10568 Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Rules and Regulations 

DEPARTMENT OF COMMERCE 

48 CFR Chapter 13 

[Document No. 080730954–0033–02] 

RIN 0605–AA26 

Commerce Acquisition Regulation 

(CAR) 

AGENCY: Department of Commerce 

(DOC). 

ACTION: Final rule. 

SUMMARY: We, the Department of 

Commerce, issue a final rule to bring the 

Commerce Acquisition Regulation in 

alignment with the Federal Acquisition 

Regulation (FAR) and to streamline 

DOC’s internal policy and guidance. 

This final rule updates the entire CAR 

through FAC 2005–21. 

DATES: This rule is effective April 7, 

2010. 

ADDRESSES: The final rule is available 

on the DOC Web site http:// 

www.doc.gov, or http:// 

www.regulations.gov, or by contacting 

the Department of Commerce: Room 

1854, 1401 Constitution Avenue, NW., 

Washington, DC 20230. 

FOR FURTHER INFORMATION CONTACT: 

Virna Evans, 202–482–3483. 

SUPPLEMENTARY INFORMATION: 

Background 

The Department of Commerce 

implements or supplements the Federal 

Acquisition Regulations through its own 

regulations codified in 48 CFR Chapter 

13. Collectively, these regulations are 

known as the Commerce Acquisition 

Regulation (CAR). The CAR was 

originally codified on March 30, 1984 

and last updated on September 12, 1995 

through a final rule published in the 

Federal Register. The Department of 

Commerce publishes this action to 

update the CAR to bring the Department 

of Commerce’s policies and procedures 

in alignment with the FAR through FAC 

2005–21. The following is a summary of 

the overall changes made to the CAR. 

The Department amends the CAR to 

update the regulations since its last 

revision on September 12, 1995. In 

order to bring the CAR in alignment 

with the current provisions of the FAR, 

the Department added several new 

provisions to address those instances 

where the FAR indicates that agency 

procedures are required or need to be 

developed, as well as provisions to 

define roles and responsibilities and 

provide guidance on Department’s 

policy and procedures for accountable 

personal property, inherently 

governmental functions, emergency 

acquisitions, small business programs, 

environmental programs, foreign 

acquisitions, contract financing, 

protests, disputes, and appeals, major 

system acquisitions, research and 

development contracting, security 

processing, value engineering, and 

termination of contracts. Moreover, the 

Department added numerous new 

clauses that correspond to the new 

procedural requirements added to the 

CAR. 

In making the updates referenced in 

this final rule, various sections of the 

CAR have been renumbered and/or 

renamed to align with the current 

structure of the FAR. This amendment 

facilitates readers in locating the 

corresponding FAR section in the CAR. 

In addition, the Department added 

many references to chapters of the 

Commerce Acquisition Manual (CAM) 

to provide further information on the 

delegation of authority for a specific 

provision. In particular, the references 

to the CAM help clarify the roles and 

responsibilities across the agency and 

within the Department of Commerce’s 5 

Operating Units authorized to operate 

contracting offices (National Institute of 

Standards and Technology (NIST), 

National Oceanic and Atmospheric 

Administration (NOAA), Office of the 

Secretary, U.S. Census Bureau, and 

Patent and Trademark Office (PTO)). 

Finally, the authority citations for the 

CAR have been revised to correspond to 

current authority. 

For a detailed description of the 

changes by CAR Part, see the proposed 

rule published on October 13, 2009 in 

the Federal Register (74 FR 52541). The 

document is also available at http:// 

www.Regulations.gov under Docket 

Number: DOC–2009–0003–0001. 

Request for Comments 

On October 13, 2009, the Department 

published and requested public 

comments on the proposed changes to 

the CAR. The comment period lasted 

between October 13, 2009–December 14, 

2009. No comments were received from 

the public during this period. Therefore, 

the Department adopts without change, 

the regulations as proposed on October 

13, 2009. 

Classification 

Executive Order 12866: This rule has 

been determined to be not significant for 

purposes of Executive Order 12866, 

Regulatory Planning and Review. 

Regulatory Flexibility Act: Under the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq., as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996), whenever an 

agency is required to publish a notice of 

rulemaking for any proposed or final 

rule, it must prepare and make available 

for public comment a regulatory 

flexibility analysis that describes the 

effect of the rule on small entities (i.e., 

small businesses, small organizations, 

and small government jurisdictions), 

unless the agency certifies that the rule 

will not have a significant economic 

impact on a substantial number of small 

entities. The Regulatory Flexibility Act 

requires Federal agencies to provide a 

statement of the factual basis for 

certifying that a rule will not have a 

significant economic impact on a 

substantial number of small entities. 

Pursuant to the Regulatory Flexibility 

Act, the Chief Counsel for Regulation 

certified to the Chief Counsel for 

Advocacy of the Small Business 

Administration that the proposed rule 

will not have a significant economic 

impact on a substantial number of small 

entities. The factual basis for this 

certification was published with the 

proposed rule. No comments were 

received regarding the economic impact 

of this rule. As a result, a Final 

Regulatory Flexibility Analysis is not 

required. 

Paperwork Reduction Act: This rule 

does not impose any new information 

collections subject to review and 

approval by OMB under the Paperwork 

Reduction Act. Notwithstanding any 

other provision of the law, no person is 

required to respond to, nor shall any 

person be subject to a penalty for failure 

to comply with, a collection of 

information subject to the requirements 

of PRA, unless that collection of 

information displays a currently valid 

OMB control number. 

List of Subjects 

48 CFR Part 1301 

Acquisition regulations, Federal 

acquisition regulations, Government 

procurement, Government contracts, 

Procurement, Reporting and 

recordkeeping requirements. 

48 CFR Part 1302 

Definitions, Government 

procurement, Terms. 

48 CFR Part 1303 

Antitrust, Conflict of interests, Ethical 

conduct, Government procurement, 

Reporting and recordkeeping 

requirements. 

48 CFR Part 1304 

Classified information, Computer 

technology, Government procurement, 

Reporting and recordkeeping 

requirements. 


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48 CFR Part 1305 

Government procurement, Reporting 

and recordkeeping requirements. 

48 CFR Part 1306 

Government procurement, 

Justifications, Sole source acquisitions. 

48 CFR Part 1307 

Acquisition planning, Government 

procurement, Inherently governmental 

functions, Reporting and recordkeeping 

requirement. 

48 CFR Part 1308 

Government procurement, Printing. 

48 CFR Part 1309 

Debarment, Government procurement, 

Suspension, Reporting and 

recordkeeping requirement. 

48 CFR Part 1311 

Government procurement, Liquidated 

damages, Market acceptance. 

48 CFR Part 1312 

Government procurement, Tailoring 

clauses, Tailoring provisions, Tailoring 

terms and conditions. 

48 CFR Part 1313 

BPA, Blanket purchase agreement, 

Government procurement, Imprest 

funds, Micro-purchase authority, 

Purchase order modifications, Small 

business, Third-party drafts, Training. 

48 CFR Part 1314 

Equipment inspection, Government 

procurement, Pre-Bid conference, Preproposal conference, Reporting and 

recordkeeping requirements, Site visit. 

48 CFR Part 1315 

Evaluation, Indefinite quantity, 

Inquiries, Government procurement, 

Oral presentations, Proposal 

preparation, Reporting and 

recordkeeping requirements, Shouldcost review, Source selection, 

Unsolicited proposals. 

48 CFR Part 1316 

Government procurement, 

Ombudsman. 

48 CFR Part 1317 

Multi-year contract, Congressional 

notification, Interagency agreement. 

48 CFR Part 1318 

Emergency procurement, Reporting 

and recordkeeping requirements, 

Contingency operation, Warrants. 

48 CFR Part 1319 

Partnership agreement, Set aside, 

Small business, SBA. 

48 CFR Part 1322 

Aged, Child labor, Civil rights, Equal 

employment opportunity, Government 

procurement, Individuals with 

disabilities, Labor, Labor disputes, 

Prisoners, Reporting and recordkeeping 

requirements, Veterans, Wages, Work 

stoppages. 

48 CFR Part 1323 

Affirmative procurement program, Air 

pollution control, Drug abuse, Drug-free 

workplace, Energy conservation, 

Environmental, Government 

procurement, Hazardous substances, 

Recycling, Renewable energy, Water 

pollution control. 

48 CFR Part 1324 

Freedom of Information, Government 

procurement, privacy. 

48 CFR Part 1325 

Buy American Act, Customs duties 

and inspection, Foreign currencies, 

Foreign trade, Government 

procurement. 

48 CFR Part 1326 

Disaster assistance, Government 

procurement. 

48 CFR Part 1327 

Copyright, Government procurement, 

Inventions and patents, Reporting and 

recordkeeping requirements. 

48 CFR Part 1328 

Government procurement, Insurance, 

Reporting and recordkeeping 

requirements, Surety bonds. 

48 CFR Part 1329 

Government procurement, Reporting 

and recordkeeping requirements, Taxes, 

Tax exemptions. 

48 CFR Part 1330 

Accounting, Government 

procurement, Reporting and 

recordkeeping requirements. 

48 CFR Part 1331 

Accounting, Government 

procurement, Reporting and 

recordkeeping requirements. 

48 CFR Part 1332 

Electronic funds transfer, Government 

procurement, Reporting and 

recordkeeping requirements. 

48 CFR Part 1333 

Administrative practice and 

procedure, Claims, Government 

procurement. 

48 CFR Part 1334 

Earned value management, EVM, 

EVMS, Major system acquisition. 

48 CFR Part 1335 

FFRDC, Human subject. 

48 CFR Part 1336 

Evaluation boards, Government 

procurement, Reporting and 

recordkeeping requirements, Selection. 

48 CFR Part 1337 

Contractor processing, Government 

Procurement, Information Technology, 

Security, Service contracting, Standards. 

48 CFR Part 1339 

Contractor processing, Government 

procurement, Information Technology, 

Security, Service contracting. 

48 CFR Part 1341 

Government procurement, Reporting 

and recordkeeping requirements, 

Utilities. 

48 CFR Part 1342 

Accounting, Government 

procurement, Indirect cost rates, 

Postaward conference, Reporting and 

recordkeeping requirements. 

48 CFR Part 1344 

Government procurement, Reporting 

and recordkeeping requirements. 

48 CFR Part 1345 

Government procurement, 

Government property, Reporting and 

recordkeeping requirements. 

48 CFR Part 1346 

Government procurement, Inspection, 

Reporting and recordkeeping 

requirements, Warranties. 

48 CFR Part 1348 

Government procurement, Reporting 

and recordkeeping requirements, Value 

Engineering Change Proposals (VECP). 

48 CFR Part 1349 

Criminal conduct, Default, Fraud, 

Government procurement, Reporting 

and recordkeeping requirements. 

48 CFR Part 1350 

Government procurement, Hazardous 

risk, National defense, Nuclear risk, 

Reporting and recordkeeping 

requirements. 

48 CFR Part 1352 

Government procurement, Matrix, 

Reporting and recordkeeping 

requirements. 

48 CFR Part 1353 

Government procurement, Reporting 

and recordkeeping requirements. 


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48 CFR Part 1370 

Period of performance, Pre-bid 

conference, Pre-proposal conference, 

Site visit. 

48 CFR Part 1371 

Inspection, Guarantees, Liability, 

Liens, Ship construction, Ship repair, 

Vessel, Insurance. 

