP) policy applicable to all
USDA agencies and staff offices is hereby established. The components of
this APP include:

\(a\) Recovered materials preference program. In accord with the
requirements of Section 402(c) of Executive Order 13101, Greening the
Government Through Recycling, Waste Prevention, and Federal Acquisition,
USDA agencies will include, in all applicable solicitations and
contracts, a preference for products and services which meet or exceed
the EPA purchasing guidelines as contained in the EPA product Recovered
Materials Advisory Notices (RMANs). Agencies may choose an evaluation
factor preference, or other method of indicating preference in accord
with their agency needs. Agencies will, as appropriate, eliminate virgin
material requirements in contract specifications and replace them with a
statement of preference for recycled materials.

\(b\) Promotion program. USDA agencies will actively promote a
preference for recovered materials, environmentally preferable products,
and biobased products in contacts with vendors, in written materials,
and other appropriate opportunities.

\(c\) Reasonable estimation of recovered materials used in the
performance of contracts. USDA agencies annually will provide in writing
to the USDA Senior Procurement Executive, in response to a call for data
for the Resource Conservation and Recovery report, reasonable estimates,
certification, and verification of recovered material used in the
performance of contracts.

\(d\) Annual review and monitoring of effectiveness of the program. USDA
agencies will provide an annual assessment of the effectiveness of their
affirmative procurement program actions in increasing the purchase and
use of EPA designated products.

\(e\) Purchase of EPA designated products. USDA agencies will require
that 100% of purchases of EPA-designated products contain recovered
material, unless the item cannot be acquired-

\(1\) Competitively within a reasonable time frame;

\(2\) Meeting appropriate performance standards; or

\(3\) At a reasonable price.

\(f\) The 100% purchase requirement of paragraph (e) of this section
applies to all USDA agency purchases, including those at or below the
micro-purchase threshold.

**423.405 Procedures**

\(a\) The threshold of purchase for EPA designated items is \$10,000 per
year at the USDA departmental, not individual agency, level. Therefore,
the APP requirements above, including the 100% purchase requirement,
apply at the individual agency and staff office level.

\(b\) Contracting officers should refer to EPA's list of designated
products and products identified as recycled content when purchasing
supplies or services.

Information on EPA designated products is available at:
www.epa.gov/cpg/products.htm.

( c) All agencies and USDA

Contracting Officers must take necessary actions to carry out the
provisions of the USDA APP policy described in this subpart.

**SUBPART 423.5\--DRUG-FREE WORKPLACE**

**423.506 Suspension of payments, termination of contract, and**

**debarment and suspension actions**.

\(a\) The contracting officer may recommend waiver of the determination

to suspend payments, to terminate a contract, or to debar or to suspend
a contractor.

\(b\) The recommendation shall be submitted through the HCA to the SPE

and shall include a full description of the disruption of USDA
operations should

the determination not be waived.

\(c\) The SPE will submit the request

for a waiver to the Secretary with a recommendation for action.

**SUBPART 423.6\--NOTICE OF RADIOACTIVE MATERIAL**

**423.601 Requirements.**

The HCA shall establish a system of instructions to identify the
installation/

facility radiation protection officer.

**SUBPART 423.7\--CONTRACTING FOR ENVIRONMENTALLY PREFERABLE PRODUCTS
AND SERVICES**

**423.703 Policy.**

\(a\) USDA's Affirmative Procurement Program promotes energy-efficiency,
water conservation, and the acquisition of environmentally preferable
products and services. In its acquisitions, USDA will support federal
"green purchasing" principles in the acquisition of products and
services that are environmentally preferable or that are biobased
content products and services.

\(b\) USDA agencies will actively promote this preference for
environmentally preferable products and biobased products in contacts
with vendors, in written materials, and other appropriate opportunities.

**PART 424\--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION**

**TABLE OF CONTENTS**

**SUBPART 424.1\--PROTECTION OF INDIVIDUAL PRIVACY**

Sec.

424.103 Procedures.

424.104 Contract clauses.

**SUBPART 424.2\--FREEDOM OF INFORMATION ACT**

424.203 Policy.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 424**

**PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION**

**SUBPART 424.1\--PROTECTION OF INDIVIDUAL PRIVACY**

**424.103 Procedures.**

USDA regulations implementing the Privacy Act are found in 7 CFR,
Subtitle

A, Part 1, Subpart G. Contracting

officers shall follow these regulations

when responding to requests for

information or awarding contracts that

will involve the design, development, or operation of a system of
records on individuals to accomplish agency

functions.

**424.104 Contract clauses.**

When applicable, the contracting

officer shall insert the clause at

452.224-70, Confidentiality of

Information, in contracts involving confidential information.

**SUBPART 424.2\--FREEDOM OF INFORMATION ACT**

**424.203 Policy.**

USDA regulations implementing the Freedom of Information Act are found
in

7 CFR, Subtitle A, Part 1, Subpart A. Contracting officers shall follow
these regulations when responding to requests

for information.

**PART 425\--FOREIGN ACQUISITION**

**TABLE OF CONTENTS**

**SUBPART 425.1\--BUY AMERICAN ACT\--SUPPLIES**

Sec.

425.102 \[Reserved\]

425.103 Exceptions.

425.104 Nonavailable articles.

425.105 Determining reasonableness of cost.

425.108 \[Reserved\]

**SUBPART 425.2\--BUY AMERICAN ACT\--CONSTRUCTION MATERIALS**

425.202 Exceptions.

425.203 \[Reserved\]

425.204 \[Reserved\]

**SUBPART 425.3\-- \[Reserved\]**

**SUBPART 425.4\-- \[Reserved\]**

######## SUBPART 425.6\--TRADE SANCTIONS

425.602 Exceptions.

**SUBPART 425.9\--\[Reserved\]**

**SUBPART 425.10\--ADDITIONAL FOREIGN ACQUISITION REGULATIONS**

425.1001 Waiver of right to examination of records.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 425**

**FOREIGN ACQUISITION**

**SUBPART 425.1\--BUY AMERICAN ACT\--SUPPLIES**

**425.102 \[Reserved\]**

103. **Exceptions.**

\(a\) The Senior Procurement Executive (SPE) shall make the
determination prescribed in FAR 25.103(a).

\(b\) Copies of determinations of nonavailability in accordance with FAR
25.103(b)(2) or 25.202(a)(2), for articles, material or supplies not
listed in FAR 25.104, may be submitted to the SPE for submission to the
Civilian Agency Acquisition Council (CAAC).

104. **Nonavailable articles.**

Information required by FAR 25.104(b) shall be submitted to the SPE

for submission to the CAAC.

**425.105** **Determining reasonableness of cost**.

The SPE may make the

determination prescribed in FAR 25.105(a). Requests for determination by
the SPE shall be submitted by the HCA, in writing, and shall provide a
detailed justification supporting why evaluation factors higher than
those listed in FAR 25.102(b)(1) and (2) should be applied to determine
whether

the offered price of a domestic end product is unreasonable.

**425.108 \[Reserved\]**

**SUBPART 425.2\--BUY AMERICAN ACT\--CONSTRUCTION**

**MATERIALS**

**425.202 Exceptions.**

\(a\) The SPE shall make the determination prescribed in FAR
25.202(a)(1).

\(b\) If a contracting officer proposes that the use of a particular
domestic construction material should be waived

for a contract on the grounds that its use would be impracticable, the
contracting officer shall submit a proposed determination with
supporting

information through the HCA to the SPE for approval or disapproval.

**425.203 \[Reserved\]**

**425.204 \[Reserved\]**

**SUBPART 425.3\-- \[Reserved\]**

**SUBPART 425.4\-- \[Reserved\]**

**SUBPART 425.6---TRADE SANCTIONS**

602. **Exceptions.**

The Secretary, without power of redelegation, has the authority to make

the necessary determination(s) and

authorize award(s) of contract(s) in accordance with FAR 25.602(b).

**SUBPART 425.9\-- \[Reserved\]**

**SUBPART 425.10\--ADDITIONAL FOREIGN ACQUISITION**

**REGULATIONS**

**425.1001 Waiver of right to examination of records.**

The SPE shall make the

determination under FAR 25.1001(a)(2)(iii).

**SUBCHAPTER E\--GENERAL CONTRACTING REQUIREMENTS**

**PART 427\--PATENTS, DATA AND COPYRIGHTS**

**TABLE OF CONTENTS**

**SUBPART 427.1\--GENERAL**

Sec.

427.104 General Guidance.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 427**

**PATENTS, DATA AND COPYRIGHTS**

**SUBPART 427.1\--GENERAL**

**427.104 General Guidance**

As used in FAR Part 27, the agency head or agency head designee is the

Senior Procurement Executive, except under FAR 27.306(a) and (b). Under
FAR 27.306(a) and (b), the agency head is the Secretary without power of
redelegation.

**PART 428\--BONDS AND INSURANCE**

**TABLE OF CONTENTS**

**SUBPART 428.1\--BONDS AND OTHER FINANCIAL PROTECTIONS**

Sec.

428.101 Bid guarantees.

428.101-1 Policy on use.

428.106 Administration.

428.106-6 Furnishing information.

**SUBPART 428.2\--SURETIES AND OTHER SECURITY FOR BONDS**

428.203 Acceptability of individual sureties.

428.204 Alternatives in lieu of corporate or individual sureties.

428.204-2 Certified or cashier\'s checks, bank drafts, money orders, or
currency.

**SUBPART 428.3\--INSURANCE**

428.307 Insurance under cost-reimbursement contracts.

428.307-1 Group insurance plans.

428.310 Contract clause for work on a Government installation.

428.370 Government-owned vehicles operated in foreign countries.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 428**

**BONDS AND INSURANCE**

**SUBPART 428.1\--BONDS AND OTHER FINANCIAL PROTECTIONS**

**428.101 Bid Guarantees.**

**428.101-1 Policy on use.**

The Senior Procurement Executive may authorize class waivers of the
requirement to obtain bid guarantees.

**428.106 Administration.**

**428.106-6 Furnishing information.**

Heads of contracting activities (HCA\'s) or their designees may furnish
certified copies of bonds and the

contracts for which they were given as provided by FAR 28.106-6(c).
Requesters may be required to pay costs of certification and copying
established

by the Departmental Fee Schedule for records requests (7 CFR Part 1,
subpart A, appendix A).

**SUBPART 428.2\--SURETIES AND OTHER SECURITY FOR BONDS**

**428.203 Acceptability of individual sureties.**

Evidence of possible criminal or fraudulent activities by an individual

surety shall be reported to the Office of Inspector General in
accordance with Departmental Regulations (1700 series).

**428.204 Alternatives in lieu of corporate or individual sureties.**

HCA\'s shall establish procedures to ensure protection and conveyance of
deposited securities of the types listed in FAR 28.204-1 through
28.204-3.

**428.204-2 Certified or cashier\'s checks, bank drafts, money orders,
or currency.**

The contracting officer shall insert

the provision at 452.228-70, Alternative Forms of Security, in a
solicitation if a bond is required.

**SUBPART 428.3\--INSURANCE**

**428.307 Insurance under cost-reimbursement contracts.**

**428.307-1 Group insurance plans.**

Under cost-reimbursement

contracts, before buying insurance under

a group insurance plan, the contractor

shall submit the plan to the contracting officer for review. During
review, the contracting officer shall use all sources

of information available, such as audits, industry practice, or other
sources of information, to determine whether acceptance of the plan
submitted would

be in the Government\'s best interest.

**428.310 Contract clause for work on a Government installation.**

The contracting officer shall insert

the clause at 452.228-71, Insurance

Coverage, in solicitations and contracts

which include the clause at FAR

52.228-5, Insurance - Work on a Government Installation. If property
liability insurance is required, the

contracting officer shall use the clause

with its Alternate I.

**428.370 Government-owned vehicles operated in foreign countries.**

USDA is authorized to obtain insurance to cover liability incurred by

any of its employees while acting within

the scope of their employment and operating a Government-owned vehicle

in a foreign country. (7 U.S.C. 2262).

**PART 430\-\--COST ACCOUNTING STANDARDS ADMINISTRATION**

**TABLE OF CONTENTS**

Sec.

430.070 Definitions.

**SUBPART 430.2\-\--CAS PROGRAM REQUIREMENTS**

430.201 Contract requirements.

430.201-5 Waiver.

430.202 Disclosure requirements.

430.202-2 Impracticality of submission.

430.202-8 Subcontractor Disclosure Statements.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 430**

**COST ACCOUNTING STANDARDS ADMINISTRATION**

**430.070 Definitions.**

\"ACO,\" as used in this part and in

FAR Part 30, means \"administrative contracting officer\" as described
in FAR Part 42.

**SUBPART 430.2\-\--CAS PROGRAM REQUIREMENTS**

**430.201 Contract requirements.**

**430.201-5 Waiver.**

The Senior Procurement Executive (SPE), without the authority to further
redelegate, is authorized to request the

Cost Accounting Standards Board to

waive the application of the Cost

Accounting Standards (CAS).

