`[Federal Register Volume 75, Number 242 (Friday, December 17, 2010)]
[Proposed Rules]
[Pages 78953-78964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30528]


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DEPARTMENT OF THE TREASURY

48 CFR Chapter 10

RIN 1505-AC04


Department of the Treasury Acquisition Regulation

AGENCY: Office of the Procurement Executive, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of the Treasury is proposing to amend the 
Department of the Treasury Acquisition Regulation (DTAR) to: update, 
revise, or remove, as applicable, outdated text and references; add new 
text to maintain consistency with the Federal Acquisition Regulation 
(FAR); incorporate Treasury-specific policy associated with current FAR 
requirements; reflect the Treasury's organization and delegation of 
authorities; and make minor editorial changes.

DATES: Comment due date: February 15, 2011.

ADDRESSES: Treasury invites comments on the topics addressed in this 
proposed rule. Comments may be submitted to Treasury by any of the 
following methods: by submitting electronic comments through the 
federal government e-rulemaking portal, http://www.regulations.gov, by 
e-mail to [email protected] mailto:, by fax to (202) 622-
2273, or by sending paper comments to Department of the Treasury, 
Office of the Procurement Executive, Attn: Fernando Tonolete, 1500 
Pennsylvania Avenue, NW., Met. Square Room 6B517, Washington, DC 20220.
    In general, Treasury will post all comments to www.regulations.gov 
without change, including any business or personal information 
provided, such as names, addresses, e-mail addresses, or telephone 
numbers. Treasury will also make such comments available for public 
inspection and copying in Treasury's Library, Room 1428, Department of 
the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220, on 
official business days between the hours of 10 a.m. and 5 p.m. Eastern 
Time. You can make an appointment to inspect comments by telephoning 
(202) 622-0990. All comments, including attachments and other 
supporting materials received are part of the public record and subject 
to public disclosure. You should submit only information that you wish 
to make publicly available.

FOR FURTHER INFORMATION CONTACT: Fernando Tonolete, Procurement 
Analyst, Office of the Procurement Executive, at (202) 622-6416.

SUPPLEMENTARY INFORMATION:

A. Background

    The Department of the Treasury is in the process of reviewing and 
updating all of its acquisition policies. As part of this policy 
review, the Office of the Procurement Executive (OPE) is updating and 
using as point of reference the Department of the Treasury Acquisition 
Regulation (DTAR) 2002 Edition, first published on June 14, 2002, and 
currently posted at:http://www.access.gpo.gov/nara/cfr/. Only 
regulatory guidance is being published for public comment. Once adopted 
as a final rule, the DTAR will be maintained separately and combined 
with Department of the Treasury Acquisition Procedures (DTAP) for 
expediency of use by Treasury staff. The DTAR and combined DTAR/DTAP 
will be posted at: http://www.treasury.gov/about/organizational-structure/offices/Mgt/Pages/ProcurementPolicy-Regulations.aspx.

B. This Proposed Rule

    The following describes Treasury's proposed changes to 48 CFR 
Chapter 10:
    Subpart 1001.3 AGENCY ACQUISITION REGULATIONS was added to restate 
the policy that the DTAR applies throughout the Department of the 
Treasury except for the US Mint, and that OPE is responsible for the 
DTAR's evaluation, review and issuance.
    Subpart 1001.4 DEVIATIONS FROM THE FAR was added, stating that the 
Senior Procurement Executive (SPE) is authorized to approve individual 
contract and class deviations from the FAR and DTAR.
    Subpart 1001.6 CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND 
RESPONSIBILITIES was added to link by reference and insert in this 
subpart DTAR 1052.201-70 on Contracting Officer's Technical 
Representative (COTR) appointment and authority, with the requirement 
that substantially the same clause be included in all solicitations and 
contracts.
    Editorial and clarification changes were made to section 1001.104 
to make it easier for contractors, offerors and Treasury contracting 
staff to read and use.
    Sections 1001.301, 1001.304, 1001.403, 1001.404, 1002.70, 1052.201-
70, and 1052.219-73 supplement the FAR by providing paragraph specific 
designations, delegations of authority within Treasury and/or changed 
names of offices due to reorganization.
    Under Part 1002 DEFINITIONS OF WORDS AND PHRASES definitions were 
added for:

 All Bureaus and their corresponding acronyms
 Contracting Activity
 Head of Contracting Activity (HCA)
 Head of the Agency

    Full definitions were likewise added for the following 
abbreviations:


[[Page 78954]]


 BCPO
 COTR
 HCA
 OPE
 OSDBU
 SPE

    Part 1003 IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST was removed because its applicability is deemed closer to 
internal Treasury policy and procedure, as opposed to one having an 
impact on external contracting activity. It has been relocated to the 
companion Department of the Treasury Acquisition Procedures (DTAP).
    Part 1004 ADMINISTRATIVE MATTERS was removed because the 
requirement concerning contract employees meeting the investigative 
requirements of the Treasury Security Manual to access classified 
information is no longer within the DTAR's purview.
    Part 1005 PUBLICIZING CONTRACT ACTIONS was removed because the OFPP 
and SBA pilot program on Acquisition of Services from Small Business 
has lapsed and has not been extended.
    Part 1009 CONTRACTOR QUALIFICATIONS was added to link and insert in 
this subpart DTAR 1052.210.70 on Contractor Publicity, with the 
requirement that substantially the same clause be included in all 
solicitations and contracts.
    31 U.S.C. 333(a) prohibits the use of Treasury names, 
abbreviations, or symbols, in connection with, or as a part of, any 
advertisement, solicitation, business activity, or product, in a manner 
that may imply endorsement by Treasury. Substantially the same clause 
at DTAR 1052.210-70 on Contractor Publicity must be inserted in all 
solicitations and contracts.
    Part 1011 DESCRIBING AGENCY NEEDS was removed because the 
stipulation that BCPOs can act on behalf of the Head of the Agency in 
requiring offerors to make the required demonstrations of market 
acceptance is outdated and/or no longer applies.
    Part 1016 TYPES OF CONTRACTS was added to specify that Bureaus must 
appoint a Task and Delivery Ombudsman to review complaints from 
contractors, and in the absence of such a designation, the Bureau 
Competition Advocate will serve in that capacity.
    Editorial and clarification changes were made to sections 1019.202-
70-4, 1019.202-70-5, 1019.202-70-8, 1019.202-70-9, 1019.202-70-10, 
1019.202-70-11, 1019.202-70-12,1019.202-70-14, 1019.202-70-16, 
1019.811-3 to make it easier for contractors, offerors and Treasury 
contracting staff to read and use. Furthermore, these provisions, 
except for 1019.811-3, are being consolidated into a single new section 
1019.202-70.
    In subdivision 1019.202-70(d), the reference limiting the program 
to prime contractors is being changed to ``contractors.''
    In subdivision 1019.202-70(e), the title limiting the program to 
prime contractors is being changed to apply to any ``contractor.'' In 
addition, this subdivision authorizes incentives in negotiated contract 
actions. Incentives of up to 5% may apply to non-price factors and, if 
used, must be included in the solicitation indicating that this 
adjustment may occur. SBA regulations allow for the development of 
incentives as a tool for increasing the number of participating 
mentoring firms.
    Subdivision 1019.202-70(h) is being revised to comply with the FAR 
by adding two additional firm types qualifying as 
prot[eacute]g[eacute]s--owned or controlled by a veteran or a qualified 
8(a) concern.
    Subsection 1019.705-4, paragraph (a)(1) is being removed, since 
Treasury Directive P 76-01B no longer applies.
    Subsection 1028.307-1 requires contractors to submit plans for 
buying group insurance to the Contracting Officer; and the internal 
procedure to obtain advice from Legal Counsel was removed.
    As of January 6, 2007, the General Services Board of Contract 
Appeals (GSBCA) was replaced by the Civilian Board of Contract Appeals 
(CBCA) as the authorized representative of the Secretary of the 
Treasury for appeals involving contract disputes. Section 1033.201 is 
being revised to reflect this change.
    Part 1034 MAJOR SYSTEM ACQUISITION was added to incorporate the 
concept of Earned Value Management (EVM). This part consists of 
multiple pages of detailed text with a full explanation of the core EVM 
concept which encompasses the following subject areas:

 EVM Policy
 ANSI/EIA Standard-748 criteria
 Acquisition Strategy
 Integrated Baseline Reviews
 Relevant Solicitation Provisions and Contract Clauses