Dated: February 22, 2010. 

John F. Charles, 

Deputy Assistant Secretary for 

Administration. 

■ For the reasons stated in the preamble, 

the Department of Commerce revises 48 

CFR Chapter 13 to read as follows: 

CHAPTER 13—DEPARTMENT OF 

COMMERCE 

SUBCHAPTER A—GENERAL 

Part 

1301 Department of Commerce Acquisition 

Regulations System. 

1302 Definitions of words and terms. 

1303 Improper business practices and 

personal conflicts of interest. 

1304 Administrative matters. 

SUBCHAPTER B—COMPETITION AND 

ACQUISITION PLANNING 

1305 Publicizing contact actions. 

1306 Competition requirements. 

1307 Acquisition planning. 

1308 Required sources of supplies and 

services. 

1309 Contractor qualifications. 

1311 Describing agency needs. 

1312 Acquisition of commercial items. 

SUBCHAPTER C—CONTRACTING 

METHODS AND CONTRACT TYPES 

1313 Simplified acquisition procedures. 

1314 Sealed bidding. 

1315 Contracting by negotiation. 

1316 Types of contracts. 

1317 Special contracting methods. 

1318 Emergency acquisitions. 

SUBCHAPTER D—SOCIOECONOMIC 

PROGRAMS 

1319 Small business programs. 

1322 Application of labor laws to 

Government acquisitions. 

1323 Environment, energy and water 

efficiency, renewable energy 

technologies, occupational safety, and 

drug-free workplace. 

1324 Protection of privacy and freedom of 

information. 

1325 Foreign acquisition. 

1326 Other socioeconomic programs. 

SUBCHAPTER E—GENERAL 

CONTRACTING REQUIREMENTS 

1327 Patents, data, and copyrights. 

1328 Bonds and insurance. 

1329 Taxes. 

1330 Cost accounting standards 

administration. 

1331 Contract cost principles and 

procedures. 

1332 Contract financing. 

1333 Protests, disputes, and appeals. 

SUBCHAPTER F—SPECIAL CATEGORIES 

OF CONTRACTING 

1334 Major system acquisition. 

1335 Research and development 

contracting. 

1336 Construction and architect-engineer 

contracts. 

1337 Service contracting. 

1339 Acquisition of information 

technology. 

1341 Acquisition of utility services. 

SUBCHAPTER G—CONTRACT 

MANAGEMENT 

1342 Contract administration. 

1344 Subcontracting policies and 

procedures. 

1345 Government property. 

1346 Quality assurance. 

1348 Value engineering. 

1349 Termination of contracts. 

1350 Extraordinary contractual actions. 

SUBCHAPTER H—CLAUSES AND FORMS 

1352 Solicitation provisions and contract 

clauses. 

1353 Forms. 

SUBCHAPTER I—DEPARTMENT 

SUPPLEMENTAL REGULATIONS 

1370 Universal solicitation provisions and 

contract clauses. 

1371 Acquisitions involving ship 

construction and ship repair. 

SUBCHAPTER A—GENERAL 

PART 1301—DEPARTMENT OF 

COMMERCE ACQUISITION 

REGULATIONS SYSTEM 

Sec. 

1301.000 Scope of part. 

Subpart 1301.1—Purpose, Authority, 

Issuance 

1301.101 Purpose. 

1301.103 Authority. 

1301.104 Applicability. 

1301.105 Issuance. 

1301.105–1 Publication and code 

arrangement. 

1301.105–2 Arrangement of regulations. 

1301.105–3 Copies. 

Subpart 1301.3—Agency Acquisition 

Regulations 

1301.301 Policy. 

1301.303 Publication and codification. 

1301.304 Agency control and compliance 

procedures. 

Subpart 1301.4—Deviations From the FAR 

1301.403 Individual deviations. 

1301.404 Class deviations. 

Subpart 1301.6—Career Development, 

Contracting Authority, and Responsibilities 

1301.601 General. 

1301.602 Contracting officers. 

1301.602–1 Authority. 

1301.602–170 Provisions and clauses. 

1301.602–3 Ratification of unauthorized 

commitments. 

1301.602–370 Ratification approval by 

Procurement Counsel. 

1301.603 Selection, appointment, and 

termination of appointment. 

1301.603–1 General. 

1301.603–2 Selection. 

1301.603–3 Appointment. 

1301.603–4 Termination. 

1301.670 Appointment of contracting 

officer’s representative (COR). 

1301.670–70 Provisions and clauses. 

1301.671 Assignment of program and 

project managers. 

Subpart 1301.7—Determinations and 

Findings 

1301.707 Signatory authority. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

1301.000 Scope of part. 

This part sets out general Department 

of Commerce Acquisition Regulation 

(CAR) policies, including information 

regarding the maintenance and 

administration of the CAR, acquisition 

policies and practices, and procedures 

for deviation from the CAR and the 

Federal Acquisition Regulation (FAR). 

This part describes the Commerce 

Acquisition Regulation in terms of 

establishment, relationship to the 

Federal Acquisition Regulation, 

arrangement, applicability, and 

deviation procedures. 

Subpart 1301.1—Purpose, Authority, 

Issuance 

1301.101 Purpose. 

The CAR establishes uniform 

acquisition policies and procedures that 

implement and supplement the FAR. If 

there is a discrepancy between the CAR 

and FAR, the FAR will take precedence. 

1301.103 Authority. 

The CAR is issued under the authority 

of section 22 of the Office of Federal 

Procurement Policy Act, as amended (41 

U.S.C. 418b), and FAR Subpart 1.3 by 

the Department Procurement Executive 

pursuant to a delegation initiating from 

the Secretary of Commerce. 

1301.104 Applicability. 

The CAR applies to all Department of 

Commerce (DOC) acquisitions as 

defined in Part 2 of the FAR, except 

where expressly excluded. 

1301.105 Issuance. 

1301.105–1 Publication and code 

arrangement. 

(a) The CAR is published in the 

Federal Register, in cumulative form in 

the Code of Federal Regulations (CFR), 

and is available online at the U.S. 

Department of Commerce, Office of 

Acquisition Management Web site. 

(b) The CAR is issued as Chapter 13 

of Title 48 of the CFR. 


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1301.105–2 Arrangement of regulations. 

(a) General. The CAR is divided into 

the same parts, subparts, sections, and 

subsections as the FAR. 

(b) Numbering. If the DOC does not 

have supplemental regulations there 

will be no corresponding coverage in 

the CAR, and there will be gaps in the 

CAR numbering system. 

1301.105–3 Copies. 

(a) Copies of the CAR in Federal 

Register or CFR form may be purchased 

from the Superintendent of Documents, 

Government Printing Office, 

Washington, DC 20402. 

(b) The CAR is available online at the 

U.S. Department of Commerce, Office of 

Acquisition Management Web site 

(http://oam.ocs.doc.gov). 

Subpart 1301.3—Agency Acquisition 

Regulations 

1301.301 Policy. 

(a) The designee authorized to 

prescribe the CAR is set forth in the 

Commerce Acquisition Manual (CAM) 

1301.70. 

(b) The DOC internal operating 

guidance and procedures are contained 

in the CAM and other policy guidance 

documents issued by the Procurement 

Executive relating to acquisitions. The 

DOC Contracting Offices may issue 

additional guidance and procedures. 

1301.303 Publication and codification. 

(a) The CAR parallels the FAR in 

format, arrangement and numbering 

system. Coverage within the CAR is 

identified by the prefix ‘‘13’’ or ‘‘130’’ 

followed by the complete FAR citation 

to the subsection level (e.g., CAR 

coverage of FAR 1.602–1 is cited as 

1301.602–1). 

(b) Supplementary material without a 

FAR counterpart will be codified using 

70 and up as appropriate for the part, 

subpart, section, or subsection number 

(e.g., Part 1370, subpart 1301.70, section 

1301.370 or subsection 1301.301–70). 

1301.304 Agency control and compliance 

procedures. 

Operating unit counsel shall limit 

issuance of directives that restrain the 

flexibilities found in the FAR. 

Subpart 1301.4—Deviations From the 

FAR 

1301.403 Individual deviations. 

The designee authorized to approve 

individual deviations from the FAR is 

set forth in CAM 1301.70. 

1301.404 Class deviations. 

The designee authorized to approve 

class deviations from the FAR is set 

forth in CAM 1301.70. 

Subpart 1301.6—Career Development, 

Contracting Authority, and 

Responsibilities 

1301.601 General. 

The agency head for procurement 

matters is the Chief Financial Officer/ 

Assistant Secretary for Administration 

(CFO/ASA), unless prohibited by 

statute. The authority for agency head 

for procurement matters is delegated to 

the Procurement Executive as the 

authority to establish lines of 

contracting authority within DOC and to 

implement policies and procedures 

related to the acquisition process. 

Specific contracting authorities are set 

forth in CAM 1301.70. 

1301.602 Contracting officers. 

1301.602–1 Authority. 

In accordance with CAM 1301.70, 

only individuals who have been 

certified as contracting officers through 

issuance of a Certificate of Appointment 

by the Senior Bureau Procurement 

Official may exercise the authority of 

DOC contracting officers. In addition to 

the authority to enter into, administer, 

and terminate contracts, contracting 

officers have been delegated certain 

functions as set out in Appendix A to 

CAM 1301.70. 

1301.602–170 Provisions and clauses. 

Insert clause 1352.201–70, 

Contracting Officer’s Authority, in all 

solicitations and contracts. 

1301.602–3 Ratification of unauthorized 

commitments. 

(a) Insert clause 1352.201–71, 

Ratification Release, in a contract 

document under which payment is 

made for unauthorized commitments 

after a ratification has been processed. 

(b)(1) Unauthorized commitments 

occur when the Department accepts 

goods or services in the absence of an 

enforceable contract entered into by an 

authorized official. It is the policy of 

DOC that all acquisitions are to be made 

only by Government officials having 

authority to make such acquisitions. 

Acquisitions made by other than 

authorized personnel are contrary to 

Departmental policy and the 

Department is not bound by any formal 

or informal type of agreement or 

contractual commitment which is made 

by persons who are not delegated 

contracting authority. Payment for 

goods or services accepted in the 

absence of an authorized commitment 

may be made only through the 

ratification process. Unauthorized 

commitments may be considered 

matters of serious misconduct and may 

subject the responsible employees to 

appropriate disciplinary actions. 

(2) The delegation of the ratification 

authority is set forth in CAM 1301.70. 

All requests for ratification must fully 

explain the circumstances that gave rise 

to the unauthorized commitment and 

detail, if appropriate, any disciplinary 

action taken with respect to any 

responsible employee. Ratifications may 

be approved only if all criteria in FAR 

1.602–3 have been met. 

1301–602–370 Ratification approval by 

Procurement Counsel. 

Ratifications may not be approved 

unless the concurrence of Procurement 

Counsel is obtained. 

1301.603 Selection, appointment, and 

termination of appointment. 

1301.603–1 General. 

The Department’s procurement career 

management program and system for the 

selection, appointment, and termination 

of appointment of contracting officers 

are described in CAM 1301.6. 

1301.603–2 Selection. 

In addition to the criteria set forth in 

FAR 1.603–2, selection of contracting 

officers shall be based upon Section 4 of 

CAM 1301.6. 

1301.603–3 Appointment. 

In addition to the criteria set forth in 

FAR 1.603–3, appointment of 

contracting officers shall be based upon 

Section 4 of CAM 1301.6. 

