### AMS Change Request Number: 01-59 Date Received: 7/25/01

**(Clause Change 24)**

**Title: Service Disabled Veteran Small Business**

NAME: Frederick Dendy

BRANCH: ARA-5

PHONE: 267-7454

TYPE OF CHANGE REQUEST: Both

DESCRIPTION OF REQUEST: This change incorporates definitions for the
terms small disadvantaged business (SDB), and service-disabled
veteran-owned small business (SDVOSB) into Appendix C (Definitions),
Clauses 3.6.1-3, 3.6.1-4, and 3.6.1-6. This change also modifies
language contained in Section 3.2.1.3.4 and adds acronyms SDB and NAIC
to Appendix D (Acronyms).

REASON FOR CHANGE: This change is in response to the Veterans
Entrepreneurship and Small Business Development Act of 1999.
Additionally, this change clarifies:

the meaning of the terms SDB, SDVOSB and NAIC; and

the intent of Section 3.2.1.4 to apply to requirements being procured
FAA-wide

EXTENT OF DEVELOPMENT & REVIEW: None

TARGET AUDIENCE: Industry and all FAA procurement officials

POTENTIAL FAST LINKS: None

ATTACHMENTS: See e-mail

**\`**

**FAA Acquisition Management System Clauses**

**Change 24 --September 2001**

This document transmits revisions, additions, and deletions to FAA
Acquisition Management System clauses and provisions. Unless otherwise
specified, these changes are effective September 1, 2001 and apply to
all screening information requests and contracts issued after September
1, 2001.

**A. [CLAUSES REVISED]{.underline}**

3.6.1-3 Utilization of Small, Small Disadvantaged, Women-Owned, and
Service-Disabled Veteran Owned Small Business Concerns

3.6.1-4 Small, Small Disadvantaged, Women-Owned and Service-Disabled
Veteran Owned Small Business Subcontracting Plan

3.6.1-6 Liquidated Damages\--Subcontracting Plan

B.  **[CLAUSES ADDED]{.underline}**

None

**C. [CLAUSES REMOVED]{.underline}**

None

D.  **[PRESCRIPTIONS CHANGED/DELETED]{.underline}**

    1.  Indemnification Under Public Law 85-804

Alternate

**[E. DISPOSITION OF THIS CHANGE]{.underline}**

**N/A**

**F. [ATTACHMENT]{.underline}**

The following revised/added clauses are attached to this change.

3.6.1-3 Utilization of Small, Small Disadvantaged, Women-Owned, and
Service-Disabled Veteran Owned Small Business Concerns

3.6.1-4 Small, Small Disadvantaged, Women-Owned and Service-Disabled
Veteran Owned Small Business Subcontracting Plan

3.6.1-6 Liquidated Damages\--Subcontracting Plan

**END OF CHANGE 24 --September 2001**

**3.6.1-3 Utilization of Small, Small Disadvantaged,** **Women-Owned,
and Service-Disabled Veteran Owned** **Small Business Concerns**
(September 2001)

\(a\) It is the policy of the Federal Aviation Administration that small
business concerns and small business concerns owned and controlled by
socially and economically disadvantaged individuals shall be provided
reasonable opportunities to participate in performing contracts it lets,
including contracts and subcontracts for subsystems, assemblies,
components, and related services for major systems. It is further the
policy of the United States that its prime contractors establish
procedures to ensure the timely payment of amounts due pursuant to the
terms of their subcontracts with small business concerns and small
business concerns owned and controlled by socially and economically
disadvantaged individuals.

\(b\) The Contractor hereby agrees to carry out this policy in the
awarding of subcontracts to the fullest extent consistent with efficient
contract performance. The Contractor further agrees to cooperate in any
studies or surveys as may be conducted by the FAA as may be necessary to
determine the extent of the Contractor\'s compliance with this clause.

\(c\) The terms \"small disadvantaged business, and small business
concern owned and controlled by socially and economically disadvantaged
individuals\" shall mean a small business concern

\(1\) Which is at least 51 percent unconditionally owned by one or more
socially and economically disadvantaged individuals; or, in the case of
any publicly owned business, at least 51 per centum of the stock of
which is unconditionally owned by one or more socially and economically
disadvantaged individuals; and

\(2\) Whose management and daily business operations are controlled by
one or more of such individuals.

\(3\) This term also means a small business concern that is at least 51
percent unconditionally owned by an economically disadvantaged Indian
tribe or Native Hawaiian Organization, or a publicly owned business
having at least 51 percent of its stock unconditionally owned by one of
these entities which has its management and daily business controlled by
members of an economically disadvantaged Indian tribe or Native Hawaiian
Organization. The Contractor shall presume that socially and
economically disadvantaged individuals include Black Americans, Hispanic
Americans, Native Americans, Asian- Pacific Americans, Subcontinent
Asian Americans, and other minorities, or any other individual found to
be disadvantaged by the FAA. The Contractor shall presume that socially
and economically disadvantaged entities also include Indian Tribes and
Native Hawaiian Organizations.