    Sections 1034.001, 1034.004, 1034.201, 1034.202, 1034.203 1052.234-
2, 1052.234-3, 1052.234-4, 1052.234-70, 1052.234-71, and 1052.234-72 
contain EVM requirements to include informational text, provisions and 
clauses to be inserted in solicitations and awards with development, 
modernization or enhancement (DME) efforts. Projects with DME must be 
managed using an Earned Value Management System (EVMS) that is 
compliant with the American National Standards Institute/Engineering 
Industrial Alliance (ANSI/EIA) Standard 748 (current version). Treasury 
has established two types of EVM reporting: ``Full'' EVM reporting--32 
ANSI/EIA criteria, and ``Core'' EVM Reporting--10 ANSI criteria that 
are a subset of ANSI/EIA 748, which apply to dollar thresholds 
described in Section 1034.201.
    Part 1036 CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS was added 
to provide authorization for bureaus to utilize either or both of the 
short processes described at FAR 36.602-5 for selecting firms for 
Construction and Architect-Engineer Services contracts that are not 
expected to exceed the simplified acquisition threshold.
    Subsection 1036.602-5, Treasury authorizes the option of using 
either short selection process for AE contracts not exceeding the 
simplified acquisition threshold.
    Part 1042 CONTRACT ADMINISTRATION AND AUDIT SERVICES was added to 
provide text references to contract administration and audit procedures 
codified in FAR 42.1503 under the authority of 41 U.S.C. 418b.
    Editorial and clarification changes were made to sections 
1052.201.570 1052.219-72, and 1052.219-73 to make it easier for 
contractors, offerors and Treasury contracting staff to read and use.
    Section 1052.210-70 CONTRACTOR PUBLICITY was added to address the 
need for the Contracting Officer's explicit written consent prior to a 
contractor using equipment or services provided under the contract for 
news releases or commercial advertising.
    Clause 1052.219-75, MENTOR REQUIREMENTS AND EVALUATION is being 
added to evaluate mentor prot[eacute]g[eacute] accomplishments or 
withdrawal under the agreements; provide notification requirements for 
withdrawing from program; and provide a notice of the availability of a 
bonus incentive not to exceed 5% of the relative importance of non-
price factors.
    Clauses 1052.234-2, 1052.234-3, 1052.234-4, 1052.234.70, 1052.234-
71 and 1052.234-72 collectively refer to the EVM concept and were added 
to explain various stages of the Earned Value Management system.

[[Page 78955]]

C. Procedural Matters

Executive Order 12866

    This proposed rule is not a significant regulatory action under 
Executive Order 12866, Regulatory Planning and Review, dated September 
30, 1993.

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., applies to 
this proposed rule. It is hereby certified that the changes included in 
this rule will not have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act
    The revisions are not considered substantive; revisions only update 
and reorganize existing coverage. Further, the revisions to the Mentor-
Prot[eacute]g[eacute] program, although having some economic impact on 
participating small entities, are not expected to affect a substantial 
number of small entities. The program is designed for mentoring firms 
to provide developmental assistance to prot[eacute]g[eacute]s in the 
areas of management, personnel, organization, technical capability, 
financial strength, and training/certifications. As a result, the 
approximately 44 participating small entities may experience short-term 
gains including an increase in the areas of revenue, number of contract 
awards, personnel, technical capabilities, and business relationships. 
Long-term, program participation should provide increased access to 
prime or subcontractor opportunities at the Treasury. Subsequently, 
this program serves to improve the Department of the Treasury's small 
business goal attainment. The U.S. Department of the Treasury invites 
comments from small businesses to examine the impact proposed on such 
entities.

Paperwork Reduction Act

    The information collections contained in this proposed rule have 
been previously approved by the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. 3501, et seq.) and assigned OMB 
control numbers 1505-0081; 1505-0080; and 1505-0107. Under the 
Paperwork Reduction Act, an agency may not conduct or sponsor and a 
person is not required to respond to a collection of information unless 
it displays a valid OMB control number.

List of Subjects in 48 CFR Part 10

    Government procurement.

    Dated: November 30, 2010.
Thomas A. Sharpe, Jr.,
Senior Procurement Executive, Office of the Procurement Executive.

    Accordingly, the Department of the Treasury proposes to revise 48 
CFR Chapter 10 in its entirety, to read as follows:

CHAPTER 10--DEPARTMENT OF THE TREASURY

Subchapter A--General

PART 1001--DEPARTMENT OF THE TREASURY ACQUISITION REGULATION (DTAR) 
SYSTEM

Part
1001 Department of the Treasury Acquisition Regulation (DTAR) System
1002 Definitions of Words and Terms

Subchapter B--Acquisition Planning

1009 Contractor Qualifications

Subchapter C--Contracting Methods and Contract Types

1016 Types of Contracts

Subchapter D--Socioeconomic Programs

1019 Small Business Programs

Subchapter E--General Contracting Requirements

1028 Bonds and Insurance
1032 Contract Financing
1033 Protests, Disputes, and Appeals

Subchapter F--Special Categories of Contracting

1034 Major System Acquisition
1036 Construction and Architect-Engineer Contracts

Subchapter G--Contract Management

1048 Value Engineering

Subchapter H--Clauses and Forms

1052 Solicitation Provisions and Contract Clauses

Subchapter A--General

PART 1001--DEPARTMENT OF THE TREASURY ACQUISITION REGULATION (DTAR) 
SYSTEM

Subpart 1001.1--Purpose, Authority, Issuance
Sec.
1001.101 Purpose.
1001.104 Applicability.
1001.105 Issuance.
1001.105-1 Publication and code arrangement.
1001.105-2 Arrangement of regulations.
1001.105-3 Copies.
1001.106 OMB Approval under the Paperwork Reduction Act.
Subpart 1001.3--Agency Acquisition Regulations
1001.301 Policy.
1001.304 Agency control and compliance procedures.
Subpart 1001.4--Deviations From the FAR
1001.403 Individual Deviations.
1001.404 Class Deviations.
Subpart 1001.6--Career Development, Contracting Authority and 
Responsibilities
1001.670 Contract clause.

    Authority: 41 U.S.C. 418b.

Subpart 1001.1--Purpose, Authority, Issuance


1001.101  Purpose.

    This subpart establishes Chapter 10, the Department of the Treasury 
Acquisition Regulation (DTAR), within Title 48 of the Federal 
Acquisition Regulation (FAR) System. The DTAR contains policies and 
procedures that supplement FAR coverage and directly affect the 
contractual relationship between the Department of the Treasury and its 
business partners (e.g., prospective offerors/bidders and contractors). 
When FAR coverage is adequate, there will be no corresponding DTAR 
coverage.


1001.104  Applicability.

    The DTAR applies to all acquisitions of supplies and services, 
which obligate appropriated funds. For acquisitions made from non-
appropriated funds, the Senior Procurement Executive will determine the 
rules and procedures that will apply. The DTAR does not apply to the 
acquisitions of the U.S. Mint.


1001.105  Issuance.


1001.105-1  Publication and code arrangement.

    The DTAR and its subsequent changes will be published in the 
Federal Register and codified in the Code of Federal Regulations (CFR). 
The DTAR will be issued as 48 CFR Chapter 10.


1001.105-2  Arrangement of regulations.

    (a) References and citations. The DTAR is divided into the same 
parts, subparts, sections, subsections, and paragraphs as the FAR 
except that 10 or 100 will precede the DTAR citation so that there are 
four numbers to the left of the first decimal. Reference to DTAR 
material must be made in a manner similar to that prescribed by FAR 
1.105-2(c).


1001.105-3  Copies.

    Copies of the DTAR in Federal Register or CFR form may be purchased 
from the Superintendent of Documents, Government Printing Office (GPO), 
Washington, DC 20402.


1001.106  OMB Approval under the Paperwork Reduction Act.

    OMB has assigned the following control numbers that must appear on

[[Page 78956]]

the upper right corner of the face page of each solicitation, contract, 
modification, and order: OMB Control No. 1505-0081 (Offeror 
submissions), OMB Control No. 1505-0080 (Contractor submissions), OMB 
Control No. 1505-0107 (Protests). OMB regulations and OMB's approval 
and assignment of control numbers are conditioned upon Treasury bureaus 
not requiring more than three copies (including the original) of any 
document of information. OMB has granted a waiver to permit the 
Department to require up to eight copies of proposal packages, 
including proprietary data, for solicitations, provided that 
contractors who submit only an original and two copies will not be 
placed at a disadvantage.

Subpart 1001.3--Agency Acquisition Regulations


1001.301  Policy.

    (a)(1) The DTAR (48 CFR Chapter 10) is issued for Treasury 
implementation in accordance with the authority cited in FAR 1.301(b). 
The DTAR supplements the Federal Acquisition Regulation by establishing 
uniform policies for all acquisition activities throughout the 
Department of the Treasury, except for the United States Mint.


1001.304  Agency control and compliance procedures.

    (a) The DTAR is under the direct oversight and control of 
Treasury's Office of the Procurement Executive (OPE), which is 
responsible for the evaluation, review, and issuance of all Department-
wide acquisition regulations and guidance.

Subpart 1001.4--Deviations from the FAR


1001.403  Individual deviations.

    The SPE is authorized to approve individual contract FAR and DTAR 
deviations.


1001.404  Class deviations.

    (a) The SPE is authorized to approve class FAR and DTAR deviations.

Subpart 1001.6--Career Development, Contracting Authority and 
Responsibilities


1001.670  Contract clause.

    Contracting Officers must insert a clause substantially similar to 
the clause in section 1052.201-70, Contracting Officer's Technical 
Representative (COTR) Appointment and Authority, in all solicitations 
and contracts. Exceptions to the requirement for inclusion of the COTR 
clause and the appointment of a COTR may be made at the discretion of 
the BCPO.

PART 1002--DEFINITIONS OF WORDS AND TERMS

Sec.
Subpart 1002.1--Definitions
1002.101 Definitions.
1002.70 Abbreviations.

