**PART II - SECTION I**

**CONTRACT CLAUSES**

**I.1.0 3.1-1 Clauses and Provisions Incorporated by Reference (June
1999)
[2](#i.1.0-3.1-1-clauses-and-provisions-incorporated-by-reference-june-1999)**

**I.2.0 3.2.5-12 NOTICE OF EMPLOYMENT OF FORMER UNITED STATES GOVERNMENT
EMPLOYEES (SERVICE CONTRACTS) (NOVEMBER 1997)
[4](#i.2.0-3.2.5-12-notice-of-employment-of-former-united-states-government-employees-service-contracts-november-1997)**

**I.3.0 3.6.2-29 Statement of Equivalent Rates for Federal Hires (April
1996)
[5](#i.3.0-3.6.2-29-statement-of-equivalent-rates-for-federal-hires-april-1996)**

**I.4.0 3.6.3-12 Asbestos-Free Construction (August 1998)
[6](#i.4.0-3.6.3-12-asbestos-free-construction-august-1998)**

**I.5.0 3.9.1-1 Contract Disputes (August 1999)
[6](#i.5.0-3.9.1-1-contract-disputes-august-1999)**

**I.6.0 3.9.1-2 Protest After Award (August 1997)
[8](#i.6.0-3.9.1-2-protest-after-award-august-1997)**

**I.7.0 3.9.1-3 PROTEST (AUGUST 1999)
[9](#i.7.0-3.9.1-3-protest-august-1999)**

**I.8.0 3.10.2-2 Subcontracts (Cost-Reimbursement and Ceiling Priced
Contracts) (October 1996)
[11](#i.8.0-3.10.2-2-subcontracts-cost-reimbursement-and-ceiling-priced-contracts-october-1996)**

**I.9.0 3.13-6 Contractor Personnel Suitability Requirements (July 2000)
[14](#i.9.0-3.13-6-contractor-personnel-suitability-requirements-july-2000)**

**I.10.0 3.13-7 Qualifications of Employees (July 2000)
[17](#i.10.0-3.13-7-qualifications-of-employees-july-2000)**

**I.11.0 3.13-8 Foreign Nationals as Contractor Employees (January 2000)
[18](#i.11.0-3.13-8-foreign-nationals-as-contractor-employees-january-2000)**

# I.1.0 3.1-1 Clauses and Provisions Incorporated by Reference (June 1999)

This screening information request (SIR) or contract, as applicable,
incorporates by reference one or more provisions or clauses listed below
with the same force and effect as if they were given in full text. Upon
request, the Contracting Officer will make the full text available, or
Offerors and Contractors may obtain the full text via Internet at
http://fast.faa.gov (on this web page, select \"toolsets\", then
\"procurement toolbox\").

## 3.1.7-2 Organizational Conflicts of Interest (August 1997)

## 3.2.2.3-1 False Statements in Offers (April 1996)

## 3.2.2.3-8 Audit and Records (April 1996)

## 3.2.2.3-25 Price Reduction for Defective Cost or Pricing Data (April 1996)

## 3.2.2.3-27 Subcontractor Cost or Pricing Data (April 1996)

## 3.2.2.3-30 Termination of Defined Benefit Pension Plans (April 1996)

## 3.2.2.3-32 Waiver of Facilities Capital Cost of Money (April 1996)

## 3.2.2.3-33 Order of Precedence (January 1999)

## 3.2.2.3-36 Reversion or Adjustment of Plans for Post-retirement Benefits Other Than Pensions (PRB) (April 1996)

## 3.2.2.3-37 Notification of Ownership Changes (April 1996)

## 3.2.2.7-6 Protecting the Government's Interest when Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment (April 1996)