\(d\) The term \`\`small business concern owned and controlled by
women\'\' shall mean a small business concern:

\(1\) Which is at least 51 percent owned by one or more women, or, in
the case of any publicly owned business, at least 51 percent of the
stock of which is owned by one or more women; and

(2) Whose management and daily business operations are controlled by one
    or more women; and

\(e\) The term \"service-diabled veteran owned small business concern\"
shall mean a small business that is 51% owned and controlled by a
service-disabled veteran(s).

\(f\) Contractors acting in good faith may rely on written
representations by their subcontractors regarding their status as a
small business concern, a small disadvantaged business concern, a small
business concern owned and controlled by socially and economically
disadvantaged individuals, a small business concern owned and controlled
by women or a service-disabled veteran owned small business concern.

(End of clause)

**3.6.1-4 Small, Small Disadvantaged,** **Women-Owned** **and
Service-Disabled Veteran** **Owned** **Small Business Subcontracting
Plan** (September 2001)

\(a\) This clause does not apply to small business concerns.

\(b\) Definitions:

\(1\) Commercial product, as used in this clause, means a product in
regular production that is sold in substantial quantities to the general
public and/or industry at established catalog or market prices. It also
means a product which, in the opinion of the Contracting Officer,
differs only insignificantly from the Contractor\'s commercial product.

(2) Subcontract, as used in this clause, means any agreement (other than
    one involving an employer-employee relationship) entered into by a
    Federal Government prime Contractor or subcontractor calling for
    supplies or services required for performance of the contract or
    subcontract.

(3) The terms \"small disadvantaged business and and small business
    concern owned and controlled by socially and economically
    disadvantaged individuals\" shall mean a small business concern:

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(i) Which is at least 51 percent unconditionally owned by one or more
    socially and economically disadvantaged individuals; or, in the case
    of any publicly owned business at least 51 percentum of the stock of
    which is unconditionally owned by one or more socially and
    economically disadvantaged individuals; and

(ii) Whose management and daily business operations are controlled by
     one or more of such individuals.

(iii) This term also means a small business concern that is at least 51
      percent unconditionally owned by an economically disadvantaged
      Indian tribe or Native Hawaiian Organization, or a publicly owned
      business having at least 51 percent of its stock unconditionally
      owned by one of these entities which ahs its management and daily
      business controlled by members of an economically disadvantaged
      Indian tribe or Native Hawaiian Organization. The Contractor shall
      presume that socially and economically disadvantaged individuals
      include Black Americans, Hispanic Americans, Native Americans,
      Asian-Pacific Americans, Subcontinent Asian Americansand other
      minorities, or any other individual found to be disadvantaged by
      the FAA. The contractor shall presume that socially and
      econmically disadvantaged entities also include Indian Tribes and
      Native Hawaiian Organizations

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```
(4) The term \"small business concern owned and controlled by women\"
    shall mean a small business concern:

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```
(i) Which is at least 51 percent owned by one or more women or in the
    case of any publicly owned business, at least 51 percent of the
    stock of which is owned by one or more women; and

(ii) Whose management and daily business operations are controlled by
     one or more women.

> \(5\) The term \"service disabled veteran owned small business
> concern\" shall mean a small business that is 51 percent owned and
> controlled by a service disabled veteran(s).

\(c\) The offeror, upon request by the Contracting Officer, shall submit
and negotiate a subcontracting plan, where applicable, which separately
addresses subcontracting with small business concerns, with small
disadvantaged business concerns, with women-owned small business
concerns, and with service- disabled veteran owned small business
concerns. If the offeror is submitting an individual contract plan, the
plan must separately address subcontracting with small business
concerns, small disadvantaged business concerns, women-owned small
business concerns and service-disabled veteran owned small business
concerns with a separate part for the basic contract and separate parts
for each option (if any). The plan shall be included in and made a part
of the resultant contract. The subcontracting plan shall be negotiated
within the time specified by the Contracting Officer. Failure to submit
and negotiate the subcontracting plan shall make the offeror ineligible
for award of a contract.

\(d\) The offeror\'s subcontracting plan shall include the following:

\(1\) Goals, expressed in terms of percentages of total planned
subcontracting dollars, for the use of small business concerns, small
disadvantaged business concerns, women-owned small business concerns,
and service-disabled veteran owned small business concerns as
subcontractors. The offeror shall include all subcontracts that
contribute to contract performance, and may include a proportionate
share of products and services that are normally allocated as indirect
costs.

\(2\) A statement of\--

\(i\) Total dollars planned to be subcontracted;

\(ii\) Total dollars planned to be subcontracted to small business
concerns;

\(iii\) Total dollars planned to be subcontracted to small disadvantaged
business concerns;

\(iv\) Total dollars planned to be subcontracted to women-owned small
business concerns: and

(v)Total dollars planned to be subcontracted to service-disabled veteran
owned small business concerns.

\(3\) A description of the principal types of supplies and services to
be subcontracted, and an identification of the types planned for
subcontracting to (i) small business concerns, (ii) small disadvantaged
business concerns, (iii) women-owned small business concerns and (iv)
service-disabled veteran owned small business concerns.

\(4\) A description of the method used to develop the subcontracting
goals in paragraph (d)(1) of this clause.