    Authority: 41 U.S.C. 418b.

Subpart 1002.1--Definitions


1002.101  Definitions.

    Bureau means any one of the following Treasury organizations:
    (1) Alcohol and Tobacco Tax and Trade Bureau (TTB);
    (2) Bureau of Engraving & Printing (BEP);
    (3) Bureau of Public Debt (BPD);
    (4) Departmental Offices (DO);
    (5) Financial Crimes Enforcement Network (FinCEN);
    (6) Financial Management Service (FMS);
    (7) Inspector General (OIG);
    (8) Internal Revenue Service (IRS);
    (9) Office of the Comptroller of the Currency (OCC);
    (10) Office of Thrift Supervision (OTS);
    (11) Special Inspector General for the Troubled Asset Relief 
Program (SIGTARP);
    (12) Treasury Inspector General for Tax Administration (TIGTA); or
    (13) U.S. Mint.
    Bureau Chief Procurement Officer (BCPO) means the senior 
acquisition person at each headquarters office or bureau. Within the 
Internal Revenue Service, this may be the Director, Procurement or the 
Deputy Director, Procurement.
    Contracting Activity means an organization within a bureau or the 
Departmental Offices, having delegated acquisition authority.
    Head of Contracting Activity (HCA) means the Senior Procurement 
Executive for Departmental Offices, the Deputy Commissioner for 
Operations Support for the Internal Revenue Service, and the heads of 
each bureau, as listed in section 1.b.(1) of Department of the Treasury 
Directive 12-11.
    Head of the Agency means the Assistant Secretary for Management and 
Chief Financial Officer as designated by Treasury Order 101-30.
    Legal Counsel means the Treasury or bureau office providing legal 
services to the contracting activity.
    Senior Procurement Executive (SPE) for the Department of the 
Treasury is the Director, Office of the Procurement Executive.


1002.70  Abbreviations.

BCPO Bureau Chief Procurement Officer
COTR Contracting Officer's Technical Representative
HCA Head of the Contracting Activity
OPE Office of the Procurement Executive
OSDBU Office of Small and Disadvantaged Business Utilization
SPE Senior Procurement Executive

Subchapter B--Acquisition Planning

PART 1009--CONTRACTOR QUALIFICATIONS

Subpart 1009.2--Qualifications Requirements
Sec.
1009.204-70 Contractor Publicity.

    Authority: 41 U.S.C. 418b.

Subpart 1009.2--Qualifications Requirements


1009.204-70  Contractor Publicity.

    31 U.S.C. 333(a) prohibits the use of Treasury names, 
abbreviations, or symbols, in connection with, or as a part of, any 
advertisement, solicitation, business activity, or product, in a manner 
that may imply endorsement by Treasury. Bureaus shall insert a clause 
substantially the same as 1052.210-70 Contractor Publicity in all 
solicitations and contracts.

Subchapter C--Contracting Methods and Contract Types

PART 1016--TYPES OF CONTRACTS

Subpart 1016.5--Indefinite-Delivery Contracts
Sec.
1016.505 Ordering.

    Authority: 41 U.S.C. 418b.

Subpart 1016.5--Indefinite-Delivery Contracts


1016.505  Ordering.

    (b)(6) Bureaus shall designate a Task and Delivery Ombudsman in 
accordance with bureau procedures. In the absence of a designation, the 
Bureau Competition Advocate will serve in that capacity.

Subchapter D--Socioeconomic Programs

PART 1019--SMALL BUSINESS PROGRAMS

Subpart 1019.2--Policies
Sec.
1019.202 Specific policies.
1019.202-70 Treasury's Mentor-Prot[eacute]g[eacute] Program.
Subpart 1019.7--The Small Business Subcontracting Program.
1019.705 Responsibilities of the Contracting Officer Under the 
Subcontracting Assistant Program.

[[Page 78957]]

1019.705-4 Reviewing the Subcontracting Plan.
Subpart 1019.8--Contracting With the Small Business Administration (The 
8(a) Program)
1019.811 Preparing the contracts.
1019.811-3 Contract clauses.

    Authority: 41 U.S.C. 418b.

Subpart 1019.2--Policies


1019.202  Specific policies.


1019.202-70  The Treasury Mentor Prot[eacute]g[eacute] Program.

    (a) [Reserved]
    (b) [Reserved]
    (c) Non-affiliation. For purposes of the Small Business Act, a 
prot[eacute]g[eacute] firm may not be considered an affiliate of a 
mentor firm solely on the basis that the prot[eacute]g[eacute] firm is 
receiving developmental assistance referred to in paragraph (m) of this 
section, from such mentor firm under the Mentor-Prot[eacute]g[eacute] 
Program.
    (d) General policy. (1) Eligible contractors, not included on the 
``List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs,'' that are approved as mentors will enter into agreements 
with eligible prot[eacute]g[eacute]s. Mentors provide appropriate 
developmental assistance to enhance the capabilities of 
prot[eacute]g[eacute]s to perform as contractors or subcontractors.
    (2) A firm's status as a prot[eacute]g[eacute] under a Treasury 
contract shall not have an effect on the firm's eligibility to seek 
other contracts or subcontracts.
    (e) Incentives for contractor participation. (1) Under the Small 
Business Act, 15 U.S.C. 637(d)(4)(E), Treasury is authorized to provide 
appropriate incentives in negotiated contractual actions to encourage 
subcontracting opportunities consistent with the efficient and 
economical performance of the contract. Proposed mentor-
prot[eacute]g[eacute] efforts will be considered during the evaluation 
of such negotiated, competitive offers. Contracting Officers may 
provide, as an incentive, a bonus score, not to exceed 5% of the 
relative importance assigned to the non-price factors. If this 
incentive is used, the Contracting Officer shall include language in 
the solicitation indicating that this adjustment may occur.
    (2) Before awarding a contract that requires a subcontracting plan, 
the existence of a mentor-prot[eacute]g[eacute] arrangement, and 
performance (if any) under such an existing arrangement, will be 
considered by the Contracting Officer in:
    (i) Evaluating the quality of a proposed subcontracting plan under 
FAR 19.705-4; and
    (ii) Evaluating the contractor compliance with the subcontracting 
plans submitted in previous contracts as a factor in determining 
contractor responsibility under FAR 19.705-5(a)(1).
    (3) The Office of Small and Disadvantaged Business Utilization 
(OSDBU) Mentoring Award is a non-monetary award that will be presented 
(annually on a fiscal year basis or as often as is appropriate) to the 
mentoring firm providing the most effective developmental support of a 
prot[eacute]g[eacute]. The Mentor-Prot[eacute]g[eacute] Program Manager 
will recommend an award winner to the Director, OSDBU.
    (f) [Reserved]
    (g) Mentor firms. A mentor firm may be either a large or small 
business, eligible for award of a Government contract that can provide 
developmental assistance to enhance the capabilities of 
prot[eacute]g[eacute]s to perform as subcontractors. Mentors will be 
encouraged to enter into arrangements with prot[eacute]g[eacute]s in 
addition to firms with whom they have established business 
relationships.
    (h) Prot[eacute]g[eacute] firms. (1) For selection as a 
prot[eacute]g[eacute], a firm must be:
    (i) A small business, women-owned small business, small 
disadvantaged business, small business owned and controlled by veteran 
or service disabled veteran, or qualified HUBZone small business, or a 
qualified 8(a) concern;
    (ii) Qualified as a small business under the NAICS code for the 
services or supplies to be provided by the prot[eacute]g[eacute] under 
its subcontract to the mentor; and
    (iii) Eligible for award of Government contracts.
    (2) Except small disadvantaged businesses and qualified HUBZone 
small business firms, a prot[eacute]g[eacute] firm may self-certify to 
a mentor firm that it meets the requirements set forth in paragraph 
(h)(1) of this section. Mentors may rely in good faith on written 
representations by potential prot[eacute]g[eacute]s that they meet the 
specified eligibility requirements. In paragraph (h)(1)(i) of this 
section, small disadvantaged business, or qualified HUBZone small 
business status eligibility and documentation requirements are 
determined according to FAR 19.304 and 19.1303, respectively.
    (3) Prot[eacute]g[eacute]s may not have multiple mentors unless 
approved, in writing, by the Director, OSDBU. Prot[eacute]g[eacute]s 
participating in other agency mentor prot[eacute]g[eacute] programs in 
addition to the Treasury Mentor-Prot[eacute]g[eacute] Program should 
maintain a system for preparing separate reports of mentoring activity 
for each agency's program.
    (i) Selection of prot[eacute]g[eacute] firms. (1) Mentor firms will 
be solely responsible for selecting prot[eacute]g[eacute] firms. The 
mentor is encouraged to identify and select the types of 
prot[eacute]g[eacute] firms listed in 1019.202-70(h). Mentor firms may 
have multiple prot[eacute]g[eacute]s.
    (2) The selection of prot[eacute]g[eacute] firms by mentor firms 
may not be protested. Any question regarding the size or eligibility 
status of an entity selected by a mentor to be a prot[eacute]g[eacute] 
must be referred solely to Treasury's OSDBU for resolution. Treasury, 
at its discretion, may seek an advisory opinion from the Small Business 
Administration (SBA).
    (j) Application process for mentor firms to participate in the 
program. (1) Firms interested in becoming a mentor firm may apply in 
writing to Treasury's OSDBU. The application will be evaluated based 
upon the description of the nature and extent of technical and 
managerial support proposed as well as the extent of other 
developmental assistance in the form of equity investment, loans, 
joint-venture support and traditional subcontracting support.
    (k) OSDBU review and approval process of agreement. (1) OSDBU will 
review the information specified in 1019.202-70(l). The OSDBU review 
will be completed no later than 30 calendar days after receipt.
    (2) Upon completion of the review, the mentor may implement the 
developmental assistance program.
    (3) An approved agreement will be incorporated into the mentor 
firm's contract(s) with Treasury.
    (4) If OSDBU disapproves the agreement, the mentor may provide 
additional information for reconsideration. Upon finding deficiencies 
that OSDBU considers correctable, OSDBU will notify the mentor and 
provide a list of defects. Any additional information or corrections 
requested will be provided within 30 calendar days. The review of any 
supplemental material will be completed within 30 calendar days after 
receipt by OSDBU. When submission of additional data is required during 
a proposal evaluation for a new contract award, shorter timeframes for 
submission, review and re-evaluation for approval may be authorized by 
OSDBU.
    (5) The agreement defines the relationship between the mentor and 
prot[eacute]g[eacute] firms only. The agreement itself does not create 
any privity of contract between the mentor or prot[eacute]g[eacute] and 
Treasury.
    (l) Agreement contents. The contents of the agreement will contain:
    (1) Names and addresses of mentor and prot[eacute]g[eacute] firms 
and a point of contact

