59166 Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 0, 2 and 101

[ET Docket No. 95–183; RM–8553; PP 

Docket No. 93–253; FCC 04–78] 

37.0–38.6 GHz and 38.6–40.0 GHz 

Bands—Competitive Bidding

AGENCY: Federal Communications 

Commission.

ACTION: Proposed rule; extension of 

comment period. 

SUMMARY: In this document, the Federal 

Communications Commission is 

extending the comment and reply 

comment period for the Third Notice of 

Proposed Rulemaking (NPRM). The 

Commission finds that it is in the public 

interest to extend the time for the filing 

of comments and reply comments on 

the NPRM.

DATES: The time for filing comments on 

all issues raised in the NPRM, including 

Paperwork Reduction Act is extended to 

December 3, 2004, and the time for 

filing reply comments is extended 

January 3, 2005.

FOR FURTHER INFORMATION CONTACT:

Charlie Oliver, 202–418–2487.

SUPPLEMENTARY INFORMATION: This is a 

summary of an Order released by the 

Commission, extending the time for 

filing comments and reply comments on 

the Third Notice of Proposed 

Rulemaking (NPRM), FCC 04–78, 

released on May 5, 2004. Comment due 

dates contained in the summary of the 

NPRM published in the Federal 

Register, 69 FR 52632, August 27, 2004, 

are inconsistent with comment due 

dates contained in the NPRM.

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary.

[FR Doc. 04–22194 Filed 10–1–04; 8:45 am] 

BILLING CODE 6712–01–P

OFFICE OF PERSONNEL 

MANAGEMENT 

48 CFR Parts 2101, 2102, 2103, 2104, 

2105, 2109, 2110, 2115, 2116, 2131, 

2132, 2137, 2144, 2146, 2149, and 2152 

RIN 3206–AI65 

Federal Employees’ Group Life 

Insurance; Federal Acquisition 

Regulation

AGENCY: Office of Personnel 

Management.

ACTION: Proposed regulations.

SUMMARY: The Office of Personnel 

Management (OPM) is issuing proposed 

regulations to amend the Federal 

Employees’ Group Life Insurance 

(FEGLI) Acquisition Regulation. The 

proposed regulations incorporate 

changes in administrative policy and 

practices and make clarifying language 

changes.

DATES: OPM must receive comments on 

or before December 3, 2004.

ADDRESSES: Send written comments to 

Abby L. Block, Deputy Associate 

Director for Employee and Family 

Support Policy, Strategic Human 

Resources Policy Division, Office of 

Personnel Management, 1900 E Street 

NW., Washington, DC 20415; or deliver 

to OPM, Room 3425, 1900 E Street NW.; 

or FAX to (202) 606–0633.

FOR FURTHER INFORMATION CONTACT:

Karen Leibach, (202) 606–0004.

SUPPLEMENTARY INFORMATION: On August 

27, 1993, OPM issued the Life Insurance 

Federal Acquisition Regulation (LIFAR), 

48 CFR chapter 21, which identifies 

basic and significant acquisition 

policies that are unique to the FEGLI 

Program. The proposed regulations 

explain changes in the FEGLI Program’s 

policies, update Federal Acquisition 

Regulation (FAR) changes, and make 

clarifying changes to the language. 

Some of the more significant changes 

in the regulations are: 

LIFAR 2101.102(b), Authority, is 

modified to reflect the prior 

consolidation of 5 CFR parts 870 

through 874 into one part, part 870. An 

identical change is also made in 

2109.7001(a). 

The revised regulation provides that 

both OPM and the Contractor, with the 

approval of OPM, may issue FEGLI 

literature to employees (2103.570(a)). 

The language clarifies that the FEGLI 

Program Booklet, along with valid 

election documents, serves as 

certification of coverage under the 

FEGLI Program. The Booklet alone does 

not suffice as certification of coverage. 

Under revised 2110.7002, Contractor 

investment of FEGLI Program funds, the 

Contractor is not responsible for any 

actions regarding investment strategy to 

maximize investment income when and 

if such actions were directed by OPM. 

This modification protects the 

Contractor in the event it is requested to 

take an action that could have an 

adverse impact on its responsibility to 

manage and invest Program funds in a 

prudent manner. The same modification 

occurs in 2152.210–70(a). 

Section 2131.109, Advance 

agreements, increases the threshold 

from $25,000 to $100,000 for 

precontract and nonrecurring costs of 

the Contractor. We consider this change 

reasonable in relation to the total cost of 

the FEGLI contract. We are making a 

similar change at 2131.205–32. 

A new subparagraph, Administrative 

Expense Ceiling, is added to 2152.231–

70 (Accounting and allowable cost). 

Calculated annually, the administrative 

expense ceiling is based on the 

Contractor’s prior year’s administrative 

expense ceiling and adjusted by the 

percent change in the Consumer Price 

Index for All Urban Consumers for the 

preceding 12 months. Both OPM and 

the Contractor will reexamine the base, 

including the prior year’s actual 

expenses, if either party so requests. 

During a continuation of services 

period, revised policy allows for a onetime negotiated increase in the 

administrative expense ceiling to handle 

phase-in/phase-out costs. All costs, 

including costs that exceed the revised 

ceiling, must be actual, allowable, 

allocable, and reasonable under FAR 

cost principles. Since indirect costs are 

charged against an annual 

administrative expense ceiling, the 

policy on indirect costs is modified 

(2131.203) to delete reference to a 

‘‘dividend or retention formula.’’ Under 

the ceiling, a separate annual limit for 

indirect costs is negotiated between 

OPM and the Contractor. 

An OPM policy change adds an 

incentive fee the Contractor can earn for 

exceptional performance during a 

continuity of services period (2137.102 

and 2152.237–70). The incentive fee 

cannot exceed the pro rata risk or 

service charge for the same period. A 

new factor, Transitional services, is 

added to the weighted guidelines at 

2115.404–71 (Profit analysis factors) to 

reflect this change and is only 

applicable during a continuity of 

services period. 

Also, during a continuity of services 

period, OPM will not initiate any 

changes to the LIFAR (2101.370). This 

does not, however, exempt the 

Contractor from complying with 

statutory changes that may take effect 

during such a period. 

The proposed regulation establishes a 

letter of credit (LOC) account for the 

Contractor (2132.170), which will be 

credited on the first business day of 

each month with one-twelfth of the 

estimated annual premium payment. 

The December payment will be credited 

to the LOC account no later than the last 

business day of each calendar year. 

Interest earnings on the LOC account 

will be made available for drawdown by 

the Contractor. Withdrawals from the 

LOC account for benefit costs of $5,000 

or more will be made on a claims-paid 

basis. Withdrawals from the LOC 

Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 59167

account for benefit costs of less than 

$5,000 and other FEGLI Program 

disbursements will be made on a 

checks-presented basis. 

The proposed regulation clarifies the 

start date of the 31-day grace period that 

follows the date premiums are due. 

Since OPM cannot credit the LOC 

account if the first of the month falls on 

a non-business day, the revised 

regulations: (1) Define ‘‘grace period’’ at 

2102.101 as 31 days from and including 

the payment due date of the first 

business day of the month; and (2) 

provide that the annual estimated 

premium, which will be credited to the 

Contractor’s LOC account in 12 equal 

monthly installments, is due and 

available for drawdown on the first 

business day of the month. The grace 

period is also referenced in 2149.002, 

Applicability, and 2152.249–70, 

Renewal and termination. 

Also under 2152.249–70, Renewal 

and termination, the Contractor agrees 

to reinstate the contract if termination 

occurs as the result of the Government’s 

failure to make premium payments 

before the grace period ends due to 

circumstances beyond the Government’s 

control. In such situations, the 

Contractor will allow an additional 5 

days after the expiration of the grace 

period for OPM to make payment to the 

Contractor. Notwithstanding the above, 

the Contractor and OPM can agree to 

continue the contract. 

The proposed regulation states that 

the Contractor is not responsible for 

continued performance as a result of 

OPM’s failure to make timely premium 

payments. Were such a circumstance to 

occur, it would be unfair to expect the 

Contractor to continue to make benefits 

payments on a regular basis and 

subsequently seek recovery from OPM 

(2137.102 and 2152.237–70). This 

Contractor protection is included in 

revised policy and contract clause 

provisions on Termination (2149.002(b)) 

and Renewal and termination 

(2152.249–70(b)). 

We believe it is unnecessary to 

evaluate annually a Contractor’s system 

of internal controls under a quality 

assurance program. Accordingly, the 

language at 2146.201 provides for 

periodic reviews. While subsequent 

reviews may be limited to changes in 

the Contractor’s internal control system, 

the Contractor has an ongoing obligation 

to fully implement its internal control 

system at all times. 

Our current policy on subcontracting 

requires advance approval of 

subcontracts or modifications that 

exceed $100,000. The proposed 

regulation increases the threshold to 

$550,000 (2144.102 and 2152.244–

70(a)). We are also making this change 

in the Notice of significant events clause 

(2152.210–71(d)). 

We are making a number of important 

additions and clarifying language 

changes to 2152.231–70, Accounting 

and allowable costs. We are defining 

cost as a chargeable cost against the 

contract which must meet separate cost 

principle tests for being actual, 

allowable, allocable, and reasonable. 

Conforming changes are being made to 

the definitions of ‘‘Administrative 

expenses’’ and ‘‘Investment income’’ so 

that they reference the definition of cost. 