## 3.2.3-2 Cost Accounting Standards (April 1996)

## 3.2.3-3 Disclosure and Consistency of Cost Accounting Practices (April 1996)

## 3.2.3-4 Consistency in Cost Accounting Practices (April 1996)

## 3.2.3-5 Administration of Cost Accounting Standards (April 1996)

## 3.2.4-5 Allowable Cost and Payment (October 1996)

## 3.2.5-1 Officials Not to Benefit (April 1996)

## 3.2.5-3 Gratuities or Gifts (January 1999)

## 3.2.5-4 Contingent Fees (October 1996)

## 3.2.5-5 Anti-Kickback Procedures (October 1996)

## 3.2.5-6 Restrictions on Subcontractor Sales to the FAA (April 1996)

## 3.2.5-8 Whistleblower Protection for Contractor Employees (April 1996)

## 3.2.5-11 Drug Free Workplace (April 1996)

## 3.3.1-14 Limitation of Funds (April 1996)

## 3.3.1-15 Assignment of Claims (April 1996)

## 3.3.1-17 Prompt Payment (August 1998)

## 3.3.1-19 Prompt payment for Construction Contracts (August 1998)

## 3.3.1-25 Mandatory Information for Electronic Funds Transfer Payment (October 1996)

## 3.3.2-1 FAA Cost Principles (October 1996)

## 3.4.1-4 Performance Bond Requirements (April 1996)

## 3.4.1-5 Payment Bond Requirements (April 1996)

## 3.4.1-6 Additional Bond Security (April 1996)

## 3.4.1-7 Notice to Proceed (April 1996)

## 3.4.1-10 Insurance\--Work on a Government Installation (July 1996)

## 3.4.1-11 Insurance\--Liability to Third Persons (October 1996)

## 3.4.1-12 Insurance (July 1996)

## 3.4.1-13 Errors and Omissions (July 1996)

## 3.4.2-1 State of New Mexico Gross Receipts and Compensating Tax (April 1996)

## 3.5-1 Authorization and Consent (April 1996)

## 3.5-2 Notice and Assistance Regarding Patent and Copyright Infringement (April 1996)

## 3.5-13 Rights in Data\--General (October 1996)

## 3.6.1-3 Utilization of Small, Small Disadvantaged and Women-Owned Small Business Concerns (April 1996)

## 3.6.1-4 Small, Small Disadvantaged and Women-Owned Small Business Subcontracting Plan (April 2000)

## 3.6.1-6 Liquidated Damages\--Subcontracting Plan (April 1996)

## 3.6.2-1 Contract Work Hours and Safety Standards Act-Overtime Compensation (April 1996)

## 3.6.2-2 Convict Labor (April 1996)

## 3.6.2-7 Pre-award On-Site Equal Opportunity Compliance Review (November 1997)

## 3.6.2-9 Equal Opportunity (August 1998)

## 3.6.2-10 Equal Opportunity Pre-award Clearance of Subcontracts (November 1997)

## 3.6.2-12 Affirmative Action for Special Disabled and Vietnam Era Veterans (January 1998)

## 3.6.2-13 Affirmative Action for Workers with Disabilities (April 2000)

## 3.6.2-14 Employment Reports on Special Disabled Veterans and Veterans of Vietnam Era (January 1998)

## 3.6.2-15 Evaluation of Compensation for Professional Employees (April 1996)

## 3.6.2-16 Notice to the Government of Labor Disputes (April 1996)

## 3.6.2-18 Davis Bacon Act (April 1996)

## 3.6.2-28 Service Contract Act of 1965, as Amended (April 1996)

## 3.6.3-1 Clean Air and Water Certification (April 2000)

## 3.6.3-2 Clean Air and Clean Water (April 1996)

## 3.6.3-10 Certification of Toxic Chemical Release Reporting (August 1998)

## 3.6.4-2 Buy American Act\--Supplies (July 1996)

## 3.7-1 Privacy Act Notification (October 1996)

## 3.7-2 Privacy Act (October 1996)

## 3.8.2-10 Protection of Government buildings, Equipment, and Vegetation (April 1996)

## 3.8.2-11 Continuity of Services (April 1996)

## 3.8.4-5 Government Supply Sources (April 1996)

## 3.10.1-1 Notice of Intent To Disallow Costs (April 1996)

## 3.10.1-3 Penalties for Unallowable Costs (October 1996)

## 3.10.1-7 Bankruptcy (April 1996)

## 3.10.1-8 Suspension of Work (August 1998)

## 3.10.1-9 Stop-Work Order (October 1996)

## 3.10.1-11 Government Delay of Work (April 1996)

## 3.10.1-13 Changes\--Cost-Reimbursement (April 1996)

## 3.10.1-16 Changes and Changed Conditions (April 1996)

## 3.10.1-22 Contracting Officer's Technical Representative (July 1996)

## 3.10.2-5 Competition in Subcontracting (January 1998)

## 3.10.3-1 Definitions (December 1997)

## 3.10.3-2 Government Property - Basic Clause (December 1997)

## 3.10.3-2/alt2 Government Property - Basic Clause Alternate II (December 1997)

## 3.10.3-12 Identification of Government Property (December 1997)

## 3.10.3-13 Segregation of Government Property (December 1997)

## 3.10.4-4 Inspection of Services\--Both Fixed-Price & Cost Reimbursement (April 1996)

**3.10.4-19 Government Industry Data Exchange Program (GIDEP) (August
1997)**