Contracting officers shall prepare waiver requests in accordance with 48
CFR Chapter 99 (Appendix B, FAR loose-leaf edition), Subsection
9903.201-5, and submit them to the SPE through the head

of the contracting activity (HCA).

**430.202 Disclosure requirements.**

**430.202-2 Impracticality of**

**submission.**

\(a\) The Secretary, without the power

to delegate, is authorized to determine,

in accordance with FAR Part 99

(Appendix B), Subsection 9903.202-2,

that the Disclosure Statement is

impractical to secure and to authorize

award without obtaining the Disclosure Statement.

\(b\) The request for this

determination is to be prepared in accordance with FAR Part 99 (Appendix
B), Subsection 9903.202-2 and is to

contain the proposed report to the

CASB.

\(c\) Requests for a determination

under paragraph (a) of this section shall

be prepared by the contracting officer

and submitted through the HCA to the

SPE for concurrence and submittal to the Secretary.

**430.202-8 Subcontractor Disclosure Statements.**

\(a\) The Secretary, without the power

to redelegate, is authorized to determine

that the Disclosure Statement for a subcontractor is impractical to
secure

and to authorize award without obtaining

the Disclosure Statement.

\(b\) Requests for this determination

are to be prepared and forwarded as described in 430.202-2.

**PART 431\--CONTRACT COST PRINCIPLES AND PROCEDURES**

**TABLE OF CONTENTS**

**SUBPART 431.1\-\--APPLICABILITY**

Sec.

431.101 Objectives.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 431**

**CONTRACT COST PRINCIPLES AND PROCEDURES**

**SUBPART 431.1\-\--APPLICABILITY**

**431.101 Objectives.**

\(a\) The SPE is designated as the official authorized to give advance
approval of an individual deviation concerning cost principles.

\(b\) The SPE is designated as the official authorized to give advance
approval of an class deviation

concerning cost principles after coordination with the Civilian Agency
Acquisition Council.

\(c\) Requests for advance approval

of class deviations concerning cost principles must be submitted to the
SPE through the HCA

**PART 432\--CONTRACT FINANCING**

**TABLE OF CONTENTS**

Sec.

432.001 Definitions.

432.003 Simplified acquisition procedures financing.

432.006 Reduction or suspension of contract payments upon finding of
fraud.

432.006-2 Definitions.

432.006-3 Responsibilities.

432.006-4 Procedures.

432.006-5 Reporting.

432.007 Contract financing payments.

**SUBPART 432.1\--NON-COMMERCIAL ITEM PURCHASE FINANCING**

432.102 Description of contract financing methods.

432.103 Progress payments under construction contracts.

432.111 Contract clauses for non-commercial purchases.

432.113 Customary contract financing.

432.114 Unusual contract financing.

**SUBPART 432.2\--COMMERCIAL ITEM PURCHASE FINANCING**

432.202 General.

432.202-1 Policy.

432.202-4 Security for Government financing.

432.206 Solicitation provisions and contract clauses.

432.207 Administration and payment of commercial financing payments.

**SUBPART 432.3\--LOAN GUARANTEES FOR DEFENSE PRODUCTION**

432.301 Definitions.

**SUBPART 432.4\--ADVANCE PAYMENTS FOR NON-COMMERCIAL ITEMS**

432.402 General.

432.406 Letters of credit.

432.407 Interest.

432.412 Contract clause.

**SUBPART 432.6\--CONTRACT DEBTS**

432.601 Definition.

432.616 Compromise actions.

**SUBPART 432.7\--CONTRACT FUNDING**

432.703 Contract funding requirements.

432.703-3 Contracts crossing fiscal years.

432.770 USDA specific funding limitations.

**SUBPART 432.8\--ASSIGNMENT OF CLAIMS**

432.802 Conditions.

432.803 Policies.

432.805 Procedure.

432.806 Contract clauses.

**SUBPART 432.9\--PROMPT PAYMENT**

432.904 Determining payment due dates.

**SUBPART 432.10\--PERFORMANCE-BASED PAYMENTS**

432.1007 Administration and payment of performance-based payments.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 432**

**CONTRACT FINANCING**

**432.001 Definitions.**

The \"agency contract finance office\"

is the office, other than the office of the requisitioner, providing
funding or performing funding record keeping for

the contract action.

\"Responsible fiscal authority\" is that officer in the agency contract
finance

office with the responsibility to ensure

that adequate funds are available and usable for the intended purpose.

**432.003 Simplified acquisition procedures financing.**

\(a\) The chief of the contracting

office may approve contract financing on

a contract to be entered under the simplified acquisition procedures.
Class approvals may not be made.

\(b\) The signed approval must

contain the supporting rationale for the action and an estimate of the
cost and/or risk to the government.

**432.006 Reduction or suspension of contract payments upon finding of
fraud.**

**432.006-2 Definitions.**

\(a\) The USDA \"remedy

coordination official\" (RCO) is the Assistant Secretary for
Administration.

\(b\) For the purposes of this part, \"head of the agency\" means,
exclusively, the Secretary or the Deputy Secretary.

**432.006-3 Responsibilities.**

When a contracting officer suspects that a request for advance, partial,
or progress payment is based on fraud, the request shall be referred
directly to the Office of Inspector General (OIG) in accordance with
their instructions. A

copy of the referral shall be submitted through the Head of the
Contracting

Activity (HCA) to the Senior

Procurement Executive (SPE).

**432.006-4 Procedures.**

\(a\) Immediately upon submittal of

the referral described in 432.006-3, the HCA and the contracting officer
shall confer with the SPE and representatives

of the OIG to discuss the potential for reduction or suspension of
further payments based on the considerations listed in FAR
32.006-4(d)(1) through

(5).

\(b\) The SPE will determine whether the contractor has contracts with
other Departments or contracting activities and will involve them, as
necessary, in the decision making process.

\(c\) The OIG will determine the need for and the extent of an
investigation.

\(d\) Immediately upon completion of the OIG investigation (or, if
deemed

necessary by the OIG and the SPE,

before completion of the investigation)

the SPE, in coordination with the HCA,

the contracting officer, and the OIG,

shall make a report on the action to the RCO.

\(e\) Upon receipt of the report, the RCO will submit a recommendation
to

the Secretary.

\(f\) Upon receipt of the RCO\'s report the Secretary will:

\(1\) notify the contractor in writing, allowing 30 calendar days after
receipt of the notice, that the contractor may submit in writing
information and arguments in opposition to the recommendation; and

\(2\) consider the RCO\'s recommendation, the SPE\'s report, the
response of the contractor, and any other relevant information in order
to make an appropriate final determination.

\(g\) This determination will be provided to the contractor and to the

SPE for distribution to the agencies involved and for appropriate action

under the determination.

\(h\) The determination and the supporting documentation will be placed

in the contract file(s) and a copy will be maintained by the SPE.

\(i\) The contracting officer will

advise the SPE of the actual date of the reduction or suspension action.

\(j\) Not later than 150 calendar days after the actual date of the
reduction or suspension action, the SPE will prepare

for the RCO a review of the agency

head\'s determination, and will propose a recommendation from the RCO to
the agency head as to whether the reduction

or suspension action should continue.

The RCO will submit the recommenda-

tion (including a recommendation for the time period of a follow up
review) to the agency head. This recommendation will

be considered by the Secretary and handled as a final action described
in paragraph (f) of this section.

\(k\) The contract may not be closed nor final payment made prior to a
final determination by the Secretary.

**432.006-5 Reporting.**

The annual report required by FAR 32.006-5 is to be prepared by the SPE
and to be submitted to the Secretary

within 90 calendar days after the end of

the fiscal year. When signed by the Secretary, the report is to be
maintained

by the SPE.

**432.007 Contract financing payments.**

The HCA may prescribe, on a case-by-case basis, a shorter period for
financing payments.

**SUBPART 432.1\--NON-COMMERCIAL ITEM PURCHASE FINANCING**

**432.102 Description of contract financing methods.**

Progress payments based on a percentage or stage of completion are

authorized for use as a payment method under USDA contracts or
subcontracts

**\[The next page is 432-3\]**

for construction, alteration or repair, and shipbuilding and conversion.
Such

payments also are authorized for service contracts, if the contracting
officer determines that progress payments based

on costs are not practicable and adequate safeguards are provided to
administer progress payments based on a percentage or stage of
completion. For all other contracts, progress payment provisions

shall be based on costs except that the

HCA may authorize progress payments based on a percentage or stage of
completion on a case-by-case basis.

Each authorization by the HCA shall

include a determination and finding that progress payments based on
costs cannot be employed practically and that there

are adequate safeguards provided for the administration of progress
payments

based on a percentage or stage of completion.

**432.103 Progress payments under construction contracts.**

\(a\) When approving a progress payment under a construction contract,

the contracting officer shall indicate the amount to be paid by the
payment office

and include in the contract file the

rationale in support of the payment.

\(b\) When a retainage is made on a progress payment under a
construction contract, the contracting officer shall

place in the contract file a written determination stating the reason(s)
for

the retainage.

\(c\) When a progress payment under

a construction contract has been

approved, the amount to be paid, the amount of any retainage withheld,
and

the reason(s) for the retainage shall be provided to the contractor by
the

contracting officer in writing before the payment due date.

\(d\) When the contractor, under a

fixed-price construction contract,

furnishes evidence to the contracting

officer that the surety has been paid in

full for bond premiums and requests reimbursement, the first subsequent

progress payment shall include the total amount attributable to such
bond

premiums and the Government shall pay

that amount in full. This amount paid

for the bond premiums is not an amount

in addition to the stated contract price.

**432.111 Contract clauses for non-commercial purchases.**

The contracting officer shall insert

the clause at 452.232-70,Reimbursement

for Bond Premiums - Fixed Price Construction Contracts, whenever the
clause at FAR 52.232-5, Payments under Fixed-Price Construction
Contracts, is

used in a contract.

**432.113 Customary contract**

**financing.**

The contracting officer may

determine the necessity for customary contract financing. The
determination

and finding that customary contract

financing is needed shall be placed in the contract file.

**432.114 Unusual contract financing.**

The HCA is authorized to approve unusual contract financing. The signed
determination and finding supporting

this approval shall be included in the contract file.

**SUBPART 432.2\--COMMERCIAL ITEM PURCHASE FINANCING**

**432.202 General.**

**432.202-1 Policy.**

In the case of unusual contract financing, the approval by the HCA shall

be recorded in a determination and

finding and maintained in the contract

file.

**432.202-4 Security for Government financing.**

Prior to determining that an offeror\'s financial condition is adequate
security,

the contracting officer must obtain the concurrence of the funding
activity in

the proposed determination.

**432.206 Solicitation provisions and contract clauses.**

The responsibility for administration

of the liquidation provisions of a

contract may not be transferred from the contracting officer.

**432.207 Administration and payment**

**of commercial financing payments.**

The responsibility for receiving, reviewing, and approval of contract
financing requests may not be

transferred from the contracting officer.

**SUBPART 432.3\--LOAN GUARANTEES FOR DEFENSE PRODUCTION**

**432.301 Definitions.**

Within this subpart, the \"agency\" or \"guaranteeing agency\" is the
\"head of

the contracting activity\" (HCA) and may

not be redelegated.

**SUBPART 432.4\--ADVANCE PAYMENTS FOR NON-COMMERCIAL ITEMS**

**432.402 General.**

The HCA is designated as the

individual responsible for making the

findings and determination, and for

approval of the contract terms

concerning advance payments.

**432.406 Letters of credit.**

The HCA is designated as the

individual responsible for coordination

with the Department of Treasury

concerning letters of credit.

**432.407 Interest.**

\(a\) The HCA is designated as the individual who may authorize, on a
case

by case basis, advance payments without interest for the contract types
described

in FAR 32.407(d)(1), (2), (3), and (4).

The signed determination and findings supporting these authorizations
shall be included in the contract files.

\(b\) The SPE is designated as the individual who may authorize advance
payments without interest other than

those described in paragraph (a) of this section.

**432.412 Contract clause.**

The decision to use Alternates I or

III to clause 52.232-12 must be

supported by a determination and

finding.

**SUBPART 432.6\--CONTRACT**

**DEBTS**

**432.601 Definition.**

\"Responsible official\" means the contracting officer.

**432.616 Compromise actions.**

Compromise of a debt within the proceedings under appeal to the Board of
Contract Appeals is the responsibility of

the contracting officer.

**SUBPART 432.7\--CONTRACT FUNDING**

**432.703 Contract funding**

**requirements.**

**432.703-3 Contracts crossing fiscal years.**

Funds appropriated to USDA may

be used for one year contracts which are

to be performed in two fiscal years so

long as the total amount for such

contracts is obligated in the year for

which the funds are appropriated (7

U.S.C. 2209c).

**432.770 USDA specific funding limitations.**

\(a\) The USDA is authorized to subscribe for newspapers as may be
necessary to carry out its authorized

work: *Provided*, that such subscriptions shall not be made unless
provision is

made therefor in the applicable appropriation and the cost thereof is
not

in excess of limitations prescribed

therein (7 U.S.C. 2258).