\(5\) A description of the method used to identify potential sources for
solicitation purposes (e.g., existing company source lists, the
Procurement Automated Source System (PASS) of the Small Business
Administration, the National Minority Purchasing Council Vendor
Information Service, the Research and Information Division of the
Minority Business Development Agency in the Department of Commerce, or
small, small disadvantaged and women- owned small business concerns
trade associations). A firm may rely on the information contained in
PASS as an accurate representation of a concern\'s size and ownership
characteristics for purposes of maintaining a small business source
list. A firm may rely on PASS as its small business source list. Use of
the PASS as its source list does not relieve a firm of its
responsibilities (e.g., outreach, assistance, counseling, publicizing
subcontracting opportunities) in this clause.

\(6\) A statement as to whether or not the offeror included indirect
costs in establishing subcontracting goals, and a description of the
method used to determine the proportionate share of indirect costs to be
incurred with (i) small business concerns, (ii) small disadvantaged
business concerns, (iii) women-owned small business concerns and (iv)
service-disabled veteran owned small business concerns.

\(7\) The name of the individual employed by the offeror who will
administer the offeror\'s subcontracting program, and a description of
the duties of the individual.

\(8\) A description of the efforts the offeror will make to assure that
small, small disadvantaged, women-owned, service-disabled veteran owned
small business concerns have an equitable opportunity to compete for
subcontracts.

\(9\) Assurances that the offeror will include the clause in this
contract titled \`\`Utilization of Small, Small Disadvantaged,
Women-Owned, and Service-Disabled Veteran Owned Small Business
Concerns\'\' in all subcontracts that offer further subcontracting
opportunities, and that the offeror will require all subcontractors
(except small business concerns) who receive subcontracts in excess of
\$5,000,000 (\$1,000,000 for construction of any public facility) to
adopt a plan similar to the plan agreed to by the offeror.

\(10\) Assurances that the offeror will:

\(i\) Cooperate in any studies or surveys as may be required,

\(ii\) Submit periodic reports in order to allow the Government to
determine the extent of compliance by the offeror with the
subcontracting plan,

\(iii\) Submit Subcontracting Reports for Individual Contracts in
electronic format (MS Excel File Size 4KB) via FAA web site located at
http://www.faa.gov/sbo (\"Subcontracting Report for Individual
Contracts\") to the contracting officer and to Fred.Dendy@faa.gov
(include electronic signature on Page 2 of the report). Additionally,
these reports shall be submitted in accordance with the instructions
contained at FAA web site http://www.faa.gov/sbo, Instructions for
Completing the Subcontracting Report for Individual Contracts. Submit SF
295, Summary Subcontract Report, in accordance with the instructions on
the SF 295; and

\(iv\) Ensure that its subcontractors agree to submit Subcontracting
Reports for Individual Contracts and Standard Form 295.

\(11\) A recitation of the types of records the offeror will maintain to
demonstrate procedures that have been adopted to comply with the
requirements and goals in the plan, including establishing source lists;
and a description of its efforts to locate small, small disadvantaged,
women-owned, and service-disabled veteran owned small business concerns
and award subcontracts to them. The records shall include at least the
following (on a plant-wide or company-wide basis, unless otherwise
indicated):

\(i\) Source lists (e.g., PASS), guides, and other data that identify
small, small disadvantaged, women-owned and service-disabled veteran
owned small business concerns.

\(ii\) Organizations contacted in an attempt to locate sources that are
small, small disadvantaged women-owned, or service-diabled veteran owned
small business concerns.

\(iii\) Records on each subcontract solicitation resulting in an award
of more than \$100,000, indicating

\(A\) Whether small business concerns were solicited and if not, why
not,

\(B\) Whether small disadvantaged business concerns were solicited and
if not, why not,

(C) Whether women-owned small business concerns were solicited and if
    not, why not,

(D) Whether service-disabled veteran owned small business concerns were
    solicited and if not, why not, and

\(E\) If applicable, the reason award was not made to a small business
concern.

\(iv\) Records of any outreach efforts to contact the following:

\(A\) Trade associations,

\(B\) Business development organizations, and

\(C\) Conferences and trade fairs to locate small, small
disadvantaged,women-owned, and service-disabled small business sources.

\(v\) Records of internal guidance and encouragement provided to buyers
through

\(A\) Workshops, seminars, training, etc., and

\(B\) Monitoring performance to evaluate compliance with the program\'s
requirements.

\(vi\) On a contract-by-contract basis, records to support award data
submitted by the offeror to the Government, including the name, address,
and business size of each subcontractor. Contractors having company or
division-wide annual plans need not comply with this requirement.

\(e\) In order to effectively implement this plan to the extent
consistent with efficient contract performance, the Contractor shall
perform the following functions:

\(1\) Assist small, small disadvantaged, women-owned, and
service-disabled veteran owned small business concerns by arranging
solicitations, time for the preparation of bids, quantities,
specifications, and delivery schedules so as to facilitate the
participation by such concerns. Where the contractor\'s lists of
potential small, small disadvantaged, women-owned, and service-disabled
veteran owned small business subcontractors are excessively long,
reasonable effort shall be made to give all such small business concerns
an opportunity to compete over a period of time.