We are changing the definition of 

‘‘Benefits’’ under this section to include 

excess mortality charges, post-mortem 

conversion charges, conversion policies, 

and delayed settlement interest as part 

of payments made and costs incurred. 

The term ‘‘Overpayments’’ is being 

modified to ‘‘Overpayments recovered,’’

since overpayment monies are an offset 

against benefits paid or incurred.

An expanded Definitions section at 

subpart 2102.1 includes terms used 

throughout the LIFAR. Editorial changes 

to the LIFAR correct typographical 

errors in the Code of Federal 

Regulations, provide for consistency 

throughout, and make the text more 

readable. Reference changes and 

updates are made to the FEGLI Clause 

Matrix at 2152.3 and other sections of 

the LIFAR, where applicable, to 

conform to changes in the FAR (chapter 

1 of title 48, Code of Federal 

Regulations) since the original issuance 

of the LIFAR. 

Executive Order 12866, Regulatory 

Review 

This rule has been reviewed by the 

Office of Management and Budget in 

accordance with Executive Order 12866. 

Regulatory Flexibility Act 

I certify that these regulations will not 

have a significant economic impact on 

a substantial number of small entities 

because they affect only the Federal life 

insurance Contractor.

List of Subjects in 48 CFR Parts 2101, 

2102, 2103, 2104, 2105, 2109, 2110, 

2115, 2116, 2131, 2132, 2137, 2144, 

2146, 2149, and 2152 

Advertising, Government employees, 

Government procurement, Life 

insurance.

U.S. Office of Personnel Management. 

Kay Coles James, 

Director.

Accordingly, OPM proposes to amend 

48 CFR chapter 21, as follows:

CHAPTER 21—OFFICE OF PERSONNEL 

MANAGEMENT, FEDERAL EMPLOYEES’

GROUP LIFE INSURANCE FEDERAL 

ACQUISITION REGULATION 

1. The authority citation for 48 CFR 

parts 2101, 2102, 2103, 2104, 2105, 

2109, 2110, 2115, 2116, 2131, 2132, 

2137, 2144, 2146, 2149, and 2152 

continues to read as follows:

Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 

48 CFR 1.301.

PART 2101—FEDERAL ACQUISITION 

REGULATIONS SYSTEM

Subpart 2101.1—Purpose, Authority, 

Issuance 

2. In section 2101.102 revise 

paragraph (b) to read as follows:

2101.102 Authority.

* * * * *

(b) The LIFAR does not replace or 

incorporate regulations found at 5 CFR 

part 870, which provide the substantive 

policy guidance for administration of 

the FEGLI Program under 5 U.S.C. 

chapter 87. The following is the order of 

precedence in interpreting a contract 

provision under the FEGLI Program: 

(1) 5 U.S.C. chapter 87. 

(2) 5 CFR part 870. 

(3) 48 CFR chapters 1 and 21. 

(4) The FEGLI Program contract.

Subpart 2101.3—Agency Acquisition 

Regulations 

3. In section 2101.301 revise 

paragraph (b) to read as follows:

2101.301 Policy.

* * * * *

(b) OPM may issue internal 

procedures, instructions, directives, and 

guides to clarify or implement the 

LIFAR within OPM. Clarifying or 

implementing procedures, instructions, 

directives, and guides issued pursuant 

to this section of the LIFAR must: 

(1) Be consistent with the policies and 

procedures contained in this chapter as 

implemented and supplemented from 

time to time; and 

(2) Follow the format, arrangement, 

and numbering system of this chapter to 

the extent practicable. 

4. In section 2101.370 add paragraph 

(e) to read as follows:

2101.370 Effective date of LIFAR 

amendments.

* * * * *

(e) OPM will not initiate any changes 

to the LIFAR during a continuity of 

services period, as discussed in 

2152.237–70 of this chapter.

59168 Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 

PART 2102—DEFINITIONS OF WORDS 

AND TERMS

Subpart 2102.1—Definitions 

5. Revise section 2102.101 to read as 

follows:

2102.101 Definitions. 

In this chapter, unless otherwise 

indicated, the following terms have the 

meaning set forth in this subpart. 

Contract means a policy or policies of 

group life and accidental death and 

dismemberment insurance to provide 

the benefits specified by 5 U.S.C. 

chapter 87. 

Contract price means premium. 

Contract year means October 1 

through September 30. Also referred to 

as contract term.

Contractor means an insurance 

company contracted to provide the 

benefits specified by 5 U.S.C. chapter 

87. 

Director means the Director of the 

Office of Personnel Management. 

Employees’ Life Insurance Fund

means the trust fund established under 

5 U.S.C. 8714. 

Enrollee means the insured, or, where 

applicable, the assignee. 

FEGLI Program means the Federal 

Employees’ Group Life Insurance 

Program. 

Fixed price with limited cost 

redetermination plus fixed fee contract

means a contract which provides for: 

(1) A fixed price during the contract 

year with a cost element that is adjusted 

at the end of the contract term based on 

costs incurred under the contract; and 

(2) A profit or fee that is fixed at the 

beginning of the contract term. The 

amount of adjustment for costs is 

limited to the amount in the Employees’

Life Insurance Fund. The fee will be in 

the form of either a risk charge or a 

service charge. 

Grace period means 31 days from and 

including the payment due date of the 

first business day of the month. 

Insurance company, as provided in 5 

U.S.C. 8709, means a company licensed 

to transact life and accidental death and 

dismemberment insurance under the 

laws of all the States and the District of 

Columbia. It must have in effect, on the 

most recent December 31 for which 

information is available to the Office of 

Personnel Management, an amount of 

employee group life insurance equal to 

at least 1 percent of the total amount of 

employee group life insurance in the 

United States in all life insurance 

companies. 

OPM means the United States Office 

of Personnel Management. 

Premium means an amount intended 

to cover the estimated annual benefits 

and administrative costs plus a fixed 

service or risk charge, made available to 

the Contractor in 12 equal installments. 

At the end of the contract year, a 

reconciliation of premiums, benefits, 

and other costs is performed as a limited 

cost redetermination. 

Reinsurer means a company that 

reinsures portions of the total amount of 

insurance under the contract as 

specified in 5 U.S.C. 8710 and is not an 

agent or representative of the 

Contractor. 

Subcontract means a contract entered 

into by any subcontractor that furnishes 

supplies or services for performance of 

a prime contract under the FEGLI 

Program. Except for the purpose of FAR 

subpart 22.8—Equal Employment 

Opportunity, the term ‘‘subcontract’’

does not include a contract with a 

reinsurer under the FEGLI Program. 

Subcontractor means any supplier, 

distributor, vendor, or firm that 

furnishes supplies or services to or for 

a prime Contractor under the FEGLI 

Program contract. Except for the 

purpose of FAR subpart 22.8—Equal 

Employment Opportunity, the term 

‘‘subcontractor’’ does not include 

reinsurers under the FEGLI Program.

PART 2103—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST

Subpart 2103.5—Other Improper 

Business Practices 

6. In section 2103.570 revise 

paragraphs (a) and (b) to read as follows:

2103.570 Misleading, deceptive, or unfair 

advertising. 

(a) OPM, or the Contractor with the 

approval of OPM, makes available to 

Federal employees a booklet describing 

the provisions of the FEGLI Program, 

which includes information about 

eligibility, enrollment, and general 

procedures. The booklet, along with 

valid election documents, serves as 

certification of the employee’s coverage 

under the FEGLI Program. Any 

marketing/advertising directed 

specifically at Federal employees and 

life insurance contacts with Federal 

employees for the purpose of selling 

FEGLI Program coverage must be 

approved by OPM in advance. 

(b) The Contractor is prohibited from 

making incomplete and/or incorrect 

comparisons or using disparaging or 

minimizing techniques to compare its 

other products or services to those of the 

FEGLI Program. The Contractor agrees 

that any advertising material authorized 

and released by the Contractor which 

mentions the FEGLI Program will be 

truthful and not misleading and will 

present an accurate statement of FEGLI 

Program benefits. The Contractor will 

use reasonable efforts to assure that 

agents selling its other products are 

aware of and abide by this prohibition.

* * * * *

PART 2104—ADMINISTRATIVE 

MATTERS 

7. Add subpart 2104.9 consisting of 

section 2104.9001 to read as follows:

Subpart 2104.9—Taxpayer 

Identification Number

Sec. 

2104.9001 Contract clause.

2104.9001 Contract clause. 

The clause at 2152.204–70 must be 

inserted in all FEGLI Program contracts.

PART 2105—PUBLICIZING CONTRACT 

ACTIONS

Subpart 2105.70—Applicability 

8. Revise section 2105.7001 to read as 

follows:

2105.7001 Applicability. 

FAR part 5 has no practical 

application to the FEGLI Program 

because the requirements for eligible 

contractors (i.e., qualified life insurance 

companies) are stated in 5 U.S.C. 8709.

PART 2106—COMPETITION 

REQUIREMENTS

Subpart 2106.70—Applicability 

9. Revise section 2106.7001 to read as 

follows:

2106.7001 Applicability. 

FAR part 6 has no practical 

application to the FEGLI Program 

because 5 U.S.C. chapter 87 exempts the 

FEGLI Program from competitive 

bidding.

PART 2109—CONTRACTOR 

QUALIFICATIONS

Subpart 2109.70—Minimum Standards 

for FEGLI Program Contractors 

10. In section 2109.7001 revise 

paragraphs (a), (f), and (g) to read as 

follows:

2109.7001 Minimum standards for FEGLI 

Program Contractors. 