[[Page 78958]]

within both firms who will oversee the agreement;
    (2) Procedures for the mentor firm to notify the 
prot[eacute]g[eacute] firm, OSDBU and the Contracting Officer, in 
writing, at least 30 days in advance of the mentor firm's intent to 
voluntarily withdraw from the Mentor-Prot[eacute]g[eacute] Program;
    (3) Procedures for a prot[eacute]g[eacute] firm to notify the 
mentor firm in writing at least 30 days in advance of the 
prot[eacute]g[eacute] firm's intent to voluntarily terminate the 
mentor-prot[eacute]g[eacute] agreement. The mentor must notify OSDBU 
and the Contracting Officer immediately upon receipt of such notice 
from the prot[eacute]g[eacute];
    (4) Each proposed mentor-prot[eacute]g[eacute] relationship must 
include information on the mentor's ability to provide developmental 
assistance to the prot[eacute]g[eacute] and how that assistance will 
potentially increase contracting and subcontracting opportunities for 
the prot[eacute]g[eacute] firm;
    (5) A description of the type of developmental program that will be 
provided by the mentor firm to the prot[eacute]g[eacute] firm, to 
include a description of the potential subcontract work, and a schedule 
for providing assistance and criteria for evaluation of the 
prot[eacute]g[eacute]s' developmental success;
    (6) A listing of the types and dollar amounts of subcontracts that 
may be awarded to the prot[eacute]g[eacute] firm;
    (7) Program participation term;
    (8) Termination procedures;
    (9) Plan for accomplishing work should the agreement be terminated; 
and
    (10) Other terms and conditions, as appropriate.
    (m) Developmental assistance. The forms of developmental assistance 
a mentor can provide to a prot[eacute]g[eacute] include:
    (1) Management guidance relating to financial management, 
organizational management, overall business management/planning, 
business development, and technical assistance.
    (2) Loans;
    (3) Rent-free use of facilities and/or equipment;
    (4) Property;
    (5) Temporary assignment of personnel to prot[eacute]g[eacute] for 
purpose of training; and
    (6) Any other types of mutually beneficial assistance.
    (n) Obligation. (1) Mentor or prot[eacute]g[eacute] firms may 
voluntarily withdraw from the Mentor-Prot[eacute]g[eacute] Program. 
However, such withdrawal shall not excuse the contractor from 
compliance with contract requirements.
    (2) At the conclusion of each year in the Mentor-
Prot[eacute]g[eacute] Program, the contractor and prot[eacute]g[eacute] 
must formally brief the Department of the Treasury team regarding 
program accomplishments as they pertain to the approved agreement. 
Individual briefings may be conducted, at the request of either party. 
Treasury will consider the following:
    (i) Specific actions taken by the mentor, during the evaluation 
period, to increase the participation of prot[eacute]g[eacute]s as 
suppliers to the Federal government and to commercial entities;
    (ii) Specific actions taken by the mentor, during the evaluation 
period, to develop the technical and corporate administrative expertise 
of a prot[eacute]g[eacute] as defined in the agreement;
    (iii) To what extent the prot[eacute]g[eacute] has met the 
developmental objectives in the agreement; and
    (iv) To what extent the mentor firm's participation in the Mentor-
Prot[eacute]g[eacute] Program resulted in the prot[eacute]g[eacute] 
receiving contract(s) and subcontract(s) from private firms and 
agencies other than the Department of the Treasury.
    (v) Mentor and prot[eacute]g[eacute] firms must submit an 
evaluation to OSDBU at the conclusion of the mutually agreed upon 
program period, the conclusion of the contract, or the voluntary 
withdrawal by either party from the Mentor-Prot[eacute]g[eacute] 
Program, whichever comes first.
    (o) [Reserved]
    (p) Solicitation provisions and contract clauses (1) Insert the 
provision at 1052.219-73, Department of the Treasury Mentor-
Prot[eacute]g[eacute] Program, in all unrestricted solicitations 
exceeding $500,000 ($1,000,000 for construction) that offer 
subcontracting possibilities.
    (2) Insert the clause at 1052.219-75, Mentor Requirements and 
Evaluation, in contracts where the contractor is a participant in the 
Treasury Mentor-Prot[eacute]g[eacute] Program.

Subpart 1019.8--Contracting With the Small Business Administration 
(The 8(A) Program)


1019.811  Preparing the contracts.


1019.811-3  Contract clauses.

    (d)(3) Insert the clause at 1052.219-18, Notification of 
Competition Limited to Eligible 8(a) Concerns--Alternate III 
(Deviation), for paragraph (c) of FAR 52.219-18, Notification of 
Competition Limited to Eligible 8(a) Concerns, in all solicitations and 
contracts that exceed $100,000 and are processed under 1019.8.
    (f) Insert the clause at 1052.219-72, Section 8(a) Direct Awards, 
in solicitations and contracts that exceed $100,000 and are processed 
under 1019.8 for paragraph (c) of FAR 52.219-11, Special 8(a) Contract 
Conditions; FAR 52.219-12, Special 8(a) Subcontract Conditions; and FAR 
52.219-17, Section 8(a) Award.

Subchapter E--General Contracting Requirements

PART 1028--BONDS AND INSURANCE

Subpart 1028.3--Insurance
Sec.
1028.307 Insurance under cost-reimbursement contracts.
1028.307-1 Group insurance plans.
1028.310 Contract clause for work on a Government installation.
1028.310-70 Contract clause.
1028.311 Solicitation provision and contract clause on liability 
insurance under cost-reimbursement contracts.
1028.311-2 Agency solicitation provisions and contract clauses.

    Authority: 41 U.S.C. 418b.

Subpart 1028.3--Insurance


1028.307  Insurance under cost-reimbursement contracts.


1028.307-1  Group insurance plans.

    (a) Plans shall be submitted to the CO.
    (b) [Reserved]


1028.310  Contract clause for work on a Government installation.


1028.310-70  Contract clause.

    (a) Insert a clause substantially similar to 1052.228-70, 
``Insurance Requirements,'' in all solicitations and contracts that 
contain the clause at FAR 52.228-5.


1028.311  Solicitation provision and contract clause on liability 
insurance under cost-reimbursement contracts.


1028.311-2  Agency solicitation provisions and contract clauses.

    Insert a clause substantially similar to 1052.228-70, ``Insurance 
Requirements,'' in all solicitations and contracts that contain the 
clause at FAR 52.228-7.

PART 1032--CONTRACT FINANCING

Subpart 1032.1--Non-Commercial Item Purchase Financing
Sec.
1032.113 Customary contract financing.
Subpart 1032.2--Commercial Item Purchase Financing
1032.202 General.
1032.202-1 Policy.

    Authority: 41 U.S.C. 418b.

Subpart 1032.1--Non-Commercial Item Purchase Financing


1032.113  Customary contract financing.

    The specified arrangements are considered customary within 
Treasury.

[[Page 78959]]

Subpart 1032.2--Commercial Item Purchase Financing


1032.202  General.


1032.202-1  Policy.

    (b)(2) Commercial interim payments and commercial advance payments 
may also be made when the contract price is at or below the simplified 
acquisition threshold.

PART 1033--PROTESTS, DISPUTES, AND APPEALS

Subpart 1033.2--Disputes and Appeals
Sec.
1033.201 Definitions.

    Authority: 41 U.S.C. 418b.