\(b\) The expenditure of any USDA appropriation for any consulting
service through any contract, pursuant to section 3109 of Title 5 of the
U.S. Code shall be limited to those contracts where such expenditures
are a matter of public

record and available for public

inspection, except where otherwise

provided under existing law, or under existing Executive Order issued
pursuant

to existing law (7 U.S.C. 2225a).

**SUBPART 432.8\--ASSIGNMENT OF CLAIMS**

**432.802 Conditions.**

Written notices of assignment and a

true copy of the assigned instrument are

to be sent to the contracting officer

rather than the agency head. Other

copies are distributed as directed in FAR 32.802.

**432.803 Policies.**

The HCA may make a

determination of need to include a no-

setoff commitment in a contract.

**432.805 Procedure.**

The information described in FAR 32.805 shall be filed with the
contracting officer.

**432.806 Contract clauses.**

The contracting officer may make

the determination whether to include the clause at FAR 52.232-23 in any
purchase order expected to exceed the micro-

purchase threshold.

**SUBPART 432.9\-\--PROMPT PAYMENT**

**432.904 Determining Payment Due Dates.**

The payment terms for supplies and services on the Procurement List and
provided by a Javits-Wagner-O\'Day Act participating nonprofit agency
are

governed by FAR 8.709.

**SUBPART 432.10\-\--PERFORMANCE-BASED PAYMENTS**

**432.1007 Administration and payment of performance-based payments.**

The responsibility for receiving, reviewing, and approval of
performance-

based payment requests may not be transferred from the contracting
officer.

**PART 433\--PROTESTS, DISPUTES AND APPEALS**

**TABLE OF CONTENTS**

**SUBPART 433.1\--PROTESTS**

Sec.

433.102 General.

433.103 Protests to the agency.

433.104 \[Reserved\]

**SUBPART 433.2\--DISPUTES AND APPEALS**

433.203 Applicability.

433.203-70 Agriculture Board of Contract Appeals.

433.209 Suspected fraudulent claims.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 433**

**PROTESTS, DISPUTES AND APPEALS**

**SUBPART 433.1\--PROTESTS**

**433.102 General.**

\(a\) The Senior Procurement

Executive (SPE) is responsible for coordinating the handling of bid
protests lodged with the Government Accountability Office (GAO).

\(b\) The head of the contracting

activity (HCA), on a non-delegable

basis, may resolve protests and authorize reimbursement of costs in
accordance

with FAR 33.102(b).

**433.103 Protests to the agency.**

\(a\) Actual or prospective bidders or offerors may file protests either
with the HCA, as provided by 433.102(b), or

with the contracting officer. Protesters

who file protests with the HCA shall

furnish a complete copy to the

contracting officer no later than 1 day

after the protest is filed with the HCA.

\(b\) When a protest is received, the adjudicating official shall take
prompt

action towards resolution and notify the protester in writing of the
action taken.

The written final decision shall include a paragraph substantially as
follows:

This decision shall be final and conclusive unless a further written
notice

of protest is filed with the Government Accountability Office in
accordance with

4 CFR Part 21. Neither the filing of a

protest with USDA nor the filing of a

protest with the Government Accountability Office affects your right to
file an action in a district court of the United States or the United
States Court of Federal Claims.

**433.104 \[Reserved\]**

**SUBPART 433.2\--DISPUTES AND APPEALS**

**433.203 Applicability.**

The Assistant Secretary for Admi-

nistration is authorized to determine the applicability of the Contract
Disputes

Act to contracts with foreign

governments pursuant to FAR 33.203.

**433.203-70 Agriculture Board of Contract Appeals.**

The organization, jurisdiction, and functions of the Agriculture Board
of Contract Appeals, together with its Rules

of Procedure, are set out in 7 CFR, Part

24\.

**433.209 Suspected fraudulent claims.**

The contracting officer shall refer all matters related to suspected
fraudulent claims by a contractor under the conditions in FAR 33.209 to
the Office

of Inspector General for additional

action or investigation.

**SUBCHAPTER F\--SPECIAL CATEGORIES OF CONTRACTING**

**PART 434\--MAJOR SYSTEM ACQUISITION**

**TABLE OF CONTENTS**

**SUBPART 434.0\--GENERAL**

Sec.

434.001 Definitions.

434.002 Policy.

434.003 Responsibilities.

434.004 Acquisition strategy.

434.005 General requirements.

434.005-6 Full production.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

####### **PART 434**

**MAJOR SYSTEM ACQUISITION**

**SUBPART 434.0\--GENERAL**

**434.001 Definitions.**

Pursuant to OMB Circular No.

A-109 (A-109) and the definition at FAR

2.101, within USDA, a system shall be

considered a major system if:

\(a\) The total acquisition costs (for information technology, life
cycle costs) are estimated to be \$50 million or more, or

\(b\) The system, regardless of estimated acquisition or life cycle
costs, has been specifically designated to be a major system by the USDA
Acquisition Executive or by the Major Information Technology Systems
Executive.

**434.002 Policy.**

In addition to the policy guidance at FAR 34.002 and other parts of the
FAR, the policies outlined in paragraph 6 of A-109 should serve as
guidelines for all contracting activities in planning and developing
systems, major or otherwise.

**434.003 Responsibilities.**

\(a\) The Secretary of Agriculture or other designated USDA key
executive is responsible for making four key

decisions in each major system acqui-

sition process. These are listed in paragraph 9 of A-109 and elaborated
on in paragraphs 10 through 13. The key executives of USDA (Secretary,
Deputy Secretary, Under Secretaries and

Assistant Secretaries) individually or as

a group will participate in this decision making process.

\(b\) The Chief Information Officer (CIO) is the Major Information
Technology Systems Executive. For acquisitions of information
technology, the CIO will ensure that A-109 is implemented in USDA and
that the management objectives of the Circular are realized. The CIO is
responsible for designating the program manager for each major
information technology system acquisition, designating an acquisition to
be a major information technology system acquisition, and approving the
written charter and project control system for each major information
technology system acquisition.

\(c\) The Assistant Secretary for Administration (ASA) is the USDA
Acquisition Executive for major system acquisition other than
acquisitions of information technology. The ASA will ensure that A-109
is implemented in USDA and that the management

objectives of the Circular are realized.

The ASA is responsible for designating

the program manager for each major system acquisition, designating an
acquisition to be a major system acquisition, and approving the written
charter and project control system for

each major system acquisition.

\(d\) Heads of contracting activities must:

\(1\) Ensure compliance with the requirements of A-109, FAR Part 34 and
AGAR Part 434.

\(2\) Ensure that potential major system acquisitions are brought to the
attention of the USDA Acquisition Executive or the Major Information
Technology Systems Executive, as appropriate.

\(3\) Recommend qualified candidates for designation as program managers
for each major system acquisition within their jurisdiction.

\(4\) Ensure that program managers fulfill their responsibilities and
discharge their duties.

\(5\) Cooperate with the ASA and Major Information Technology Systems
Executive in implementing the requirements of A-109.

\(e\) The program manager is

responsible for planning and executing

the major system acquisition, ensuring

appropriate coordination with the USDA

Acquisition Executive and Major Information Technology Systems Executive
and other key USDA executives.

**434.004 Acquisition strategy.**

\(a\) The program manager will

develop, in coordination with the

Acquisition Executive or Major Information Technology Systems Executive,
a written charter

outlining the authority, responsibility,

accountability, and budget for

accomplishing the proposed objective.

> \(b\) The program manager will

develop, subject to the approval of the

Acquisition Executive or Major Information Technology Systems Executive,
a project control

system to schedule, monitor, and

regularly report on all aspects of the

project. The control system shall

establish reporting periods and

milestones consistent with the key

decisions listed in paragraph 9 of A-109.

\(c\) Upon initiation of the project,

the program manager will report

regularly to the Acquisition Executive or Major Information Technology
Systems Executive.

\(d\) Specific procedures and requirements for information technology
systems are included in the USDA Information Technology Capital Planning
and Investment Control Guide which can be accessed on the USDA OCIO
Website at http://www.ocio.usda.gov.

**434.005 General requirements.**

**434.005-6 Full production.**

The Secretary or the USDA key executive designated by the Secretary for

the specific program is the agency head for the purposes of FAR
34.005-6.

**PART 435\--RESEARCH AND DEVELOPMENT CONTRACTING**

**TABLE OF CONTENTS**

Sec.

435.010 Scientific and technical reports.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 435**

**RESEARCH AND DEVELOPMENT CONTRACTING**

**435.010 Scientific and technical reports.**

Research and development contracts shall contain a provision requiring
that

the contractor send copies of all

scientific and technical reports to the National Technical Information
Service

at the address indicated in FAR

35.010(b). The release of research and development contract results to
other government activities and to the private sector is subject to the
provisions of

FAR Subpart 4.4.

**PART 436\--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS**

**TABLE OF CONTENTS**

**SUBPART 436.2\--SPECIAL ASPECTS OF CONTRACTING FOR CONSTRUCTION**

Sec.

436.201 Evaluation of contractor performance.

436.203 Government estimate of construction costs.

436.204 Disclosure of the magnitude of construction projects.

436.205 Statutory cost limitations.

436.209 Construction contracts with architect-engineer firms.

436.213 Special procedures for sealed bidding in construction
contracting.

436.213-2 Presolicitation notices.

**SUBPART 436.3-\[Reserved\]**

**SUBPART 436.5\--CONTRACT CLAUSES**

436.500 Scope of subpart.

436.571 Prohibition against the use of lead-based paint.

436.572 Use of premises.

436.573 Archeological or historic sites.

436.574 Control of erosion, sedimentation, and pollution.

436.575 Maximum workweek-construction schedule.

436.576 Samples and certificates.

436.577 Emergency response.

436.578 \[Reserved\]

436.579 Opted timber sale road requirements.

**SUBPART 436.6\--ARCHITECT-ENGINEER SERVICES**

436.601 Policy

436.601-3 Applicable contracting procedures.

436.602 Selection of firms for architect-engineer contracts.

436.602-1 Selection criteria.

436.602-2 Evaluation boards.

436.602-3 Evaluation board functions.

436.602-4 Selection authority.

436.602-5 Short selection process for contracts not to exceed the
simplified acquisition threshold.

436.603 Collecting data on and appraising firms\' qualifications.

436.604 Performance evaluation.

436.605 Government cost estimate for architect-engineer work.

436.609 Contract clauses.

436.609-1 Design within funding limitations.

436.670 Firms ineligible for award \-- construction.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 436**

**CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS**

**SUBPART 436.2\--SPECIAL**

**ASPECTS OF CONTRACTING**

**FOR CONSTRUCTION**

**436.201 Evaluation of contractor performance.**

*Preparation of performance*

*evaluation reports.* In addition to the

requirements of FAR 36.201,

performance evaluation reports shall be

prepared for indefinite-delivery type

contracts when either the contract

maximum or the contracting activity\'s

reasonable estimate of services to be

ordered exceeds \$500,000.00. For these

contracts, performance evaluation

reports shall be prepared for each order

at the time of final acceptance of the

work under the order.

**436.203 Government estimate of construction costs.**

For acquisitions using sealed bid

procedures, the contracting officer may

disclose the overall amount of the

Government\'s estimate of construction

costs following identification of the

responsive bid most advantageous to the

Government; verification of that bid\'s

price reasonableness; and verification of

the bidder\'s responsibility. For

acquisitions using other than sealed bid

procedures (e.g., negotiation), the

contracting officer may disclose the

overall amount of the estimate after

contract award.

**436.204 Disclosure of the magnitude**

**of construction projects.**

In the case of indefinite-delivery

type contracts, the reasonable estimate of

work to be done or the maximum in the

solicitation, both including all options, is

to be used to select the price range.

Contracting officers may elect to use

both a price range for the base period of

services and the total, inclusive of

options, to best describe the magnitude

of the solicitation.

**436.205 Statutory cost limitations.**

\(a\) When it appears that funds

available for a project may be

insufficient for all the desired features of

construction, the contracting officer may

provide in the solicitation for a base bid

item covering the work generally as

specified and for one or more additive or

deductive bid items which progressively

add or omit specified features of the

work in a stated order of priority. In this

case, the contracting officer shall insert

the provision at 452.236-70, Additive or

Deductive Items, in solicitations for

construction.

\(b\) In the alternative to the process

in paragraph (a) of this section, the

contracting officer may use the policies

and procedures found in FAR 17.2.

**436.209 Construction contracts with architect-engineer firms.**

The head of the contracting activity (HCA) is authorized to approve the

award of a contract to construct a

project, in whole or in part, to the firm (inclusive of its subsidiaries
or affiliates)

that designed the project.

**436.213 Special procedures for sealed bidding in construction
contracting.**

**436.213-2 Presolicitation notices.**

The authority to waive a presoli-citation notice is restricted to the
HCA.