(a) The Contractor must meet the 

requirements of chapter 87 of title 5, 

United States Code; part 870 of title 5, 

Code of Federal Regulations; chapter 1 

of title 48, Code of Federal Regulations; 

and the standards in this subpart. The 

Contractor must continue to meet these 

and the following statutory and 

Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 59169

regulatory requirements while under 

contract with OPM. Failure to meet 

these requirements and standards is 

cause for OPM’s termination of the 

contract in accordance with part 2149 of 

this chapter.

* * * * *

(f) The Contractor agrees to enter into 

annual premium rate redeterminations 

with OPM. 

(g) The Contractor must furnish such 

reasonable reports as OPM determines 

are necessary to administer the FEGLI 

Program. The cost of preparation of such 

reports will be considered an allowable 

expense within the administrative 

expense ceiling defined in 2152.231–70 

of this chapter.

* * * * *

PART 2110—SPECIFICATIONS, 

STANDARDS, AND OTHER PURCHASE 

DESCRIPTIONS

Subpart 2110.70—Contract 

Specifications 

11. Revise section 2110.7002 to read 

as follows:

2110.7002 Contractor investment of FEGLI 

Program funds. 

(a) The Contractor is required to 

invest and reinvest all FEGLI Program 

funds on hand, including any 

attributable to the special contingency 

reserve (as used in 5 U.S.C. 8712), until 

needed to discharge promptly the 

obligations incurred under the contract. 

Within the constraints of safety and 

liquidity of investments, the Contractor 

must seek to maximize investment 

income. However, the Contractor will 

not be responsible for any actions taken 

at the direction of OPM. 

(b) The Contractor is required to 

credit income earned from its 

investment of FEGLI Program funds to 

the FEGLI Program. Thus, the 

Contractor must be able to allocate 

investment income to the FEGLI 

Program in an appropriate manner. If 

the Contractor fails to invest funds on 

hand, properly allocate investment 

income, or credit any income due to the 

contract, for whatever reason, it must 

return or credit any investment income 

lost to OPM or the FEGLI Program, 

retroactive to the date that such funds 

should have been originally invested, 

allocated, or credited in accordance 

with the clause at 2152.210–70.

PART 2114—SEALED BIDDING

Subpart 2114.70—Applicability 

12. Revise section 2114.7001 to read 

as follows:

2114.7001 Applicability. 

FAR part 14 has no practical 

application to the FEGLI Program 

because 5 U.S.C. chapter 87 exempts the 

FEGLI Program from competitive 

bidding.

PART 2115—CONTRACTING BY 

NEGOTIATION

2115.106–270 [Redesignated as 2115.071] 

13. Redesignate section 2115.106–270 

as section 2115.071 and revise the title 

to read as ‘‘Specific retention periods: 

Contract clause.’’

2115.170 [Redesignated as 2115.070] 

14. Redesignate section 2115.170 as 

section 2115.070. 

15. Revise the title of subpart 2115.1, 

remove section 2115.106, and add a new 

section 2115.170 to read as follows:

Subpart 2115.1—Source Selection 

Processes and Techniques

2115.170 Applicability. 

FAR subpart 15.1 has no practical 

application to the FEGLI Program 

because prospective contractors 

(insurance companies) are considered 

for inclusion in the FEGLI Program in 

accordance with criteria provided in 5 

U.S.C. chapter 87, LIFAR 2109.7001, 

and LIFAR 2115.370. 

16. Redesignate subpart 2115.4 as 

subpart 2115.2 and revise the title, 

redesignate section 2115.401 as section 

2115.270, and revise paragraphs (a) and 

(c) to read as follows:

Subpart 2115.2—Solicitation and 

Receipt of Proposals and Information

2115.270 Applicability. 

(a) FAR subpart 15.2 has no practical 

application to the FEGLI Program 

because 5 U.S.C. chapter 87 exempts the 

FEGLI Program from competitive 

bidding.

* * * * *

(c) Eligible contractors (i.e., qualified 

life insurance companies) are identified 

in accordance with 5 U.S.C. 8709. 

Prospective contractors voluntarily 

come forth in accordance with 

procedures provided in 2115.370.

* * * * *

17. Redesignate subpart 2115.6 as 

subpart 2115.3, and redesignate section 

2115.602 as section 2115.370, and revise 

the introductory paragraph to read as 

follows:

Subpart 2115.3—Source Selection

2115.370 Applicability. 

FAR subpart 15.3 has no practical 

application to the FEGLI Program 

because prospective contractors 

(insurance companies) are considered 

for inclusion in the FEGLI Program in 

accordance with criteria provided in 5 

U.S.C. chapter 87, LIFAR 2109.7001, 

and the following:

* * * * *

18. Redesignate subpart 2115.8 as 

subpart 2115.4 and revise the title, and 

redesignate section 2115.802 as section 

2115.402 and revise it to read as 

follows:

Subpart 2115.4—Contract Pricing

2115.402 Policy. 

Pricing of FEGLI Program premium 

rates is governed by 5 U.S.C. 8707, 8708, 

8711, 8714a, 8714b, and 8714c. FAR 

subpart 15.4 will be implemented by 

applying cost analysis policies and 

procedures. To the extent that 

reasonable or good faith actuarial 

estimates are used for pricing, such 

estimates will be deemed acceptable 

and, if inaccurate, will not constitute 

defective pricing. 

19. Redesignate section 2115.902 as 

section 2115.404–70, revise the title, 

and revise paragraph (b)(2) to read as 

follows:

2115.404–70 Profit.

* * * * *

(b) * * *

(2) Once agreement to relinquish the 

risk charge is made, the agreement may 

not be cancelled unless OPM and the 

Contractor mutually agree to reinstitute 

payment of a risk charge; or unless the 

Fund balance falls below the level 

defined in 2115.404–70(a) and 30 days’

notice of cancellation is provided; or 

unless the Contractor or OPM provides 

notice of cancellation for any reason 1 

year prior to the date cancellation is 

sought.

* * * * *

20. Redesignate section 2115.905 as 

section 2115.404–71 and revise it to 

read as follows:

2115.404–71 Profit analysis factors. 

(a) The OPM Contracting Officer will 

apply a weighted guidelines method 

when developing the prenegotiation 

objective (service charge) for the FEGLI 

Program contract. In accordance with 

the factors defined in FAR 15.404–4(d), 

OPM will apply the appropriate weights 

derived from the ranges specified in 

paragraph (b) of this section and will 

determine the prenegotiation objective 

based on the total dollar amount of the 

Contractor’s Basic and Option C (family 

optional insurance) claims paid in the 

previous contract year. 

(1) Contractor performance. OPM will 

consider such elements as the accurate 

and timely processing of benefit claims, 

59170 Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 

the volume and validity of complaints 

received by OPM, effectiveness of 

internal controls systems in place, the 

timeliness and adequacy of reports on 

operations, and responsiveness to OPM 

offices, enrollees, beneficiaries, and 

Congress as measures of economical and 

efficient contract performance. This 

factor will be judged apart from the 

Contractor’s basic responsibility for 

contract compliance and will be a 

measure of the extent and nature of the 

Contractor’s contribution to the FEGLI 

Program through the application of 

managerial expertise and effort. 

Evidence of effective contract 

performance will receive a plus weight, 

and poor performance or failure to 

comply with contract terms and 

conditions a zero weight. Innovations of 

benefit to the FEGLI Program will 

generally receive a plus weight; 

documented inattention or indifference 

to effective operations, a zero weight. 

(2) Contract cost risk. OPM will 

evaluate the Contractor’s risk annually 

in relation to the amount in the 

Employees’ Life Insurance Fund and 

will evaluate this factor accordingly. 

(3) Federal socioeconomic programs.

OPM will consider documented 

evidence of successful Contractorinitiated efforts to support such Federal 

socioeconomic programs as drug and 

substance abuse deterrents and other 

concerns of the type enumerated in FAR 

15.404–4(d)(1)(iii) as a factor in 

negotiating profit. This factor will be 

related to the quality of the Contractor’s 

policies and procedures and the extent 

of exceptional effort or achievement 

demonstrated. Evidence of effective 

support of Federal socioeconomic 

programs will result in a plus weight; 

indifference to Federal socioeconomic 

programs will result in a zero weight; 

and only deliberate failure to provide 

opportunities to persons and 

organizations that would benefit from 

these programs will result in a negative 

weight. 

(4) Capital investments. This factor is 

generally not applicable to FEGLI 

Program contracts because facilities 

capital cost of money may be an 

allowable administrative expense. 

Generally, this factor will be given a 

weight of zero. However, special 

purpose facilities or investment costs of 

direct benefit to the FEGLI Program that 

are not recoverable as allowable or 

allocable administrative expenses may 

be taken into account in assigning a plus 

weight. 

(5) Cost control. This factor is based 

on the Contractor’s previously 

demonstrated ability to perform 

effectively and economically. In 

addition, consideration will be given to 

measures taken by the Contractor that 

result in productivity improvements 

and other cost containment 

accomplishments that will be of future 

benefit to the FEGLI Program. Examples 

are containment of costs associated with 

processing claims; success at preventing 

waste, loss, unauthorized use, or 

misappropriation of FEGLI Program 

assets; and success at limiting and 

recovering erroneous benefit payments. 

(6) Independent development.