Subpart 1033.2--Disputes and Appeals


1033.201  Definitions.

    Agency Board of Contract Appeals means the Civilian Board of 
Contract Appeals (CBCA). The CBCA is the authorized representative of 
the Secretary of the Treasury in hearing, considering, and determining 
all appeals of decisions of Contracting Officers filed by contractors 
pursuant to FAR Subpart 33.2. Appeals are governed by the Rules of 
Procedure of the CBCA.

Subchapter F--Special Categories of Contracting

PART 1034--MAJOR SYSTEM ACQUISITION

Subpart 34.0--General
Sec.
1034.001 Definitions.
1034.004 Acquisition strategy.
Subpart 34.2--Earned Value Management System
1034.201 Policy.
1034.202 Integrated Baseline Reviews.
1034.203 Solicitation provisions and contract clauses.

    Authority: 41 U.S.C. 418b.

Subpart 34.0--General


1034.001  Definitions.

    Core Earned Value Management is a process for ensuring that the 
contractor's self-validated earned value management system is capable 
of producing earned value management data and meets, at a minimum, the 
following core ANSI/EIA Standard-748 criteria:
    (1) (ANSI 1) Define the authorized work elements for the 
program. A work breakdown structure (WBS), tailored for effective 
internal management control, is commonly used in this process.
    (2) (ANSI 2) Identify the program organizational structure 
including the major subcontractors responsible for accomplishing the 
authorized work, and define the organizational elements in which work 
will be planned and controlled.
    (3) (ANSI 3) Provide for the integration of the company's 
planning, scheduling, budgeting, work authorization, and cost 
accumulation processes with each other, and as appropriate, the program 
WBS and the program organizational structure.
    (4) (ANSI 6) Schedule the authorized work in a manner that 
describes the sequence of work and identifies significant task 
interdependencies required to meet the needs of the program.
    (5) (ANSI 7) Identify physical products, milestones, 
technical performance goals, or other indicators that will be used to 
measure progress.
    (6) (ANSI 8) Establish and maintain a time-phased budget 
baseline, at the control account level, against which program 
performance can be measured. Initial budgets established for 
performance measurement will be based on either internal management 
goals or the external customer negotiated target cost including 
estimates for authorized but vaguely defined work. Budget for far-term 
efforts may be held in higher-level accounts until an appropriate time 
for allocation at the control account level. On government contracts, 
if an over-target baseline is used for performance measurement 
reporting purposes, prior notification must be provided to the 
customer.
    (7) (ANSI 16) Record direct costs in a manner consistent 
with the budgets in a formal system controlled by the general books of 
account.
    (8) (ANSI 22) At least on a monthly basis, generate the 
following information at the control account and other levels as 
necessary for management control using actual cost data from, or 
reconcilable with, the accounting system:
    (i) Comparison of the amount of planned budget and the amount of 
budget earned for work accomplished. This comparison provides the 
schedule variance.
    (ii) Comparison of the amount of the budget earned and the actual 
(applied where appropriate) direct costs for the same work. This 
comparison provides the cost variance.
    (9) (ANSI 27) Develop revised estimates of cost at 
completion based on performance to date, commitment values for 
material, and estimates of future conditions. Compare this information 
with the performance measurement baseline to identify variances at 
completion important to management and any applicable customer 
reporting requirements, including statements of funding requirements.
    (10) (ANSI 28) Incorporate authorized changes in a timely 
manner, recording the effects of such changes in budgets and schedules. 
In the directed effort prior to negotiation of a change, base such 
revisions on the amount estimated and budgeted to the program 
organizations.
    Development, Modernization, Enhancement (DME) is the portion of an 
IT investment/project which deals with developing and implementing new 
or enhanced technology in support of an agency's mission.
    Major acquisitions for development are defined as contracts, 
awarded in support of one or more Major IT investments with DME 
activities, which meet the contract threshold for fully applying FAR 
34.2 procedures.
    Performance-based acquisition management means a documented, 
systematic process for program management, which includes integration 
of program scope, schedule and cost objectives, establishment of a 
baseline plan for accomplishment of program objectives, and use of 
earned value techniques for performance measurement during execution of 
the program. A performance-based acquisition (as defined in FAR 37.101) 
or an acquisition with a defined quality assurance plan that includes 
performance standards/measures should be the basis for monitoring the 
contractor.


1034.004  Acquisition strategy.

    (a) A program manager's acquisition strategy written at the system 
or investment level in accordance with FAR 7.103(e) shall include at a 
minimum:
    (1) The relationship of each individual acquisition (Contract, 
Delivery Order, Task Order, or Interagency Agreement) to the overall 
investment requirements and management structure;
    (2) What work is being performed in-house (by government personnel) 
versus contracted out for the investment;
    (3) A description of the effort, by acquisition, and the plans to 
include required clauses in the acquisitions;
    (4) A timetable of major acquisition award and administration 
activities, including plans for contract transitions;
    (5) An investment/system surveillance plan;
    (6) Financial and human resource requirements to manage the 
acquisition processes through the investment lifecycle;

[[Page 78960]]

    (7) Consideration of optimal contract types, including 
considerations of performance based approaches, small business 
utilization, Section 508, etc.; and
    (8) Assurances that the acquisition strategy section and supporting 
acquisition plans will maximize competition, including enabling 
downstream competition through avoidance of vendor ``lock in''.
    (b) The acquisition strategy shall be approved by a chartered 
interdisciplinary acquisition team that includes a representative of 
the procurement organization designated in accordance with bureau 
procedures.

Subpart 34.2--Earned Value Management System


1034.201  Policy.

    (a) An Earned Value Management System (EVMS) is required for major 
acquisitions for development/modernization/enhancement (DME) in 
accordance with OMB Circular A-11. This includes prototypes and tests 
to select the most cost effective alternative during the Planning 
Phase, the work during the Acquisition Phase, and any developmental, 
modification or upgrade work done during the Operational/Steady State 
Phase. EVMS is to be applied to contractor efforts regardless of 
contract type. The Contracting Officer shall procure the Contractor-
developed component(s) of major project(s) that have been vetted 
through the Treasury governance process and the acquisition has been 
identified by the program manager as requiring the Contractor's use of 
an EVMS. In addition to major acquisitions for development, the 
Department of the Treasury may also require the Contractor's use of an 
EVMS for other acquisitions. The following thresholds apply to DME 
costs at the Contract Line Item Number (CLIN) level for performance-
based acquisitions and to DME costs at the acquisition level (Contract, 
Task Order, or IAG) for non-performance-based contracts:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Applicable
 Contract, task order, IAG, or CLIN   Reporting requirements     ANSI/EIA          Level of EVMS           IBR required       Level of EVMS surveillance
               value                    for IT investments       criteria     validation/ acceptance                                 (contractor)
--------------------------------------------------------------------------------------------------------------------------------------------------------
> $50 M............................  Full...................              32  CFA \1\ Acceptance....  Yes...................  CFA Surveillance unless
Between $20M and $50 M.............  Full...................              32  Contractor Self-        Yes...................   another interested party
                                                                               Validation.                                     alternative is requested
                                                                                                                               by the Bureau and
                                                                                                                               approved by the Treasury
                                                                                                                               CIO.
< $20M.............................  Core...................              10  Contractor Self-        Independent Baseline    Treasury/Bureau
                                                                               Validation.             Validation IBR (Core).  Surveillance.*
--------------------------------------------------------------------------------------------------------------------------------------------------------
* In accordance with Bureau Annual Surveillance Strategy.
\1\ CFA--Cognizant Federal Agency (See FAR 42.003).


For the purpose of this Subpart, CLIN may be interpreted as a single 
Contract Line Item Number, Contract Line Item Number with Sub-CLINs, or 
Multiple Contract Line Item Numbers included in a single DME effort. Do 
not break down any DME effort below the aggregation of the requirement 
to avoid use of the actual threshold prescriptions.
    (b) Acquisition Planning. All written acquisition plans shall 
include the following:
    (1) A determination from the requirements official as to whether 
the program is a major acquisition as defined under OMB Circular A-11 
and FAR Part 34;
    (2) If so, whether the program is required to include EVM and if 
the Contractor is required to use an EVMS;
    (3) If so, whether the program official is EVM trained and 
qualified or has support from someone who is EVM trained and certified; 
and
    (4) Whether a Full Integrated Baseline Review (IBR) will be 
completed within 90 days when the acquisition DME value is $20 Million 
or more, or a Core Integrated Baseline Review when the acquisition DME 
value is less than $20 Million.
    (c) Solicitations and Awards. Unless a waiver has been granted (See 
Paragraph (e), below), all solicitations and awards for major 
investments with DME valued at $20 Million or more require EVMS from 
the Contractor and its Subcontractor as follows:
    (1) FAR Clause 52.234-4, Earned Value Management System; and, as 
appropriate, 1052.234-4, Earned Value Management System Alternate I 
(See 1034.203 below), must contain a requirement that the Contractor 
and its subcontractors have:
    (i) AN EVMS that has been determined as meeting the Full criteria 
of ANSI/EIA Standard-748 compliance (valued at $20 Million or more);
    (ii) An EVMS that has been determined as meeting the Core criteria 
of ANSI/EIA Standard-748 compliance (valued at below $20 Million, See 
5. DTAR Special Solicitation Provisions and Contract Clauses, 1052.234-
2 and 1052.234-3); or
    (iii) That the Contractor deliver a plan to provide EVM data that 
meets the standard.
    (2) Provide for the completion of an IBR, or, as appropriate, for 
subcontracts with DME less than $20 million, an IBR (Core) that meets 
the Government standard, and r provide periodic reporting of the EVM 
data.
    (3) All EVM determinations as set forth in paragraphs 3(c)(i)(A) 
and (B), above, shall be documented in the pre-award and contract 
files, as appropriate.
    (d) Program Management. For those acquisitions to which EVM 
applies, the program manager (PM)/(COTR) shall:
    (1) Ensure that EVM requirements are included in the acquisition 
Statement of Objectives (SOO), Performance Work Statement (PWS), or 
Statement of Work (SOW);
    (2) Determine whether the Contractor's EVMS (and that of its 
subcontractors) is ANSI/EIA Standard 748 compliant, or determine 
whether the Contractor's plan to provide EVM data meets the required 
standard; and
    (3) Validate and approve the IBR/IBR (Core) and the subsequently 
issued EVM reports. These program management requirements shall be 
included in the Contracting Officer's written appointment letter to the 
COTR.
    (e) Waivers. In accordance with Bureau policy, a waiver(s) to the 
guidance described within the Department of the Treasury Earned Value 
Management Guide (Treasury EVM Guide) may be granted by the 
Departmental Treasury CIO based on Bureau documented and Bureau CIO 
approved requests. Examples of waiver justifications may include, but 
are not limited to:
    (1) Urgency of work to be performed;
    (2) Limited duration of work to be performed;

