Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Proposed Rules 78953 

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III. 

[FR Doc. 2010–31740 Filed 12–16–10; 8:45 am] 

BILLING CODE 6560–50–P 

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. 

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remove, as applicable, outdated text and 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 

fernando.tonolete@do.treas.gov 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/ProcurementPolicyRegulations.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: 


srobinson on DSKHWCL6B1PROD with PROPOSALS
78954 Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Proposed Rules 

• 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 prote ́ge ́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 

prote ́ge ́ 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. 


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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-Prote ́ge ́

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 prote ́ge ́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 shortterm 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 


srobinson on DSKHWCL6B1PROD with PROPOSALS
78956 Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Proposed Rules 

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-Prote ́ge ́

Program. 

Subpart 1019.7—The Small Business 

Subcontracting Program. 

1019.705 Responsibilities of the Contracting 

Officer Under the Subcontracting 

Assistant Program. 


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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 Prote ́ge ́

Program. 

(a) [Reserved] 

(b) [Reserved] 

(c) Non-affiliation. For purposes of 

the Small Business Act, a prote ́ge ́ firm 

may not be considered an affiliate of a 

mentor firm solely on the basis that the 

prote ́ge ́ firm is receiving developmental 

assistance referred to in paragraph (m) 

of this section, from such mentor firm 

under the Mentor-Prote ́ge ́ 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 

prote ́ge ́s. Mentors provide appropriate 

developmental assistance to enhance 

the capabilities of prote ́ge ́s to perform as 

contractors or subcontractors. 

(2) A firm’s status as a prote ́ge ́ 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-prote ́ge ́ 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-prote ́ge ́

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 nonmonetary 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 prote ́ge ́. The 

Mentor-Prote ́ge ́ 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 

prote ́ge ́s to perform as subcontractors. 

Mentors will be encouraged to enter into 

arrangements with prote ́ge ́s in addition 

to firms with whom they have 

established business relationships. 

(h) Prote ́ge ́ firms. (1) For selection as 

a prote ́ge ́, 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 

prote ́ge ́ 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 prote ́ge ́ 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 prote ́ge ́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) Prote ́ge ́s may not have multiple 

mentors unless approved, in writing, by 

the Director, OSDBU. Prote ́ge ́s 

participating in other agency mentor 

prote ́ge ́ programs in addition to the 

Treasury Mentor-Prote ́ge ́ Program 

should maintain a system for preparing 

separate reports of mentoring activity 

for each agency’s program. 

(i) Selection of prote ́ge ́ firms. (1) 

Mentor firms will be solely responsible 

for selecting prote ́ge ́ firms. The mentor 

is encouraged to identify and select the 

types of prote ́ge ́ firms listed in 

1019.202–70(h). Mentor firms may have 

multiple prote ́ge ́s. 

(2) The selection of prote ́ge ́ 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 prote ́ge ́ 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 

prote ́ge ́ firms only. The agreement itself 

does not create any privity of contract 

between the mentor or prote ́ge ́ and 

Treasury. 

(l) Agreement contents. The contents 

of the agreement will contain: 

(1) Names and addresses of mentor 

and prote ́ge ́ firms and a point of contact 


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78958 Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Proposed Rules 

within both firms who will oversee the 

agreement; 

(2) Procedures for the mentor firm to 

notify the prote ́ge ́ 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-Prote ́ge ́ Program; 

(3) Procedures for a prote ́ge ́ firm to 

notify the mentor firm in writing at least 

30 days in advance of the prote ́ge ́ firm’s 

intent to voluntarily terminate the 

mentor-prote ́ge ́ agreement. The mentor 

must notify OSDBU and the Contracting 

Officer immediately upon receipt of 

such notice from the prote ́ge ́; 

(4) Each proposed mentor-prote ́ge ́

relationship must include information 

on the mentor’s ability to provide 

developmental assistance to the prote ́ge ́

and how that assistance will potentially 

increase contracting and subcontracting 

opportunities for the prote ́ge ́ firm; 