1301.603–4 Termination. 

In addition to the criteria set forth in 

FAR 1.603–4, termination of contracting 

officers shall be based upon Section 4 of 

CAM 1301.6. 

1301.670 Appointment of contracting 

officer’s representative (COR). 

The Department’s Contracting 

Officer’s Representative certification 

program for the nomination, 

appointment and cancellation of CORs 

is described in CAM 1301.670. 

1301.670–70 Provisions and clauses. 

Insert clause 1352.201–72, 

Contracting Officer’s Representative 

(COR), in all solicitations and contracts 

where a COR will be appointed. 

1301.671 Assignment of program and 

project managers. 

The Department’s Program and 

Project Manager certification program 

for the assignment and certification of 

Program and Project Managers is 

described in CAM 1301.671. 


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Subpart 1301.7—Determinations and 

Findings 

1301.707 Signatory authority. 

Signatory authority for determinations 

and findings (D&Fs) is specified in the 

FAR for the associated subject matter 

unless otherwise noted in CAM 1301.70. 

PART 1302—DEFINTIONS OF WORDS 

AND TERMS 

Subpart 1302.1—Definitions 

Sec. 

1302.101 Definitions. 

1302.170 Abbreviations. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1302.1—Definitions 

1302.101 Definitions. 

Accountable Personal Property means 

all personal property for which 

responsibility for control is formally 

assigned to an individual, and official 

property records are maintained as set 

forth in DOC PPMM Chapter 4. 

Agency Head (or Head of Agency) 

(HA) means the Secretary of Commerce, 

except, pursuant to Department 

Organization Order (DOO) 10–5, Chief 

Financial Officer and Assistant 

Secretary for Administration, the head 

of the agency for procurement matters 

shall be the Chief Financial Officer and 

Assistant Secretary for Administration 

(CFO/ASA), unless a statute provides 

that the authority of the Secretary is 

non-delegable. 

Chief Acquisition Officer (CAO) 

means the Department’s executive-level 

non-career employee designated 

pursuant to the Services Acquisition 

Reform Act to advise and assist the head 

of the agency and other agency officials 

to ensure the mission of the agency is 

achieved through the management of 

the agency’s acquisition activities. The 

CFO/ASA has been designated by the 

Head of the Agency as the Chief 

Acquisition Officer for the Department 

of Commerce. 

Civilian Agency Acquisition Council 

(CAAC) means the council that assists 

the Administrator of General Services in 

developing and maintaining the Federal 

Acquisition Regulation (FAR) System by 

developing or reviewing all proposed 

changes to the FAR. The Council is 

comprised of a representative 

designated by each of several Federal 

departments and agencies, including the 

DOC. The CAAC coordinates its 

activities with the Defense Acquisition 

Regulations Council (DARC). The CAAC 

is authorized under 48 CFR 1.2. 

Commerce Acquisition Manual (CAM) 

means non-regulatory uniform policies 

and procedures for internal operations 

associated with acquiring supplies and 

services within the Department that 

implements and supplements the FAR 

and CAR. 

Commerce Acquisition Regulation 

(CAR) means uniform acquisition 

policies and procedures, which 

implement and supplement the FAR. 

Contracting Activity means the 

operating units identified under the 

definition of ‘‘Operating Units’’ below. 

Contracting activities may or may not 

have authority to operate contracting 

offices (see definition for Contracting 

Office). 

Contracting Office means an office 

that awards or executes contracts for 

supplies or services and performs postaward functions. The operating units 

authorized to operate contracting offices 

are identified in DAO 208–2. 

Contracting Officer means an 

individual designated authority by the 

Senior Bureau Procurement Official 

(BPO) to enter into, administer, and/or 

terminate contracts and make related 

determinations and findings. Only those 

individuals who have been certified as 

contracting officers, through the 

issuance of a Certificate of Appointment 

(Contracting Officer Warrant (SF 1402)), 

by the BPO in accordance with the 

requirements and procedures of the 

CAR and the CAM may exercise the 

authorities of contracting officers. 

However, by virtue of their positions, 

the Head of the Agency, the 

Procurement Executive, and the Heads 

of Operating Units are also designated 

as contracting officers. 

Department or Departmental or DOC 

means the Department of Commerce. 

Head of Agency (HA)—see definition 

for ‘‘Agency Head.’’ 

Head of Contracting Office (HCO) 

means those individuals designated by 

the BPO to head the contracting offices 

within each operating unit that has 

designated contracting authority to 

award and administer contracts. In 

performing their duties, HCOs are 

empowered to the full limits of the 

Department’s contracting authority. The 

HCO must be a procurement 

professional in the GS–1102 

occupational series (or equivalent OPM 

occupational designation). BPOs will 

issue each HCO a Contracting Officer 

Warrant that delegates the authority to 

enter into, administer, and/or terminate 

contracts and to make related 

determinations and findings. 

Head of the Contracting Activity 

(HCA) means, for purposes of delegation 

of contracting authority, officials who 

are designated as Heads of Operating 

Units (those who are assigned by the 

President or by the Secretary to manage 

the primary or constituent operating 

units of the DOC) in orders establishing 

the respective operating units, with the 

exception of the Office of the Secretary. 

Such officials are designated as the HCA 

for procurements initiated in support of 

the procurement activities of that 

operating unit. The Chief Financial 

Officer and Assistant Secretary for 

Administration has been designated as 

the HCA for procurements initiated in 

support of the programs and activities of 

the Office of the Secretary and all other 

Secretarial Offices and Departmental 

Offices. 

Office of Small and Disadvantaged 

Business Utilization (OSDBU), The 

means the advocacy and advisory office 

responsible for promoting the use of 

small, small disadvantaged, 8(a), 

women-owned, veteran-owned, servicedisabled veteran-owned, and HUBZone 

small businesses within the Department 

acquisition process. 

Office of the Assistant General 

Counsel for Administration, 

Employment & Labor Law Division 

means the Department Legal Office that 

provides advice and guidance to 

management regarding employment and 

labor law issues, including the legal 

standards for taking adverse and 

performance-based actions. 

Office of the Assistant General 

Counsel for Administration, Ethics Law 

and Program Division means the 

Department Legal Office that provides 

advice and guidance regarding conflict 

of interest statutes, ethics regulations, 

and related laws. 

Operating Units are organizational 

entities outside the Office of the 

Secretary charged with carrying out 

specified substantive functions (i.e., 

programs) of the Department and are 

identified in DAO 208–2. 

Procurement Counsel means, except 

for the Patent and Trademark Office 

(PTO), the Office of the Assistant 

General Counsel for Finance & 

Litigation, Contract Law Division, the 

office responsible for providing legal 

review of applicable contract actions 

and procurement legal advice to all 

operating units, and handling 

procurement-related litigation. 

‘‘Procurement Counsel’’ for all PTO 

procurement-related actions means 

Office of General Law. 

Procurement Executive (or Senior 

Procurement Executive (PE)) means the 

official appointed pursuant to Executive 

Order 12931 and the Services 

Acquisition Reform Act of 2003 to carry 

out the responsibilities identified in 

both the Executive Order and the Act. 

The Director for Acquisition 

Management is the Procurement 

Executive for the Department of 

Commerce. 


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Senior Bureau Procurement Official 

(BPO) means the senior career 

procurement official, within each 

operating unit that has been delegated 

contracting authority, who is designated 

as the Senior Bureau Procurement 

Official. The BPO must be a 

procurement professional who has both 

experience and training in the area of 

Federal procurement and contracting. 

HCAs may designate one BPO within 

their organization to carry out the dayto-day functions of managing the 

contracting activity. BPOs may also 

serve as the Head of Contracting Office. 

The Procurement Executive will issue 

each BPO a Contracting Officer Warrant 

which delegates the authority to enter 

into, administer, and/or terminate 

contracts and to make related 

determinations and findings. 

1302.170 Abbreviations 

AIR Additional Item Requirements 

BPO Senior Bureau Procurement Official 

CAAC Civilian Agency Acquisition Council 

CAM Commerce Acquisition Manual 

CAO Chief Acquisition Officer 

CAR Commerce Acquisition Regulation 

CFO/ASA Chief Financial Officer/Assistant 

Secretary for Administration 

CFR Code of Federal Regulations 

CO Contracting Officer 

COR Contracting Officer’s Representative 

DAO Departmental Administrative Order 

DOC Department of Commerce 

DOO Departmental Organizational Order 

D&F Determination and Findings 

EVMS Earned Value Management System 

FAR Federal Acquisition Regulation 

HCA Head of Contracting Activity 

HCO Head of Contracting Office 

IRB Institutional Review Board 

JOFOC Justification for Other than Full and 

Open Competition 

NIST National Institute of Standards and 

Technology 

NOAA National Oceanic and Atmospheric 

Administration 

OCI Organizational Conflict of Interest 

OCIO Office of the Chief Information 

Officer 

OFPP Office of Federal Procurement Policy 

OIG Office of Inspector General 

OMB Office of Management and Budget 

OS Office of the Secretary 

OSDBU Office of Small and Disadvantaged 

Business Utilization 

PE Procurement Executive 

PTO Patent and Trademark Office 

RFP Request for Proposals 

SBA Small Business Administration 

OU Operating Unit 

PART 1303—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST 

Subpart 1303.1—Safeguards 

Sec. 

1303.101 Standards of conduct. 

1303.101–2 Solicitation and acceptance of 

gratuities by government personnel. 

1303.101–3 Agency regulations. 

1303.104 Procurement integrity. 

1303.104–4 Disclosure, protection and 

marking of contractor bid or proposal 

information and source selection 

information. 

1303.104–7 Violations or possible 

violations. 

Subpart 1303.2—Contractor Gratuities to 

Government Personnel 

1303.203 Reporting suspected violations of 

the gratuities clause. 

1303.204 Treatment of violations. 

Subpart 1303.3—Reports of Suspected 

Antitrust Violations 

1303.303 Reporting suspected antitrust 

violations. 

Subpart 1303.4—Contingent Fees 

1303.405 Misrepresentations or violations 

of the covenant against contingent fees. 

Subpart 1303.5—Other Improper Business 

Practices 

1303.502 Subcontractor kickbacks. 

1303.502–2 Subcontractor kickbacks. 

Subpart 1303.6—Contracts With 

Government Employees or Organizations 

Owned or Controlled by Them 

1303.602 Exceptions. 

Subpart 1303.7—Voiding and Rescinding 

Contracts 

1303.704 Policy. 

1303.705 Procedures. 

Subpart 1303.8—Limitation on the Payment 

of Funds To Influence Federal Transactions 

1303.804 Policy. 

1303.806 Processing suspected violations. 

Subpart 1303.9—Whistleblower Protections 

for Contractor Employees 

1303.905 Procedures for investigating 

complaints. 

1303.906 Remedies. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1303.1—Safeguards 

1303.101 Standards of conduct. 

1303.101–2 Solicitation and acceptance of 

gratuities by government personnel. 

(a) Suspected violations of the 

prohibition on soliciting and accepting 

gratuities shall be reported to the Office 

of the Inspector General in accordance 

with DAO 207–10, Inspector General 

Investigations. 

(b) To obtain legal advice regarding 

the solicitation and acceptance of 

gratuities, contact the Office of the 

Assistant General Counsel for 

Administration, Ethics Law and 

Program Division. 

1303.101–3 Agency regulations. 