\(2\) Provide adequate and timely consideration of the potentialities of
small, small disadvantaged, women-owned, and service-disabled veteran
owned small business concerns in all \`\`make-or-buy\'\' decisions.

\(3\) Counsel and discuss subcontracting opportunities with
representatives of small, small disadvantaged, women-owned, and
service-disabled veteran owned small business concerns,.

\(4\) Provide notice to subcontractors concerning penalties and remedies
for misrepresentations of business status as small, small disadvantaged,
women-ownedor service-disabled veteran owned small business for the
purpose of obtaining a subcontract that is to be included as part or all
of a goal contained in the Contractor\'s subcontracting plan.

\(f\) A master subcontracting plan on a plant or division-wide basis
which contains all the elements required by (d) above, except goals, may
be incorporated by reference as a part of the subcontracting plan
required of the offeror by this clause; provided:

\(1\) The master plan has been approved,

\(2\) The offeror provides copies of the approved master plan and
evidence of its approval to the Contracting Officer, and

\(3\) Goals and any deviations from the master plan deemed necessary by
the Contracting Officer to satisfy the requirements of this contract are
set forth in the individual subcontracting plan.

\(g\) (1) If a commercial product is offered, the subcontracting plan
required by this clause may relate to the offeror\'s production
generally, for both commercial and noncommercial products, rather than
solely to the Government contract. In these cases, the offeror shall,
with the concurrence of the Contracting Officer, submit one company-wide
or division-wide annual plan.

\(2\) The annual plan shall be reviewed for approval by the agency
awarding the offeror its first prime contract requiring a subcontracting
plan during the fiscal year, or by an agency satisfactory to the
Contracting Officer.

\(3\) The approved plan shall remain in effect during the offeror\'s
fiscal year for all of the offeror\'s commercial products.

\(h\) Prior compliance of the offeror with other such subcontracting
plans under previous contracts will be considered by the Contracting
Officer in determining the responsibility of the offeror for award of
the contract.

\(i\) The failure of the Contractor or subcontractor to comply in good
faith with (1) the clause of this contract titled \"Utilization Of
Small, Small Disadvantaged, Women-Owned, and Service-Disabled Veteran
Owned Small Business Concerns,\" or (2) an approved plan required by
this clause, shall be a material breach of the contract.

(End of clause)

**3.6.1-6 Liquidated Damages\--Subcontracting Plan** (September 2001)

\(a\) Failure to make a good faith effort to comply with the
subcontracting plan, as used in this clause, means a willful or
intentional failure to perform in accordance with the requirements of
the subcontracting plan approved under the clause in this contract
titled \"Small, Small Disadvantaged, Women-Owned, and Service-Disabled
Veteran Owned Small Business Subcontracting Plan,\" or willful or
intentional action to frustrate the plan.

\(b\) If, at contract completion, or in the case of a commercial product
plan, at the close of the fiscal year for which the plan is applicable,
the Contractor has failed to meet its subcontracting goals and the
Contracting Officer decides in accordance with paragraph (c) of this
clause that the Contractor failed to make a good faith effort to comply
with its subcontracting plan, established in accordance with the clause
in this contract titled \"Small, Small Disadvantaged, Women-Owned, and
Service-Disabled Veteran Owned Small Business Subcontracting Plan,\" the
Contractor shall pay the Government liquidated damages in an amount
stated. The amount of damages attributable to the Contractor\'s failure
to comply shall be an amount equal to the actual dollar amount by which
the Contractor failed to achieve each subcontract goal or, in the case
of a commercial products plan, that portion of the dollar amount
allocable to Government contracts by which the Contractor failed to
achieve each subcontract goal.

(c) Before the Contracting Officer makes a final decision that the
    Contractor has failed to make such good faith effort, the
    Contracting Officer shall give the Contractor written notice
    specifying the failure and permitting the Contractor to demonstrate
    what good faith efforts have been made. Failure to respond to the
    notice may be taken as an admission that no valid explanation
    exists. If, after consideration of all the pertinent data, the
    Contracting Officer finds that the Contractor failed to make a good
    faith effort to comply with the subcontracting plan, the Contracting
    Officer shall issue a final decision to that effect and require that
    the Contractor pay the Government liquidated damages as provided in
    paragraph (b) of this clause.

> \(d\) With respect to commercial product plans; i.e., company- wide or
> division-wide subcontracting plans approved under paragraph (g) of the
> clause in this contract titled \"Small, Small Disadvantaged,
> Women-Owned, and Service-Disabled Veteran Owned Small Business
> Subcontracting Plan,\" the Contracting Officer of the agency that
> originally approved the plan will exercise the functions of the
> Contracting Officer under this clause on behalf of all agencies that
> awarded contracts covered by that commercial product plan.

\(e\) The Contractor shall have the right of appeal from any final
decision of the Contracting Officer.

\(f\) Liquidated damages shall be in addition to any other remedies that
the Government may have.

(End of clause)

**Prescriptions Changed**:

1.  **Indemnification Under Public Law 85-804**

Should be used in SIR's and contracts if the contractor will be exposed
to unusually hazardous or nuclear risks and the DOT Secretary has
authorized the use of the clause.