## 3.10.6-1 Termination for Convenience of the Government (Fixed Price) (October 1996)

## 3.10.6-3 Termination (Cost-Reimbursement) (October 1996)

## 3.10.6-6 Default (Fixed Price Construction) (October 1996)

## 3.10.6-7 Excusable Delays (October 1996)

## Security Requirements (April 1996)

# I.2.0 3.2.5-12 NOTICE OF EMPLOYMENT OF FORMER UNITED STATES GOVERNMENT EMPLOYEES (SERVICE CONTRACTS) (NOVEMBER 1997)

a\. This clause implements the Federal Workforce Restructuring Act of
1994 (\"Buyout\"), Public Law 103-226. The following requirements apply
to any contract, task order, or other arrangement for service contracts
entered into after March 30, 1994, and immediately upon knowledge of
such arrangements.

b\. The Offeror shall provide, along with the submittal, the following
notice and certification of employment of employee(s) who were
previously employed by the United States Government and received the
voluntary separation incentive payment (\"buyout\"). This notice is
required immediately upon the Contractor's knowledge at any time during
the contract period. The Contractor shall provide notice to employees
that in accordance with the buyout legislation, the buyout employee
performing on a personal service contract for the Untied States
Government is required to repay the buyout incentive.

> NOTICE OF EMPLOYMENT OF FORMER UNITED STATES GOVERNMENT EMPLOYEES
> (SERVICE CONTRACTS)
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \[Name of Company Representative\]
>
> Contracting Officer's Certification
>
> I have reviewed the above information and have determined that:
>
> \_\_\_\_ The buyout legislation has not been violated.
>
> \_\_\_\_ The employment is in violation of the buyout legislation and
> the employee is required to repay the incentive payment. The
> Contractor shall remind the employee of his/her obligation to pay.
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \[Contracting Officer's Name\]
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date

(End of clause)

# I.3.0 3.6.2-29 Statement of Equivalent Rates for Federal Hires (April 1996)

In compliance with the Service Contract Act of 1965, as amended, and the
regulations of the Secretary of Labor (29 CFR Part 4), this clause
identifies the classes of service employees expected to be employed
under the contract and states the wages and fringe benefits payable to
each if they were employed by the contracting agency subject to the
provisions of 5 U.S.C. 5341 or 5332. This Statement is for Information
Only: It Is Not a Wage Determination

> Monetary Wage-Fringe Benefits

[Employee Class]{.underline} [(Step 1 -- Northern VA, DC, MD
locality)]{.underline}

Accounting Clerk IV GS-5 \$11.59

> Civil Engineering Technician GS-7 \$14.36
>
> Drafter II GS-4 \$10.36
>
> Drafter III GS-5 \$11.59
>
> Drafter IV GS-7 \$14.36
>
> Electronic Technician I WG-8 \$14.87
>
> Electronics Technician II WG-9 \$15.61
>
> Electronics Technician III WG-10 \$16.34

Order Clerk II GS-3 \$9.23

Secretary I GS-4 \$10.36

Computer Systems Analyst II GS-11 \$21.25

Word Processor I GS-3 \$9.23

(End of clause)

# I.4.0 3.6.3-12 Asbestos-Free Construction (August 1998)

In performing this contract, the Contractor shall not use asbestos or
asbestos-containing building materials during construction, renovation,
and/or modernization of this facility and shall provide to the
Contracting Officer (CO) a signed statement \[CO state due date of
statement here related to completion of the project\] indicating that to
the best of its knowledge, no asbestos or asbestos-containing building
materials were used during construction, renovation, and/or
modernization of this facility. The Contractor\'s certification under
this clause is considered to be a material requirement of the contract
and the FAA may withhold payment pending submittal and receipt of an
acceptable certification.