The Department has issued rules 

implementing Executive Order 11222 

prescribing employee standards of 

conduct (see DOC Office of General 

Counsel Web site). 

1303.104 Procurement integrity. 

1303.104–4 Disclosure, protection and 

marking of contractor bid or proposal 

information and source selection 

information. 

Contractor bid or proposal 

information and source selection 

information must be protected from 

unauthorized disclosure in accordance 

with FAR Parts 3, 14 and 15, and CAM 

1315.3. 

1303.104–7 Violations or possible 

violations. 

Suspected violations of the 

Procurement Integrity Act shall be 

reported to the individuals designated 

in CAM 1301.70. 

Subpart 1303.2—Contractor Gratuities 

to Government Personnel 

1303.203 Reporting suspected violations 

of the gratuities clause. 

Suspected violations of the Gratuities 

clause shall be reported to the HCA in 

writing detailing the circumstances. The 

report must identify the contractor and 

personnel involved, provide a summary 

of the pertinent evidence and 

circumstances that indicate a violation, 

and include any other available 

supporting documentation. The HCA 

will evaluate the report, and, if the 

allegations appear to support a 

violation, the matter will be referred to 

the Head of Contracting Office with 

copies provided to the Senior 

Procurement Executive and the DOC 

Office of Inspector General. See DAO 

207–10 for procedures. 

1303.204 Treatment of violations. 

(a) The designee authorized to 

determine violations of the Gratuities 

clause is set forth in CAM 1301.70. 

(b) Upon receipt of an allegation or 

evidence of a violation of the Gratuities 

clause, the designee shall conduct a 

fact-finding. If there is a basis for further 

action, a signed notice shall be prepared 

and sent to the contractor by certified 

mail, return receipt requested, or any 

other method that provides signed 

evidence of receipt. If a reply is not 

received from the contractor within 45 

calendar days of sending the notice, a 

decision shall be made on the 


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appropriate action to be taken. If a reply 

is received from the contractor within 

45 calendar days of sending the notice, 

the information in the reply must be 

considered before making a decision on 

the appropriate action to be taken. Upon 

request of the contractor, the contractor 

shall be provided an opportunity to 

appear in person to present information 

concerning the matter. A report shall be 

prepared following the presentation and 

the information must be considered 

when making a decision. A decision 

shall be made on the basis of all 

information available, including 

findings of fact and oral or written 

information submitted by the contractor. 

All mitigating factors shall be 

considered prior to making a final 

decision concerning what action will be 

taken. 

Subpart 1303.3—Reports of Suspected 

Antitrust Violations 

1303.303 Reporting suspected antitrust 

violations. 

Suspected anti-competitive practices 

and antitrust law violations, as 

described in FAR 3.301 and FAR 3.303, 

shall be reported to the Contract Law 

Division, by the HCO. A copy of the 

report shall be sent to the Procurement 

Executive concurrently with the 

submission to the Office of the Assistant 

General Counsel for Administration, 

Ethics Law and Program Division. The 

Office of the Assistant General Counsel 

will submit any required reports to the 

Attorney General. 

Subpart 1303.4—Contingent Fees 

1303.405 Misrepresentations or violations 

of the covenant against contingent fees. 

If the contracting officer has specific 

evidence or other reasonable basis to 

believe that a violation of the Covenant 

Against Contingent Fees has occurred, 

the matter shall be referred to the HCO, 

who shall, in appropriate 

circumstances, take one or more of the 

actions described in FAR 3.405(b). The 

HCO shall also refer the matter to the 

DOC Office of the Inspector General as 

well as the Office of the Assistant 

General Counsel for Administration, 

Ethics Law and Program Division. The 

Office of the Assistant General Counsel 

for Administration, Ethics Law and 

Program Division shall refer the matter 

to the Department of Justice, as 

appropriate. 

Subpart 1303.5—Other Improper 

Business Practices 

1303.502 Subcontractor kickbacks. 

1303.502–2 Subcontractor kickbacks. 

Suspected violations of the AntiKickback Act of 1986 shall be reported 

to the DOC Office of Inspector General. 

Subpart 1303.6—Contracts With 

Government Employees or 

Organizations Owned or Controlled by 

Them 

1303.602 Exceptions. 

The designee authorized to make an 

exception to the policy in FAR 3.601 is 

set forth in CAM 1301.70. 

Subpart 1303.7—Voiding and 

Rescinding Contracts 

1303.704 Policy. 

The designee authorized to declare 

void and rescind contracts, in cases in 

which there has been a final conviction 

for any violation of 18 U.S.C. 201–224, 

is set forth in CAM 1301.70. 

1303.705 Procedures. 

The designee authorized to declare a 

contract void and rescinded is set forth 

in CAM 1301.70. The DOC will follow 

the procedures set forth in FAR 3.705. 

Subpart 1303.8—Limitation on the 

Payment of Funds To Influence Federal 

Transactions 

1303.804 Policy. 

The original OMB Form LLL, 

Disclosure of Lobbying Activities, shall 

be retained in the contract file and a 

copy shall be submitted to the Office of 

the Assistant General Counsel for 

Administration, Ethics Law and 

Program Division. 

1303.806 Processing suspected violations. 

Suspected violations of 31 U.S.C. 

1352 shall be referred to the DOC Office 

of Inspector General and the Senior 

Procurement Executive. 

Subpart 1303.9—Whistleblower 

Protections for Contractor Employees 

1303.905 Procedures for investigating 

complaints. 

The designee authorized to take 

specified actions related to Inspector 

General findings regarding 

whistleblower complaints of contractor 

employees is set forth in CAM 1301.70. 

1303.906 Remedies. 

The designee authorized to determine 

whether a contractor has subjected an 

employee to reprisal and to determine 

the appropriate remedy is set forth in 

CAM 1301.70. 

PART 1304—ADMINISTRATIVE 

MATTERS 

Subpart 1304.2—Contract Distribution 

Sec. 

1304.201 Procedures 

1304.201–70 Accountable personal 

property. 

Subpart 1304.6—Contract Reporting 

1304.602 General 

1304.602–70 Federal Procurement Data 

System. 

Subpart 1304.8—Government Contract Files 

1304.804 Closeout of contract files 

1304.804–70 Contract closeout procedures. 

1304.805 Storage, handling, and disposal of 

contract files. 

1304.805–70 Storage, handling, and 

disposal of contract files. 

Subpart 1304.13—Personal Identity 

Verification 

1304.1301 Policy. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1304.2—Contract Distribution 

1301.201 Procedures. 

1304.201–70 Accountable personal 

property. 

Provide one copy of all contracts and 

purchase orders for accountable 

personal property to the appropriate 

Departmental property management 

office(s) for inclusion in the 

Department’s personal property system 

in accordance with the DOC Personal 

Property Management Manual. 

Accountable personal property 

purchased with a Governmentwide 

commercial purchase card is also to be 

reported to the property management 

office. 

Subpart 1304.6—Contract Reporting 

1304.602 General. 

1304.602–70 Federal Procurement Data 

System. 

Departmental Federal Procurement 

Data System reporting procedures are 

set forth in CAM 1304.602. 

Subpart 1304.8—Government Contract 

Files 

1304.804 Closeout of contract files. 

1304.804–70 Contract closeout 

procedures. 

CAM 1304.804 supplements FAR 

4.804 with the Department’s contract 

closeout procedures. 


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1304.805 Storage, handling, and disposal 

of contract files. 

1304.805–70 Storage, handling, and 

disposal of contract files. 

CAM 1304.804 supplements FAR 

4.805 with the Department’s procedures 

for storage, handling, and disposal of 

contract files. 

Subpart 1304.13—Personal Identity 

Verification 

1304.1301 Policy. 

(a) Implementation of Federal 

Information Processing Standards 

Publication (FIPS PUB) 201 and OMB 

guidance M–05–24 is set forth in DOC 

Personal Identify Verification (PIV) 

Implementation Guidance, which is 

available on the Office of Security Web 

site. 

(b) The DOC official responsible for 

verifying contractor employee personal 

identity is set forth in the DOC Personal 

Identify Verification (PIV) 

Implementation Guidance. 

SUBCHAPTER B—COMPETITION AND 

ACQUISITION PLANNING 

PART 1305—PUBLICIZING CONTRACT 

ACTIONS 

Subpart 1305.2—Synopses of Proposed 

Contract Actions. 

Sec. 

1305.202 Exceptions. 

Subpart 1305.4—Release of Information 

1305.403 Requests from Members of 

Congress. 

1305.404 Release of long range acquisition 

estimates. 

1305.404–1 Release procedures. 

Subpart 1305.5—Paid Advertisements 

1305.502 Authority. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1305.2—Synopses of 

Proposed Contract Actions 

1305.202 Exceptions. 

The designee authorized to decide, in 

writing, that advance notice through the 

GPE (Governmentwide Point of Entry) is 

not appropriate or reasonable is set forth 

in CAM 1301.70. 

Subpart 1305.4—Release of 

Information 

1305.403 Requests from Members of 

Congress. 

Requests from Members of Congress 

shall be handled in accordance with the 

policies and procedures outlined in 

DAO 218–2. 

1305.404 Release of long-range 

acquisition estimates. 

1305.404–1 Release procedures. 

The designee authorized to release 

long-range acquisition estimates is set 

forth in CAM 1301.70. 

Subpart 1305.5—Paid Advertisements 

1305.502 Authority. 

The designee authorized to provide 

authorization for publication of paid 

advertisements in newspapers is set 

forth in CAM 1301.70. The contracting 

officer shall obtain written authorization 

from the designee. 

PART 1306—COMPETITION 

REQUIREMENTS 

Subpart 1306.2—Full and Open Competition 

after Exclusion of Sources 

Sec. 

1306.202 Establishing or maintaining 

alternative sources. 

Subpart 1306.3—Other Than Full and Open 

Competition 

1306.302 Circumstances permitting other 

than full and open competition. 

1306.302–5 Authorized or required by 

statute. 

1306.303 Justification. 

1306.303–70 Documentation and legal 

review of justifications. 

1306.304 Approval of the justification. 

Subpart 1306.5—Competition Advocates 

1306.501 Requirement. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1306.2—Full and Open 

Competition After Exclusion of 

Sources 

1306.202 Establishing or maintaining 

alternative sources. 

The authority to exclude a source 

from a contract action in order to 

establish or maintain an alternate source 

is set forth in CAM 1301.70 

Subpart 1306.3—Other Than Full and 

Open Competition 

1306.302 Circumstances permitting other 

than full and open competition. 

1306.302–5 Authorized or required by 

statute. 

In accordance with Executive Order 

13457, a sole source acquisition may not 

be justified on the basis of any earmark 

included in any non-statutory source, 

except when otherwise required by law 

or when an earmark meets the criteria 

for funding set out in Executive Order 

13457. 

1306.303 Justifications. 

1306.303–70 Documentation and legal 

review of justifications. 

The justification for providing for 

other than full and open competition in 

accordance with FAR 6.303–2 shall be 

provided on Form CD–492, Justification 

for Other than Full and Open 

Competition. If the estimated value of 

the procurement is over legal review 

thresholds, concurrence by the 

Procurement Counsel is required. 

1306.304 Approval of the justification. 

The designee authorized to approve 

justifications for other than full and 

open competition at the dollar 

thresholds in FAR 6.304 is set forth in 

CAM 1301.70. 