Alternate 1

Should be used in cost reimbursement SIR's and contracts if the
contractor will be exposed to unusually hazardous or nuclear risks and
the DOT Secretary has authorized the use of the clause.

End of Clause Change 24 Summary

## AMS Change Request Number: 01-62 Date Received: 9/25/01

**(Clause Change 25)**

**Title: Security Changes**

# NAME: Ross Parker

BRANCH: ASU-110

# PHONE: 202 267-7527

TYPE OF CHANGE REQUEST: Guidance

DESCRIPTION OF REQUEST: This change revises, add, and delete clauses and
prescriptions pertaining to Security issues.

REASON FOR CHANGE: Updating clauses to incorporate new Security orders.

EXTENT OF DEVELOPMENT & REVIEW: Legal, Regions, Centers, ASU, and ACP.

TARGET AUDIENCE: All FAA employees dealing with the AMS.

POTENTIAL FAST LINKS: Procurement Toolset, Guidance

ATTACHMENTS: See Attachment

**FAA Acquisition Management System Clauses**

**Change 25 -- October 2001**

This document transmits revisions, additions, and deletions to FAA
Acquisition Management System clauses and provisions. Unless otherwise
specified, these changes are effective October 1, 2001 and apply to all
screening information requests and contracts issued after October 1,
2001.

**A. [CLAUSES REVISED]{.underline}**

**3.13-2 Security Requirements**

**3.13-2/alt1 Security Requirements**

**3.13-2/alt2 Security Requirements**

**3.13-6 Contractor Personnel Suitability Requirements**

**3.13-8 Foreign Nationals as Contractor Employees**

C.  **[CLAUSES ADDED]{.underline}**

3.13-9 Government-Issued Keys, Identification Badges, and Vehicle Decals

**C. [CLAUSES REMOVED]{.underline}**

3.13-7 Qualifications of Employees

3.8.2-21 Key Badge Requirements

E.  **[PRESCRIPTIONS CHANGED/DELETED]{.underline}**

    1.  Approval of Contract

    2.  Security Requirements

3.13-2/alt1 Security Requirements

3.13-2/alt2 Security Requirements

3.  Printing/Coping Double Sided on Recycled Paper

4.  Contractor Identification Number-Data Universal Numbering System
    (DUNS)

5.  Seat Belt Use by Contractor Employees

6.  Contractor Personnel Suitability Requirements

7.  Qualifications of Employees

8.  Foreign Nationals as Contractor Employees

3.8.2-21 Key Badge Requirements

**[E. DISPOSITION OF THIS CHANGE]{.underline}**

**N/A**

**F. [ATTACHMENT]{.underline}**

The following revised/added clauses are attached to this change.

**3.13-1 Approval of Contract**

**3.13-2 Security Requirements**

**3.13-2/alt1 Security Requirements**

**3.13-2/alt2 Security Requirements**

**3.13-3 Printing/Copying Double-sided on Recycled Paper**

**3.13-4 Contractor Identification Number---Data Universal Numbering
System (DUNS) Number**

**3.13-5 Seat Belt Use by Contractor Employees**

**3.13-6 Contractor Personnel Suitability Requirements**

**3.13-7 Key- Government-Issued Keys, Identification Badges and Vehicle
Decals**

**3.13-8 Foreign Nationals as Contractor Employees**

**END OF CHANGE 25 --October 2001**

**3.8.2-21 RESERVED**

3.13-1 Approval of Contract (April 1996)

### PRESCRIPTION

Should be used in SIRs and contracts to notify contractors of the person
who has the delegated procurement authority to sign the contract if the
Contracting Officer determines that it is in the best interest of the
agency to do so.

**3.13-2 Security Requirements -- Classified Contracts (October 2001)**

\(a\) This clause applies to the extent that this contract involves
access to information that is classified as "Confidential," "Secret," or
"Top Secret."

\(b\) The Contractor shall comply with the requirements in (1) the
Contract Security Classification Specification (DD Form 254) included in
the current edition of the National Industrial Security Operating Manual
(DOD 5220.22-M) for the protection of classified information at its
cleared facility, if applicable, as directed by the Defense Security
Service. If the Contactor has access to classified information at an FAA
owned or FAA leased facility, it shall comply with the security
requirements of the FAA.

\(c\) If, subsequent to the date of this contract, the security
classification or security requirements under this contract are changed
by the Government and if the changes cause an increase or decrease in
security costs or otherwise affect any other term or condition

of this contract, the contract shall be subject to an equitable
adjustment.

\(d\) The Contractor agrees to insert terms that conform substantially
to the language of this clause, including this paragraph d) but
excluding any reference to the \"Changes\" clause of this contract, in
all subcontracts under this contract that involve access to

classified information.

(End of clause)

# PRESCRIPTION

Shall be used in SIRs and contracts when the contract may require access
to information that is classified as "Confidential\", "Secret", or "Top
Secret".