The FAA CO may authorize sample testing of Contractor building materials
used during construction, renovation, and/or modernization of this
facility to verify that they are asbestos-free. The FAA will bear the
expense of this testing unless the testing reveals that the Contractor
used asbestos-containing building material in performing this contract.
If asbestos-containing material is found, the Contractor shall remove
and replace the asbestos-containing material and decontaminate the site
of asbestos contamination caused by the Contractor at no additional cost
to the Government. In addition, the Contractor shall bear the expense of
the original testing and retesting to determine that the asbestos
removal and site decontamination are satisfactorily completed.

(End of clause)

# I.5.0 3.9.1-1 Contract Disputes (August 1999)

a\. All contract disputes arising under or related to this contract
shall be resolved through the Federal Aviation Administration (FAA)
dispute resolution system at the Office of Dispute Resolution for
Acquisition (ODRA) and shall be governed by the procedures set forth in
14 C.F.R. Parts 14 and 17, which are hereby incorporated by reference.
Judicial review, where available, will be in accordance with 49 U.S.C.
46110 and shall apply only to final agency decisions. A Contractor may
seek review of a final FAA decision only after its administrative
remedies have been exhausted.

b\. The filing of a contract dispute with the ODRA may be accomplished
by mail, overnight delivery, hand delivery, or by facsimile. A contract
dispute is considered filed on the date it is received by the ODRA.

c\. Contract disputes are to be in writing and shall contain:

> \(1\) The Contractor\'s name, address, telephone and fax numbers and
> the name, address, telephone and fax numbers of the Contractor\'s
> legal representative(s) (if any) for the contract dispute;
>
> \(2\) The contract number and the name of the Contracting Officer
>
> \(3\) A detailed chronological statement of the facts and of the legal
> grounds for the Contractor\'s positions regarding each element or
> count of the contract dispute (i.e., broken down by individual claim
> item), citing to relevant contract provisions and documents and
> attaching copies of those provisions and documents
>
> \(4\) All information establishing that the contract dispute was
> timely filed
>
> \(5\) A request for a specific remedy, and if a monetary remedy is
> requested, a sum certain must be specified and pertinent cost
> information and documentation (e.g., invoices and cancelled checks)
> attached, broken down by individual claim item and summarized; and
>
> \(6\) The signature of a duly authorized representative of the
> initiating party.

d\. Contract disputes shall be filed at the following address:

> \(1\) Office of Dispute Resolution for Acquisition, AGC-70, Federal
> Aviation Administration, 400 7th Street, SW, Room 8332, Washington, DC
> 20590, telephone: (202) 366-6400, facsimile: (202) 366-7400; or
>
> \(2\) other address as specified in 14 CFR Part 17.

e\. A contract dispute against the FAA shall be filed with the ODRA
within two (2) years of the accrual of the contract claim involved. A
contract dispute by the FAA against a Contractor (excluding contract
disputes alleging warranty issues, fraud or latent defects) likewise
shall be filed within two (2) years after the accrual of the contract
claim. If an underlying contract entered into prior to the effective
date of this part provides for time limitations for filing of contract
disputes with the ODRA which differ from the aforesaid two (2) year
period, the limitation periods in the contract shall control over the
limitation period of this section. In no event will either party be
permitted to file with the ODRA a contract dispute seeking an equitable
adjustment or other damages after the Contractor has accepted final
contract payment, with the exception of FAA claims related to warranty
issues, gross mistakes amounting to fraud or latent defects. FAA claims
against the Contractor based on warranty issues must be filed within the
time specified under applicable contract warranty provisions. Any FAA
claims against the Contractor based on gross mistakes amounting to fraud
or latent defects shall be filed with the ODRA within two (2) years of
the date on which the FAA knew or should have known of the presence of
the fraud or latent defect.

f\. A party shall serve a copy of the contract dispute upon the other
party, by means reasonably calculated to be received on the same day as
the filing is to be received by the ODRA.

g\. After filing the contract dispute, the Contractor should seek
informal resolution with the Contracting Officer.