Subpart 1306.5—Competition 

Advocates 

1306.501 Requirement. 

The designee authorized to designate 

a Competition Advocate for the 

Department and each procuring activity 

is set forth in CAM 1301.70. 

PART 1307—ACQUISITION PLANNING 

Subpart 1307.1—Acquisition Plans 

Sec. 

1307.102 Policy. 

1307.103 Agency head responsibilities. 

1307.105 Contents of written acquisition 

plans. 

Subpart 1307.3—Contractor versus 

Government Performance 

1307.302 Policy. 

Subpart 1307.5—Inherently Governmental 

Functions 

1307.503 Policy. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1307.1—Acquisition Plans 

1307.102 Policy. 

In accordance with FAR 7.102, it is 

the Department’s policy to perform 

acquisition planning and conduct 

market research in order to promote the 

acquisition of commercial items and 

provide for full and open competition. 

1307.103 Agency-head responsibilities. 

The designee authorized as 

responsible for compliance with FAR 

7.103 is set forth in CAM 1301.70. 

1307.105 Contents of written acquisition 

plans. 

Information on the contents of 

Acquisition Plans is set forth in CAM 

1307.1 


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Subpart 1307.3—Contractor versus 

Government Performance 

1307.302 Policy. 

The Department’s competitive 

sourcing policy and procedures are set 

forth in CAM 1307.370. 

Subpart 1307.5—Inherently 

Governmental Functions 

1307.503 Policy. 

All procurement request packages 

submitted by program offices to initiate 

a procurement action for services shall 

contain a written determination by the 

designated requirements official that 

affirms that none of the functions to be 

performed in the statement of work are 

inherently governmental. This policy 

applies to all services other than 

personal services issued under statutory 

authority. If the contracting officer 

determines that there are substantial 

questions whether the work statement 

involves performance of inherently 

governmental functions, the contracting 

officer shall submit the matter for 

review by Procurement Counsel. 

Disagreements regarding the 

determination shall be resolved by the 

Head of Contracting Office (HCO) after 

consultation with counsel. 

PART 1308—REQUIRED SOURCES OF 

SUPPLIES AND SERVICES 

Subpart 1308.8—Acquisition of Printing and 

Related Supplies 

Sec. 

1308.802 Policy. 

1308.802–70 Printing. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1308.8—Acquisition of 

Printing and Related Supplies 

1308.802 Policy. 

The designee authorized as the 

Department’s central printing authority 

is set forth in CAM 1301.70. 

1308.802–70 Printing. 

Insert clause 1352.208–70, 

Restrictions on Printing and 

Duplicating, in all solicitations and 

contracts when printing documents may 

be required in the performance of the 

contract. 

PART 1309—CONTRACTOR 

QUALIFICATIONS 

Subpart 1309.2—Qualifications 

Requirements 

Sec. 

1309.202 Policy. 

1309.206 Acquisitions subject to 

qualification requirements. 

1309.206–1 General. 

Subpart 1309.4—Debarment, Suspension, 

and Ineligibility 

1309.403 Definitions. 

1309.405 Effect of listing. 

1309.405–1 Continuation of current 

contracts. 

1309.405–2 Restrictions on subcontracting. 

1309.406 Debarment. 

1309.406–1 General. 

1309.406–3 Procedures. 

1309.407 Suspension. 

1309.407–1 General. 

1309.407–3 Procedures. 

Subpart 1309.5—Organizational and 

Consultant Conflicts of Interest 

1309.503 Waiver. 

1309.503–70 Waiver. 

1309.506 Procedures. 

1309.507 Solicitation provisions and 

contract clauses. 

1309.507–1 Solicitation provisions. 

1309.507–2 Contract clauses. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1309.2—Qualifications 

Requirements 

1309.202 Policy. 

(a) The designee authorized to 

establish qualification requirements is 

set forth in CAM 1301.70. 

(b) The designee authorized to waive 

the requirements of FAR 9.202 (a)(1)(ii) 

through (4) for up to 2 years with 

respect to the item subject to the 

qualification requirement is set forth in 

CAM 1301.70. This waiver authority 

does not apply to the qualification 

requirements contained in a qualified 

product list, qualified manufacturer list, 

or qualification bidders list. 

(c) The designee authorized to 

approve proceeding with a 

procurement, rather than delay the 

award in order to provide a potential 

offeror an opportunity to demonstrate 

its ability to meet the standards 

specified in the qualifications, is set 

forth in CAM 1301.70. 

1309.206 Acquisitions subject to 

qualification requirements. 

1309.206–1 General. 

When the designee authorized in 

CAM 1301.70 determines that an 

emergency exists, or elects before or 

after award not to enforce a qualification 

requirement it had established, the 

qualification requirement may not be 

thereafter enforced unless the agency 

complies with FAR 9.202(a). 

Subpart 1309.4—Debarment, 

Suspension, and Ineligibility 

1309.403 Definitions. 

The designees authorized as the 

Debarring and Suspending Officials are 

set forth in CAM 1301.70. 

1309.405 Effect of listing. 

(a) Contracting officers shall review 

the Excluded Parties List System (EPLS) 

listing for contractors after the opening 

of bids or receipt of proposals and, 

again, immediately prior to award. 

(b) The designee authorized to 

determine that a compelling reason 

exists to do business with a debarred/ 

suspended contractor is set forth in 

CAM 1301.70. This designation does not 

apply to FAR 23.506(e). 

1309.405–1 Continuation of current 

contracts. 

(a) The designee authorized to direct 

the discontinuance of a contract or 

subcontract because of a debarment, 

suspension or proposed debarment is 

set forth in CAM 1301.70. 

(b) A written determination must be 

issued by the designee authorized in 

CAM 1301.70 before the following 

actions can be taken with a contractor 

that is debarred, suspended or proposed 

for debarment: 

(1) Place any orders exceeding the 

maximum on an indefinite delivery 

contract; 

(2) Place orders under Federal supply 

schedule contracts, blanket purchase 

orders or basic ordering agreements; or 

(3) Add new work or exercise options 

that extend the duration of a current 

contract or order. 

1309.405–2 Restrictions on 

subcontracting. 

The designee authorized to provide, 

in writing, compelling reasons for 

allowing Government consent to 

subcontracts with a contractor who is 

debarred, suspended or proposed for 

debarment is set forth in CAM 1301.70. 

1309.406 Debarment. 

1309.406–1 General. 

Debarments and proposed debarments 

shall be effective throughout the 

Executive branch of the Government 

unless the designee authorized in CAM 

1301.70 states in writing compelling 

reasons justifying DOC doing business 

with the contractor. 

1309.406–3 Procedures. 

(a) Investigation and referral. DOC 

employees shall immediately refer any 

cause that might serve as the basis for 

debarment through the contracting 

officer to the debarring official. 

(b) Decision-making process. (1) 

Procedures shall afford the contractor, 

and any named affiliates, an 

opportunity to submit information and 

argument in opposition to the proposed 

debarment. This may be done in person, 

in writing or through a representative. 

(2) In actions not based upon a 

conviction or civil judgment, where the 


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contractor’s submission raises a genuine 

dispute over facts material to the 

proposed debarment, the following 

procedures will be followed: 

(i) Provide the contractor an 

opportunity to appear with counsel, 

submit documentary evidence, present 

witnesses and confront any person the 

agency presents; 

(ii) A transcribed record of the 

proceeding will be made, unless the 

agency and contractor mutually agree to 

waive the requirement for a transcript. 

This transcribed record is available to 

the contractor at cost. 

(c) Notice of proposal to debar. A 

notice of proposed debarment shall be 

issued by the debarring official in 

accordance with FAR 9.406–3(c)(1) 

through (7). 

(d) Debarring official’s decision. (1) 

For actions based upon a conviction or 

civil judgment, or when there is no 

authentic dispute over material facts, 

the debarring official’s decision shall be 

based on all of the information in the 

administrative record plus any 

contractor-submitted data. If there is no 

suspension in effect, the decision shall 

be rendered within 30 working days 

after receipt of any information and 

argument submitted by the contractor. 

The debarring official can extend this 

timeframe for good cause. 

(2)(i) When necessary, written 

findings of fact shall be prepared as to 

disputed material facts. The debarring 

official will utilize the information in 

the written findings of fact, the data 

submitted by the contractor plus any 

other information in the administrative 

record to develop the decision. 

(ii) While the debarring official may 

refer matters involving disputed 

material facts to another official for 

findings of fact, the debarring official 

can disregard any such findings in 

whole or in part upon a determination 

that they are clearly erroneous. 

(iii) After the conclusion of 

proceedings with respect to disputed 

facts, the debarring official will make a 

decision. 

(3) When the proposed debarment is 

not based upon a conviction or civil 

judgment, the reason for debarment 

must be based on a preponderance of 

the evidence. 

(e) Notice of debarring official’s 

decision. FAR 9.406–3(e)(1) establishes 

the notification procedures when a 

debarment has been imposed, while 

FAR 9.406–3(e)(2) establishes the 

procedure when a debarment is not 

imposed. 

(f) Procurement counsel shall assist 

and advise the debarring official at each 

stage of the decision-making process. 

1309.407 Suspension. 

1309.407–1 General. 

Suspensions shall be effective 

throughout the executive branch of the 

Government, unless the designee set 

forth in CAM 1301.70 states in writing 

compelling reasons for continuing to do 

business with a suspended contractor. 

1309.407–3 Procedures. 

(a) Investigation and referral. DOC 

employees shall immediately refer any 

cause that might serve as the basis for 

suspension through the contracting 

officer to the suspending official. 

(b) Decision-making process. (1) 

Procedures shall afford the contractor, 

and any named affiliates, an 

opportunity to submit information and 

argument in opposition to the proposed 

suspension. This may be done in 

person, in writing or through a 

representative. 

(2) In actions not based upon an 

indictment, where the contractor’s 

submission raises a genuine dispute 

over facts material to the proposed 

suspension and if no determination has 

been made, on the basis of Department 

of Justice advice, that substantial 

interests of the Government in pending 

or contemplated legal proceedings based 

on the same facts as the suspension 

would be prejudiced, the following 

procedures will be followed: 

(i) Provide the contractor an 

opportunity to appear with counsel, 

submit documentary evidence, present 

witnesses and confront any person the 

agency presents; 

(ii) A transcribed record of the 

proceeding will be made, unless the 

agency and contractor mutually agree to 

waive the requirement for a transcript. 

This transcribed record is available to 

the contractor at cost. 

(c) Notice of suspension. A notice of 

suspension shall be issued by the 

suspending official in accordance with 

FAR 9.407–3(c)(1) through (6). 

(d) Suspending official’s decision. (1) 

For actions based upon an indictment, 

when there is no authentic dispute over 

material facts, in which additional 

proceedings to determine disputed 

material facts have been denied on the 

basis of Department of Justice advice, 

the suspending official’s decision shall 

be based on all of the information in the 

administrative record plus any 

contractor-submitted data. 

(2)(i) When necessary, written 

findings of fact shall be prepared as to 

the disputed material facts. The 

suspending official will utilize the 

information in the written findings of 

fact, the data submitted by the 

contractor plus any other information in 

the administrative record to develop the 

decision. 

(ii) While the suspending official may 

refer matters involving disputed 

material facts to another official for 

findings of fact, the suspending official 

can disregard any such findings in 

whole or in part upon a determination 

that they are clearly erroneous. 

(iii) After the conclusion of 

proceedings with respect to disputed 

facts, the suspending official will make 

a decision. 