Consideration will be given to 

independent Contractor-initiated efforts, 

such as the development of a unique 

and enhanced customer support system, 

that are of demonstrated value to the 

FEGLI Program and for which 

developmental costs have not been 

recovered directly or indirectly through 

allowable or allocable administrative 

expenses. This factor will be used to 

provide additional profit opportunities 

based upon an assessment of the 

Contractor’s investment and risk in 

developing techniques, methods, 

practices, etc., having viability to the 

Program at large. Improvements and 

innovations recognized and rewarded 

under any other profit factor cannot be 

considered. 

(7) Transitional services. This factor is 

based on the Contractor’s performance 

of transitional activities during a 

continuity of services period as 

described in the clause at 2152.237–70 

of this chapter. These are any activities 

apart from the normal servicing of the 

contract during an active contract term. 

Other than for a transitional period, the 

weight applied to this factor for any 

active contract term is zero. 

(b) The weight ranges for each factor 

to be used in the weighted guidelines 

approach are set forth in the following 

table:

Profit factor Weight ranges 

1. Contractor performance.0 to +.0005 

2. Contract cost risk ... +.000001 to +.00001 

3. Federal socioeconomic programs.¥.00003 to +.00003 

4. Capital investment .. 0 to +.00001 

5. Cost control ............ ¥.0002 to +.0002 

6. Independent development.0 to +.00003 

7. Transitional services 0 to +.0007 

Subpart 2115.9—[Removed] 

20a. Remove subpart 2115.9.

PART 2116—TYPES OF CONTRACTS

Subpart 2116.2—Fixed Price Contracts 

21. Revise section 2116.270 to read as 

follows:

2116.270 FEGLI Program contracts. 

FEGLI Program contracts are fixed 

price with limited cost redetermination 

plus fixed fee. The premium paid to the 

Contractor is mutually agreed upon by 

OPM and the Contractor and is based on 

an estimate of benefits and 

administrative costs, plus the fixed 

service or risk charge, and is determined 

annually. Claims costs, including 

benefits and administrative expenses, in 

excess of premiums are paid up to the 

amount in the Employees’ Life 

Insurance Fund. Payment for costs 

exceeding the amount in the Fund are 

the responsibility of the Contractor and 

reinsurers. The fee is fixed at the 

inception of each contract year. The fee 

does not vary with the actual costs but 

may be adjusted as a result of changes 

in the work to be performed under the 

contract. The fee is in the form of either 

a risk charge or a service charge. 

(a) Risk charge. The risk charge will 

be determined as prescribed in 5 U.S.C. 

8711(d) and 2115.404–70 of this 

chapter. It will consist of a negotiated 

amount which will reflect the risk 

assumed by the Contractor and the 

reinsurers and may be adjusted as a 

result of increased or decreased risk 

under the contract. When the applicable 

fee is a risk charge, no service charge 

will be paid for the same period of time.

(b) Service charge. The amount of the 

service charge will be determined using 

a weighted guidelines structured 

approach in accordance with 2115.404–

71 of this chapter and negotiated with 

the Contractor at the beginning of the 

contract term. When the applicable fee 

is a service charge, no risk charge will 

be paid for the same period of time.

PART 2131—CONTRACT COST 

PRINCIPLES AND PROCEDURES

Subpart 2131.1—Applicability 

22. Revise section 2131.109 to read as 

follows:

2131.109 Advance agreements. 

FAR 31.109 is applicable to FEGLI 

Program contracts, except that 

precontract costs and nonrecurring costs 

that exceed $100,000 will not be 

allowed in the absence of an advance 

agreement between OPM and any 

potential FEGLI Contractor.

Subpart 2131.2—Contracts with 

Commercial Organizations 

23. Revise section 2131.203 to read as 

follows:

2131.203 Indirect costs. 

The provisions of FAR 31.203 apply 

to the allocation of indirect costs. 

Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 59171

24. Revise section 2131.205–32 to 

read as follows:

2131.205–32 Precontract costs. 

Precontract costs will be allowable in 

accordance with FAR part 31, but 

precontract costs that exceed $100,000 

will not be allowable except to the 

extent allowable under an advance 

agreement negotiated in accordance 

with 2131.109 of this chapter. 

25. Revise section 2131.205–38 to 

read as follows:

2131.205–38 Selling costs. 

Selling costs are not allowable costs to 

FEGLI contracts except to the extent that 

they are attributable to conducting 

contract negotiations with the 

Government and for liaison activities 

involving ongoing contract 

administration, including the conduct of 

informational and enrollment activities 

as directed or approved by the 

Contracting Officer.

PART 2132—CONTRACT FINANCING

Subpart 2132.1—General 

26. Revise section 2132.170 to read as 

follows:

2132.170 Recurring premium payments to 

Contractors. 

(a) OPM will make payments on a 

letter of credit (LOC) basis. OPM and the 

Contractor will concur on an estimate of 

benefits and administrative costs plus 

the fixed service or risk charge for the 

forthcoming contract year, as specified 

in the contract. The annual premium to 

the Contractor, based on this estimate, 

will be credited to the Contractor’s LOC 

account in 12 equal monthly 

installments due on the first business 

day of each month and available for 

drawdown. OPM will credit the 

Contractor’s LOC account for the 

December payment no later than the last 

business day of each calendar year. 

Following the close of the contract year, 

a reconciliation of premiums, benefits, 

and other costs will be performed as a 

limited cost redetermination. In 

addition, interest distribution payments 

will be made available for Contractor 

drawdown from the LOC account. The 

Contractor will use the LOC account in 

accordance with guidelines issued by 

OPM. 

(b) Withdrawals from the LOC 

account for benefit costs of $5,000 or 

more will be made on a claims-paid 

basis. Withdrawals from the LOC 

account for benefit costs of less than 

$5,000 and other FEGLI Program 

disbursements will be made on a 

checks-presented basis. Under a checkspresented basis, drawdown on the LOC 

is delayed until the checks issued for 

FEGLI Program disbursements are 

presented to the Contractor’s bank for 

payment. 

(c) Nothing in this section will affect 

the ability of the Contractor to hold the 

special contingency reserve established 

and maintained in accordance with the 

terms of 5 U.S.C. 8712.

Subpart 2132.7—Contract Funding 

27. Revise section 2132.771 to read as 

follows:

2132.771 Non-commingling of FEGLI 

Program funds. 

(a) FEGLI Program funds must be 

maintained in such a manner as to be 

separately identifiable from other assets 

of the Contractor. Cash and investment 

balances reported on the FEGLI Program 

Annual Financial Report must be 

supported by the Contractor’s books and 

records. 

(b) This requirement may be modified 

by the Contracting Officer in accordance 

with the clause at 2152.232–71 of this 

chapter when adequate accounting and 

other controls are in effect. If the 

requirement is modified, such 

modification will remain in effect until 

rescinded by OPM.

PART 2137—SERVICE CONTRACTING

Subpart 2137.1—Service Contracts—

General 

28. Revise section 2137.102 to read as 

follows:

2137.102 Policy. 

(a) The services under this contract 

are of vital interest to the Government 

and must be continued without 

interruption in the event the contract is 

terminated, unless the termination 

occurs as a result of OPM’s failure to 

pay premiums on a timely basis. 

(b) The Contractor will be reimbursed 

for all reasonable phase-in and phaseout costs (i.e., costs incurred within the 

agreed-upon period after contract 

termination that result from phase-in 

and phase-out operations). The 

Contractor also will receive a risk or 

service charge for the full period after 

contract termination during which 

services are continued, not to exceed a 

pro rata portion of the risk or service 

charge for the final contract year. In 

addition, OPM will pay the Contractor 

an incentive amount, not to exceed the 

pro rata risk or service charge for the 

continuity of services period (LIFAR 

2152.237–70), based on exceptional 

performance during the transition 

period to a new Contractor. The 

Contracting Officer will use the 

weighted guidelines method described 

in 2115.404–71 of this chapter in 

determining the incentive amount. The 

amount of the risk or service charge will 

be based upon the accurate and timely 

processing of benefit claims, the volume 

and validity of customer service 

complaints, the timeliness and 

adequacy of reports on operations, and 

responsiveness to OPM offices, insured 

individuals, beneficiaries, and Congress.

PART 2144—SUBCONTRACTING 

POLICIES AND PROCEDURES

Subpart 2144.1—General 

29. Revise section 2144.102 to read as 

follows:

2144.102 Policy. 

For all FEGLI Program contracts, the 

Contracting Officer’s advance approval 

will be required on subcontracts or 

modifications to subcontracts when the 

cost of that portion of the subcontract 

that is charged the FEGLI Program 

contract exceeds $550,000 and is at least 

25 percent of the total cost of the 

subcontract.

PART 2146—QUALITY ASSURANCE

Subpart 2146.2—Contract Quality 

Requirements 

30. In section 2146.201 revise 

paragraph (b) to read as follows:

2146.201 General.

* * * * *

(b) OPM will make an initial 

evaluation of the Contractor’s system of 

internal controls under the quality 

assurance program required by 2146.270 

of this chapter and will acknowledge in 

writing whether or not the system is 

consistent with the requirements set 

forth in this subpart. After the initial 

review, subsequent periodic reviews 

may be limited to changes in the 

Contractor’s internal control guidelines. 

However, a limited review does not 

diminish the Contractor’s obligation to 

apply the full internal control system.

31. In section 2146.270 revise 

paragraph (b) to read as follows:

2146.270 FEGLI Program quality 

assurance requirements.