[[Page 78961]]

    (3) Cost of adding EVMS requirement to a contract versus benefit 
achieved;
    (4) Percentage of DME costs vis-[agrave]-vis the life cycle 
investment costs; and
    (5) Level of risk.


1034.202  Integrated Baseline Reviews.

    (a) When an EVMS is required, and depending on the DME CLIN value 
threshold, the Government will conduct a Full IBR or a Core IBR.
    (b) The purpose of the Full IBR and the Core IBR is to verify the 
technical content and the realism of the related performance budgets, 
resources, and schedules. It should provide a mutual understanding of 
the inherent risks in offerors'/contractors' performance plans and the 
underlying management control systems, and it should formulate a plan 
to handle these risks.
    (c) Both the IBR and the IBR (Core) are joint assessments by the 
offeror or Contractor, and the Government, of the--
    (1) Ability of the project's technical plan to achieve the 
objectives of the scope of work;
    (2) Adequacy of the time allocated for performing the defined tasks 
to successfully achieve the project schedule objectives;
    (3) Ability of the Performance Measurement Baseline (PMB) to 
successfully execute the project and attain cost objectives, 
recognizing the relationship between budget resources, funding, 
schedule, and scope of work;
    (4) Availability of personnel, facilities, and equipment when 
required, to perform the defined tasks needed to execute the program 
successfully; and
    (5) The degree to which the management process provides effective 
and integrated technical/schedule/cost planning and baseline control.
    (d) An IBR/IBR (Core) may be held either pre- or post-award; 
however, the post-award IBR/IBR (Core) must be completed within 90 days 
after award, or the Contracting Officer shall obtain a copy of the 
Program Manager's written review of the requirement and assessment of 
the IBR/IBR (Core) timing based on the risk associated with the 
acquisition. While a post-award IBR is preferred, a pre-award IBR will 
be acceptable. Note: The IBR (Core) may be included within the Quality 
Assurance Surveillance Plan (QASP).
    (e) The solicitation and award shall include the process and 
schedule for EVMS validation as meeting the ANSI/EIA 748 through EVMS 
Compliance Recognition documents or a Compliance Evaluation Review 
where a compliance document does not exist, and periodic systems 
surveillance.


1034.203  Solicitation provisions and contract clauses.

    (a) For major investment acquisitions that included a DME effort 
value of greater than $50 Million, the Contracting Officer shall follow 
the requirements provided at FAR Subpart 34.203.
    (b) For major investment acquisitions that include a DME effort 
with a value between $20-$50 Million:
    (1) The Contracting Officer shall insert the FAR provision at FAR 
52.234-2, Notice of Earned Value Management System--Pre-Award IBR, with 
the clause at 1052.234-2, Notice of Earned Value System--Pre-Award 
Alternate I in solicitations and awards that require the contractor to 
use an EVMS and for which the Government requires an IBR prior to 
award.
    (2) The Contracting Officer shall insert the FAR provision at FAR 
52.234-3, Notice of Earned Value Management System--Post-Award IBR, 
with 1052.234-3, Notice of Earned Value System--Post-Award Alternate I 
in solicitations and awards that require the contractor to use and 
Earned Value Management System (EVMS) and for which the Government 
requires an IBR after award.
    (3) The contracting officer shall insert the FAR clause at FAR 
52.234-4, Earned Value Management System, with 1052.234-4, Earned Value 
Management System Alternate I), in solicitations and awards that 
require a contractor to use an EVMS.
    (c) For major acquisitions that include a DME effort with a value 
of less than $20 Million:
    (1) The Contracting Officer shall insert the provision 1052.234-70, 
Notice of Earned Value Management System--Pre-Award IBR (Core), in 
solicitations for awards that require the contractor to use an Earned 
Value Management System (EVMS) and for which the Government requires an 
IBR prior to award.
    (2) The Contracting Officer shall insert the provision 1052.234-71, 
Notice of Earned Value Management System--Post-Award IBR (Core), in 
solicitations for contracts that require the contractor to use an 
Earned Value Management System (EVMS) and for which the Government 
requires an IBR after award.
    (3) The Contracting Officer shall insert the clause 1052.234-72, 
Core Earned Value Management System, in solicitations and awards that 
require a contractor to use an EVMS.

PART 1036--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

Subpart 1036.6--Architect-Engineer Services
Sec.
1036.602-5 Short selection process for contracts not to exceed the 
simplified acquisition threshold.

    Authority: 41 U.S.C. 418b.

Subpart 1036.6--Architect-Engineer Services


1036.602-5  Short selection process for contracts not to exceed the 
simplified acquisition threshold.

    Bureaus are authorized to use either process.

Subchapter G--Contract Management

PART 1042--CONTRACT ADMINISTRATION AND AUDIT SERVICES

Sec.
1042.1500 Procedures.

    Authority: 41 U.S.C. 418b.


1042.1500  Procedures.

    Contracting Officers are responsible for preparing interim and 
final past performance evaluations.

Subchapter H--Clauses and Forms

PART 1052--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Subpart 1052.2--Texts of Provisions and Clauses
Sec.
1052.201-70 Contracting Officer's Technical Representative (COTR) 
Appointment and Authority.
1052.210-70 Contractor Publicity.
1052.219-18 Notification of Competition Limited to Eligible 8(a) 
Concerns--Alternate III (Deviation).
1052.219.72 Section 8(a) Direct Awards.
1052.219-73 Department of the Treasury Mentor-Prot[eacute]g[eacute] 
Program.
1052.219-75 Mentor Requirements and Evaluation.
1052.228-70 Insurance Requirements.
1052.234-2 Notice of Earned Value Management System--Pre-Award IBR--
Alternate I.
1052.234-3 Notice of Earned Value Management System--Post-Award 
IBR--Alternate I.
1052.234-4 Earned Value Management System--Alternate I.
1052.234-70 Notice of Earned Value Management System--Pre-Award IBR 
(Core).
1052.234-71 Notice of Earned Value Management System--Post-Award IBR 
(Core).
1052.234-72 Core Earned Value Management System.

    Authority: 41 U.S.C. 418b.

[[Page 78962]]

Subpart 1052.2--Texts of Provisions and Clauses


1052.201-70  Contracting Officer's Technical Representative (COTR) 
appointment and authority.

    As prescribed in 1001.670-6, insert the following clause:

CONTRACTING OFFICER'S TECHNICAL REPRESENTATIVE (COTR) APPOINTMENT AND 
AUTHORITY (Date TBD)

    (a) The COTR is --------------------[insert name, address and 
telephone number].
    (b) Performance of work under this contract is subject to the 
technical direction of the COTR identified above, or a 
representative designated in writing. The term ``technical 
direction'' includes, without limitation, direction to the 
contractor that directs or redirects the labor effort, shifts the 
work between work areas or locations, and/or fills in details and 
otherwise serves to ensure that tasks outlined in the work statement 
are accomplished satisfactorily.
    (c) Technical direction must be within the scope of the contract 
specification(s)/work statement. The COTR does not have authority to 
issue technical direction that:
    (1) Constitutes a change of assignment or additional work 
outside the contract specification(s)/work statement;
    (2) Constitutes a change as defined in the clause entitled 
``Changes'';
    (3) In any manner causes an increase or decrease in the contract 
price, or the time required for contract performance;
    (4) Changes any of the terms, conditions, or specification(s)/
work statement of the contract;
    (5) Interferes with the contractor's right to perform under the 
terms and conditions of the contract; or
    (6) Directs, supervises or otherwise controls the actions of the 
contractor's employees.
    (d) Technical direction may be oral or in writing. The COTR must 
confirm oral direction in writing within five workdays, with a copy 
to the Contracting Officer.
    (e) The Contractor shall proceed promptly with performance 
resulting from the technical direction issued by the COTR. If, in 
the opinion of the contractor, any direction of the COTR or the 
designated representative falls within the limitations of (c) above, 
the contractor shall immediately notify the Contracting Officer no 
later than the beginning of the next Government work day.
    (f) Failure of the Contractor and the Contracting Officer to 
agree that technical direction is within the scope of the contract 
shall be subject to the terms of the clause entitled ``Disputes.''