(3) The suspension may be modified 

or terminated by the suspending official. 

However such a decision shall be 

without prejudice to the subsequent 

imposition of: 

(i) Suspension by any other agency; or 

(ii) Debarment by any agency. 

(4) The suspending official’s decision 

shall be sent to the contractor and any 

affiliates involved, in writing, by 

certified mail, return receipt requested. 

(e) Procurement counsel shall assist 

and advise the suspending official at 

each stage of the decision-making 

process. 

Subpart 1309.5—Organizational and 

Consultant Conflicts of Interest 

1309.503 Waiver. 

1309.503–70 Waiver. 

(a) The need for a waiver of an 

organizational conflict of interest (OCI) 

may be identified by the contracting 

officer or by a written request submitted 

by an offeror or contractor. The 

contracting officer shall review all of the 

relevant facts and shall refer the matter 

to the Senior Bureau Procurement 

Official, who shall make a written 

recommendation to the Head of 

Contracting Activity whether a waiver 

should be granted to allow for a contract 

award or for continuation of an existing 

contract. 

(b) Criteria for Waiver of OCIs. 

Issuance of a waiver shall be limited to 

those situations in which: 

(1) The work to be performed under 

contract is vital to the agency; 

(2) There is no party other than the 

conflicted party that can perform the 

contract at issue; and 

(3) Contractual and/or technical 

review and supervision methods cannot 

be employed to mitigate the conflict. 

1309.506 Procedures. 

The contracting officer shall resolve 

an actual or potential OCI in a manner 

consistent with the approval or 

direction of the designee authorized in 

CAM 1301.70. If the responsible 

contracting officer is also the authorized 

designee in CAM 1301.70, the 

contracting officer must obtain approval 


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from the Senior Bureau Procurement 

Official. 

1309.507 Solicitation provisions and 

contract clauses. 

1309.507–1 Solicitation provisions. 

(a) Insert provision 1352.209–70, 

Potential Organizational Conflict of 

Interest, substantially as written, in 

solicitations when the contracting 

officer determines there is a potential 

organizational conflict of interest. 

(b) Insert the clause with its Alternate 

I when the contracting officer 

determines the basic clause should not 

be modified. 

1309.507–2 Contract clauses. 

(a) In accordance with FAR 9.507–2, 

insert clause 1352.209–71, Limitation of 

Future Contracting, substantially as 

written, when the contractor’s eligibility 

for future prime contract or subcontract 

awards shall be restricted because of 

services being provided as stated in FAR 

9.505–1 through 9.505–4. 

(1) Insert the basic clause when the 

contractor will be providing systems 

engineering and/or technical direction. 

(See FAR 9.505–1) 

(2) Insert the clause with its Alternate 

I when the contractor will be preparing 

specifications or work statements. (See 

FAR 9.505–2) 

(3) Insert the clause with its Alternate 

II when the contractor will be providing 

technical evaluation or advisory and 

assistance services. (See FAR 9.505–3) 

(4) Insert the clause with its Alternate 

III when the contractor will be obtaining 

access to proprietary information. (See 

FAR 9.505–4) 

(5) Insert the clause with its Alternate 

IV when the contract is a task order 

contract. The contracting officer may 

modify Alternate IV to include a list of 

systems for which task orders may be 

issued and indicate which 

organizational conflict of interest 

provision in paragraph (a)(2) of this 

clause shall apply. 

(6) Insert the clause with its Alternate 

V when the contract provides for 

delivery orders. The contracting officer 

shall indicate in each delivery order 

which organizational conflict of interest 

provision in paragraph (a)(2) of this 

clause shall apply. 

(7) Insert the language in Alternate VI 

when it is necessary to have the 

restrictions of this clause included in all 

or some subcontracts, teaming 

arrangements, and other agreements 

calling for performance of work related 

to the contract. 

(b) Insert clause 1352.209–72, 

Restrictions against Disclosure, in 

service contracts, including architectengineer contracts, and supply and 

construction contracts requiring a 

restriction on the release of information 

developed or obtained in connection 

with performance of the contract. 

(c) Insert the clause 1352.209–73, 

Compliance with the Laws, in all 

solicitations and contracts. 

(d) Insert the clause 1352.209–74, 

Organizational Conflict of Interest, in all 

solicitations and contracts. 

(e) Insert clause 1352.209–75, Title 13 

and Non-Disclosure Requirements, in all 

solicitations and contracts for services 

where the contractor will have access to 

Title 13 data. 

PART 1311—DESCRIBING AGENCY 

NEEDS 

Subpart 1311.1—Selecting and Developing 

Requirements Documents 

Sec. 

1311.103 Market acceptance. 

Subpart 1311.5—Liquidated Damages 

1311.501 Policy. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1311.1—Selecting and 

Developing Requirements Documents 

1311.103 Market acceptance. 

The designee authorized as the head 

of the agency is set forth in CAM 

1301.70. 

Subpart 1311.5—Liquidated Damages 

1311.501 Policy. 

The designee authorized as the head 

of the agency is set forth in CAM 

1301.70. 

PART 1312—ACQUISITION OF 

COMMERCIAL ITEMS 

Subpart 1312.3—Solicitation Provisions and 

Contract Clauses for the Acquisition of 

Commercial Items 

Sec. 

1312.302 Tailoring of provisions and 

clauses for the acquisition of commercial 

items. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1312.3—Solicitation 

Provisions and Contract Clauses for 

the Acquisition of Commercial Items 

1312.302 Tailoring of provisions and 

clauses for the acquisition of commercial 

items. 

The authority for approving a request 

for waiver to tailor a clause, or 

otherwise include any additional terms 

or conditions in a solicitation or 

contract in a manner that is inconsistent 

with customary commercial practice, is 

set forth in CAM 1301.70. 

SUBCHAPTER C—CONTRACTING 

METHODS AND CONTRACT TYPES 

PART 1313—SIMPLIFIED ACQUISITION 

PROCEDURES 

Subpart 1313.1—Procedures 

Sec. 

1313.106 Soliciting competition, evaluation 

of quotations or offers, award and 

documentation. 

1313.106–2–70 Evaluation of solicitations. 

Subpart 1313.2—Actions At or Below the 

Micro Purchase Threshold 

1313.201 General. 

Subpart 1313.3—Simplified Acquisitions 

Methods 

1313.301 Governmentwide commercial 

purchase card. 

1313.302 Purchase orders. 

1313.302–1–70 Non-commercial purchase 

orders. 

1313.302–3 Obtaining contractor 

acceptance and modifying purchase 

orders. 

1313.303 Blanket purchase agreements 

(BPAs). 

1313.303–5 Purchases under BPAs. 

1313.305 Imprest funds and third party 

drafts. 

1313.305–1 General. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1313.1—Procedures 

1313.106 Soliciting competition, 

evaluation of quotations or offers, award 

and documentation. 

1313.106–2–70 Evaluation of solicitations. 

All solicitations using simplified 

acquisition procedures in FAR Part 13 

must include provision 1352.213–70, 

Evaluation Utilizing Simplified 

Acquisition Procedures, or similar 

language setting out evaluation criteria. 

Subpart 1313.2—Actions At or Below 

the Micro Purchase Threshold 

1313.201 General. 

DOC employees, other than warranted 

contracting officers, must be delegated 

micro-purchase authority by the 

designee set forth in CAM 1301.70 

according to FAR 1.603–3(b), and must 

be trained pursuant to CAM 1313.301. 

Subpart 1313.3—Simplified 

Acquisitions Methods 

1313.301 Governmentwide commercial 

purchase card. 

The Department’s procedures for the 

use and control of the Governmentwide 

commercial purchase card are set forth 

in CAM 1313.301. 


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1313.302 Purchase orders. 

1313.302–1–70 Non-commercial purchase 

orders. 

Insert provision 1352.213–71, 

Instructions for Submitting Quotations 

under the Simplified Acquisition 

Threshold—Non-Commercial, or similar 

language in all solicitations for noncommercial purchase orders under the 

simplified acquisition threshold. The 

contracting officer shall indicate 

whether electronic submissions of 

quotations will be accepted. Paragraph 

(b)(4) of provision 1352.213–71 may be 

tailored based on the evaluation factors. 

1313.302–3 Obtaining contractor 

acceptance and modifying purchase orders. 

A contractor’s written acceptance of a 

purchase order modification is required, 

unless the contracting officer 

determines otherwise. 

1313.303 Blanket Purchase Agreements 

(BPAs). 

1313.303–5 Purchases under BPAs. 

(a) Individual purchases shall not 

exceed the simplified acquisition 

threshold, subject to the following: 

(1) The limitations for individual 

purchases against BPAs established 

against Federal Supply Schedule 

contracts shall be those set forth in the 

terms and conditions of the schedule 

contract. 

(2) The limitations for individual 

purchases for commercial item 

acquisitions against BPAs established 

under FAR Subpart 13.5 ‘‘Test Program 

for Certain Commercial Items’’ is the 

simplified acquisition threshold set 

forth in FAR Subpart 13.5. 

1313.305 Imprest funds and third party 

drafts. 

1313.305–1 General. 

(a) Third-party drafts. Third-party 

drafts are not authorized for use by 

Department of Commerce agencies. 

(b) Imprest Funds. The Imprest Fund 

Policy Directive, issued November 9, 

1999, by the Department of Treasury, 

required that all Federal agencies 

eliminate agency use of imprest funds 

by October 1, 2001, except where 

provided under the Imprest Fund Policy 

Directive. Requests for exceptions to the 

requirements of the Imprest Fund Policy 

Directive should be addressed to DOC’s 

Director of Financial Management. In 

the case of an approved exception, 

DOC’s procedures for using imprest 

funds can be found in the Cash 

Management Policies and Procedures 

Handbook, available at the Department 

of Commerce, Office of Financial 

Management Web site. A copy of all 

approved exceptions shall be submitted 

to the Senior Bureau Procurement 

Official. 

PART 1314—SEALED BIDDING 

Subpart 1314.2—Solicitation of Bids 

Sec. 

1314.201 Preparation of invitation for bids. 

1314.201–7 Contract clauses. 

Subpart 1314.4—Opening of Bids and 

Awards of Contracts 

1314.404 Rejection of bids. 

1314.404–1 Cancellation of invitations after 

opening. 

1314.407 Mistakes in bids. 

1314.407–3 Other mistakes disclosed before 

award. 

1314.409 Information to bidders. 

1314.409–1 Award of unclassified 

contracts. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1314.2—Solicitation of Bids 

1314.201 Preparation of invitation for bids. 

1314.201–7 Contract clauses. 

The designee authorized to waive the 

requirement for inclusion of FAR clause 

52.214–27 ‘‘Price Reduction for 

Defective Cost and Pricing Data— 

Modifications—Sealed Bidding’’ in a 

contract with a foreign government or 

agency of that government is set forth in 

CAM 1301.70. 

Subpart 1314.4—Opening of Bids and 

Awards of Contracts 

1314.404 Rejection of bids. 

1314.404–1 Cancellation of invitations 

after opening. 

The designee authorized to make the 

determinations prescribed in FAR 

14.401–1(c) and (f) are set forth in CAM 

1301.70. 

1314.407 Mistakes in bids. 

1314.407–3 Other mistakes disclosed 

before award. 