* * * * *

(b) The Contractor must prepare 

overpayment recovery guidelines to 

include a system of internal controls.

* * * * *

PART 2149—TERMINATION OF 

CONTRACTS 

32. Revise section 2149.002 to read as 

follows:

59172 Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 

2149.002 Applicability. 

(a) Termination. (1) Termination of 

FEGLI Program contracts is controlled 

by 5 U.S.C. 8709(c) and this chapter. 

The procedures for termination of 

FEGLI Program contracts are contained 

in FAR part 49. For the purpose of this 

part, ‘‘terminate’’ means to 

‘‘discontinue’’ as used in 5 U.S.C. 

8709(c). 

(2) A life insurance contract entered 

into by OPM may be terminated by OPM 

at any time for default by the Contractor 

in accordance with the provisions of 

FAR parts 49 and 52.249–8. A life 

insurance contract entered into by OPM 

may be terminated by the Contractor at 

the end of the grace period, after default 

for nonpayment by OPM. 

Notwithstanding the preceding 

sentence, the Contractor will allow OPM 

an additional 5 days after the end of the 

grace period to make payment if the 

failure to make payment was 

inadvertent and/or due to circumstances 

beyond the Government’s control. 

(3) A life insurance contract entered 

into by OPM may be terminated for 

convenience of the Government 60 days 

after the Contractor’s receipt of OPM’s 

written notice to terminate. 

(4) The Contractor may terminate its 

contract with OPM at the end of any 

contract year when notice of intent to 

terminate is given to OPM in writing at 

least 60 days prior to the end of the 

contract year (i.e., no later than July 31). 

(b) Continuation of services. The 

services under this contract are of vital 

interest to the Government and must be 

continued without interruption in the 

event the contract is terminated for the 

Contractor’s default or OPM’s 

convenience. Consequently, the contract 

termination procedures contained in 

this paragraph must be used in 

conjunction with 2137.102 of this 

chapter, 2137.110 of this chapter, and 

the provisions of the ‘‘Continuity of 

Services’’ clause at 2152.237–70 of this 

chapter. The Contractor is not required 

to continue performance subsequent to 

OPM’s default for failure to pay 

premiums in accordance with the 

provisions of the clause at 2152.249–

70(b). 

(c) Settlement. The procedures for 

settlement of contracts after they are 

terminated are those contained in FAR 

part 49.

PART 2152—PRECONTRACT 

PROVISIONS AND CONTRACT 

CLAUSES 

33. In section 2152.070 revise the 

listing under Section and Clause Title to 

read as follows:

2152.070 Applicable clauses.

* * * * *

Section and Clause Title 

52.202–1 Definitions 

52.203–3 Gratuities 

52.203–5 Covenant against Contingent Fees 

52.203–6 Restrictions on Subcontractor 

Sales to the Government 

52.203–7 Anti-Kickback Procedures 

52.203–12 Limitation on Payments To 

Influence Certain Federal Transactions 

52.209–6 Protecting the Government’s 

Interest When Subcontracting With 

Contractors Debarred, Suspended, or 

Proposed for Debarment 

52.215–2 Audit and Records—Negotiation 

52.215–10 Price Reduction for Defective 

Cost or Pricing Data 

52.215–12 Subcontractor Cost or Pricing 

Data 

52.215–15 Pension Adjustments and Asset 

Reversions 

52.215–16 Facilities Capital Cost of Money 

52.215–17 Waiver of Facilities Capital Cost 

of Money 

52.215–18 Reversion or Adjustment of 

Plans for Postretirement Benefits (PRB) 

Other Than Pensions 

52.219–8 Utilization of Small Business 

Concerns 

52.222–1 Notice to the Government of 

Labor Disputes 

52.222–3 Convict Labor 

52.222–4 Contract Work Hours and Safety 

Standards Act—Overtime Compensation 

52.222–21 Prohibition of Segregated 

Facilities 

52.222–22 Previous Contracts and 

Compliance Reports 

52.222–25 Affirmative Action Compliance 

52.222–26 Equal Opportunity 

52.222–29 Notification of Visa Denial 

52.222–35 Equal Opportunity for Special 

Disabled Veterans, Veterans of the 

Vietnam Era, and Other Eligible Veterans 

52.222–36 Affirmative Action for Workers 

with Disabilities 

52.222–37 Employment Reports on Special 

Disabled Veterans, Veterans of the 

Vietnam Era, and Other Eligible Veterans 

52.223–6 Drug-Free Workplace 

52.227–1 Authorization and Consent 

52.227–2 Notice and Assistance regarding 

Patent and Copyright Infringement 

52.228–7 Insurance—Liability to Third 

Persons 

52.232–9 Limitation on Withholding of 

Payments 

52.232–17 Interest 

52.232–23 Assignment of Claims 

52.232–33 Payment by Electronic Funds 

Transfer—Central Contractor 

Registration 

52.233–1 Disputes (Alternate I) 

52.242–1 Notice of Intent To Disallow Costs 

52.242–3 Penalties for Unallowable Costs 

52.242–13 Bankruptcy 

52.244–5 Competition in Subcontracting 

52.245–2 Government Property (Fixed-Price 

Contracts) 

52.246–4 Inspection of Services—Fixed 

Price 

52.246–25 Limitation of Liability—Services 

52.247–63 Preference for U.S.-Flag Air 

Carriers 

52.249–2 Termination for Convenience of 

the Government (Fixed Price) 

52.249–8 Default (Fixed Price Supply and 

Service) 

52.249–14 Excusable Delays 

52.251–1 Government Supply Sources 

52.252–4 Alterations in Contract 

52.252–6 Authorized Deviations in Clauses

34. Revise section 2152.203–70 to 

read as follows:

2152.203–70 Misleading, deceptive, or 

unfair advertising. 

As prescribed in 2103.571, insert the 

following clause:

Misleading, Deceptive, or Unfair Advertising 

(Oct 2005) 

The Contractor agrees that any advertising 

material authorized and released by the 

Contractor which mentions the FEGLI 

Program must be truthful and not misleading 

and must present an accurate statement of 

FEGLI Program benefits. The Contractor is 

prohibited from making incomplete and/or 

incorrect comparisons or using disparaging 

or minimizing techniques to compare its 

other products or services to those of the 

FEGLI Program. The Contractor agrees to use 

reasonable efforts to assure that agents selling 

its other products are aware of and abide by 

this provision. The Contractor agrees to 

incorporate this clause in all subcontracts as 

defined at LIFAR 2102.101.

(End of Clause)

35. Add a new section 2152.204–70 to 

read as follows:

2152.204–70 Taxpayer Identification 

Number. 

As prescribed in 2104.9001, insert the 

following clause:

Taxpayer Identification Number (Oct 2005) 

(a) Definitions. 

Common parent, as used in this provision, 

means that corporate entity that owns or 

controls an affiliated group of corporations 

that files its Federal income tax returns on a 

consolidated basis, and of which the 

Contractor is a member. 

Taxpayer Identification Number (TIN), as 

used in this provision, means the number 

required by the Internal Revenue Service 

(IRS) to be used by the Contractor in 

reporting income tax and other returns. The 

TIN is the Contractor’s Social Security 

Number. 

(b) The Contractor must submit the 

information required in paragraphs (d) 

through (f) of this clause to comply with debt 

collection requirements of 31 U.S.C. 7701(c) 

and 3325(d), reporting requirements of 26 

U.S.C. 6041, 6041A, and 6050M, and 

implementing regulations issued by the IRS. 

The Contractor is subject to the payment 

reporting requirements described in FAR 

4.904. The Contractor’s failure or refusal to 

furnish the information will result in 

payment being withheld until the TIN is 

provided. 

(c) The Government may use the TIN to 

collect and report on any delinquent amounts 

arising out of the Contractor’s relationship 

Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 59173

with the Government (31 U.S.C. 7701(c)(3)). 

The TIN provided hereunder may be 

matched with IRS records to verify its 

accuracy. 

(d) Taxpayer Identification Number (TIN). 

TIN: llllllllllllllllll

(e) Type of organization.

b Corporate entity (tax-exempt); 

b Other llllllllll

(f) Common parent.

b Contractor is not owned or controlled by 

a common parent as defined in paragraph (a) 

of this clause. 

b Name and TIN of common parent: 

Name llllllllllllllllll

TIN llllllllllllllllll

(End of Clause)

36. In section 2152.210–70 revise the 

clause title date, and revise paragraphs 

(a), (c), and (d)(2) to read as follows:

2152.210–70 Investment income.

Investment Income (Oct 2005) 

(a) The Contractor must invest and reinvest 

all FEGLI Program funds on hand until 

needed to discharge promptly the obligations 

incurred under the contract. Within the 

constraints of safety and liquidity of 

investments, the Contractor must seek to 

maximize investment income. However, the 

Contractor will not be responsible for any 

actions taken at the direction of OPM.

* * * * *

(c) When the Contracting Officer concludes 

that the Contractor failed to comply with 

paragraph (a) or (b) of this clause, the 

Contractor must pay to OPM the investment 

income that would have been earned, at the 

rate(s) specified in paragraph (d) of this 

clause, had it not been for the Contractor’s 

noncompliance. Failed to comply with 

paragraph (a) or (b) of this clause means: 

(1) Making any charges against the contract 

which are not actual, allowable, allocable, or 

reasonable; or 

(2) Failing to credit any income due the 

contract and/or failing to place funds on 

hand, including premium payments and 

payments from OPM not needed to discharge 

promptly the obligations incurred under the 

contract, tax refunds, credits, deposits, 

investment income earned, uncashed checks, 

or other amounts owed OPM in incomeproducing investments and accounts. 