h\. The FAA requires continued performance with respect to contract
disputes arising under this contract, in accordance with the provisions
of the contract, pending a final FAA decision.

i\. The FAA will pay interest on the amount found due and unpaid from
(1) the date the Contracting Officer receives the contract dispute, or
(2) the date payment otherwise would be due, if that date is later,
until the date of payment. Simple interest on contract disputes shall be
paid at the rate fixed by the Secretary of the Treasury that is
applicable on the date the Contracting Officer receives the contract
dispute and then at the rate applicable for each 6-month period as fixed
by the Treasury Secretary until payment is made.

j\. Additional information and guidance about the ODRA dispute
resolution process for contract disputes can be found on the ODRA
website at http://www.faa.gov.

(End of clause)

# I.6.0 3.9.1-2 Protest After Award (August 1997)

a\. Upon receipt of a notice that a protest has been filed with the FAA
Office of Dispute Resolution, or a determination that a protest is
likely, the Administrator or his designee may instruct the Contracting
Officer) to direct the Contractor to stop performance of the work called
for by this contract. The order to the Contractor shall be in writing,
and shall be specifically identified as a stop-work order issued under
this clause. Upon receipt of the order, the Contractor shall immediately
comply with its terms and take all reasonable steps to minimize the
incurrence of costs allocable to the work covered by the order during
the period of work stoppage. Upon receipt of the final decision or other
resolution of the protest, the Contracting Officer shall either\--

> \(1\) Cancel the stop-work order; or
>
> \(2\) For other than cost-reimbursement contracts, terminate the work
> covered by the order as provided in the \"Default\" or the
> \"Termination for Convenience of the Government\" clause(s) of this
> contract; or
>
> \(3\) For cost-reimbursement contracts, terminate the work covered by
> the order as provided in the \"Termination\" clause of this contract.

b\. If a stop-work order issued under this clause is canceled either
before or after the final resolution of the protest, the Contractor
shall resume work. The Contracting Officer shall make for other than
cost-reimbursement contracts, an equitable adjustment in the delivery
schedule or contract price, or both; and for cost-reimbursement
contracts, an equitable adjustment in the delivery schedule, the
estimated cost, the fee, or a combination thereof, and in any other
terms of the contract that may be affected; and the contract shall be
modified, in writing, accordingly, if\--

> \(1\) The stop-work order results in an increase in the time required
> for, or in the Contractor\'s cost properly allocable to, the
> performance of any part of this contract; and
>
> \(2\) The Contractor asserts its right to an adjustment within 30 days
> after the end of the period of work stoppage; provided, that if the
> Contracting Officer decides the facts justify the action, the
> Contracting Officer may receive and act upon a proposal submitted at
> any time before final payment under this contract.

c\. If a stop-work order is not canceled and the work covered by the
order is terminated for the convenience of the Government, the
Contracting Officer shall allow reasonable costs resulting from the
stop-work order in arriving at the termination settlement.

d\. If a stop-work order is not canceled and the work covered by the
order is terminated for default, the Contracting Officer shall allow, by
equitable adjustment or otherwise, reasonable costs resulting from the
stop-work order.

e\. The Government\'s rights to terminate this contract at any time are
not affected by action taken under this clause.

(End of clause)

# I.7.0 3.9.1-3 PROTEST (AUGUST 1999) 

AS A CONDITION OF SUBMITTING AN OFFER OR RESPONSE TO THIS SIR (OR OTHER
SOLICITATION, IF APPROPRIATE), THE OFFEROR OR POTENTIAL OFFEROR AGREES
TO BE BOUND BY THE FOLLOWING PROVISIONS RELATING TO PROTESTS:

a.  Protests concerning Federal Aviation Administration Screening
    Information Requests (SIRs) or awards of contracts shall be resolved
    through the Federal Aviation Administration (FAA) dispute resolution
    system at the Office of Dispute Resolution for Acquisition (ODRA)
    and shall be governed by the procedures set forth in 14 C.F.R. Parts
    14 and 17, which are hereby incorporated by reference. Judicial
    review, where available, will be in accordance with 49 U.S.C. 46110
    and shall apply only to final agency decisions. A protestor may seek
    review of a final FAA decision only after its administrative
    remedies have been exhausted.