**SUBPART 436.3 \[RESERVED\]**

**SUBPART 436.5\--CONTRACT CLAUSES**

**436.500 Scope of subpart.**

This subpart prescribes clauses for insertion in USDA solicitations and
contracts for construction and for dismantling, demolition, or removal
of improvements or structures. The contracting officer shall use the
clauses

as prescribed, in contracts that exceed

the simplified acquisition threshold. The contracting officer may use
the clauses if the contract amount is expected to be within the
simplified acquisition

threshold.

**436.571 Prohibition against the use of lead-based paint.**

The contracting officer shall insert the clause at 452.236-71,
Prohibition

Against the Use of Lead-Based Paint, in solicitations and contracts, if
the work involves construction or rehabilitation (including dismantling,
demolition, or removal) of residential structures. This clause may be
used in contracts for other than residential structures.

**436.572 Use of premises.**

The contracting officer shall insert

the clause at 452.236-72, Use of

Premises, if the contractor will be

permitted to use land or premises administered by USDA.

**436.573 Archeological or historic sites.**

The contracting officer shall insert

the clause at 452.236-73, Archeological

or Historic Sites, if the contractor will be working in an area where
such sites may

be found. Use of the clause is optional

in service contracts for on-the-ground

work, e.g. reforestation, silvicultural,

land stabilization, or other agricultural-related projects.

**436.574 Control of erosion, sedimentation, and pollution.**

The contracting officer shall insert

the clause at 452.236-74, Control of Erosion, Sedimentation and
Pollution, if there is a need for applying environ-

mental controls in the performance of

work. Use of the clause is optional in service contracts for
on-the-ground e.g., reforestation, silvicultural, land

stabilization, or other agricultural-related projects.

**436.575 Maximum workweek-construction schedule.**

The contracting officer shall insert

the clause at 452.236-75, Maximum

Workweek-Construction Schedule, if the clause at FAR 52.236-15 is used
and the

contractor\'s work schedule is restricted

by access to the facility or must be coordinated with the schedule of
contract administration personnel.

**436.576 Samples and certificates.**

The contracting officer shall insert

the clause at 452.236-76, Samples and Certificates, in all contracts.

**436.577 Emergency response.**

The contracting officer may insert

the clause at 452.236-77, Emergency Response, in construction contracts
awarded for the Forest Service.

**436.578 \[Reserved\]**

**436.579 Opted timber sale road requirements.**

The contracting officer shall insert

the clause at 452.236-79, Opted Timber Sale Road Requirements, in road

construction contracts resulting from a timber sale turnback.

**SUBPART 436.6\--ARCHITECT- ENGINEER SERVICES**

**436.601 Policy.**

**436.601-3 Applicable contracting procedures.**

The technical official's listing of

areas where recovered materials cannot

be used shall be referred to the contract-

ing activity's official designated in accordance with FAR 23.404. A copy
of the listing and of any approval or disapproval by that official is to
be

retained in the solicitation file.

**436.602 Selection of firms for**

**architect-engineer contracts.**

**436.602-1 Selection criteria.**

The HCA is authorized to approve

the use of design competition under the conditions in FAR 36.602-1(b).

**436.602-2 Evaluation boards.**

HCA's shall establish written procedures for providing permanent or

ad hoc architect-engineer evaluation

boards as prescribed in FAR 36.602-2. The procedures may provide for the
appointment of private practitioners of architecture, engineering, or
related

professions when such action is

determined by the HCA to be essential

to meet the Government's minimum

needs.

**436.602-3 Evaluation board functions.**

The selection report required in

FAR 36.602-3(d) shall be prepared for

the approval of the HCA. The HCA may authorize an acquisition official
above

the level of the contracting officer to execute the required approval.

**436.602-4 Selection authority.**

\(a\) The HCA shall serve as the selection authority in accordance with

FAR 36.602-4. The HCA may authorize an acquisition official above the
level of

the contracting officer to serve as the selection authority.

\(b\) A copy of the final selection, inclusive of the supporting
documents,

shall be provided to the contracting

officer and maintained in the solicitation

file.

**436.602-5 Short selection process for contracts not to exceed the
simplified acquisition threshold.**

The HCA may include either or both procedures in FAR 36.602-5 in the
procedures for evaluation boards.

**436.603 Collecting data on and appraising firms\' qualifications.**

\(a\) HCA\'s which require architect-engineer services shall establish

procedures to comply with the requirements of FAR 36.603.

\(b\) The procedures shall include a

list of names, addresses, and phone

numbers of offices or boards assigned to maintain architect-engineer
qualification

data files. The list shall be updated

annually.

**436.604 Performance evaluation.**

*Preparation of performance evaluation reports.* (a) In addition to the
requirements of FAR 36.604, perfor-

mance evaluation reports shall be

prepared for indefinite-delivery type contracts when either the contract

maximum or the contracting activities reasonable estimate of services to
be ordered exceeds \$25,000.00. For these contracts, performance
evaluation

reports shall be prepared for each order

at the time of final acceptance of the

work under the order. (b) The

contracting officer may require a performance evaluation report on the

work done by the architect-engineer after the completion of or during
the

construction of the designed project.

**436.605 Government cost estimate for architect-engineer work.**

The contracting officer may release

the Government\'s total cost estimate in accordance with FAR 36.605(b).

**436.609 Contract clauses.**

**436.609-1 Design within funding limitations.**

\(a\) Should the head of the

contracting activity appoint a designee to make the determination in FAR

36.609-1(c)(1), the appointment may be

to one no lower than the official

authorized to commit program funds for

the work being acquired.

\(b\) The contracting officer, with the advice of appropriate technical
representatives, may make the determi-

nation in FAR 36.609-1(c)(2) or (3).

\(c\) A copy of the determinations described in paragraphs (b) and (c)
of

this section shall be maintained in the contract file.

**436.670 Firms ineligible for award --- construction.**

The contracting officer shall insert

the clause at 452.236-80, Firms

Ineligible for Award --- Construction, in

the contract for architect-engineering services except as provided in
FAR

36.209 and AGAR 436.209.

**PART 437\--SERVICE CONTRACTING**

**TABLE OF CONTENTS**

**SUBPART 437.1\--SERVICE CONTRACTS GENERAL**

Sec.

437.104 Personal services contracts.

437.110 Solicitation provisions and contract clauses.

**SUBPART 437.2\--ADVISORY AND ASSISTANCE SERVICES**

437.203 Policy.

437.204 Guidelines for determining availability of personnel.

437.270 Solicitation provisions and contracts clauses.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 437**

**SERVICE CONTRACTING**

**SUBPART 437.1\--SERVICE**

**CONTRACTS\--GENERAL**

**437.104 Personal services contracts.**

USDA has the following specific statutory authorities to contract for
personal services:

\(a\) Section 706(a) of the

Organic Act of 1944 (7 U.S.C. 2225) authorizes contracting with persons
or organizations on a temporary basis,

without regard to civil service compensation classification standards in

5 U.S.C., Chapter 51 and Subchapter III of Chapter 53,
[Provided:]{.underline}

\(1\) That no expenditures shall be made unless specifically

provided for in the applicable appropriation, and

\(2\) Expenditures do not exceed any limitations prescribed in the
appropriation.

\(b\) 7 U.S.C. 1627 authorizes

the Secretary of Agriculture to contract with technically qualified
persons, firms

or organizations to perform research, inspection, classification,
technical, or

other special services, without regard to the civil-service laws,
[Provided:]{.underline} it is for

a temporary basis and for a term not to exceed six months in any fiscal
year.

**437.110 Solicitation provisions and contract clauses.**

\(a\) The contracting officer shall

insert a clause substantially the same as

the clause at 452.237-70, Loss Damage, Destruction or Repair, in
contracts for equipment rental, whether the equipment

is furnished with or without operator.

\(b\) The contracting officer shall

insert a provision substantially the same

as the clause at 452.237-71, Pre-Bid/Pre-

Proposal Conference, in all solicitations

if a conference with prospective offerors will be held prior to the
submittal of bids

or proposals.

\(c\) The contracting officer shall

insert the provision at 452.237-73, Equipment Inspection visit, in

solicitations if work is to be done on Government equipment and an
offeror's inspection is encouraged for an understanding of the work to
be

performed prior to submittal of bids or proposals.

\(d\) The contracting officer shall

insert a clause substantially the same as

the clause at 452.237-74, Key Personnel, in contracts if contract
performance requires identification of the contractor's key personnel.

\(e\) The contracting officer shall

insert a clause substantially the same as

the clause at 452.237-75, Restrictions Against Disclosure, in service
contracts (including architect-engineer contracts) requiring
restrictions on release of information developed or obtained in
connection with performance of the contract.

**SUBPART 437.2\--ADVISORY AND ASSISTANCE SERVICES**

**437.203 Policy.**

Contracting for advisory and assistance services is subject to the

policy and procedures in Departmental Regulations (5000 series).

**437.204 Guidelines for determining availability of personnel.**

The head of the contracting activity (HCA) is authorized to approve the
use

of non-Government evaluators in

proposal evaluation. Each such decision shall be supported by a written
determination in accordance with FAR 37.204.

**437.270 Solicitation and contract clauses.**

\(a\) The contracting officer shall

insert a clause substantially the same as

the clause at 452.237-76, Progress Reporting, in all contracts for
advisory

and assistance services. It may also be used in other service contracts.

\(b\) The contracting officer shall

insert a clause substantially the same as

the clause at 452.237-78, Contracts with Consulting Firms for Services,
in solicitations and contracts for consulting services which prohibit
follow-on

contracts with the contracting firm.

**SUBCHAPTER F\--SPECIAL CATEGORIES OF CONTRACTING**

**PART 439---ACQUISITION OF INFORMATION TECHNOLOGY**

**TABLE OF CONTENTS**

**SUBPART 439.1\--GENERAL**

Sec.

439.101 Policy

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

####### 

####### **PART 439**

**ACQUISITION OF INFORMATION TECHNOLOGY**

**SUBPART 439.1\--GENERAL**

**439.101 Policy.**

\(a\) In addition to policy and regulatory guidance contained in the FAR
and AGAR:

\(1\) The USDA Information Technology Capital Planning and Investment
Control Guide (CPIC) establishes requirements for the acquisition of
information technology.

\(2\) Specific thresholds at which USDA Office of the Chief Information
Officer Information Technology Acquisition Approval is required have
been established.

\(3\) The procurement authority delegated to USDA Agencies is
established in Departmental Regulations 5000 series.

\(4\) The CPIC Guide and USDA CIO policy and procedural guidance are
available on the USDA OCIO Website at http://www.ocio.usda.gov. Notices
of changes in the Information Technology Acquisition Approval Thresholds
are also promulgated by AGAR Advisory.

\(b\) Acquisition of on-line courseware libraries and learning
management system services requires specific approval of the ASA and
CIO. Information regarding the specific

approval requirements and processes is promulgated by AGAR Advisory.

**PART 441\--ACQUISITION OF UTILITY SERVICES**

**TABLE OF CONTENTS**

**SUBPART 441.2\--ACQUIRING UTILITY SERVICES**

441.201 Policy

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 441**

**ACQUISITION OF UTILITY SERVICES**

**SUBPART 441.2\--ACQUIRING UTILITY SERVICES**

**441.201 Policy.**

As used in FAR 41.201(d)(2)(i) and 41.201(d)(3) the Federal agency head
designee is the head of the contracting activity.

**SUBCHAPTER G\--CONTRACT MANAGEMENT**

**PART 442\--CONTRACT ADMINISTRATION**

**TABLE OF CONTENTS**

**SUBPART 442.1\--INTERAGENCY CONTRACT ADMINISTRATION AND AUDIT
SERVICES**

Sec.

442.102 Procedures.

**SUBPART 442.15\--CONTRACTOR PERFORMANCE INFORMATION**

442.1502 Policy.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 442**

**CONTRACT ADMINISTRATION**

**SUBPART 442.1\--INTERAGENCY CONTRACT ADMINISTRATION AND AUDIT
SERVICES**

**442.102 Procedures.**

\(a\) The Office of Inspector General (OIG), Audit Division, has
established a cross-servicing arrangement with the Defense Contract
Audit Agency

(DCAA) to provide contract audit

services required by the FAR.

\(b\) All contract audit services

required by contracting officers, except those which can be accomplished
in-

house, shall be coordinated through the cognizant OIG Regional Inspector
General\--Auditing (RIG-A).

Cognizance is determined on the basis of the contractor\'s location.
There is no charge for DCAA audit services coordinated through OIG.

\(c\) In order to ensure compliance

with this requirement and to evaluate the results of audits, contracting
officers

shall forward to the RIG-A copies of all price negotiation memoranda
prepared

for contracts and contract modifications

in excess of \$500,000.

**SUBPART 442.15\--CONTRACTOR PERFORMANCE INFORMATION**

**442.1502 Policy.**

The Contractor Performance System (CPS), developed by the National
Institutes of Health, is designated as the

single USDA-wide system for maintaining contractor performance/
evaluation information. Use of the CPS is mandatory. As a minimum, the
CPS shall be accessed for contractor past performance information as
part of proposal evaluation in accordance with FAR part 15.3, and
information resulting from the evaluation of contractor performance in
accordance with FAR part 42.15 shall be entered into and maintained in
this system. The CPS is part of the USDA Acquisition Toolkit which can
be accessed from the USDA Procurement Homepage at
http://www.usda.gov/procurement/.