The designee authorized to make the 

determinations prescribed in FAR 

14.407–3(a), (b), (c) and (d) is set forth 

in CAM 1301.70. Concurrence of 

Procurement Counsel shall be obtained 

before issuance of any determination 

under this section. 

1314.409 Information to bidders. 

1314.409–1 Award of unclassified 

contracts. 

Requests for records shall be governed 

by the procedures outlined in DAO 205– 

14 and 15 CFR Part 4. 

PART 1315—CONTRACTING BY 

NEGOTIATION 

Subpart 1315.2—Solicitation and Receipt of 

Proposals and Information 

Sec. 

1315.204 Contract format. 

1315.204–570 Part IV representations and 

instructions. 

1315.209 Solicitation provisions and 

contract clauses. 

Subpart 1315.3—Source Selection 

1315.303 Responsibilities. 

1315.305 Proposal evaluation. 

Subpart 1315.4—Contract Pricing 

1315.407 Special cost or pricing areas. 

1315.407–4 Should-cost review. 

Subpart 1315.6—Unsolicited Proposals 

1315.602 Policy. 

1315.603 General. 

1315.604 Agency points of contact. 

1315.606 Agency procedures. 

1615.606–2 Evaluation. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1315.2—Solicitation and 

Receipt of Proposals and Information 

1315.204 Contract format. 

The designee authorized to grant 

exemptions from the uniform contract 

format is set forth in CAM 1301.70. 

1315.204–570 Part IV representations and 

instructions. 

(a) Section L, Instructions, conditions, 

and notices to offerors or respondents. 

(1) The contracting officer shall insert 

the provision 1352.215–70, Proposal 

Preparation, in all solicitations. 

Contracting officers should tailor the 

provision to best meet the Government’s 

needs. Information requested from 

offerors in Volume II–Technical 

Proposal, must correspond to the 

evaluation factors. Contracting officers 

should not request information that will 

not be evaluated in accord with the 

stated technical evaluation factors. 

Should electronic submission be 

allowed by the CO, specific instructions 

must be added. 

(2) Insert a provision similar to 

1352.215–71, Instructions for Oral 

Presentations, in solicitations when oral 

presentations will be used. Contracting 

officers shall tailor the provision to suit 

their acquisition. 

(3) The contracting officer shall insert 

the provision 1352.215–72, Inquiries, in 

solicitations as determined by the CO. 

This provision may be modified to 

satisfy the needs of specific 

procurements. 

(b) Section M, Evaluation factors for 

award. (1) The contracting officer shall 

insert provision 1352.215–73, 

Evaluation Quantities-Indefinite 


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Quantity Contract, in solicitations for 

indefinite quantity and requirements 

contracts, as appropriate. This provision 

may be modified to satisfy the needs of 

specific procurements. 

(2) The contracting officer shall insert 

the provision similar to 1352.215–74, 

Best Value Evaluation, for competitive, 

best value procurements, tailoring the 

language as appropriate. If clause 

1352.215–74, Best Value Evaluation, is 

used, then clause 1352.215–75 

Evaluation Criteria, must be used. 

(3) The contracting officer shall insert 

a provision in all solicitations similar to 

1352.215–75, Evaluation Criteria, to 

specify evaluation criteria, tailoring the 

language as appropriate. If the basis for 

award is lowest price technically 

acceptable, this must be stated. 

(4) The contracting officer shall insert 

provision 1352.215–76, Cost or Pricing 

Data, in all solicitations when cost or 

pricing data is required under FAR 

subpart 15.4. 

1315.209 Solicitation provisions and 

contract clauses. 

The designee authorized to waive the 

examination of records by the 

Comptroller General is set forth in CAM 

1301.70. 

Subpart 1315.3—Source Selection 

1315.303 Responsibilities. 

The contracting officer is designated 

as the source selection authority for 

competitive negotiated acquisitions of 

less than $10,000,000. The source 

selection authority for large dollar 

competitive negotiated acquisitions of 

$10,000,000 or more is the head of the 

operating unit. The head of the 

operating unit may re-delegate the 

authority to a Department manager who 

is at an organizational level above the 

contracting officer and who has 

sufficient rank and professional 

experience to effectively carry out the 

functions of a source selection 

authority. 

1315.305 Proposal evaluation. 

At the discretion of the contracting 

officer, cost information may be 

provided to members of the technical 

evaluation team. 

Subpart 1315.4—Contract Pricing 

1315.407 Special cost or pricing areas. 

1315.407–4 Should-cost review. 

The should-cost review report shall 

include all elements listed in FAR 

15.407–4(a)(1) and be provided to the 

contracting officer for use in 

negotiations. 

Subpart 1315.6—Unsolicited Proposals 

1315.602 Policy. 

In accord with FAR 16.602, the DOC 

encourages the submission of new and 

innovative ideas which support the 

DOC mission. 

1315.603 General. 

DOC will accept for review and 

consideration unsolicited proposals 

from any entity. DOC will not pay any 

costs associated with the preparation of 

unsolicited proposals. Proposals which 

do not meet the definition and 

applicable content and marking 

requirements of FAR 15.6 will not be 

considered under any circumstances 

and will be returned to the submitter. 

Unsolicited proposals may not be 

submitted electronically. 

1315.604 Agency points of contact. 

(a) Unsolicited proposals are to be 

submitted to the appropriate DOC 

contracting office. Any person or entity 

considering the submission of an 

unsolicited proposal should first 

determine, based on the subject matter 

of the proposal, to which DOC operating 

unit the proposal applies. Proposers 

should contact the applicable operating 

unit contracting office to determine 

procedures for submission and to whom 

to send the proposal. 

(b) Program offices must immediately 

transmit any unsolicited proposals sent 

to them to their contracting office. If 

there is a question concerning which 

operating unit should evaluate an 

unsolicited proposal, the contracting 

office shall identify the proper office, in 

coordination with the Office of 

Acquisition Management, if necessary, 

and transmit the proposal to the 

applicable contracting office. 

1315.606 Agency procedures. 

(a) The operating unit contracting 

office is designated as the point of 

contact for receipt of unsolicited 

proposals. Persons within DOC (e.g. 

technical personnel) who receive 

unsolicited proposals shall forward all 

documents to their cognizant 

contracting office. 

(b) Within ten working days after 

receipt by the contracting office of an 

unsolicited proposal, the contracting 

office shall review the proposal and 

determine whether the proposal meets 

the content and marking requirements 

of FAR 15.6. If the proposal does not 

meet these requirements, it shall be 

returned to the submitter, giving the 

reasons for noncompliance. 

1315.606–2 Evaluation. 

(a) If the contracting officer 

determines, upon initial review, that the 

unsolicited proposal meets all criteria in 

FAR 15.606–1, the contracting officer 

will acknowledge receipt of the 

proposal, coordinate evaluation with the 

program office, and provide to the 

submitter an estimated date that 

evaluation of the proposal is expected to 

be completed. The contracting officer 

shall transmit the proposal to the 

program office for evaluation, marking it 

in accord with FAR 15.609(d). If the 

estimated date for completion of the 

evaluation cannot be met, the submitter 

should be informed in a timely manner 

and provided with a revised evaluation 

completion date. 

(b) The evaluating office shall not 

reproduce or disseminate the proposal 

to other offices without the consent of 

the contracting officer. If the evaluating 

office requires additional information 

from the proposer, the evaluator shall 

request the information through the 

contracting officer, who will contact the 

proposer. The evaluator shall not 

communicate directly with the 

proposer. 

(c) Evaluators shall notify the 

contracting officer of their 

recommendations when the evaluation 

is complete. Following evaluation, the 

contracting officer shall proceed in 

accord with FAR 15.607. 

PART 1316—TYPES OF CONTRACTS 

Subpart 1316.1—Selecting Contract Types 

Sec. 

1316.103 Negotiating contract type. 

1316.103–70 Identifying contract type. 

Subpart 1316.2—Fixed-Price Contracts 

1316.203 Fixed-price contracts with 

economic price adjustment. 

1316.203–4 Contract clauses. 

1316.206 Fixed-ceiling-price contracts with 

retroactive price redetermination. 

1316.206–3 Limitations. 

Subpart 1316.3—Cost-Reimbursement 

Contracts 

1316.307 Contract clauses. 

Subpart 1316.4—Incentive Contracts 

1316.405 Cost-reimbursement incentive 

contracts. 

1316.405–2 Cost-plus-award-fee contracts. 

1316.406 Contract clauses. 

Subpart 1316.5—Indefinite-Delivery 

Contracts 

1316.501–2–70 Task orders. 

1316.505 Ordering. 

1316.506 Solicitation provisions and 

contract clauses. 

Subpart 1316.6—Time-and-Materials, LaborHour, and Letter Contracts 

1316.601 Time-and-materials contracts. 

1316.601–70 Contract clauses. 

1316.602 Labor-hour contracts. 

1316.602–70 Contract clauses. 

1316.603 Letter contracts. 


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1316.603–2 Application. 

1316.603–3 Limitations. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1316.1—Selecting Contract 

Types 

1316.103 Negotiating contract type. 

1316.103–70 Identifying contract type. 

The type of contract shall be stated in 

each contract awarded. 

Subpart 1316.2—Fixed-Price Contracts 

1316.203 Fixed-price contracts with 

economic price adjustment. 

1316.203–4 Contract clauses. 

Contracting officers shall use an 

economic price adjustment clause based 

on cost indexes of labor or material after 

obtaining approval for use of the clause 

from the head of the contracting office. 

1316.206 Fixed-ceiling-price contract with 

retroactive price redetermination. 

1316.206–3 Limitations. 

The designee authorized to approve 

use of fixed-ceiling-price contracts with 

retroactive price redetermination is set 

forth in CAM 1301.70. 

Subpart 1316.3—Cost-Reimbursement 

Contracts 

1316.307 Contract clauses. 

(a) Insert a clause that is substantially 

the same as 1352.216–70, Estimated and 

Allowable Costs, in all costreimbursement contracts. 

(b) Insert a clause similar to 

1352.216–71, Level of Effort (Cost-PlusFixed-Fee, Term Contract), in Cost-PlusFixed-Fee, Level of Effort contracts. 

Subpart 1316.4—Incentive Contracts 

1316.405 Cost-reimbursement incentive 

contracts. 

1316.405–2 Cost-plus-award-fee contracts. 

Insert clause 1352.216–72, 

Determination of Award Fee, in all costplus-award-fee contracts. 

1316.406 Contract clauses. 

Insert a clause substantially the same 

as 1352.216–73, Distribution of Award 

Fee, in all cost-plus-award-fee 

solicitations and contracts, as 

determined by the contracting officer. 

Subpart 1316.5—Indefinite-Delivery 

Contracts 

1316.501–2–70 Task orders. 

Insert clause 1352.216–74, Task 

Orders, or a substantially similar clause 

in task order solicitations and contracts, 

making changes, as appropriate. 

Contracting officers are encouraged to 

make appropriate modifications to the 

time requirements and procedures to 

meet the Government’s needs. 

1316.505 Ordering. 

The department’s Task and Delivery 

Order Ombudsman is designated in 

CAM 1301.70. 

1316.506 Solicitation provisions and 

contract clauses. 

(a) Insert clause 1352.216–75, 

Minimum and Maximum Contract 

Amounts, in all indefinite quantity 

contracts, including requirements 

contracts, if feasible. 

(b) Insert a clause similar to 

1352.216–76, Placement of Orders, in 

indefinite-delivery solicitations and 

contracts. 