(d) * * *

(2) Investment income lost by the 

Contractor as a result of failure to credit 

income due under the contract or failure to 

place funds on hand in income-producing 

investments and accounts must be paid from 

the date the funds should have been invested 

or appropriate income was not credited and 

will end on the earlier of: 

(i) The date the amounts are returned to 

OPM; 

(ii) The date specified by the Contracting 

Officer; or 

(iii) The date of the Contracting Officer’s 

final decision.

* * * * *

37. In section 2152.210–71 revise the 

clause title date, and revise paragraphs 

(a)(3), (a)(5), (a)(6), (a)(11), (b), and (d) 

to read as follows:

2152.210–71 Notice of significant events. 

As prescribed in 2110.7004(b), insert 

the following clause:

Notice of Significant Events (Oct 2005) 

(a) * * *

(3) Loss of 20 percent or more of FEGLI 

Program reinsurers in a contract year;

* * * * *

(5) The withdrawal of, or notice of intent 

to withdraw, by any State or the District of 

Columbia, its license to do life insurance 

business or any other change of life insurance 

status under State law; 

(6) The Contractor’s material default on a 

loan or other financial obligation;

* * * * *

(11) Any written exceptions, reservations, 

or qualifications expressed by the 

independent accounting firm contracted with 

by the Contractor to provide an audit opinion 

on the annual financial report required by 

OPM for the FEGLI Program. (Accounting 

firm employees must be members of the 

American Institute of Certified Public 

Accountants and must audit the report in 

accordance with Generally Accepted 

Government Auditing Standards or other 

requirements issued by OPM.) 

(b) Upon learning of a significant event, 

OPM may institute action, in proportion to 

the seriousness of the event, to protect the 

interest of insureds, including, but not 

limited to—

(1) Directing the Contractor to take 

corrective action; or 

(2) Making a downward adjustment to the 

weight in the ‘‘Contractor Performance’’

factor of the service charge.

* * * * *

(d) The Contractor agrees to insert this 

clause in any subcontract or subcontract 

modification when the amount of the 

subcontract or modification that is charged to 

the FEGLI Program contract exceeds 

$550,000 and is at least 25 percent of the 

total cost of the subcontract.

(End of Clause)

38. Revise section 2152.215–70 to 

read as follows:

2152.215–70 Contractor records retention. 

As prescribed in 2115.071, insert the 

following clause:

Contractor Records Retention (Oct 2005) 

Notwithstanding the provisions of FAR 

52.215–2(f), ‘‘Audit and Records—

Negotiation,’’ the Contractor must retain and 

make available all records applicable to a 

contract term that support the annual 

financial report for a period of 5 years after 

the end of the contract term to which the 

records relate. Claim records must be 

maintained for 10 years after the end of the 

contract term to which the claim records 

relate. If the Contractor chooses to maintain 

paper documents in electronic format, the 

electronic version must be an exact replica of 

the paper document.

(End of Clause)

39. Revise section 2152.216–70 to 

read as follows:

2152.216–70 Fixed price with limited cost 

redetermination—risk charge. 

As prescribed in 2116.270–1(a), insert 

the following clause when a risk charge 

is negotiated:

Fixed Price With Limited Cost 

Redetermination Plus Fixed Fee Contract—

Risk Charge (Oct 2005) 

(a) This is a fixed price with limited cost 

redetermination plus fixed fee contract, with 

the fixed fee in the form of a risk charge. 

OPM will pay the Contractor the risk charge 

as specified in a letter from the Contracting 

Officer. 

(b) At the Contractor’s request, OPM will 

furnish, during the third quarter of the 

current contract year, an accounting of the 

funds in the Employees’ Life Insurance Fund 

as of the end of the second quarter of the 

contract year.

(End of Clause)

40. Revise section 2152.216–71 to 

read as follows:

2152.216–71 Fixed price with limited cost 

redetermination—service charge. 

As prescribed in 2116.270–1(b), insert 

the following clause when a service 

charge is negotiated:

Fixed Price With Limited Cost 

Redetermination Plus Fixed Fee Contract—

Service Charge (Oct 2005) 

(a) This is a fixed price with limited cost 

redetermination plus fixed fee contract, with 

the fixed fee in the form of a service charge. 

OPM will pay the Contractor the service 

charge as specified in a letter from the 

Contracting Officer. 

(b) At the Contractor’s request, OPM will 

furnish, during the third quarter of the 

current contract year, an accounting of the 

funds in the Employees’ Life Insurance Fund 

as of the end of the second quarter of the 

contract year. 

(End of Clause)

41. In section 2152.224–70 revise the 

clause title date, and revise paragraph 

(a) to read as follows:

2152.224–70 Confidentiality of records.

* * * * *

Confidentiality of Records (Oct 2005) 

(a) The Contractor will use the personal 

data on employees and annuitants that is 

provided by agencies and OPM, including 

social security numbers, for only those 

routine uses stipulated for the data and 

published in the Federal Register as part of 

OPM’s notice of systems of records.

* * * * *

42. Revise section 2152.231–70 to 

read as follows:

2152.231–70 Accounting and allowable 

cost. 

As prescribed in 2131.270, insert the 

following clause:

Accounting and Allowable Cost (Oct 2005) 

(a) Annual Financial Report. (1) The 

Contractor must prepare annually a financial 

59174 Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 

report summarizing the financial operations 

of the FEGLI Program for the previous 

contract year. This report will be due to OPM 

in accordance with a date established by 

OPM’s requirements. 

(2) The Contractor must have the most 

recent financial report for the FEGLI Program 

audited by an independent public accounting 

firm, whose employees are members of the 

American Institute of Certified Public 

Accountants. The audit must be performed in 

accordance with Generally Accepted 

Government Auditing Standards or other 

requirements issued by OPM. The report by 

the independent accounting firm on its audit 

must be submitted to OPM along with the 

annual financial report. 

(3) Based on the results of either the 

independent audit or a Government audit, 

the FEGLI contract may be: 

(i) Adjusted by amounts found not to 

constitute chargeable costs; or 

(ii) Adjusted for prior overpayments or 

underpayments. 

(b) Definition of costs. (1) A cost is 

chargeable to the contract for a ontract term 

if it is: 

(i) An actual, allowable, allocable, and 

reasonable cost; 

(ii) Incurred with proper justification and 

accounting support; 

(iii) Determined in accordance with 

subpart 31.2 of the Federal Acquisition 

Regulation (FAR) and subpart 2131.2 of the 

Federal Employees’ Group Life Insurance 

Acquisition Regulation (LIFAR) applicable 

on October 1 of each year; and 

(iv) Determined in accordance with the 

terms of this contract. 

(2) In the absence of specific contract terms 

to the contrary, contract costs will be 

classified in accordance with the following 

criteria: 

(i) Benefits. Claims costs consist of 

payments made and costs incurred 

(including delayed settlement interest) by the 

Contractor for life insurance, accidental 

death and dismemberment insurance, excess 

mortality charges, post-mortem conversion 

charges, and conversion policies on behalf of 

insured persons, less any overpayments 

recovered (subject to the terms of LIFAR 

2131.205–3), refunds, or other credits 

received. 

(ii)(A) Administrative expenses.

Administrative expenses consist of 

chargeable costs as defined in paragraph 

(b)(1) of this clause incurred in the 

adjudication of claims or incurred in the 

Contractor’s overall operation of the 

business. Unless otherwise provided in the 

contract, FAR, or LIFAR, administrative 

expenses include, but are not limited to, 

taxes, service charges to reinsurers, the cost 

of investigation and settlement of policy 

claims, the cost of maintaining records 

regarding payment of claims, and legal 

expenses incurred in the litigation of benefit 

payments. Administrative expenses exclude 

the expenses related to investment income in 

paragraph (b)(2)(iii) of this clause. 

(B) Administrative Expense Ceiling. Each 

year an administrative expense ceiling for the 

following contract year is calculated based on 

the prior contract year’s administrative 

expense ceiling, adjusted by the percentage 

change in the average monthly consumer 

Price Index for All Urban Consumers for the 

preceding 12 months. Administrative 

expenses are reimbursed up to the 

administrative expense ceiling or actual 

costs, whichever is less. Both parties will 

reexamine the base, including the prior year’s 

actual expenses, at the request of either OPM 

or the Contractor. Within the administrative 

expense ceiling is a separately negotiated 

limit for indirect costs that may be charged 

against the ceiling for the contract year. The 

Contractor agrees to provide annually to the 

Contracting Officer a detailed report of direct 

and indirect administrative costs which form 

the basis for determining the limit on indirect 

costs for the following contract year. During 

a continuity of services period, OPM and the 

Contractor will negotiate a one-time increase 

in the administrative expense ceiling to cover 

phase-in/phase-out costs. Costs that exceed 

the revised ceiling must be submitted by the 

Contractor, in writing and in advance of their 

incurrence, to the Contracting Officer for 

approval. 

(iii) Investment income. Investment income 

represents the amount earned by the 

Contractor after deducting chargeable 

investment expenses. Investment expenses 

are those chargeable contract costs, as 

defined in paragraph (b)(1) of this clause, 

which are attributable to the investment of 

FEGLI funds. 