**PART 445\--GOVERNMENT PROPERTY**

**TABLE OF CONTENTS**

**SUBPART 445.3\--PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS**

445.302 Providing facilities.

445.302-1 Policy.

**SUBPART 445.4\--CONTRACTOR USE AND RENTAL OF GOVERNMENT PROPERTY**

445.403 Rental\--Use and Charges clause.

445.407 Non-Government use of plant equipment.

**SUBPART 445.6\-- \[Reserved\]**

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 445**

**GOVERNMENT PROPERTY**

**SUBPART 445.3\--PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS**

**445.302 Providing facilities.**

**445.302-1 Policy.**

Heads of contracting activities (HCA\'s) are authorized to make
determinations for providing facilities to a contractor as prescribed in
FAR

45.302-1(a)(4).

**SUBPART 445.4\--CONTRACTOR USE AND RENTAL OF GOVERNMENT PROPERTY**

**445.403 Rental\--Use and Charges clause.**

HCA\'s are authorized to make determinations for charging rent on the
basis of use under the Use and Charges clause in FAR 52.245-9 as
prescribed in FAR 45.403(a).

**445.407 Non-Government use of plant equipment.**

Requests for non-Government use

of plant equipment as prescribed in FAR 45.407 shall be submitted by the
HCA to the Senior Procurement Executive (SPE) for approval.

**SUBPART 445.6\-- \[Reserved\]**

**PART 446\--QUALITY ASSURANCE**

**TABLE OF CONTENTS**

**SUBPART 446.3\--CONTRACT CLAUSES**

Sec.

446.370 Inspection and acceptance.

Authority: 5 U.S.C. 30 and 40 U.S.C. 486(c).

**PART 446**

**QUALITY ASSURANCE**

**SUBPART 446.3\--CONTRACT CLAUSES**

**446.370 Inspection and acceptance.**

The Contracting Officer shall insert

the clause at 452.246-70, Inspection and Acceptance, in contracts where

inspection and acceptance will be performed at the same location. The
clause with its Alternate I is for use

when inspection and acceptance will be performed at different locations.

**PART 447\--TRANSPORTATION**

**TABLE OF CONTENTS**

**SUBPART 447.3\--TRANSPORTATION IN SUPPLY CONTRACTS**

Sec.

447.302 Place of delivery\--F.O.B. point.

447.305 Solicitation provisions, contract clauses, and transportation
factors.

447.305-10 Packing, marking, and consignment instructions.

Authority: 5 U.S.C. 30 and 40 U.S.C. 486(c).

**PART 447**

**TRANSPORTATION**

**SUBPART 447.3\--TRANSPORTATION IN SUPPLY CONTRACTS**

**447.302 Place of delivery-F.O.B. point.**

The contracting officer shall insert a clause substantially the same as
the

clause at 452.247-70, Delivery Location, in supply contracts when it is
necessary

to specify delivery locations. If appropriate, the clause may reference
an attachment which lists various delivery locations and other delivery
details (e.g., quantities to be delivered to each

location, etc).

**447.305 Solicitation provisions, contract clauses, and transportation
factors.**

**447.305-10 Packing, marking, and consignment instructions.**

\(a\) The contracting officer shall

insert a clause substantially the same as

the clause at 452.247-71, Marking Deliverables, in solicitations and

contracts if special marking on

deliverables (other than reports) are required.

\(b\) The contracting officer shall

insert the clause at 452.247-72, Packing for Domestic Shipment, in
contracts

when item(s) will be delivered for immediate use to a destination in the
continental United States; when the

material specification or purchase description does not provide

preservation, packaging, packing, and/or marking requirements; and/or
when the requiring activity has not cited a specific specification for
packaging.

\(c\) The contracting officer shall

insert the clause at 452.247-73, Packing for Overseas Shipment, in
contracts

when item(s) will be delivered to an overseas destination for immediate
use,

the material specification does not

specify packing levels, and the required activity has not specified such
requirements.

**PART 449\--TERMINATION OF CONTRACTS**

**TABLE OF CONTENTS**

**SUBPART 449.1\--GENERAL PRINCIPLES**

Sec.

449.106 Fraud or other criminal conduct.

449.111 Review of proposed settlements.

**SUBPART 449.4\--TERMINATION FOR DEFAULT**

449.402 Termination of fixed-price contracts for default.

449.402-3 Procedure for default.

**SUBPART 449.5\--CONTRACT TERMINATION CLAUSES**

449.501 General

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 449**

**TERMINATION OF CONTRACTS**

**SUBPART 449.1\--GENERAL PRINCIPLES**

**449.106 Fraud or other criminal conduct.**

\(a\) If the contracting officer suspects fraud or other criminal
conduct a written report documenting the facts shall be submitted by the
head of the contracting activity (HCA) to the Office of Inspector
General. Copies of documents or other information connected with the

suspected fraud or criminal conduct shall be provided with the report.
Concurren-

tly, a copy of the report shall also be submitted to the Senior
Procurement Executive.

\(b\) Depending on the findings of the Office of Inspector General, the
HCA

may initiate suspension or debarment action as prescribed in FAR part
9.4 and part 409.4.

**449.111 Review of proposed settlements.**

Proposed settlement agreements

shall be reviewed and approved in accordance with contracting activity
procedures.

**SUBPART 449.4\--TERMINATION FOR DEFAULT**

**449.402 Termination of fixed-price contracts for default.**

**449.402-3 Procedure for default.**

In addition to the requirements of FAR 49.402-3(g), the notice of
termination shall contain instructions regarding the disposition of any
Government property in the possession

of the contractor (see FAR 45.508-1)

and, in the case of construction

contracts, such materials, appliances, and structures as may be on the
site of the construction work. The notice shall also contain a statement
concerning the

liability of the contractor or its surety for any liquidated damages
(see FAR

49.402-7).

**SUBPART 449.5\--CONTRACT TERMINATION CLAUSES**

**449.501 General.**

Use of special purpose termination clauses pursuant to the authority of
FAR 49.501 shall be approved in advance by the HCA.

**PART 450\--EXTRAORDINARY CONTRACTUAL ACTIONS**

**TABLE OF CONTENTS**

Sec.

450.001 Definitions.

**SUBPART 450.1\-- \[Reserved\]**

**SUBPART 450.2\--DELEGATION OF AND LIMITATIONS ON EXERCISE OF
AUTHORITY**

450.201 Delegation of authority.

**SUBPART 450.3\--CONTRACT ADJUSTMENTS**

450.303 Contract adjustment.

450.303-1 Contractor Requests.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 450**

**EXTRAORDINARY CONTRACTUAL ACTIONS**

**450.001 Definitions.**

\"Approving authority,\" as used in

this part, means the Assistant Secretary

for Administration.

"Secretarial level," as used in this

part means the Assistant Secretary for Administration.

**SUBPART 450.1\-- \[Reserved\]**

**SUBPART 450.2\--DELEGATION OF AND LIMITATIONS ON EXERCISE OF
AUTHORITY**

**450.201 Delegation of authority.**

The Assistant Secretary for Administration is authorized to approve

all actions under FAR Part 50 except indemnification actions listed in
FAR 50.201(d) which must be approved by

the Secretary, without power of delegation.

**SUBPART 450.3\--CONTRACT ADJUSTMENTS**

**450.303 Contract adjustment.**

**450.303-1 Contractor requests.**

Contractor requests shall be

submitted to the contracting officer.

SUBCHAPTER H\--CLAUSES AND FORMS

**PART 452\--SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

**TABLE OF CONTENTS**

**SUBPART 452.2\--Texts of Provisions and Clauses**

Sec.

452.204-70 Inquiries.

452.211-70 Brand Name or Equal.

452.211-71 Equal Products Offered.

452.211-72 Statement of Work/Specifications.

452.211-73 Attachments to Statement of Work/Specifications.

452.211-74 Period of Performance.

452.211-75 Effective Period of the Contract.

452.214-70 Award by Lot.

452.215-71 Instructions for the Preparation of Technical and Business
Proposals.

452.215-72 Amendments to Proposals.

452.215-73 Post-Award Conference.

452.216-70 Award Fee.

452.216-71 Base Fee and Award Fee Proposal.

452.216-72 Evaluation Quantities\--Indefinite-Delivery Contract.

452.216-73 Minimum and Maximum Contract Amounts.

452.216-74 Ceiling Price.

452.216-75 Letter Contract.

452.219-70 Size Standard and NAICS Code Information.

452.224-70 Confidentiality of Information.

452.226-70 \[Reserved\].

452.226-71 \[Reserved\]

452.226-72 \[Reserved\]

452.228-70 Alternative Forms of Security.

452.228-71 Insurance Coverage.

452.232-70 Reimbursement for Bond Premiums\--Fixed-Price Construction

452.236-70 Additive or Deductive Items.

452.236-71 Prohibition Against the use of Lead-Based Paint.

452.236-72 Use of Premises.

452.236-73 Archaeological or Historic Sites.

452.236-74 Control of Erosion, Sedimentation, and Pollution.

452.236-75 Maximum Workweek\--Construction Schedule.

452.236-76 Samples and Certificates.

452.236-77 Emergency Response

452.236-78 \[Reserved\]

452.236-79 Opted Timber Sale Road Requirements.

452.236-80 Firms Ineligible for Award \-- Construction.

452.237-70 Loss, Damage, Destruction or Repair.

452.237-71 Pre-Bid/Pre-Proposal Conference.

452.237-73 Equipment Inspection Visit.

452.237-74 Key Personnel.

452.237-75 Restrictions Against Disclosure.

452.237-76 Progress Reporting.

452.237-78 Contracts with Consulting Firms for Services.

452.246-70 Inspection and Acceptance.

452.247-70 Delivery Location.

452.247-71 Marking Deliverables.

452.247-72 Packing for Domestic Shipment.

452.247-73 Packing for Overseas Shipment.

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 452**

**SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

**SUBPART 452.2\--TEXTS OF PROVISIONS AND CLAUSES**

**452.204-70 Inquiries.**

As prescribed in 404.7001, insert the

following provision:

**INQUIRIES (FEB 1988)**

Inquiries and all correspondence

concerning this solicitation should be

submitted in writing to the Contracting

Officer. Offerors should contact only

the Contracting Officer issuing the

solicitation about any aspect of this

requirement prior to contract award.

(End of provision)

**452.211-70 Brand Name or Equal.**

As prescribed in 411.171, insert the

following provision:

**BRAND NAME OR EQUAL**

**(NOV 1996)**

(As used in this provision, the term

\"brand name\" includes identification of

products by make and model.)

\(a\) If items called for by this

solicitation have been identified by a

\"brand name or equal\" description, such

identification is intended to be

descriptive, but not restrictive, and is to

indicate the quality and characteristics of

products that will be satisfactory.

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 offer (see clause 452.211-71) and are

determined by the Contracting Officer to

meet fully the salient characteristics

requirements listed in the solicitation.

\(b\) Unless the offeror clearly

indicates in its offer that it is offering an

\"equal\" product, the offeror shall be

considered as offering the brand name

product(s) referenced in the solicitation.

(c)(1) If the offeror proposes to

furnish an \"equal\" product or products,

the brand name(s), if any, and any other

required information about the

product(s) to be furnished shall be

inserted in the space provided in the

solicitation. The evaluation of offers and

the determination as to the equality of

the product(s) offered shall be the

responsibility of the Government and

will be based on information furnished

by the offeror or identified in its offer as

well as other information reasonably

available to the contracting activity.

Caution to offerors: The contracting

activity is not responsible for locating or

securing any information which is not

identified in the offer and is not

reasonably available to the contracting

activity. Accordingly, to assure that

sufficient information is available, the

offeror must furnish as a part of its offer

all descriptive material (such as cuts,

illustrations, drawings, or other infor-

mation) necessary for the contracting

activity to (i) determine whether the

product offered meets the salient charac-teristics requirement of the
solicitation, and (ii) establish exactly what the offeror proposes to
furnish and what the Government would be binding itself to purchase by
making an award. The information furnished may include

specific reference to information

previously furnished or to information otherwise available to the
contracting activity.

\(2\) If an offeror proposes to modify a product so as to make it

conform to the requirements of the solicitation, the offer shall include
(i) a

clear description of such proposed modifications and (ii) clearly marked
descriptive material to show the proposed modifications.

(End of Provision)

**452.211-71 Equal Products Offered.**

As prescribed in 411.171, insert the following or substantially the same
clause

in solicitations seeking offers on a \"brand name or equal\" basis to
allow offerors the opportunity to clearly identify the \"equal\" item
being offered, and to illustrate how

that item meets the salient characteristics requirements of the
Government.