b.  Offerors initially should attempt to resolve any issues concerning
    potential protests with the Contracting Officer. The Contracting
    Officer should make reasonable efforts to answer questions promptly
    and completely, and, where possible, to resolve concerns or
    controversies. The protest time limitations, however, will not be
    extended by attempts to resolve a potential protest with the
    Contracting Officer.

c.  The filing of a protest with the ODRA may be accomplished by mail,
    overnight delivery, hand delivery, or by facsimile. A protest is
    considered to be filed on the date it is received by the ODRA.

d.  Only an interested party may file a protest. An interested party is
    one whose direct economic interest has been or would be affected by
    the award or failure to award an FAA contract. Proposed
    subcontractors are not \"interested parties\" within this
    definition.

e\. A written protest must be filed with the ODRA within the times set
forth below, or the protest shall be dismissed as untimely:

(1) Protests based upon alleged improprieties in a solicitation or a SIR
    that are apparent prior to bid opening or the time set for receipt
    of initial proposals shall be filed prior to bid opening or the time
    set for the receipt of initial proposals.

(2) In procurements where proposals are requested, alleged improprieties
    that do not exist in the initial solicitation, but which are
    subsequently incorporated into the solicitation, must be protested
    not later than the next closing time for receipt of proposals
    following the incorporation.

(3) For protests other than those related to alleged solicitation
    improprieties, the protest must be filed on the later of the
    following two dates:

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(i) Not later than seven (7) business days after the date the protester
    knew or should have known of the grounds for the protest; or

> \(ii\) If the protester has requested a post-award debriefing from the
> FAA Product Team, not later than five (5) business days after the date
> on which the Product Team holds that debriefing.

f\. Protests shall be filed at:

> \(1\) Office of Dispute Resolution for Acquisition, AGC-70, Federal
> Aviation Administration, 400 7th Street, SW, Room 8332, Washington, DC
> 20590, Telephone: (202) 366-6400, Facsimile: (202) 366-7400; or

(2) other address as specified in 14 CFR Part 17.

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```
g.  At the same time as filing the protest with the ODRA, the protester
    shall serve a copy of the protest on the Contracting Officer and any
    other official designated in the SIR for receipt of protests by
    means reasonably calculated to be received by the Contracting
    Officer on the same day as it is to be received by the ODRA. The
    protest shall include a signed statement from the protester,
    certifying to the ODRA the manner of service, date, and time when a
    copy of the protest was served on the Contracting Officer and other
    designated official(s).

h\. Additional information and guidance about the ODRA dispute
resolution process for protests can be found on the ODRA website at
[http://www.faa.gov](http://www.faa.gov/).

(End of provision)

# I.8.0 3.10.2-2 Subcontracts (Cost-Reimbursement and Ceiling Priced Contracts) (October 1996)

a\. Subcontract, as used in this clause, includes but is not limited to
purchase orders, and changes and modifications to purchase orders. The
Contractor shall notify the Contracting Officer/Regional Administrative
Contracting Officer reasonably in advance of entering into any
subcontract if:

> \(1\) The proposed subcontract is of the cost-reimbursement,
> time-and-materials, or labor-hour type;
>
> \(2\) The proposed subcontract is fixed-price and exceeds either
> \$100,000 or 5 percent of the total estimated cost of this contract;
>
> \(3\) The proposed subcontract has experimental, developmental, or
> research work as one of its purposes; or
>
> \(4\) This contract is not a facilities contract and the proposed
> subcontract provides for the fabrication, purchase, rental,
> installation, or other acquisition of special test equipment valued in
> excess of \$25,000 or of any items of facilities.

b\. (1) In the case of a proposed subcontract that (i) is of the
cost-reimbursement, time-and-materials, or labor-hour type and is
estimated to exceed \$25,000, including any fee, (ii) is proposed to
exceed \$100,000, or (iii) is one of a number of subcontracts with a
single subcontractor, under this contract, for the same or related
supplies or services that, in the aggregate, are expected to exceed
\$100,000, the advance notification required by paragraph (a) above
shall include the information specified in subparagraph (2) below.

\(2\) (i) A description of the supplies or services to be subcontracted.

\(ii\) Identification of the type of subcontract to be used.