**3.13-2/alt1 Security Requirements --Classified Contracts. Alternate I
( October 2001)**

If a cost contract for research and development with an educational
institution is contemplated, add the following paragraphs (e), (f), and
(g) to the basic clause: 3.13.2 - \"Security Requirements.\"

\(e\) If a change in security requirements, as provided in paragraphs
(b) and (c), results in:

\(1\) a change in the security classification of this contract or any of
its elements from an unclassified status or a lower classification to a
higher classification, or

\(2\) more restrictive area controls than previously required, the
Contractor shall exert every reasonable effort compatible with the
Contractor\'s established policies to continue the performance of work
under the contract in compliance with the change in security
classification or requirements.

If, despite reasonable efforts, the Contractor determines that the
continuation of work under this contract is not practicable because of
the change in security classification or requirements, the Contractor
shall notify the Contracting Officer in writing. Until resolution of the
problem is made by the Contracting Officer, the Contractor shall
continue safeguarding all classified material as required by this
contract.

\(f\) After receiving the written notification, the Contracting Officer
shall explore the circumstances surrounding the proposed change in
security classification or requirements, and shall endeavor to work out
a mutually satisfactory method whereby the Contractor can continue
performance of the work under this contract.

\(g\) If, 15 days after receipt by the Contracting Officer of the
notification of the Contractor\'s stated inability to proceed,

\(1\) the application to this contract of the change in security
classification or requirements has not been withdrawn, or

\(2\) a mutually satisfactory method for continuing performance of work
under this contract has not been agreed upon, the Contractor may request
the Contracting Officer to terminate the contract in whole or in part.
The Contracting Officer shall terminate the contract in whole or in
part, as may be appropriate, and the termination shall be deemed a
termination under the terms of the \"Termination for the Convenience of
the Government\" clause.

(End of clause)

## PRESCRIPTION

Shall be used in SIRs and contracts for research and development with an
educational institution when the contract requires access to information
that is classified as "Confidential", or "Secret", or "Top Secret"..

**3.13-2/alt2 Security Requirements --Classified Contracts. Alternate II
( October 2001)**

If employee identification is required for security or other reasons in
a construction contract or architect-engineer contract, add the
following paragraph (e) to the basic clause: 3.13.2, \"Security
Requirements.\"

\(e\) The Contractor shall be responsible for furnishing to each
employee and for requiring each employee engaged on the work to display
such identification as may be approved and directed by the Contracting
Officer. All prescribed identification shall immediately be delivered to
the Contracting Officer, for cancellation upon the release of any
employee. When required by the Contracting Officer, the Contractor shall
obtain and submit fingerprints of all persons employed or to be employed
on the project.

(End of clause)

## PRESCRIPTION

Should be used in SIRs and contracts if employee identification is
required for security or other reasons in a construction or architect
engineer contract.

3.13-3 Printing/Copying Double-sided on Recycled Paper (April 1996)

### PRESCRIPTION

May be used in SIRs and contracts at the Contracting Officer\'s
discretion.

3.13-4 Contractor Identification Number---Data Universal Numbering
System (DUNS) Number (August 1997)

### PRESCRIPTION

Shall be used in all SIRs.

3.13-5 Seat Belt Use by Contractor Employees (January 1999)

### PRESCRIPTION

Shall be used in SIRs and contracts.

**3.13-6 Contractor Personnel Suitability Requirements (October 2001)**

\(a\) This clause applies to the extent that this contract requires
contractor employees, subcontractors, or consultants to have unescorted
access to FAA: (1) facilities, (2) sensitive information, and/or (3)
resources regardless of the location where such access occurs, and none
of the exceptions of FAA Order 1600.72, Contractor and Industrial
Security Program, chapter 4, paragraphs 403g, 403i-I, and/or 409,
pertains. Definitions of applicable terminology are contained in the
corresponding guidance and Order 1600.72, appendix 1.

\(b\) Consistent with FAA Order 1600.72, the FAA Servicing Security
Element (SSE) has approved designated risk levels for the following
positions under the contract:

Position Risk Level

\[CO to insert information here\]

\(c\) Not later than \[CO to insert information here\] days, not to
exceed a maximum of 30 days, after contract award (or date of
modification, if this provision is included by modification to an
existing contract), for each employee in a listed position, provided, no
previous background investigations can be supported as described below,
the contractor shall submit the following documentation to the SSE for
an employment suitability determination.

\- Standard Form (SF) 85P, Questionnaire for Public Trust Positions,
revised September 1995. The SF 85P shall be completed (all questions
answered) in accordance with the instruction sheet.

\- One fingerprint card (FD-258). Fingerprinting facilities are
available through the SSE and local police department. All fingerprint
cards shall be written in black ink or typewritten with all answerable
question blocks completed and shall be signed and dated within the 60
day period preceding the submission.

The type of investigation conducted will be determined by the position
risk level designation for all duties, functions, and/or tasks performed
and shall serve as the basis for granting a favorable employment
suitability authorization as described in FAA Order 1600.72. If an
employee has had a previous Government--directed background
investigation which meets the requirements of Chapter 4 of FAA Order
1600.72, it will be accepted by the FAA. However, the FAA reserves the
right to conduct further investigations, if necessary. For each
contractor employee for which a previous background investigation was
completed, the Contractor shall provide, in writing to the SSE, the
name, date of birth, place of birth, and social security number of the
employee, the name of the investigating entity, type of background
investigation conducted, and approximate date the previous background
investigation was completed.