**EQUAL PRODUCTS OFFERED**

**(NOV 1996)**

\(a\) Offerors proposing to furnish an \"equal\" product, in accordance
with the \"Brand Name or Equal\" provision of this

solicitation, shall provide the following information for each offered
\"equal\" product:

Contract Line Item Number (if any):

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Brand Name or Equal Product identified by the Government in this
solicitation:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Offered Product Name:\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Catalog Description or part

number:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Manufacturer\'s Name:\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Manufacturer\'s Address:\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(b\) Offerors are responsible for submitting all additional information
on the above product necessary for the

Contracting Officer to determine whether the product offered meets the
\"brand

name or equal\" product\'s salient characteristics listed in the
solicitation.

(End of Clause)

**452.211-72 Statement of Work/Specifications.**

As prescribed in 411.171, insert the following clause:

**STATEMENT OF WORK/**

**SPECIFICATIONS (FEB 1988)**

The Contractor shall furnish

the necessary personnel, material, equipment, services and facilities
(except

as otherwise specified), to perform the Statement of Work/Specifications
referenced in Section J.

(End of Clause)

**452.211-73 Attachments to**

**Statements of Work/Specifications.**

As prescribed in 411.171, insert the following clause:

**ATTACHMENTS TO STATEMENT OF WORK/SPECIFICATIONS**

**(FEB 1988)**

The attachments to the Statement of Work/Specifications listed in
Section J

are hereby made part of this solicitation

and any resultant contract.

(End of Clause)

**452.211-74 Period of Performance.**

As prescribed in 411.404(a), insert the following clause:

**PERIOD OF PERFORMANCE**

**(FEB 1988)**

The period of performance of this contract is from \_\_\*\_\_ through
\_\_\*\_\_.

(End of Clause)

\*[Contracting Officer shall insert the appropriate dates.]{.underline}

**452.211-75 Effective Period of the Contract.**

As prescribed in 411.404(b), insert the following clause:

**EFFECTIVE PERIOD OF THE**

**CONTRACT (FEB 1988)**

The effective period of this contract is from \_\_\_\*\_\_\_ through
\_\_\_\*\_\_\_.

(End of Clause)

\*[Contracting Officer shall insert the appropriate dates.]{.underline}

**452.214-70 Award by Lot.**

As prescribed in 414.201-6, insert a provision substantially as follows:

**AWARD BY LOT (NOV 1996)**

Subject to the Section L provision

FAR 52.214-10, \"Contract Award\--

Sealed Bidding,\" award will generally be made to a single bidder on
each entire lot. However, the Government reserves

the right to award by item within any lot

when the contracting officer determines

that it is advantageous to the

Government.

(End of Provision)

**452.215-71 Instructions for the Preparation of Technical and Business
Proposals.**

As prescribed in 415.209(a), insert a

provision substantially as follows:

**INSTRUCTIONS FOR THE PREPARATION OF**

**TECHNICAL AND BUSINESS**

**PROPOSALS**

**(SEP 1999)**

\(a\) [General Instructions.]{.underline} Proposals submitted in
response to this solicitation

shall be furnished in the following

format with the numbers of copies as specified below.

\(1\) The proposal must include a technical proposal and business

proposal. Each of the parts shall be separate and complete so that
evaluation

of one may be accomplished

independently from evaluation of the

other. The technical proposal must not contain reference to cost;
however,

resource information (such as data concerning labor hours and
categories, materials, subcontracts, etc.) must be contained in the
technical proposal so

that the contractor\'s understanding of the statement of work may be
evaluated.

\(2\) Offerors may, at their

discretion, submit alternate proposals or proposals which deviate from
the requirement; provided, that an offeror

also submit a proposal for performance

of the work as specified in the statement

of work. Any \"alternate\" proposal may

be considered if overall performance

would be improved or not compromised, and if it is in the best interest
of the Government. Alternate proposals, or

deviations from any requirement of this

RFP, must be clearly identified.

\(3\) The Government will

evaluate proposals in accordance with

the evaluation criteria set forth in

Section M of this RFP.

\(4\) Offerors shall submit their proposal(s) in the following format
and

the quantities specified:

\(a\) [\*]{.underline} copies of the completed, signed offer (Sections A

through K of the solicitation package)

\(b\) [\*]{.underline} copies of the

technical proposal

\(c\) [\*]{.underline} copies of the business/cost proposal

\(b\) [Technical Proposal Instructions.]{.underline} The technical
proposal will be used to

make an evaluation and arrive at a determination as to whether the
proposal

will meet the requirements of the Government. Therefore, the technical
proposal must present sufficient

information to reflect a thorough understanding of the requirements and
a detailed, description of the techniques, procedures and program for
achieving

the objectives of the specifications/

statement of work. Proposals which

merely paraphrase the requirements of

the Government\'s specifications/

statement of work, or use such phrases

as \"will comply\" or \"standard techniques

will be employed\" will be considered

unacceptable and will not be considered

further. As a minimum, the proposal

must clearly provide the following:

([Contracting Officer shall identify in this section the minimum
information]{.underline}

[required to evaluate each technical evaluation factor listed in Section
M]{.underline}.)

\(c\) [Business Proposal Instructions.]{.underline}

\(1\) Cost Proposal.

In addition to any other requirements for cost/pricing

information required in clause FAR

52.215-20, Requirements for Cost or Pricing Data or Information Other
Than Cost or Pricing Data (OCT 1997), the following is required:

([Contracting Officer shall identify]{.underline}

[additional information required if appropriate]{.underline}.)

\(2\) Business Proposal.

\(a\) Furnish financial statements

for the last two years, including an

interim statement for the current year,

unless previously provided to the office issuing the RFP, in which case
a

statement as to when and where this information was provided may be

furnished instead.

\(b\) Specify the financial

capacity, working capital and other resources available to perform the

contract without assistance from any

outside source.

\(c\) Provide the name, location,

and intercompany pricing policy for

other divisions, subsidiaries, parent company, or affiliated companies
that

will perform work or furnish materials under this contract.

(End of Provision)

\*[Contracting officer shall insert number]{.underline}

[of copies required]{.underline}.

**452.215-72 Amendments to Proposals.**

As prescribed in 415.209(b), insert

the following provision:

**AMENDMENTS TO PROPOSALS**

**(FEB 1988)**

Any changes to a proposal made by

the offeror after its initial submittal shall

be accomplished by replacement pages. Changes from the original page
shall be indicated on the outside margin by

vertical lines adjacent to the change. The offeror shall include the
date of the amendment on the lower right corner of

the changed pages.

(End of Provision)

**452.215-73 Postaward Conference.**

As prescribed in 415.570, insert a clause substantially as follows:

**POST AWARD CONFERENCE**

**(NOV 1996)**

A post award conference with the successful offeror is required. It will
be scheduled within [\*]{.underline} days after the

date of contract award. The conference

will be held at: [\*]{.underline} .

(End of Clause)

\*[Contracting officer to insert number of]{.underline}

[days and location]{.underline}.

**452.216-70 Award Fee.**

As prescribed in 416.405, insert a clause substantially as follows:

**AWARD FEE (FEB 1988)**

The amount of award fee the Contractor earns, if any, is based on a
subjective evaluation by the Government

of the quality of the Contractor\'s performance in accordance with the

award fee plan. The Government will determine the amount of award fee
every

[\*]{.underline} months beginning with [\*\*]{.underline} .

The Fee Determination Official (FDO)

will unilaterally determine the amount of award fee. The FDO\'s
determination

will be in writing to the Contractor and

is not subject to the \"Disputes\" clause.

The Government may unilaterally

change the award fee plan at any time

and will provide such changes in writing

to the Contractor prior to the beginning

of the applicable evaluation period. The Contractor may submit a voucher
for the earned award fee. Available award fee

not earned during one period does not

carry over to subsequent periods.

(End of Clause)

\* [Contracting Officer shall insert]{.underline}

[appropriate number of months.]{.underline}

\*\*[Contracting Officer shall insert appropriate date.]{.underline}

**452.216-71 Base Fee and Award Fee Proposal.**

As prescribed in 416.470, insert the following provision:

(The next page is 452-7)

**BASE FEE AND AWARD FEE**

**PROPOSAL (FEB 1988)**

For the purpose of this solicitation, offerors shall propose a base fee
of [\*]{.underline} percent of the total estimated cost

proposed. The award fee shall not

exceed [\*]{.underline} percent of the total

estimated cost.

(End of Provision)

\*[Contracting Officer shall insert]{.underline}

[appropriate percentages.]{.underline}

**452.216-72 Evaluation Quantities\--Indefinite Delivery Contract.**

As prescribed in 416.506(a), insert a provision substantially as
follows:

**EVALUATION QUANTITIES\--**

**INDEFINITE-DELIVERY**

**CONTRACT**

**(FEB 1988)**

To evaluate offers for award

purposes, the Government will apply the offeror\'s proposed
fixed-prices/rates to

the estimated quantities included in the solicitation, and will add
other direct

costs if applicable.

(End of Provision)

**452.216-73 Minimum and Maximum Contract Amounts.**

As prescribed in 416.506(b), insert

the following clause:

**MINIMUM AND MAXIMUM**

**CONTRACT AMOUNTS (FEB 1988)**

During the period specified in FAR clause 52.216-18, ORDERING, the
Government shall place orders totaling a minimum of [\*]{.underline} ,
but not in excess

of [\*]{.underline} .

(End of Clause)

\*[Contracting Officer shall insert]{.underline}

[appropriate quantity or dollar amounts.]{.underline}

**452.216-74 Ceiling Price.**

As prescribed in 416.670, insert the following clause:

**CEILING PRICE (FEB 1988)**

The ceiling price of this contract is

\$ [\*]{.underline} . The Contractor shall not make expenditures or
incur obligations in the performance of this contract which

exceed the ceiling price specified herein, except at the Contractor\'s
own risk.

(End of Clause)

\*[Contracting Officer shall insert]{.underline}

[appropriate dollar amount.]{.underline}

**452.216-75 Letter Contract.**

As prescribed in 416.603-4, insert

the following clause:

**LETTER CONTRACT (FEB 1988)**

This contract replaces letter contract

No. [\*]{.underline} dated [\*]{.underline} and all amendments thereto.

(End of Clause)

\*[Contracting Officer shall insert number]{.underline}

[and date.]{.underline}

**452.219-70 Size Standard and NAICS**

**Code Information.**

As prescribed in 419.508, insert the following provision:

**SIZE STANDARD AND NAICS CODE INFORMATION (SEP 2001)**

The North American Industrial Classification System Code(s) and business
size standard(s) describing the products and/or services to be acquired
under this solicitation are listed below:

Contract line item(s): \_\_\_\*\_\_\_\_

\-- NAICS Code \_\_\_\_\*\_\_\_\_

\-- Size Standard \_\_\_\_\_\*\_\_\_\_\_

(End of provision)

\*[Contracting Officer shall insert the appropriate data for each
contract line]{.underline}

[item in the solicitation. The data entry]{.underline}

[line may be duplicated as required to describe all of the contract line
items or]{.underline}

[sub-items.]{.underline}

**452.224-70 Confidentiality of Information.**

As prescribed in 424.104, insert a clause substantially as follows:

**CONFIDENTIALITY OF**

**INFORMATION (FEB 1988)**

\(a\) Confidential information, as

used in this clause, means \--

\(1\) information or data of a personal nature, proprietary about an
individual, or (2) information or data submitted by or pertaining to an
organization.

\(b\) In addition to the types of confidential information described in

(a)(1) and (2) above, information which might require special
consideration with regard to the timing of its disclosure may derive
from studies or research, during which public disclosure of primarily
invalidated findings could create an erroneous conclusion which might

threaten public health or safety if acted

upon.

\(c\) The Contracting Officer and the Contractor may, by mutual consent,

identify elsewhere in this contract

specific information and/or categories of information which the
Government will furnish to the Contractor or that the Contractor is
expected to generate which

is confidential. Similarly, the

contracting Officer and the Contractor

may, by mutual consent, identify such confidential information from time
to

time during the performance of the

contract. Failure to agree will be settled pursuant to the \"Disputes\"
clause.

\(d\) If it is established that

information to be utilized under this

contract is subject to the Privacy Act, the Contractor will follow the
rules and procedures of disclosure set forth in the Privacy Act of 1974,
5 U.S.C. 552a, and implementing regulations and policies,

with respect to systems of records determined to be subject to the
Privacy

Act.

\(e\) Confidential information, as

defined in (a)(1) and (2) above, shall not

be disclosed without the prior written consent of the individual,
institution or organization.

\(f\) Written advance notice of at least

45 days will be provided to the

Contracting Officer of the Contractor\'s

intent to release findings of studies or research, which have the
possibility of adverse effects on the public or the

Federal agency, as described in (b) above. If the Contracting Officer
does not pose

any objections in writing within the 45

day period, the contractor may proceed

with disclosure. Disagreements not

resolved by the Contractor and

Contracting Officer will be settled

pursuant to the \"Disputes\" clause.

\(g\) Whenever the Contractor is uncertain with regard to the proper

handling of material under the contract, or

if the material in question is subject to the Privacy Act or is
confidential information subject to the provisions of this clause,

the Contractor shall obtain a written determination from the Contracting

Officer prior to any release, disclosure, dissemination, or publication.