(5) A description of the type of 

developmental program that will be 

provided by the mentor firm to the 

prote ́ge ́ firm, to include a description of 

the potential subcontract work, and a 

schedule for providing assistance and 

criteria for evaluation of the prote ́ge ́s’ 

developmental success; 

(6) A listing of the types and dollar 

amounts of subcontracts that may be 

awarded to the prote ́ge ́ 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 prote ́ge ́ 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 prote ́ge ́ for purpose of 

training; and 

(6) Any other types of mutually 

beneficial assistance. 

(n) Obligation. (1) Mentor or prote ́ge ́

firms may voluntarily withdraw from 

the Mentor-Prote ́ge ́ Program. However, 

such withdrawal shall not excuse the 

contractor from compliance with 

contract requirements. 

(2) At the conclusion of each year in 

the Mentor-Prote ́ge ́ Program, the 

contractor and prote ́ge ́ 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 prote ́ge ́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 prote ́ge ́ as 

defined in the agreement; 

(iii) To what extent the prote ́ge ́ has 

met the developmental objectives in the 

agreement; and 

(iv) To what extent the mentor firm’s 

participation in the Mentor-Prote ́ge ́

Program resulted in the prote ́ge ́

receiving contract(s) and subcontract(s) 

from private firms and agencies other 

than the Department of the Treasury. 

(v) Mentor and prote ́ge ́ 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-Prote ́ge ́

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-Prote ́ge ́ 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 MentorProte ́ge ́ 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 costreimbursement 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 costreimbursement 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. 


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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 higherlevel 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 inhouse (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; 


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78960 Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Proposed Rules 

(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 nonperformance-based contracts: 

Contract, task order, 

IAG, or CLIN value 

Reporting requirements 

for IT investments 

Applicable 

ANSI/EIA 

criteria 

Level of 

EVMS validation/ 

acceptance 

IBR required Level of EVMS surveillance 

(contractor) 

> $50 M ....................

Between $20M and 

$50 M.

Full ...............

Full ...............

32 

32 

CFA1 Acceptance ..

Contractor Self-Validation.

Yes ..........................

Yes ..........................

CFA Surveillance unless another interested party alternative is requested by 

the Bureau and approved by the 

Treasury CIO. 

< $20M ..................... Core ............. 10 Contractor Self-Validation.Independent Baseline Validation IBR 

(Core).

Treasury/Bureau 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 preaward 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; 


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(3) Cost of adding EVMS requirement 

to a contract versus benefit achieved; 

(4) Percentage of DME costs vis-a`-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-Prote ́ge ́ 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. 


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78962 Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Proposed Rules 

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 

llllllllll[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-Prote ́ge ́ Program. 

As prescribed in 1019.202–70.(p), 

insert the following clause: 

DEPARTMENT OF THE TREASURY 

MENTOR–PROTE ́GE ́ PROGRAM (June 

2003) 

(a) Large and small businesses are 

encouraged to participate in the Department 

of the Treasury Mentor-Prote ́ge ́ Program. 

Mentor firms provide small business prote ́ge ́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. Prote ́ge ́ 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 prote ́ge ́. 

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 prote ́ge ́ 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-Prote ́ge ́ Program, the prime 

contractor and prote ́ge ́ will formally brief the 

Department of the Treasury Mentor-Prote ́ge ́

Program Manager regarding program 

accomplishments under their mentor-prote ́ge ́

agreements. 

(b) A mentor or prote ́ge ́ 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 


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Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Proposed Rules 78963 

receipt of a prote ́ge ́’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 IBRAlternate 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 selfvalidation 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 selfevaluation 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 selfvalidation 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 selfevaluation 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. 


srobinson on DSKHWCL6B1PROD with PROPOSALS
78964 Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Proposed Rules 

(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 preaward 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 


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