The Contractor shall submit the required information with a transmittal
letter referencing the contract number and this request to:

Headquarters Contracts:

Manager, Investigations Division, ACO-300

Office of Civil Aviation Security

400 7^th^ Street, SW, Room 5402a

Washington, D.C. 20591

Regional and Center Contracts:

\[CO insert appropriate Regional or Center information here or enter
\"none\" if not applicable\]

The transmittal letter shall also include a list of all of the names of
contractor employees and their positions for which completed forms will
be submitted to the SSE pursuant to this Clause. A copy of the
transmittal letter shall also be provided to the Contracting Officer.

\(d\) The contractor shall submit the information required by Section
(c) of this Clause for any new employee not listed in the Contractor\'s
initial thirty (30) day submission who is hired into any position
identified in Section (c) of this Clause.

\(e\) The contracting officer will provide notice to the contractor when
any contractor employee is found to be unsuitable or otherwise
objectionable, or whose conduct appears contrary to the public interest,
or inconsistent with the best interest of national security. The
contractor shall take appropriate action, including the removal of such
employee from working on this FAA contract, at their own expense.

\(f\) No contractor employee shall work in a high, moderate, or low risk
position unless the SSE has received all forms necessary to conduct any
required investigation and has authorized the contractor employee to
begin work. However, if this provision is added by modification to an
existing contract, contractor employees performing in the positions
listed above may continue work on the contract pending:

\(1\) the submittal of all necessary forms within \[CO to insert
information\] days, but not to exceed a maximum of 30 days, and

\(2\) completion of a suitability investigation by the SSE, subject to
the following conditions:

(State any SSE conditions such as restricted access to sensitive
information or facilities. Specify information or facilities. If the SSE
imposes no conditions, state \"None\").

If the necessary forms are not submitted by the Contractor to the SSE
within 30 days of the effective date of the modification, the contractor
employee shall be denied access to FAA facilities, sensitive information
and/or resources until such time as the forms

are submitted and the SSE has authorized the contractor employee to
begin work.

\(g\) As applicable, the Contractor shall submit quarterly reports
providing the following information to the Contracting Officer with a
copy to the SSE and the Operating Office on or before the fifth (5^th^)
day following each report period: A complete listing by full name in
alphabetical order with the social security number, of all contractor
personnel who had access to an FAA facility, sensitive information
and/or resources anytime during the report period (date of birth and
social security number shall be omitted from CO and Operating Office
copies of report(s). Additionally, the Contractor shall submit to the
SSE and CO on or before the fifth (5^th^) day of each month, any
employment changes made during the reporting period. Examples of such
changes are terminations (to include name, SSN, hire date), and name
changes. All lists must be in alphabetical order and have the name of
the contractor and the contract number.

\(h\) The Contractor shall notify the CO within one (1) day after any
employee identified pursuant to Section (c) of this Clause is terminated
from performance on the contract.

\(i\) The Contracting Officer may also, after coordination with the SSE
and other security specialists, require contractor employees to submit
any other security information (including additional fingerprinting)
deemed reasonably necessary to protect the interests of the FAA. In this
event, the Contractor shall provide, or cause each of its employees to
provide such security information to the SSE, and the same transmittal
letter requirements of Section (c) of this Clause shall apply.

\(j\) The contactor and/or subcontractor(s) will immediately contact the
FAA Civil Aviation Security Division or Staff \[CO to insert Division or
Staff routing symbol and phone number\] in the event an employee is
arrested (detained by law enforcement for any offenses, other than minor
traffic offenses) or is involved in theft of government property or the
contractor becomes aware of any information that may raise a question
about the suitability of a contractor employee.

\(k\) Failure to submit information required by this clause within the
time required may be determined by the Contracting Officer a material
breach of the contract.

\(l\) If subsequent to the effective date of this contract, the security
classification or security requirements under this contract are changed
by the Government and if the changes cause an increase or decrease in
direct contract costs or otherwise affect any other termor condition of
this contract, the contract shall be subject to an equitable adjustment.

\(m\) The contractor agrees to insert terms that conform substantially
to the language of this clause, including this paragraph (l) but
excluding any reference to the Changes clause of this contract, in all
subcontracts under this contract that involve access and where the
exceptions under Chapter 4, paragraphs 403g, 403i-I, and 409 of FAA
Order 1600.72 do not apply.

(End of clause)

## PRESCRIPTION

Shall be inserted into all FAA SIRs and contract actions when the
contractor may require access to FAA facilities, sensitive information
and/or resources, and is applicable.

3.13-7 Government-Issued Keys, Identification Badges, and Vehicle Decals
(October 2001)

(a) It may become necessary for the Government to issue keys,
    identification (ID) cards, vehicle decals, and/or access control
    cards to contractor employees. Prior to or upon completion or
    termination of the work required hereunder, the contractor shall
    return all such Government-issued items to the issuing office with
    notification to the Contracting Officer's Technical Representative
    (COTR). When contractor employees who have been issued such items
    are terminated or no longer required to perform the work, the
    Government-issued items shall be returned to the Government within
    three workdays or upon termination of the contract or the employee.
    Improper use, possession or alteration of FAA issued keys, ID cards
    and/or vehicle decals is subject to penalties under Title 18, USC
    499, 506, and 701.