> \(h\) The provisions of paragraph (e)

of this clause shall not apply when the information is subject to
conflicting or overlapping provisions in other Federal, State or local
laws.

(End of Clause)

**452.226-70 \[Reserved\]**

**452.226-71 \[Reserved\]**

**452.226-72 \[Reserved\]**

**452.228-70 Alternative Forms of Security.**

As prescribed in 428.204-2, insert the following provision:

**ALTERNATIVE FORMS OF**

**SECURITY (NOV 1996)**

If furnished as security, money

orders, drafts, cashiers checks, or certified

checks shall be drawn payable to: \_\_\*\_\_.

(End of Provision)

\*[Contracting Officer shall insert the name]{.underline}

[of the USDA contracting activity.]{.underline}

**452.228-71 Insurance Coverage.**

As prescribed in 428.310, insert the following clause:

**INSURANCE COVERAGE**

**(NOV 1996)**

Pursuant to FAR clause 52.228-5, Insurance-Work on a Government
Installation, the Contractor will be

required to present evidence to show, as a minimum, the amounts of
insurance

coverage indicated below:

\(a\) Workers Compensation and Employer\'s Liability. The Contractor is
required to comply with applicable

Federal and State workers\' compensation and occupational disease
statutes. If occupational diseases are not

compensable under those statutes, they

shall be covered under the employer\'s

liability section of the insurance policy,

except when contract operations are so commingled with a Contractor\'s

commercial operations that it would not

be practical to require this coverage. Employer\'s liability coverage of
at least \$100,000 shall be required, except in

States with exclusive or monopolistic

funds that do not permit worker\'s compensation to be written by private
carriers.

\(b\) General Liability. The Contractor shall have bodily injury
liability insurance coverage written on a comprehensive

form of policy of at least \$500,000 per occurrence

\(c\) Automobile Liability. The Contractor shall have automobile
liability insurance written on a comprehensive

form of policy. The policy shall provide

for bodily injury and property damage

liability covering the operation of all automobiles used in connection
with performing the contract. Policies

covering automobiles operated in the

United States shall provide coverage of at least \$200,000 per person
and 500,000

per occurrence for bodily injury and

\$20,000 per occurrence for property

damage or loss.

\(d\) Aircraft Public and Passenger Liability. When aircraft are used in
connection with performing the contract,

the Contractor shall have aircraft public

and passenger liability insurance.

Coverage shall be at least \$200,000 per person and \$500,000 per
occurrence for bodily injury, other than passenger

injury. Coverage for passenger injury

shall be at least \$200,000 multiplied by

the number of seats or passengers,

whichever is greater.

(End of Clause)

[Alternate I]{.underline} (NOV 1996). As prescribed

in 428.310, substitute the following

paragraph (b), when additionally the contractor must have property
damage liability coverage:

\(b\) General Liability. (1) The Contractor shall have bodily injury

liability coverage written on a

comprehensive form of policy of at least \$500,000 per occurrence.

\(2\) The Contractor shall have property damage liability insurance
shall

be required in the amount of \_\_\_\_\*\_\_\_ per occurrence.

\*[Contracting Officer shall insert amount required.]{.underline}

**452.232-70 Reimbursement for Bond Premiums\--Fixed-Price
Construction**

**Contracts.**

As prescribed in 432.111, insert the following clause:

**\[The next page is 452-11.\]**

REIMBURSEMENT FOR BOND PREMIUMS\--FIXED-PRICE

**CONSTRUCTION CONTRACTS (NOV 1996)**

The Contract Price includes the total amount for premiums that the
Contractor attributes to the furnishing of perfor-

mance and payment bonds required by

the contract. Reimbursement for bond premiums under the clause at FAR

52.232-5, Payments Under Fixed-Price Construction Contracts, shall not
cover

any amount therefor not included in the contract price.

(End of clause)

**452.236-70 Additive or Deductive Items.**

As prescribed in 436.205, insert the following provision:

**ADDITIVE OR DEDUCTIVE ITEMS**

**(FEB 1988)**

The low bidder for purposes of

award shall be the conforming

responsible bidder offering the low aggregate amount for the first or
base bid item, plus or minus (in the order of

priority listed in the schedule) those

additive or deductive bid items

providing the most features of the work within the funds determined by
the government to be available before bids

are opened. If addition of another bid

item in the listed order of priority would make the award exceed such
funds for

all bidders, it shall be skipped and the

next subsequent additive bid item in a

lower amount shall be added if award therein can be made within such
funds.

For example, when the amount available

is \$100,000 and a bidder\'s base bid and four successive additives are
\$85,000, \$10,000, \$8,000, \$6,000, and \$4,000, the aggregate amount
of the bid for purposes

of award would be \$99,000 for the base

bid plus the first and fourth additives, the second and third additives
being skipped because of each of them would cause the aggregate bid to
exceed \$100,000. In

any case all bids shall be evaluated on

the basis of the same additive or

deductive bid items, determined as

above provided. The listed order of

priority need be followed only for determining the low bidder. After
determination of the low bidder as

stated, award in the best interests of the Government may be made on the

selected first or base bid item and any combination of additive or
deductive

items for which funds are determined to

be available at the time of the award, provided that award on such

combination of bid items does not

exceed the amount offered by any other conforming responsible bidder for
the

same combination of bid items.

(End of clause)

**452.236-71 Prohibition Against the**

**Use of Lead-Based Paint.**

As prescribed in 436.571, insert the following clause:

**PROHIBITION AGAINST THE USE**

**OF LEAD-BASED PAINT**

**(NOV 1996)**

Neither the Contractor nor any subcontractor performing under this

contract shall use paints containing more then 0.06 of 1 percent lead by
weight (calculated as lead metal) in the total nonvolatile content of
the paint, or the equivalent measure of lead in the dried

film of paint already applied, or both.

(End of clause)

**452.236-72 Use of Premises.**

As prescribed in 436.572, insert the following clause:

**USE OF PREMISES (NOV 1996)**

\(a\) Before any camp, quarry, borrow pit, storage, detour, or bypass
site, other than shown on the drawings, is opened or operated on USDA
land or lands ad-

ministered by the USDA, the Contractor shall obtain written permission
from the Contracting Officer. A camp is inter-

preted to include a campsite or trailer parking area of any employee
working

on the project for the Contractor.

\(b\) Unless excepted elsewhere in the contract, the Contractor shall
(i) provide and maintain sanitation facilities for the work force at the
site and (ii) dispose of solid waste in accordance with applica-

ble Federal, State and local regulations.

(End of clause)

**452.236-73 Archaeological or Historic Sites.**

As prescribed in 436.573, insert the following clause:

**ARCHAEOLOGICAL OR**

**HISTORIC SITES (FEB 1988)**

If a previously unidentified archaeological or historic site(s) is
encountered, the Contractor shall discontinue work in the general area
of

the site(s) and notify the Contracting

Officer immediately.

(End of clause)

**452.236-74 Control of Erosion, Sedimentation, and Pollution.**

As prescribed in 436.574, insert the following clause:

**CONTROL OF EROSION, SEDIMENTATION, AND POLLUTION (NOV 1996)**

\(a\) Operations shall be scheduled

and conducted to minimize erosion of

soils and to prevent silting and

muddying of streams, rivers, irrigation systems, and impoundments
(lakes, reservoirs, etc.).

\(b\) Pollutants such as fuels,

lubricants, bitumens, raw sewage, and

other harmful materials shall not be discharged on the ground; into or
nearby rivers, streams, or impoundments; or

into natural or man-made channels.

Wash water or waste from concrete or aggregate operations shall not be

allowed to enter live streams prior to treatment by filtration,
settling, or other means sufficient to reduce the sediment content to
not more than that of the

stream into which it is discharged.

\(c\) Mechanized equipment shall not

be operated in flowing streams without written approval by the
Contracting

Officer.

(End of clause)

**452.236-75 Maximum Workweek\--Construction Schedule.**

As prescribed in 436.575, insert the following clause:

**MAXIMUM WORKWEEK\--**

**CONSTRUCTION**

**SCHEDULE (NOV 1996)**

Within \_\_\_\_ calendar days after receipt of a written request from
the Contracting Officer, the Contractor must submit the following in
writing for

approval:

\(a\) A schedule as required by FAR clause 52.236-15, Schedules for
Construction Contracts, and

\(b\) The hours (including the daily starting and stopping times) and
days of

the week the Contractor proposes to

carry out the work.

The maximum workweek that will

be approved is \_\_\_\_\_\_\_\*\_\_\_\_\_\_\_.

(End of clause)

\*[Contracting Officer shall insert]{.underline}

[appropriate number of days and hours and/or days.]{.underline}

**452.236-76 Samples and Certificates.**

As prescribed in 436.576, insert the following clause:

**SAMPLES AND CERTIFICATES**

**(FEB 1988)**

When required by the specifications

or the Contracting Officer, samples, certificates, and test data shall
be

submitted after award of the contract, prepaid, in time for proper
action by the Contracting Officer or his/her designated representative.
Certificates and test data shall be submitted in triplicate to show
compliance with materials and

construction specified in the contract performance requirements.

Samples shall be submitted in

duplicate by the Contractor, except as otherwise specified, to show
compliance with the contract requirements.

Materials or equipment for which

samples, certifications or test data are required shall not be used in
the work

until approved in writing by the

Contracting Officer.

(End of clause)

**452.236-77 Emergency Response.**

As prescribed in 436.577, the following clause may be used in Forest

Service construction contracts:

**EMERGENCY RESPONSE**

**(NOV 1996)**

\(a\) [Contractor\'s Responsibility for]{.underline}

[Fire Fighting.]{.underline} (1) The Contractor, under the provisions of
FAR clause 52.236-9, PROTECTION OF EXISTING VEGETATION, STRUCTURES,
EQUIPMENT, UTILITIES, AND IMPROVEMENTS, shall immediately extinguish all
fires on the work site other than those fires in use as a part of the

work. (2) The Contractor may be held liable for all damages and for all
costs incurred by the Government for labor, subsistence, equipment,
supplies, and transportation deemed necessary to

control or suppress a fire set or caused

by the Contractor or the Contractor\'s agents or employees.

\(b\) [Contractor\'s Responsibility for Notification in Case of
Fire.]{.underline} The Contractor shall immediately notify the
Government of any fires sighted on or in

the vicinity of the work site.

( c) [Contractor\'s Responsibility for Responding to
Emergencies.]{.underline} When directed by the Contracting Officer, the
Contractor shall allow the Government

to temporarily use employees and equipment from the work site for
emergency work (anticipated to be restricted to fire fighting). An
equitable

adjustment for the temporary use of employees and equipment will be made
under the CHANGES clause, FAR

52.243-4.

(End of clause)

**452.236-78 \[Reserved\]**

**452.236-79 Opted Timber Sale Road Requirements.**

As prescribed in 436.579, insert the following clause:

**OPTED TIMBER SALE ROAD**

**REQUIREMENTS (NOV 1996)**

This contract is for the construction

of timber sale road(s) which a timber purchaser has opted to have the

Government construct. The Government

is obligated to make these roads

available to the timber purchaser by \_\_\_\_\_\_\*\_\_\_\_\_\_. Failure
to make these roads available by this date could result

in Government liability for delay to the timber purchaser for which the

Contractor might become liable should

the Contractor fail to complete this

contract within the specified and allowed contract time.

(End of clause)

\*[Contracting Officer shall insert appropriate date.]{.underline}

**452.236-80 Firms Ineligible for**

**Award \-- Construction.**

As prescribed in 436.670, insert the following clause:

**FIRMS INELIGIBLE FOR**

**AWARD\--CONSTRUCTION**

**(NOV 1996)**

The firm(s) and its subsidiaries or affiliates signatory to this
contract shall

be ineligible for award of any construc-

tion contract resulting from the design

work performed under this contract.

(End of clause)

**452.237-70 Loss, Damage,**

**Destruction or Repair.**

\(a\) As prescribed in 437.110(a),

insert a clause substantially as

follows:

**LOSS, DAMAGE, DESTRUCTION**

**OR REPAIR (FEB 1988)**

\(a\) For equipment furnished under

this contract without operator, the Government will assume liability for
any

loss, damage or destruction of such equipment, not to exceed a total of
\$\_\_\_\*\_\_\_ except that no reimbursement

will be made for loss, damage or

destruction due to (1) ordinary wear or

tear, (2) mechanical failure, or (3) the

fault or negligence of the Contractor or

the Contractor\'s agents or employees.

\(b\) For equipment furnished under

this contract with operator, the

Government shall not be liable for any

loss, damage or destruction of such equipment, except for loss, damage
or destruction resulting from the negligent

or wrongful act(s) of Government employee(s) while acting within the

scope of their employment.

\(c\) All repairs to equipment

furnished under this contract shall be

made by the Contractor and reimburse-

ment, if any, shall be determined in accordance with (a) or (b) above.