(c) Certification of Annual Financial 

Report. (1) The Contractor must certify the 

annual financial report in the form set forth 

in paragraph (c)(2) of this clause. The 

certificate must be signed by the chief 

executive officer for the Contractor’s FEGLI 

Program operations and the chief financial 

officer for the Contractor’s FEGLI Program 

operations and must be returned with the 

annual financial report. 

(2) The certification required must be in 

the following form: 

Certification of Annual Financial Report 

This is to certify that I have reviewed this 

financial report and, to the best of my 

knowledge and belief, attest that: 

1. The report was prepared in conformity 

with the guidelines issued by the Office of 

Personnel Management and fairly presents 

the financial results of this contract year in 

conformity with those guidelines;

2. The costs included in the report are 

actual, allowable, allocable, and reasonable 

in accordance with the terms of the contract 

and with the cost principles of the Federal 

Employees’ Group Life Insurance Program 

Acquisition Regulation (LIFAR) and the 

Federal Acquisition Regulation (FAR); 

3. Income, overpayments, refunds, and 

other credits made or owed in accordance 

with the terms of the contract and applicable 

cost principles have been included in the 

report.

(End of clause)

43. Revise section 2152.232–70 to 

read as follows:

2152.232–70 Payments. 

As prescribed in 2132.171, insert the 

following clause:

Payments (Oct 2005) 

(a) OPM will make available to the 

Contractor, in full settlement of its 

obligations under this contract, subject to 

adjustment based on actual claims and 

administrative cost, a fixed premium once 

per month on the first business day of the 

month. The premium is determined by an 

estimate of costs for the contract year as 

provided in Section lll and is 

redetermined annually by mutual agreement 

of OPM and the Contractor. In addition, an 

annual reconciliation of premiums, benefits, 

and other costs is performed, and additional 

payment by OPM or reimbursement by the 

Contractor is paid as necessary. 

(b) If OPM fails to fund the Letter of Credit 

(LOC) account for the full amount of 

premium due by the due date, a grace period 

of 31 days will be granted to OPM for 

providing any premium due, unless OPM has 

previously given written notice to the 

Contractor that the contract is to be 

discontinued. The contract will continue in 

force during the grace period. 

(c) If OPM fails to fund the LOC account 

for any premiums within the grace period, 

the contract may be terminated at the end of 

the 31st day of the grace period in accordance 

with LIFAR 2149.002(a)(2). If during the 

grace period OPM presents written notice to 

the Contractor that the contract is to be 

terminated before the expiration of the grace 

period, the contract will be terminated the 

later of the date of receipt of such written 

notice by the Contractor or the date specified 

by OPM for termination. In either event, 

OPM will be liable to the Contractor for all 

premiums then due and unpaid. 

(d) In accordance with LIFAR 2143.205 

and LIFAR 2252.243–70, Changes, if a change 

is made to the contract that increases or 

decreases the cost of performance of the work 

under this contract, the Contracting Officer 

will make an equitable adjustment to the 

payments under this contract. 

(e) In the event this contract is terminated 

in accordance with LIFAR part 2149, the 

special contingency reserve held by the 

Contractor will be available to pay the 

necessary and proper charges against this 

contract after other Program assets held by 

the Contractor are exhausted.

(End of Clause)

44. Revise section 2152.232–71 to 

read as follows:

2152.232–71 Non-commingling of FEGLI 

Program funds. 

As prescribed in 2132.772, insert the 

following clause:

Non-Commingling of Funds (Oct 2005) 

(a) The Contractor must maintain FEGLI 

Program funds in such a manner as to be 

separately identifiable from other assets of 

the Contractor. 

(b) The Contractor may request a 

modification of paragraph (a) of this clause 

from the Contracting Officer. The 

modification must be requested, and 

approved by the Contracting Officer, in 

advance of any change, and the Contractor 

must demonstrate that accounting techniques 

have been established that clearly measure 

Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 59175

FEGLI Program cash and investment income 

(i.e., subsidiary ledgers). Reconciliations 

between amounts reported and actual 

amounts shown in accounting records must 

be provided as supporting schedules to the 

annual financial report.

(End of Clause)

45. In section 2152.237–70 revise the 

clause title date, and revise paragraphs 

(a), (c), and (d) to read as follows:

2152.237–70 Continuity of services.

* * * * *

Continuity of Services (Oct 2005) 

(a) The Contractor recognizes that the 

services under this contract are vital to the 

Government and must be continued without 

interruption. The Contractor further 

recognizes that upon contract expiration or 

termination, including termination by the 

Contractor for OPM’s failure to make timely 

premium payments, a successor, either the 

Government or another Contractor, may 

continue them. The Contractor agrees to 

furnish phase-in training and exercise its best 

efforts and cooperation to effect an orderly 

and efficient transition to a successor.

* * * * *

(c) The Contractor must allow as many 

experienced personnel as practicable to 

remain on the job during the transition 

period to help the successor maintain the 

continuity and consistency of the services 

required by this contract. The Contractor also 

must, except if prohibited by applicable law, 

disclose necessary personnel records and 

allow the successor to conduct onsite 

interviews with these employees. If selected 

employees are agreeable to the change, the 

Contractor must release them at a mutually 

agreeable date and negotiate transfer of their 

earned fringe benefits to the successor. 

(d) The Contractor will be reimbursed for 

all reasonable phase-in, phase-out costs (i.e.,

costs incurred within the agreed period after 

contract termination that result from phasein and phase-out operations) in accordance 

with the provisions of the administrative 

expense ceiling in the clause at 2152.231–

70(b)(2)(ii)(B) and a risk charge or a service 

charge (profit) not to exceed a pro rata 

portion of the risk or service charge under 

this contract. The amount of profit will be 

based upon the accurate and timely 

processing of benefit claims, the volume and 

validity of complaints received by OPM, the 

timeliness and adequacy of reports on 

operations, and responsiveness to OPM 

offices, enrollees, beneficiaries, and 

Congress. In setting the final profit figure, 

obstacles overcome by the Contractor during 

the phase-in and phase-out period will be 

taken into consideration. OPM will pay an 

incentive amount to the Contractor not to 

exceed the pro rata risk or service charge for 

the continuity of services period, if the 

Contractor has performed exceptionally 

during the transition period to a new 

Contractor. The Contracting Officer uses the 

weighted guidelines method described in 

LIFAR 2115.404–71 in determining the 

incentive amount.

(End of Clause)

46. In section 2152.243–70 revise the 

clause title date, and revise paragraphs 

(a)(1), (a)(2), and (c) to read as follows:

2152.243–70 Changes.

* * * * *

Changes (Oct 2005) 

(a) * * *

(1) Description of services to be performed; 

(2) Time of performance (i.e., hours of the 

day, days of the week, etc.);

* * * * *

(c) The Contractor must assert its right to 

an adjustment under this clause within 30 

days from the date of receipt of the written 

order. However, if the Contracting Officer 

decides that the facts justify it, the 

Contracting Officer may receive and act upon 

a proposal submitted before final payment of 

the contract.

* * * * *

47. In section 2152.244–70 revise the 

clause title date, and revise paragraphs 

(a) and (f) to read as follows:

2152.244–70 Subcontracts.

* * * * *

Subcontracts (October 2005) 

(a) The Contractor must notify the 

Contracting Officer reasonably in advance of 

entering into any subcontract or subcontract 

modification, or as otherwise specified by 

this contract, when the cost of that portion 

of the subcontract that is charged the FEGLI 

Program contract exceeds $550,000 and is at 

least 25 percent of the total cost of the 

subcontract.

* * * * *

(f) No subcontract placed under this 

contract will provide for payment on a costplus-a-percentage-of-cost basis. Any fee 

payable under cost reimbursement type 

subcontracts will not exceed the fee 

limitations in FAR 15.404–4(c)(4)(i). Any 

profit or fee payable under a subcontract will 

be in accordance with the provisions of 

Section lll.

* * * * *

48. In section 2152.246–70 revise the 

clause title date, and revise paragraph 

(b) to read as follows:

2152.246–70 Quality assurance 

requirements.

* * * * *

Quality Assurance Requirements (Oct 2005)

* * * * *

(b) The Contractor must keep complete 

records of its quality assurance procedures 

and the results of their implementation and 

make them available to an authorized 

Government entity during contract 

performance and for 5 years after the end of 

the contract term to which the records relate.

* * * * *

49. In section 2152.249–70 revise the 

clause title date, and revise paragraphs 

(b) and (d) to read as follows:

2152.249–70 Renewal and termination.

* * * * *

Renewal and Termination (Oct 2005)

* * * * *

(b) This contract may be terminated by 

OPM at any time in accordance with FAR 

part 49 and FAR 52.249–8 for default by the 

Contractor. This contract terminates at the 

end of the grace period if the Government 

does not fund the LOC account for any of the 

premium due to the Contractor (see LIFAR 

2149.002(a)(2)). However, the Contractor and 

OPM may agree to continue the contract. In 

addition, the Contractor agrees to reinstate 

the contract if termination: (1) Arose out of 

the Government’s inadvertent failure to fund 

the LOC account for the amount of the 

premium payment prior to the expiration of 

the grace period as defined in LIFAR 

2102.101, and/or (2) was due to 

circumstances beyond the Government’s 

control, provided that the LOC account is 

funded in the amount of the premium 

payment due to the Contractor within 5 days 

after the expiration of the grace period. In the 

event of such reinstatement, OPM will 

equitably adjust the payments due under the 

contract to compensate the Contractor for any 

increased costs of performance that result 

from the Government’s failure to fund the 

LOC account prior to the expiration of the 

grace period and/or such reinstatement.