(b) In the event such keys, ID cards, or vehicle decals are not
    returned, the contractor understands and agrees that the Government
    may, in addition to any other withholding provision of the contract,
    withhold \[CO to enter appropriate amount\] for each key, ID card,
    and vehicle decal not returned. If the keys, ID cards, or vehicle
    decals are not returned within 30 days from the date the withholding
    action was initiated, any amount so withheld will be forfeited by
    the contractor.

(c) Access to aircraft ramp/hangar areas is authorized only to those
    persons displaying a flight line identification card and for
    vehicles, a current ramp permit issued pursuant to Part 107 of the
    Federal Aviation Regulations.

(d) The Government retains the right to inspect inventory, or audit ID
    cards, keys, vehicle decals, and access control cards issued to the
    contractor in connection with the contract at the convenience of the
    Government. Any items not accounted for the satisfaction of the
    Government shall be assumed to be lost and the provisions of
    section (b) shall apply.

(e) Keys shall be obtained from the COTR who will require the contractor
    to sign a receipt for each key obtained. Lost keys, ID cards,
    vehicle decals, and access control cards shall immediately be
    reported concurrently to the Contracting Officer (CO), COTR, \[CO to
    insert name of local security division or staff and facility
    management office\]. Electronic keying cards are handled in the same
    manner as metal keys.

(f) Each contract employee, during all times of on-site performance at
    the \[CO to insert location\] shall prominently display his/her
    current and valid identification card on the front portion of
    his/her body between the neck and waist.

    1.  Prior to any contractor employee obtaining any ID media or
        vehicle decals, the contractor shall submit complete
        documentation required under AMS clause 3.13-6, Security
        Requirements and shall be authorized to begin work by the SSE.

    2.  To obtain the ID card, contractor employee shall submit an
        identification Card/Credential Application (DOT 1681) signed by
        the contractor employee and authorized by the CO or the COTR.
        The DOT 1681 signed by the contractor employee and authorized by
        the CO or the COTR. The DOT 1681 shall be submitted at the same
        time the personnel security investigation paperwork required by
        AMS clause 3.13-6, Contractor Personnel Suitability Requirements
        (August 2001) is submitted. The DOT 1681 shall contain, as a
        minimum. Under the "Credential Justification" heading, the name
        of the contractor/company, the contract number or the
        appropriate acquisition identification number, the expiration
        date of the contract or the task (whichever is sooner), and the
        required signatures. This paperwork shall be submitted to \[CO
        to insert name and location of security division or staff\] by
        the contractor in a sealed envelope either hand carried by the
        contractor or sent via U.S. mail to: \[CO to insert mailing
        address\]. The contractor will be notified when the DOT 1681 has
        been approved and is ready for processing by the \[CO to insert
        name and location of the person who will process the document\].
        Arrangement for processing the identification cards, including
        photographs and lamination can be made by the contacting \[CO to
        insert point of contact with phone nmber\].

    3.  The contractor's project manager shall receive and sign for each
        ID card issued on the reverse of the DOT 1681. The DOT 1681 will
        be tracked by the Government for accountability purposes.

(g) The contractor is responsible for ensuring final out-processing is
    accomplished for all departing contractor employees. Final
    out-processing will be accomplished by close of business the final
    workday of the contractor employee or the next day under special
    conditions. \[CO to insert name of local contract employee clearance
    form\] will be completed by the contractor and copies will be
    distributed to the COTR, CO, and \[CO to insert security division or
    staff\] after completion.

> (End of clause)

**PRESCRIPTION**

Shall be inserted into all FAA SIRs and contract actions when the
contract may require access to FAA facilities, sensitive information
and/or resources.

**3.13-8 Foreign Nationals as Contractor Employees ( October 2001)**

(a) Each employee of the Contractor shall be a citizen of the United
    States of America, or an alien who has been lawfully admitted for
    permanent residence as evidenced by Alien Registration Receipt Card
    Form I-151, or who presents other evidence from the Immigration and
    Naturalization Service that employment will not affect his/her
    immigration status.

(b) Aliens and foreign nationals proposed under this contract must meet
    the following conditions in accordance with FAA Order 1600.72,
    chapter 4, paragraph 407:

    1.  must have resided within the United States for 3 consecutive
        years of the last 5 years unless a waiver of this requirement is
        requested and approved in accordance with the requirements
        stated in FAA Order 1600.72, chapter 4, paragraph 409(b)(3);

    2.  a risk or sensitivity level designation can be made for the
        position; and

    3.  the appropriate security screening can be adequately conducted.

(End of clause)

## PRESCRIPTION

Shall be used in FAA SIRs and contract actions where the contracting and
operating offices and/or the SSE determines that it is necessary to
restrict access or work on a contract to individuals identified as
United States citizens or as otherwise noted in the clause.