Repairs shall be made promptly and equipment returned to use within

\_\_\_\*\*\_\_\_ hours. In lieu of repairing equipment, the Contractor
may furnish similar replacement equipment within

the time specified. The Contractor may authorize the Government to make

repairs upon the request of the

Contracting Officer. In such case, the

Contractor will be billed for labor and

parts costs.

(End of Clause)

\*[Contracting Officer shall insert amount available in current funds to
cover]{.underline}

[potential liability.]{.underline}

\*\*[Contracting Officer shall insert appropriate number of
hours.]{.underline}

**452.237-71 Pre-Bid/Pre-Proposal Conference.**

As prescribed in 437.110(b), insert a provision substantially as
follows:

**PRE-BID/PRE-PROPOSAL**

**CONFERENCE (FEB 1988)**

\(a\) The Government is planning a

pre-bid/pre-proposal conference, during which potential offerors may
obtain a

better understanding of the work required.

\(b\) Offerors are encouraged to

submit all questions in writing at least

five (5) days prior to the conference. Questions will be considered at
any time prior to or during the conference;

however, offerors will be asked to con-

firm verbal questions in writing. Subse-

quent to the conference, an amendment

to the solicitation containing an abstract

of the questions and answers, and a list

of attendees, will be disseminated.

\(c\) In order to facilitate conference

preparations, it is requested that the

person named on the Standard Form 33

of this solicitation be contacted and

advised of the number of persons who

will attend.

\(d\) The Government assumes no responsibility for any expense incurred

by an offeror prior to contract award.

\(e\) Offerors are cautioned that, notwithstanding any remarks or

clarifications given at the conference, all terms and conditions of the
solicitation remain unchanged unless they are

changed by amendment to the solicita-

tion. If the answers to conference

questions, or any solicitation amend-

ment, create ambiguities, it is the responsibility of the offeror to
seek clarification prior to submitting an offer.

\(f\) The conference will be held:

Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Time: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Location: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(End of Clause)

**452.237-73 Equipment Inspection**

**Visit.**

As prescribed in 437.110(c), insert

the following provision:

**EQUIPMENT INSPECTION VISIT**

**(FEB 1988)**

Offerors are urged and expected

to inspect the equipment on which maintenance or repairs are to be

performed and to satisfy themselves regarding all conditions that may
affect

the cost of contract performance, to the extent that the information is
reasonably obtainable. In no event shall failure to inspect the
equipment constitute grounds for a claim after contract award.

Offerors are invited to inspect the \_\_\_\_\*\_\_\_\_ at
\_\_\_\_\_\*\_\_\_\_\_\_ by telephoning \_\_\_\_\_\*\_\_\_\_ on
\_\_\_\_\_\_\*\_\_\_\_\_ for an appointment.

(End of Clause)

\*[Contracting Officer shall insert appropriate data.]{.underline}

**452.237-74 Key Personnel.**

As prescribed in 437.110(d), insert a clause substantially as follows:

**KEY PERSONNEL (FEB 1988)**

\(a\) The Contractor shall assign to

this contract the following key

personnel: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(b\) During the first ninety (90) days

of performance, the Contractor shall

make no substitutions of key personnel unless the substitution is
necessitated by illness, death, or termination of employment. The
Contractor shall

notify the Contracting Officer within 15 calendar days after the
occurrence of any of these events and provide the

information required by paragraph (c) below. After the initial 90-day
period,

the Contractor shall submit the

information required by paragraph (c) to

the Contracting Officer at least 15 days

prior to making any permanent

substitutions.

\(c\) The Contractor shall provide a detailed explanation of the circum-

stances necessitating the proposed substitutions, complete resumes for
the proposed substitutes, and any additional information requested by
the Contracting Officer. Proposed substitutes should

have comparable qualifications to those

of the persons being replaced. The Contracting Officer will notify the
Contractor within 15 calendar days after receipt of all required
information of the decision on substitutions. The contract

will be modified to reflect any approved changes of key personnel.

(End of Clause)

**452.237-75 Restrictions Against Disclosure.**

As prescribed in 437.110(e), insert a clause substantially as follows:

**RESTRICTIONS AGAINST**

**DISCLOSURE (FEB 1988)**

\(a\) The Contractor agrees, in the performance of this contract, to
keep all information contained in source

documents or other media furnished by

the Government in the strictest

confidence. The Contractor also agrees

not to publish or otherwise divulge such information in whole or in part
in any

manner or form, or to authorize or

permit others to do so, taking 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 agrees to immediately notify

in writing, the Contracting Officer,

named herein, in the event that the Contractor determines or has reason
to suspect a breach of this requirement.

\(b\) The Contractor agrees not to disclose any information concerning
the work under this contract to any persons

or individual unless prior written

approval is obtained from the

Contracting Officer. The Contractor agrees to insert the substance of
this

clause in any consultant agreement or subcontract hereunder.

(End of Clause)

**452.237-76 Progress Reporting.**

As prescribed in 437.270(a), insert a clause substantially as follows:

**PROGRESS REPORTING**

**(FEB 1988)**

The Contractor shall submit a

progress report \_\_\_\*\_\_\_, covering work accomplished during that
period of the contract performance. The progress

report shall be brief and factual and shall

be prepared in accordance with the following format:

\(a\) A cover page containing:

\(1\) Contract number and title;

\(2\) Type of report, sequence number of report, and period of
performance being reported;

\(3\) Contractor\'s name and address;

\(4\) Author(s); and

\(5\) Date of report.

\(b\) SECTION I - An introduction covering the purpose and scope of the
contract effort. This shall be limited to

one paragraph in all but the first and

final month\'s narrative.

\(c\) SECTION II - A description of overall progress plus a separate

description of each task or other logical segment of work on which
effort was expended during the report period. The description shall
include pertinent data and/or graphs in sufficient detail to

explain any significant results achieved.

\(d\) SECTION III - A description of current technical or substantive
performance, and any problem(s) which may impede performance along with
proposed corrective action.

\(e\) SECTION IV - A planning schedule shall be included with the first
progress report for all assigned tasks required under the contract,
along with

the estimated starting and completion

dates for each task. The planning

schedule shall be updated and submitted with each subsequent technical
progress report, including an explanation of any difference between
actual progress and planned progress, why the differences

have occurred, and\--if behind planned progress\--what corrective steps
are planned.

\(f\) SECTION V - If applicable, financial information shall be
submitted

for each major task or line item cost.

Data shall include:

\(1\) The total estimated cost budgeted (fee excluded).

\(2\) The estimated cost

expended during the current reporting

period.

\(3\) Identification of direct labor hours of prime contractor and
subcontractor(s) and/or consultant(s), if applicable.

\(4\) Total project to-date expenditures.

\(5\) Total remaining funds.

(End of Clause)

\*[Contracting Officer shall insert]{.underline}

[frequency of reporting requirement.]{.underline}

**452.237-78 Contracts with Consulting Firms for Services.**

As prescribed in 437.270(b), insert a clause substantially as follows:

**CONTRACTS WITH CONSULTING FIRMS FOR SERVICES (FEB 1988)**

Offerors are specifically cautioned

that any firm(s) receiving a contract

award to provide the services described herein will be prohibited from

competing for or receiving a follow-on contract to perform \_\_\_\_ \*
\_\_\_\_.

(End of Clause)

\*[Contracting Officer shall insert the appropriate
information]{.underline}.

**452.246-70 Inspection and**

**Acceptance.**

As prescribed in 446.370, insert the following clause:

**INSPECTION AND ACCEPTANCE**

**(FEB 1988)**

\(a\) The Contracting Officer or the Contracting Officer\'s duly
authorized representative will inspect and accept the supplies and/or
services to be provided under this contract.

\(b\) Inspection and acceptance will

be performed at: \_\_\_\_\_\_\_\_\*\_\_\_\_\_\_\_\_\_.

(End of clause)

\*[Contracting Officer shall insert]{.underline}

[appropriate identifying data.]{.underline}

[Alternate I]{.underline} (FEB 1988). As prescribed

in 446.370, substitute a paragraph (b)

and add a paragraph (c):

\(b\) Inspection will be performed at:
\_\_\_\_\_\_\_\_\_\_\*\_\_\_\_\_\_\_\_\_\_\_

\(c\) Acceptance will be performed at:
\_\_\_\_\_\_\_\_\_\_\*\_\_\_\_\_\_\_\_\_\_\_

(End of clause)

**452.247-70 Delivery Location.**

As prescribed in 447.302, insert a clause substantially as follows:

**DELIVERY LOCATION (FEB 1988)**

Shipment of deliverable items, other than reports, shall be to:
\_\_\_\_\*\_\_\_\_.

(End of Clause)

\*[Contracting Officer shall insert appropriate identifying
data.]{.underline}

**452.247-71 Marking Deliverables.**

As prescribed in 447.305-10(a),

insert a clause substantially as follows:

**MARKING DELIVERABLES**

**(FEB 1988)**

\(a\) The contract number shall be placed on or adjacent to all exterior

mailing or shipping labels of deliverable items called for by the
contract.

\(b\) Mark deliverables, except

reports, for: \_\_\_\_\_\_\_\*\_\_\_\_\_\_\_.

(End of Clause)

\*[Contracting Officer shall insert the appropriate
information.]{.underline}

**452.247-72 Packing for Domestic Shipment.**

As prescribed in 447.305-10(b),

insert the following clause:

**PACKING FOR DOMESTIC**

**SHIPMENT (FEB 1988)**

Material shall be packed for

shipment in such a manner that will

insure acceptance by common carriers

and safe delivery at destination.

Containers and closures shall comply

with the Interstate Commerce

Commission regulations, Uniform

Freight Classification Rules, or

regulations of other carriers as applicable

to the mode of transportation.

(End of Clause)

**452.247-73 Packing for Overseas Shipment.**

As prescribed in 447.305-10(c),

insert the following clause:

**PACKING FOR OVERSEAS**

**SHIPMENT (FEB 1988)**

Supplies shall be packed for

overseas shipment in accordance with

the best commercial export practice suitable for water movement to
arrive undamaged at ultimate destination.

(End of Clause)

**PART 453\--FORMS**

**TABLE OF CONTENTS**

Sec.

453.000 Scope of part.

**SUBPART 453.1\--GENERAL**

453.103 Exceptions.

453.108 Recommendations concerning forms.

**SUBPART 453.2\--PRESCRIPTION OF FORMS**

453.200 Scope of subpart.

453.213 Simplified Acquisition and other simplified purchase procedures
(AD-838).

453.270 Request for contract action (AD-700).

**SUBPART 453.3\--ILLUSTRATIONS OF FORMS**

453.300 Scope of subpart.

453.303 Agency forms.

453.303-700 Procurement Request (AD-700).

453.303-838 Purchase Order (AD-838).

Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

**PART 453**

**FORMS**

**453.000 Scope of part.**

This part: (a) Prescribes USDA

(AD) forms for use in acquisition, (b) Contains requirements and
information generally applicable to AD forms and

forms prescribed by FAR Part 53, and

\(c\) illustrates AD forms.

**SUBPART 453.1\--GENERAL**

**453.103 Exceptions.**

\(a\) The contracting officer shall

submit a request for exceptions to forms prescribed in FAR Part 53
through the

head of the contracting activity (HCA) to

the Senior Procurement Executive (SPE)

for referral to the GSA.

\(b\) Requests for exceptions to AD forms prescribed in Part 453 shall
be handled as individual or class deviations,

as appropriate (see Subpart 401.4).

**453.108 Recommendations**

**concerning forms.**

Contracting officers shall submit recommendations for new forms or to
revise, eliminate, or consolidate forms prescribed by FAR 53 and Part
453

through the HCA to the SPE.

**SUBPART 453.2\--PRESCRIPTION**

**OF FORMS**

**453.200 Scope of subpart.**

This subpart prescribes USDA (AD) forms for use in acquisition.
Consistent with the approach used in FAR Subpart 53.2, this subpart is
arranged by subject matter, in the same order as, and keyed

to, the parts of the AGAR in which the form usage requirements are
addressed.

**453.213 Simplified Acquisition and other simplified purchase
procedures (AD-838).**

Form AD-838, [Purchase Order]{.underline}, is prescribed for use as a
Simplified Acquisition Procedure /delivery

order/task order document in lieu of OF

347 and OF 348, except that use of the OF 347 and OF 348 is authorized
when utilizing the USDA Integrated Acquisition System. (see 413.307).

**453.270 Request for contract action (AD-700).**

Form AD-700, [Procurement]{.underline}

[Request]{.underline}, may be used as a contract requisition document by
contracting activities in USDA.

**SUBPART 453.3 ILLUSTRATIONS**

**OF FORMS**

**453.300 Scope of subpart.**

This subpart contains illustrations of

USDA (AD) forms for use in

acquisitions.

Forms are not illustrated in the FEDERAL REGISTER or Code of Federal
Regulations. Individual copies

may be obtained from any USDA contracting activity or the office of the

SPE.

**453.303 Agency forms.**

**453.303-700 Procurement Request (AD-700).**