* * * * *

(d) Upon termination of the contract for 

Contractor’s default or OPM’s convenience, 

the Contractor agrees to assist OPM with an 

orderly and efficient transition to a successor 

in accordance with LIFAR 2137.102, LIFAR 

2137.110, and the provisions of the 

‘‘Continuity of Services’’ clause at 2152.237–

70. The Contractor is not required to 

continue performance subsequent to OPM’s 

failure to fund the LOC account for 

premiums due under paragraph (b) of this 

clause.

* * * * *

Subpart 2152.3—Provision and Clause 

Matrix 

50. In section 2152.370 revise the 

FEGLI Program Clause Matrix to read as 

follows:

2152.370 Use of the matrix.

* * * * *

59176 Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 

FEGLI PROGRAM CLAUSE MATRIX

Clause No. Text reference Title Use

status 

FAR 52.202–1 ............................. FAR 2.201 ................................. Definitions ...................................................................................... M 

FAR 52.203–3 ............................. FAR 3.202 ................................. Gratuities ....................................................................................... M 

FAR 52.203–5 ............................. FAR 3.404 ................................. Covenant against Contingent Fees ............................................... M 

FAR 52.203–6 ............................. FAR 3.503–2 ............................. Restrictions on Subcontractor Sales to the Government .............. M 

FAR 52.203–7 ............................. FAR 3.502–3 ............................. Anti-Kickback Procedures ............................................................. M 

FAR 52.203–12 ........................... FAR 3.808 ................................. Limitation on Payments to Influence Certain Federal Transactions.M 

2152.203–70 ............................... 2103.571 .................................... Misleading, deceptive, or unfair advertising .................................. M 

2152.204–70 ............................... 2104.9001 .................................. Taxpayer Identification Number .................................................... M 

FAR 52.209–6 ............................. FAR 9.409(b) ............................. Protecting the Government’s Interest when Subcontracting with 

Contractors Debarred, Suspended, or Proposed for Debarment.

M 

2152.209–71 ............................... 2109.409(b) ............................... Certification regarding debarment, suspension, proposed debarment and other responsibility matters.M 

2152.210–70 ............................... 2110.7004(a) ............................. Investment income ........................................................................ M 

2152.210–71 ............................... 2110.7004(b) ............................. Notice of significant events ........................................................... M 

FAR 52.215–2 ............................. FAR 15.209(b) ........................... Audit and Records—Negotiation ................................................... M 

FAR 52.215–10 ........................... FAR 15.408(b) ........................... Price Reduction for Defective Cost or Pricing Data ...................... M 

FAR 52.215–12 ........................... FAR 15.408(d) ........................... Subcontractor Cost or Pricing Data .............................................. M 

FAR 52.215–15 ........................... FAR 15.408(g) ........................... Pension Adjustments and Asset Reversions ................................ M 

FAR 52.215–16 ........................... FAR 15.408(h) ........................... Facilities Capital Cost of Money .................................................... M 

FAR 52.215–17 ........................... FAR 15.408(i) ............................ Waiver of Facilities Capital Cost of Money ................................... A 

FAR 52.215–18 ........................... FAR 15.408(j) ............................ Reversion or Adjustment of Plans for Postretirement Benefits 

(PRB) other than Pensions.

A 

2152.215–70 ............................... 2115.071 .................................... Contractor records retention .......................................................... M 

2152.216–70 ............................... 2116.270–1(a) ........................... Fixed price with limited cost redetermination—risk charge .......... A 

2152.216–71 ............................... 2116.270–1(b) ........................... Fixed price with limited cost redetermination—service charge ..... A 

FAR 52.219–8 ............................. FAR 19.708(a) ........................... Utilization of Small Business Concerns ........................................ M 

FAR 52.222–1 ............................. FAR 22.103–5(a) ....................... Notice to the Government of Labor Disputes ............................... M 

.

FAR 52.222–3 ............................. FAR 22.202 ............................... Convict Labor ................................................................................ M 

FAR 52.222–4 ............................. FAR 22.305 ............................... Contract Work Hours and Safety Standards Act—Overtime 

Compensation.

M 

FAR 52.222–21 ........................... FAR 22.810(a)(1) ...................... Prohibition of Segregated Facilities ............................................... M 

FAR 52.222–22 ........................... FAR 22.810(a)(2) ...................... Previous Contracts and Compliance Reports ............................... M 

FAR 52.222–25 ........................... FAR 22.810(d) ........................... Affirmative Action Compliance ...................................................... M 

FAR 52.222–26 ........................... FAR 22.810(e) ........................... Equal Opportunity .......................................................................... M 

FAR 52.222–29 ........................... FAR 22.810(g) ........................... Notification of Visa Denial ............................................................. A 

FAR 52.222–35 ........................... FAR 22.1310(a)(1) .................... Equal Opportunity for Special Disabled Veterans, Veterans of 

the Vietnam Era, and Other Eligible Veterans.

M 

FAR 52.222–36 ........................... FAR 22.1408(a) ......................... Affirmative Action for Workers with Disabilities ............................. M 

FAR 52.222–37 ........................... FAR 22.1310(b) ......................... Employment Reports on Special Disabled Veterans, Veterans of 

the Vietnam Era, and Other Eligible Veterans.

M 

FAR 52.223–6 ............................. FAR 23.505 ............................... Drug-Free Workplace .................................................................... M 

2152.224–70 ............................... 2124.104–70 .............................. Confidentiality of records ............................................................... M 

FAR 52.227–1 ............................. FAR 27.201–2(a) ....................... Authorization and Consent ............................................................ M 

FAR 52.227–2 ............................. FAR 27.202–2 ........................... Notice and Assistance regarding Patent and Copyright Infringement.A 

FAR 52.228–7 ............................. FAR 28.311–1 ........................... Insurance—Liability to Third Persons ........................................... M 

2152.231–70 ............................... 2131.270 .................................... Accounting and allowable cost ...................................................... M 

FAR 52.232–9 ............................. FAR 32.111(c)(2) ....................... Limitation on Withholding of Payments ......................................... M 

FAR 52.232–17 ........................... FAR 32.617(a) and (b) .............. Interest ........................................................................................... M 

FAR 52.232–23 ........................... FAR 32.806(a)(1) ...................... Assignment of Claims .................................................................... A 

FAR 52.232–33 ........................... FAR 32.1110(a)(1) .................... Payment by Electronic Funds Transfer—Central Contractor Registration.M 

2152.232–70 ............................... 2132.171 .................................... Payments ....................................................................................... M 

2152.232–71 ............................... 2132.772 .................................... Non-commingling of FEGLI Program funds .................................. M 

2152.232–72 ............................... 2132.806 .................................... Approval for assignment of claims ................................................ M 

FAR 52.233–1 ............................. FAR 33.215 ............................... Disputes (Alternate I) ..................................................................... M 

2152.237–70 ............................... 2137.110 .................................... Continuity of services .................................................................... M 

FAR 52.242–1 ............................. FAR 42.802 ............................... Notice of Intent to Disallow Costs ................................................. M 

FAR 52.242–3 ............................. FAR 42.709–6 ........................... Penalties for Unallowable Costs ................................................... M 

FAR 52.242–13 ........................... FAR 42.903 ............................... Bankruptcy ..................................................................................... M 

2152.243–70 ............................... 2143.205 .................................... Changes ........................................................................................ M 

FAR 52.244–5 ............................. FAR 44.204(c) ........................... Competition in Subcontracting ...................................................... M 

2152.244–70 ............................... 2144.204 .................................... Subcontracts .................................................................................. M 

FAR 52.245–2 ............................. FAR 45.106(b)(1) ...................... Government Property (Fixed-Price Contracts) .............................. M 

FAR 52.246–4 ............................. FAR 46.304 ............................... Inspection of Services—Fixed Price ............................................. M 

FAR 52.246–25 ........................... FAR 46.805 ............................... Limitation of Liability—Services ..................................................... M 

2152.246–70 ............................... 2146.270–1 ................................ Quality assurance requirements .................................................... M 

FAR 52.247–63 ........................... FAR 47.405 ............................... Preference for U.S.-Flag Air Carriers ............................................ M 

Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Proposed Rules 59177

FEGLI PROGRAM CLAUSE MATRIX—Continued

Clause No. Text reference Title Use

status 

FAR 52.249–2 ............................. FAR 49.502(b)(1)(i) ................... Termination for Convenience of the Government (Fixed-Price) ... M 

FAR 52.249–8 ............................. FAR 49.504(a)(1) ...................... Default (Fixed Price Supply and Service) ..................................... M 

FAR 52.249–14 ........................... FAR 49.505(d) ........................... Excusable Delays .......................................................................... M 

2152.249–70 ............................... 2149.505–70 .............................. Renewal and termination ............................................................... M 

FAR 52.251–1 ............................. FAR 51.107 ............................... Government Supply Sources ........................................................ A 

FAR 52.252–4 ............................. FAR 52.107(d) ........................... Alterations in Contract ................................................................... M 

FAR 52.252–6 ............................. FAR 52.107(f) ............................ Authorized Deviations in Clauses ................................................. M 

[FR Doc. 04–21922 Filed 10–1–04; 8:45 am] 

BILLING CODE 6325–39–P