> \(iii\) Identification of the proposed subcontractor and an
> explanation of why and how the proposed subcontractor was selected,
> including the competition obtained.
>
> \(iv\) The proposed subcontract price and the Contractor\'s cost or
> price analysis.
>
> \(v\) The subcontractor\'s current, complete, and accurate cost or
> pricing data and Certificate of Current Cost or Pricing Data, if
> required by other contract provisions.
>
> \(vi\) The subcontractor\'s Disclosure Statement or Certificate
> relating to Cost Accounting Standards when such data are required by
> other provisions of this contract.
>
> \(vii\) A negotiation memorandum reflecting-
>
> \(A\) The principal elements of the subcontract price negotiations;
>
> \(B\) The most significant considerations controlling establishment of
> initial or revised prices;
>
> \(C\) The reason cost or pricing data were or were not required;
>
> \(D\) The extent, if any, to which the Contractor did not rely on the
> subcontractor\'s cost or pricing data in determining the price
> objective and in negotiating the final price;
>
> \(E\) The extent to which it was recognized in the negotiation that
> the subcontractor\'s cost or pricing data were not accurate, complete,
> or current; the action taken by the Contractor and the subcontractor;
> and the effect of any such defective data on the total price
> negotiated;
>
> \(F\) The reasons for any significant difference between the
> Contractor\'s price objective and the price negotiated; and
>
> \(G\) A complete explanation of the incentive fee or profit plan when
> incentives are used. The explanation shall identify each critical
> performance element, management decisions used to quantify each
> incentive element, reasons for the incentives, and a summary of all
> trade-off possibilities considered.

c\. The Contractor shall obtain the Contracting Officer\'s written
consent before placing any subcontract for which advance notification is
required under paragraph (a) above. However, the Contracting Officer may
ratify in writing any such subcontract. Ratification shall constitute
the consent of the Contracting Officer.

d\. If the Contractor has an approved purchasing system and the
subcontract is within the scope of such approval, the Contractor may
enter into the subcontracts described in subparagraphs (a)(1) and (a)(2)
of this clause without the consent of the Contracting Officer.

e\. Even if the Contractor\'s purchasing system has been approved, the
Contractor shall obtain the Contracting Officer\'s written consent
before placing subcontracts identified below:

> Non Davis-Bacon Act contracts over \$100,000
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

f\. Unless the consent or approval specifically provides otherwise,
neither consent by the Contracting Officer to any subcontract nor
approval of the Contractor\'s purchasing system shall constitute a
determination:

> \(1\) of the acceptability of any subcontract terms or conditions,
>
> \(2\) of the allowability of any cost under this contract, or
>
> \(3\) to relieve the Contractor of any responsibility for performing
> this contract.

g\. No subcontract placed under this contract shall provide for payment
on a cost-plus-a-percentage-of-cost basis.

h\. The Contractor shall give the Contracting Officer immediate written
notice of any action or suit filed and prompt notice of any claim made
against the Contractor by any subcontractor or vendor that, in the
opinion of the Contractor, may result in litigation related in any way
to this contract, with respect to which the Contractor may be entitled
to reimbursement from the Government.

i\. (1) Reserved.

> \(2\) Additionally, the Contractor shall include in each cost-
> reimbursement subcontract under this contract a requirement that the
> subcontractor insert the substance of the appropriate modified
> subparagraph referred to in subparagraph (1) above in each lower tier
> price redetermination or incentive price revision subcontract under
> that subcontract.

j\. To facilitate small business participation in subcontracting, the
Contractor agrees to provide payments on subcontracts under this
contract that are fixed-price subcontracts with small business concerns
in conformity with the standards for customary payments, as in effect on
the date of this contract. The Contractor further agrees that the need
for such financing payments will not be considered a handicap or adverse
factor in the award of subcontracts.

k\. The Government reserves the right to review the Contractor\'s
purchasing system.