(End of Clause)


1052.210-70  Contractor publicity.

    As prescribed in 1009.204-70, insert the following clause:

CONTRACTOR PUBLICITY (Date TBD)

    The Contractor, or any entity or representative acting on behalf 
of the Contractor, shall not refer to the equipment or services 
furnished pursuant to the provisions of this contract in any news 
release or commercial advertising, or in connection with any news 
release or commercial advertising, without first obtaining explicit 
written consent to do so from the Contracting Officer. Should any 
reference to such equipment or services appear in any news release 
or commercial advertising issued by or on behalf of the Contractor 
without the required consent, the Government shall consider 
institution of all remedies available under applicable law, 
including 31 U.S.C. 333, and this contract. Further, any violation 
of this provision may be considered during the evaluation of past 
performance in future competitively negotiated acquisitions.


(End of Clause)


1052.219-18  Notification of competition limited to eligible 8(a) 
concerns--Alternate III (Deviation) (May 1998).

    In accordance with 1019.811-3(d)(3), substitute the following for 
the paragraph (c) in FAR 52.219-18:
    (c) Any award resulting from this solicitation will be made 
directly by the contracting officer to the successful 8(a) offeror 
selected through the evaluation criteria set forth in this 
solicitation.


1052.219-72  Section 8(a) direct awards.

    As prescribed in 1019.811-3(f), insert the following clause:

8(A) BUSINESS DEVELOPMENT PROGRAM AWARDS (June 2003)

    (a) This purchase/delivery/task order or contract is issued by 
the contracting activity directly to the 8(a) program participant/
contractor pursuant to the Partnership Agreement between the Small 
Business Administration (SBA) and the Department of the Treasury. 
However, the Small Business Administration is the prime contractor 
and retains responsibility for 8(a) certification, 8(a) eligibility 
determinations and related issues, and provides counseling and 
assistance to the 8(a) contractor under the 8(a) Business 
Development program. The cognizant SBA district office is:

[To be completed by the contracting officer at the time of award]

    (b) The contracting officer is responsible for administering the 
purchase/delivery/task order or contract and taking any action on 
behalf of the Government under the terms and conditions of the 
purchase/delivery/task order or contract, to include providing the 
cognizant SBA district office with a signed copy of the purchase/
delivery/task order or contract award within 15 days of the award. 
However, the contracting officer shall give advance notice to the 
SBA before it issues a final notice terminating performance, either 
in whole or in part, under the purchase order or contract. The 
contracting officer shall also coordinate with SBA prior to 
processing any novation agreement. The contracting officer may 
assign contract administration functions to a contract 
administration office.
    (c) The contractor agrees:
    (1) To notify the contracting officer, simultaneously with its 
notification to SBA (as required by SBA's 8(a) regulations), when 
the owner or owners upon whom 8(a) eligibility is based, plan to 
relinquish ownership or control of the concern. Consistent with 15 
U.S.C. 637(a)(21), transfer of ownership or control shall result in 
termination of the contract for convenience, unless SBA waives the 
requirement for termination prior to the actual relinquishing of 
control; and,
    (2) To adhere to the requirements of FAR 52.219-14, Limitations 
on Subcontracting.


(End of Clause)


1052.219-73  Department of the Treasury Mentor-Prot[eacute]g[eacute] 
Program.

    As prescribed in 1019.202-70.(p), insert the following clause:

DEPARTMENT OF THE TREASURY MENTOR-PROT[Eacute]G[Eacute] PROGRAM (June 
2003)

    (a) Large and small businesses are encouraged to participate in 
the Department of the Treasury Mentor-Prot[eacute]g[eacute] Program. 
Mentor firms provide small business prot[eacute]g[eacute]s with 
developmental assistance to enhance their capabilities and ability 
to obtain federal contracts.
    (b) Mentor firms are large prime contractors or eligible small 
businesses capable of providing developmental assistance. 
Prot[eacute]g[eacute] firms are small businesses as defined in 13 
CFR parts 121, 124, and 126.
    Developmental assistance includes technical, managerial, 
financial, and other mutually beneficial assistance to aid 
prot[eacute]g[eacute]. Contractors interested in participating in 
the Program are encouraged to contact the Department of the Treasury 
Office of Small and Disadvantaged Business Utilization for further 
information.


(End of Provision)


1052.219-75  Mentor Requirements and Evaluation.

    As prescribed in 1019.202-70(p), insert the following clause:

MENTOR REQUIREMENTS AND EVALUATION (Date TBD)

    (a) Mentor and prot[eacute]g[eacute] firms shall submit an 
evaluation to the Department of the Treasury's Office of Small and 
Disadvantaged Business Utilization (OSDBU) at the conclusion of the 
mutually agreed upon Program period, or the voluntary withdrawal by 
either party from the Program, whichever occurs first. At the 
conclusion of each year in the Mentor-Prot[eacute]g[eacute] Program, 
the prime contractor and prot[eacute]g[eacute] will formally brief 
the Department of the Treasury Mentor-Prot[eacute]g[eacute] Program 
Manager regarding program accomplishments under their mentor-
prot[eacute]g[eacute] agreements.
    (b) A mentor or prot[eacute]g[eacute] must notify the OSDBU and 
the contracting officer, in writing, at least 30 calendar days in 
advance of the effective date of the firm's withdrawal from the 
Program. A mentor firm must notify the OSDBU and the contracting 
officer upon

[[Page 78963]]

receipt of a prot[eacute]g[eacute]'s notice of withdrawal from the 
Program.
    (c) Contracting officers may provide, as an incentive, a bonus 
score, not to exceed 5% of the relative importance assigned to the 
non-price factors. If this incentive is used, the contracting 
officer shall include language in the solicitation indicating that 
this adjustment may occur.


(End of Clause)


1052.228-70  Insurance requirements.

    As prescribed in 1028.310-70 and 1028.311-2, insert a clause 
substantially as follows: The contracting officer may specify 
additional kinds (e.g., aircraft public and passenger liability, vessel 
liability) or increased amounts of insurance.

INSURANCE (Date TBD)

    In accordance with the clause entitled ``Insurance--Work on a 
Government Installation'' [or ``Insurance--Liability to Third 
Persons''] in Section I, insurance of the following kinds and 
minimum amounts shall be provided and maintained during the period 
of performance of this contract:
    (a) Worker's compensation and employer's liability. The 
contractor shall, as a minimum, meet the requirements specified at 
FAR 28.307-2(a).
    (b) General liability. The contractor shall, at a minimum, meet 
the requirements specified at FAR 28.307-2(b).
    (c) Automobile liability. The contractor shall, at a minimum, 
meet the requirements specified at FAR 28.307-2(c).


(End of Clause)


1052.234-2  Notice of Earned Value Management System--Pre-Award IBR--
Alternate I (Date TBD).

    As prescribed in DTAR 1034.203, substitute the following 
paragraph (a) for paragraph (a) of the basic FAR clause:
    (a) The offeror shall provide either documentation that the 
Cognizant Federal Agency has determined that the proposed earned 
value management system (EVMS) complies with the EVMS guidelines in 
ANSI/EIA Standard-748 (ANSI Standard) or documentation that supports 
the offeror's self-validation that the EVMS complies with the ANSI 
Standard, as applicable.


(End of Provision)


1052.234-3  Notice of Earned Value Management System--Post-Award IBR-
Alternate I (Date TBD)

    As prescribed in DTAR 1034.203, substitute the following 
paragraph (a) for paragraph (a) of the basic FAR clause:
    (a) The offeror shall provide either documentation that the 
Cognizant Federal Agency has determined that the proposed earned 
value management system (EVMS) complies with the EVMS guidelines in 
ANSI/EIA Standard-748 (ANSI Standard) or documentation that supports 
the offeror's self-validation that the EVMS complies with the ANSI 
Standard, as applicable.


(End of Provision)


1052.234-4  Earned Value Management System Alternate I (Date TBD)

    As prescribed in DTAR 1034.203, substitute the following 
paragraph (a) for paragraph (a) of the basic FAR clause:
    (a) The Contractor shall use an earned value management system 
(EVMS) that has been determined by the Cognizant Federal Agency 
(CFA) or has been determined through Contractor's self-validation to 
be compliant with the guidelines in ANSI/EIA Standard-748 (current 
version at the time of award) to manage this contract. If the 
Contractor's current EVMS has not been determined compliant at the 
time of award, see paragraph (b) of this clause. The Contractor 
shall submit reports in accordance with the requirements of this 
contract.