(End of clause)

# I.9.0 3.13-6 Contractor Personnel Suitability Requirements (July 2000)

a\. Definitions

> \(1\) Access - In general the term \"access\' is defined as the
> ability to physically enter or pass through an FAA area or a facility;
> or having the physical ability or authority to obtain FAA sensitive
> information, materials or resources. In relation to classified
> information, the ability, authority or opportunity to obtain knowledge
> of such information or materials.
>
> \(2\) Classified information - means official information or material
> that requires protection in the interest of national security and is
> classified for such purpose by appropriate classification authority in
> accordance with the provisions of Executive Order 12958, Classified
> National Security Information, in accordance with the provisions of
> Executive Order 12968, Access to Classified.
>
> \(3\) Contractor employee as used for personnel security - any person
> employed as or by a Contractor, subcontractor or consultant in support
> of the FAA.
>
> \(4\) FAA Facility as it applies to personnel security - any manned or
> unmanned building, structure, warehouse, appendage, storage area,
> utilities, and components, which, when related by function and
> location form an operating entity owned, operated, or controlled by
> the FAA.
>
> \(5\) Operating Office - a FAA line of business, an office or service
> in FAA headquarters, or a FAA division level organization in a region
> or center.
>
> \(6\) Resources - FAA resources include a physical plant, information
> databases including hardware and software, as well as manual records
> pertaining to agency mission or personnel.
>
> \(7\) Sensitive Information - any information which if subject to
> unauthorized access, modification, loss, or misuse could adversely
> affect the national interest, the conduct of Federal programs, or the
> privacy to which individuals are entitled under Section 552a of Title
> 5, United States Code (the Privacy Act), but which has not been
> specifically authorized under criteria established by an Executive
> Order or an Act of Congress to be kept secret in the interest of
> national defense or foreign policy. Sensitive data also includes
> proprietary data.
>
> \(8\) Servicing Security Element - the FAA headquarters, region, or
> center organizational element that is responsible for providing
> security services to a particular activity.

b\. This clause applies to the extent that this contract requires
Contractor employees, subcontractors, or consultants to have access to:
(1) FAA facilities, (2) sensitive information, and/or (3) resources
regardless of the location where such access occurs, and none of the
requirements and exceptions listed in Appendix 9, paragraph 8 of FAA
Order 1600.1D pertain.

c\. Consistent with Appendices 3 and 9 of FAA Order 1600.1D, the FAA
Servicing Security Element (SSE) has approved designated risk levels for
the following positions under the contract:

> [Position]{.underline} [Risk Level]{.underline}
>
> All Positions Moderate

d\. Not later than [30 days]{.underline}, 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 single sheet fingerprint chart (FD-258). Fingerprinting
> facilities are available through the SSE and local police department.
> All fingerprint charts shall be written in 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 Appendix 9 of FAA Order
1600.1D. If an employee has had a previous background investigation
completed by a federal Government entity, which meets the requirements
of Chapter 7 of FAA Order 1600.1D, it will be accepted by the FAA,
however, the FAA reserves the right to conduct further investigations,
if necessary. For each 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 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

> 800 Independence Avenue, SW, Washington, DC 20591

Regional and Center Contracts:

> Documentation to be submitted to applicable regional office. Specific
> addresses will be provided to the Contractor at time of award.
>
> The transmittal letter shall also include a list of the names of
> employees and their positions for which completed forms were submitted
> to the SSE pursuant to this Clause. A copy of the transmittal letter
> shall also be provided to the Contracting Officer.

e\. The Contractor shall submit the information required by Section (d)
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.

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 granted its approval of the forms.
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 [30
> days]{.underline}
>
> \(2\) 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.

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 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)).

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 (d) of this Clause shall apply.

j\. 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.

k\. 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
security costs or otherwise affect any other term or condition of this
contract, the contract shall be subject to an equitable adjustment as if
the changes were directed under the Changes clause of this contract.

l\. 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
Appendix 9, paragraph 8 requirements and exceptions do not apply. UNLESS
THE WORK RELEASE IMPOSES INVESTIGATIVE REQUIREMENTS, THIS PARAGRAPH DOES
NOT APPLY TO DAVIS-BACON ACT SUBCONTRACTS.

(End of Clause)

# I.10.0 3.13-7 Qualifications of Employees (July 2000)

The Contracting Officer will provide notice to the Contractor when any
Contractor employee is found to 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 employees
from working on this FAA contract, at their own expense. The Contractor
agrees to insert terms that conform substantially to the language of
this clause in all subcontracts under this contract.

(End of Clause)

# I.11.0 3.13-8 Foreign Nationals as Contractor Employees (January 2000)

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.

(End of Clause)