(End of Clause)


1052.234-70   Notice of Earned Value Management System--Pre-Award IBR 
(Core) (Date TBD)

    As prescribed in DTAR 1034.203, insert this provision in 
solicitations and awards that require the Contractor to use an 
earned value management system (EVMS) and for which the Government 
requires an IBR prior to award.
    (a) The offeror shall provide either documentation that the 
Cognizant Federal Agency has determined that the proposed earned 
value management system (EVMS) complies with the EVMS guidelines in 
ANSI/EIA Standard-748 (ANSI Standard) or documentation that supports 
its self-validation that the EVMS used for this award complies with 
Core EVM criteria.
    (b) If the offeror proposes to use a system that has not been 
determined to be in compliance with the requirements of paragraph 
(a) of this provision, the offeror shall submit a comprehensive plan 
for compliance with the EVMS guidelines.
    (1) The plan shall--
    (i) Describe the EVMS the offeror intends to use in performance 
of the contracts; Distinguish between the offeror's existing 
management system and modifications proposed to meet the guidelines;
    (ii) Describe the management system and its application in terms 
of the EVMS guidelines;
    (iii) Describe the proposed procedures for administration of the 
guidelines, as applied to subcontracts; and
    (iv) Provide documentation describing the process and results of 
any third-party or self-evaluation of the system's compliance with 
the EVMS guidelines.
    (2) The offeror shall provide information and assistance as 
required by the contracting officer to support review of the plan.
    (3) The Government will review and approve the offeror's plan 
for an EVMS before contract award.
    (4) The offeror's EVMS plan must provide milestones that 
indicate when the offeror anticipates that the EVM system will be 
compliant with the requirements in paragraph (a) of this provision.
    (c) Offerors shall identify the major subcontractors, or major 
subcontracted effort if major subcontracts have not been selected 
subject to the guidelines. The prime Contractor and the Government 
shall agree to subcontractors selected for application of the EVMS 
requirements.
    (d) The Government will conduct an Integrated Baseline Review 
(IBR), as designed by the agency, prior to contract award. The 
objective of the IBR is for the Government and the Contractor to 
jointly assess technical areas, such as the Contractor's planning, 
to ensure complete coverage of the contract requirements, logical 
scheduling of the work activities, adequate resources, methodologies 
for earned value (budgeted cost for work performed (BCWP)), and 
identification of inherent risks.


(End of Provision)


1052.234-71   Notice of Earned Value Management System--Post-Award IBR 
(Core) (Date TBD)

    As prescribed in DTAR 1034.203, insert this provision in 
solicitations and awards that require the contractor to use an 
earned value management system (EVMS) and for which the Government 
requires an IBR after award.
    (a) The offeror shall provide either documentation that the 
Cognizant Federal Agency has determined that the proposed EVMS 
complies with the EVMS guidelines in ANSI/EIA Standard-748 (ANSI 
Standard) or documentation that supports its self-validation that 
the EVMS used for this award complies with Core EVM criteria.
    (b) If the offeror proposes to use a system that has not been 
determined to be in compliance with the requirements of paragraph 
(a) of this provision, the offeror shall submit a comprehensive plan 
for compliance with the EVMS guidelines.
    (1) The plan shall--
    (i) Describe the EVMS the offeror intends to use in performance 
of the contracts;
    (ii) Distinguish between the offeror's existing management 
system and modifications proposed to meet the guidelines;
    (iii) Describe the management system and its application in 
terms of the EVMS guidelines;
    (iv) Describe the proposed procedures for administration of the 
guidelines, as applied to subcontracts; and
    (v) Provide documentation describing the process and results of 
any third-party or self-evaluation of the system's compliance with 
the EVMS guidelines.
    (2) The offeror shall provide information and assistance as 
required by the contracting officer to support review of the plan.
    (3) The Government will review and approve the offeror's plan 
for an EVMS before contract award.
    (4) The offeror's EVMS plan must provide milestones that 
indicate when the offeror anticipates that the EVMS will be 
compliant with the requirements in paragraph (a) of this provision.
    (c) Offerors shall identify the major subcontractors, or major 
subcontracted effort if major subcontracts have not been selected 
subject to the guidelines. The prime Contractor and the Government 
shall agree to subcontractors selected for application of the EVMS 
requirements.

[[Page 78964]]

    (d) The Government will conduct an Integrated Baseline Review 
(IBR), as designed by the agency, prior to contract award. The 
objective of the IBR is for the Government and the Contractor to 
jointly assess technical areas, such as the Contractor's planning, 
to ensure complete coverage of the contract requirements, logical 
scheduling of the work activities, adequate resources, methodologies 
for earned value (budgeted cost for work performed (BCWP)), and 
identification of inherent risks.


(End of Provision)


1052.234-72  Core Earned Value Management System (Date TBD)

    As prescribed in DTAR 1034.203, insert this clause in major 
investment solicitations and awards with DME that require a 
contractor to use an earned value management system (EVMS).
    (a) The Contractor shall use an earned value management system 
(EVMS) that has either been determined by the Cognizant Federal 
Agency (CFA) to be compliant with the guidelines in ANSI/EIA 
Standard-748 (current version at the time of award) or documentation 
that supports its validation that the EVMS used to manage this 
contract meets the following ANSI/EIA-748 criteria:
    (1) (ANSI 1) Define the authorized work elements for 
the program. A work breakdown structure (WBS), tailored for 
effective internal management control, is commonly used in this 
process.
    (2) (ANSI 2) Identify the program organizational 
structure including the major subcontractors responsible for 
accomplishing the authorized work, and define the organizational 
elements in which work will be planned and controlled.
    (3) (ANSI 3) Provide for the integration of the 
company's planning, scheduling, budgeting, work authorization, and 
cost accumulation processes with each other, and as appropriate, the 
program WBS and the program organizational structure.
    (4) (ANSI 6) Schedule the authorized work in a manner 
that describes the sequence of work and identifies significant task 
interdependencies required to meet the needs of the program.
    (5) (ANSI 7) Identify physical products, milestones, 
technical performance goals, or other indicators that will be used 
to measure progress.
    (6) (ANSI 8) Establish and maintain a time-phased 
budget baseline, at the control account level, against which program 
performance can be measured. Initial budgets established for 
performance measurement will be based on either internal management 
goals or the external customer negotiated target cost including 
estimates for authorized but vaguely defined work. Budget for far-
term efforts may be held in higher-level accounts until an 
appropriate time for allocation at the control account level. On 
Government contracts, if an over-target baseline is used for 
performance measurement reporting purposes, prior notification must 
be provided to the customer.
    (7) (ANSI 16) Record direct costs in a manner 
consistent with the budgets in a formal system controlled by the 
general books of account.
    (8) (ANSI 22) At least on a monthly basis, generate the 
following information at the control account and other levels as 
necessary for management control using actual cost data from, or 
reconcilable with, the accounting system:
    (i) Comparison of the amount of planned budget and the amount of 
budget earned for work accomplished. This comparison provides the 
schedule variance.
    (ii) Comparison of the amount of the budget earned and the 
actual (applied where appropriate) direct costs for the same work. 
This comparison provides the cost variance.
    (9) (ANSI 27) Develop revised estimates of cost at 
completion based on performance to date, commitment values for 
material, and estimates of future conditions. Compare this 
information with the performance measurement baseline to identify 
variances at completion important to management and any applicable 
customer reporting requirements, including statements of funding 
requirements.
    (10) (ANSI 28) Incorporate authorized changes in a 
timely manner, recording the effects of such changes in budgets and 
schedules. In the directed effort prior to negotiation of a change, 
base such revisions on the amount estimated and budgeted to the 
program organizations. If the Contractor's current EVMS has not been 
determined compliant at the time of award, see paragraph (b) of this 
clause. The Contractor shall submit reports in accordance with the 
requirements of this contract.
    (b) If, at the time of award, the Contractor's EVMShas not been 
determined by the CFA as complying with EVMS guidelines or the 
Contractor does not have an existing cost/schedule control system 
that is compliant with the guidelines in paragraph (a), the 
Contractor shall--
    (1) Apply the current system to the contract; and
    (2) Take necessary actions to meet the milestones in the 
Contractor's EVMS plan approved by the contracting officer.
    (c) The Government will conduct an Integrated Baseline Review 
(IBR). If a pre-award IBR has not been conducted, a post award IBR 
shall be conducted as early as practicable after contract award.
    (d) The contracting officer may require an IBR upon the
    (1) Exercise of significant options; or
    (2) Incorporation of major modifications.
    (e) Unless a waiver is granted by the CFA, Contractor-proposed 
EVMS changes require approval of the CFA prior to implementation. 
The CFA will advise the Contractor of the acceptability of such 
changes within 30 calendar days after receipt of the notice of 
proposed changes from the Contractor. If the advance approval 
requirements are waived by the CFA, the Contractor shall disclose 
EVMS changes to the CFA at least 14 calendar days prior to the 
effective date of implementation.
    (f) The Contractor shall provide access to all pertinent records 
and data requested by the contracting officer or a duly authorized 
representative as necessary to permit Government surveillance to 
ensure that the EVMS conforms, and continues to conform, with the 
performance criteria referenced in paragraph (a) of this clause.
    (g) The Contractor shall require the subcontractors specified 
below to comply with the requirements of this clause: [Insert list 
of applicable subcontractors].


(End of Clause)

[FR Doc. 2010-30528 Filed 12-16-10; 8:45 am]
BILLING CODE 4810-25-P`