Subpart 1316.6—Time-and-Materials, 

Labor-Hour, and Letter Contracts 

1316.601 Time-and-materials contracts. 

The designee authorized to approve a 

time-and-materials contract prior to the 

execution of the base period when the 

base period plus any option periods 

exceeds three years is set forth in CAM 

1301.70. 

1316.601–70 Contract clauses. 

Insert clause 1352.216–77, Ceiling 

Price, in all time-and-materials 

contracts. 

1316.602 Labor-hour contracts. 

1316.602–70 Contract clauses. 

Insert clause 1352.216–77, Ceiling 

Price, in all labor-hour contracts, 

including, if feasible, requirements 

contracts. 

1316.603 Letter contracts. 

1316.603–2 Application. 

(a) With the written approval from the 

authorized designee in CAM 1301.70, in 

extreme cases, the contracting officer 

may authorize an additional period for 

contract definitization. 

(b) If, after exhausting all reasonable 

efforts, the contracting officer and the 

contractor cannot negotiate a definitive 

contract because of failure to reach 

agreement as to price or fee, the 

contracting officer may determine a 

reasonable price or fee with approval 

from the authority designated in CAM 

1301.70. 

1316.603–3 Limitations. 

The designee authorized to determine 

that a letter contract is suitable so that 

work can begin immediately is set forth 

in CAM 1301.70. 

PART 1317—SPECIAL CONTRACTING 

METHODS 

Subpart 1317.1—Multi-Year Contracting 

Sec. 

1317.104 General. 

1317.105 Policy. 

1317.105–1 Uses. 

1317.108 Congressional notification. 

Subpart 1317.2—Options 

1317.203 Solicitations. 

Subpart 1317.5—Interagency Acquisitions 

Under the Economy Act 

1317.502 General. 

1317.502–70 Policy. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1317.1—Multi-Year 

Contracting 

1317.104 General. 

The designee authorized to modify 

requirements of FAR Subpart 17.1 and 

FAR 52.217–2 is set forth in CAM 

1301.70. 

1317.105 Policy. 

1317.105–1 Uses. 

The designee authorized to make the 

determination to enter into a multi-year 

contract is set forth in CAM 1301.70. 

1317.108 Congressional notification. 

Written notification to Congress shall 

be handled in accordance with the 

policies and procedures outlined in 

DAO 218–2. 

Subpart 1317.2—Options 

1317.203 Solicitations. 

The designee authorized to limit 

option quantities for additional supplies 

greater than 50 percent of the initial 

quantity of the same contract line item 

is set forth in CAM 1301.70. 

Subpart 1317.5—Interagency 

Acquisitions Under the Economy Act 

1317.502 General. 

1317.502–70 Policy. 

All Interagency Acquisitions shall 

adhere to the policy set forth in CAM 

1317.570. 

PART 1318—EMERGENCY 

ACQUISITIONS 

Subpart 1318.2—Emergency Acquisition 

Flexibilities 

Sec. 

1318.201 Contingency operation. 

1318.202 Defense or recovery from certain 

attacks. 

1318.270 Emergency acquisition 

flexibilities. 


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Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1318.2—Emergency 

Acquisition Flexibilities 

1318.201 Contingency operation. 

The designee authorized to serve as 

the Head of the Agency under FAR 

18.201(b) and (c) is set forth in CAM 

1301.70. 

1318.202 Defense or recovery from certain 

attacks. 

The designee authorized to serve as 

the Head of the Agency under FAR 

18.202(a), (b) and (c) is set forth in CAM 

1301.70. 

1318.270 Emergency acquisition 

flexibilities. 

(a) Authorizing emergency acquisition 

flexibilities. The process for authorizing 

the use of emergency procurement 

flexibilities within the Department of 

Commerce may vary depending on the 

nature and type of the emergency 

situation. However, generally, if a 

Senior Bureau Procurement Official 

(BPO) determines that emergency 

acquisition flexibilities are required to 

meet contracting needs during an 

emergency situation, the BPO must 

obtain the Senior Procurement 

Executive’s concurrence. In the event 

that increased warrant authority is 

needed, the BPO should contact the 

Senior Procurement Executive. 

(b) Continuity of Operations Plan. 

Each Contracting Activity shall have an 

updated Continuity of Operations Plan, 

in place designating emergency 

personnel with warrant levels. 

(c) Management controls. Senior 

BPOs must take affirmative steps to 

ensure that emergency flexibilities are 

used solely for requirements that have a 

clear and direct relationship to the 

emergency situation, and that 

appropriate management controls are 

established and maintained to support 

the use of the increased thresholds. The 

Office of Acquisition Management will 

conduct periodic reviews of transactions 

made pursuant to the expanded 

authorities to evaluate whether the 

transactions: 

(1) Were in support of the emergency 

situation; 

(2) Were made by an authorized 

individual; 

(3) Were appropriately documented; 

and 

(4) Provided the maximum practicable 

opportunity for small business 

participation. 

SUBCHAPTER D—SOCIOECONOMIC 

PROGRAMS 

PART 1319—SMALL BUSINESS 

PROGRAMS 

Subpart 1319.2—Policies 

Sec. 

1319.201 General policy. 

1319.202 Specific policies. 

1319.202–70 Small business set-aside 

review form. 

Subpart 1319.5—Set-Asides for Small 

Business 

1319.502 Setting aside acquisitions. 

1319.502–3 Partial set-asides. 

1319.505 Rejecting Small Business 

Administration recommendations. 

Subpart 1319.6—Certificates of 

Competency and Determination of 

Responsibility 

1319.602 Procedures. 

1319.602–1 Referral. 

Subpart 1319.7—The Small Business 

Subcontracting Program 

1319.705 Responsibilities of the contracting 

officer under the subcontracting 

assistance program. 

1319.705–4 Reviewing the subcontracting 

plan. 

Subpart 1319.8—Contracting With the Small 

Business Administration (the 8(a) Program) 

1319.800 General. 

1319.811 Preparing the contracts. 

1319.811–3 Contract clauses. 

1319.812 Contract administration. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1319.2—Policies. 

1319.201 General policy. 

(a) The DOC Office of Small and 

Disadvantaged Business Utilization 

(OSDBU) is headed by a Director who 

shall report and be responsible to the 

Deputy Secretary on matters of policy 

and legislative requirements. 

(b) Each Contracting Office shall 

appoint Small Business Specialists to 

assist the HCA in effectively 

implementing the small business 

programs, including achieving program 

goals. 

1319.202 Specific policies. 

Procurement actions valued above 

$100,000 will be reviewed by the 

Director, OSDBU, or designee for the 

purpose of making recommendations for 

solicitation/award under FAR Part 19. 

1319.202–70 Small business set-aside 

review form. 

Form CD 570, Small Business SetAside Review, shall be submitted for 

approval to the Operating Unit Counsel 

Small Business Specialist, and 

forwarded to the OSDBU for approval. 

If applicable, the Form CD 570 will be 

submitted to the SBA Procurement 

Center Representative (PCR) for review. 

The Form CD 570 is required for: 

(a) Procurement actions valued above 

$100,000; 

(b) Modifications to existing contracts 

that add new work valued over 

$550,000 or that increase the total 

contract cost to over $550,000; 

(c) Consolidation of two or more 

procurement requirements for goods 

and services. 

Subpart 1319.5—Set-Asides for Small 

Business 

1319.502 Setting aside acquisitions. 

1319.502–3 Partial set-asides. 

A partial set-aside shall not be made 

if there is a reasonable expectation that 

only two capable concerns (one large 

and one small) will respond with offers 

unless the set-aside is authorized by the 

designee set forth in CAM 1301.70. 

1319.505 Rejecting Small Business 

Administration recommendations. 

(a) The designee authorized to render 

a decision on the Small Business 

Administration’s appeal of the 

contracting officer’s decision is set forth 

in CAM 1301.70. 

(b) In response to SBA’s appeal to the 

agency head, the designee authorized in 

CAM 1301.70 shall forward justification 

for their decision to the agency head. 

(c) The designee authorized in CAM 

1301.70 shall reply to the SBA within 

30 working days after receiving the 

appeal. The decision of the designee 

shall be final. 

Subpart 1319.6—Certificates of 

Competency and Determination of 

Responsibility 

1319.602 Procedures. 

1319.602–1 Referral. 

When the contracting officer 

determines that the successful small 

business offeror lacks certain elements 

of responsibility, the contracting officer 

will withhold award and refer the 

matter to the cognizant Small Business 

Administration Government Contracting 

Area Office. A copy of the referral shall 

be provided to the Director of the 

OSDBU. 

Subpart 1319.7—The Small Business 

Subcontracting Program 

1319.705 Responsibilities of the 

contracting officer under the 

subcontracting assistance program. 

1319.705–4 Reviewing the subcontracting 

plan. 

The prime contractor’s proposed 

subcontracting plan shall be reviewed 


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by the contracting officer for adequacy, 

ensuring that the required information, 

goals, and assurances are included. The 

contracting officer may obtain advice 

and recommendations from the SBA 

procurement center representative, the 

contracting activity’s small business 

specialist and the DOC OSDBU. The CO 

shall give the reviewers sufficient time 

and information to review the plan and 

ask questions. 

Subpart 1319.8—Contracting With the 

Small Business Administration (the 

8(a) Program) 

1319.800 General. 

(a) By Partnership Agreement between 

the Small Business Administration 

(SBA) and the Department of 

Commerce, the SBA delegated authority 

to the Senior Procurement Executive to 

enter into 8(a) prime contracts and 

purchase orders. To implement this 

authority, the Senior Procurement 

Executive has authorized a class FAR 

deviation to applicable portions of FAR 

Subpart 19.8 and FAR Part 52. Under 

the class deviation, the authority to 

enter into 8(a) prime contracts and 

purchase orders is re-delegated to 

contracting officers. 

(b) When awarding 8(a) contracts and 

purchase orders, contracting officers 

shall operate in accordance with the 

terms of the Partnership Agreement and 

take full advantage of the streamlined 

procedures in the agreement. 

Contracting officers shall review the 

responsibilities and procedures for 8(a) 

awards as outlined in the Partnership 

Agreement and work closely with their 

respective Small Business Specialists 

and the OSDBU. 

(c) The Partnership Agreement 

contains the procedures for submitting 

an offer letter to the appropriate SBA 

office. Contracting officers shall provide 

a copy of all offering letters to the 

OSDBU when they are transmitted to 

SBA. 

1319.811 Preparing the contracts. 

1319.811–3 Contract clauses. 

(a) The contracting officer shall insert 

the clause 1352.219–70, Section 8(a) 

Direct Award (Deviation), in direct 

contracts and purchase orders processed 

under the Partnership Agreement. The 

clauses at FAR 52.219–11, Special 8(a) 

Contract Conditions, 52.219–12, Special 

8(a) Subcontract Conditions, and 

52.219–17, Section 8(a) Award, shall not 

be used. 

(b) The contracting officer shall insert 

the clause 1352.219–71, Notification to 

Delay Performance (Deviation), in 

solicitations and purchase orders issued 

under the Partnership Agreement. 

(c) The contracting officer shall insert 

the clause 1352.219–72, Notification of 

Competition Limited to Eligible 8(a) 

Concerns, Alternate III (Deviation), 

when the acquisition is processed under 

the Partnership Agreement. 

1319.812 Contract administration. 

Awards under the Partnership 

Agreement are subject to 15 U.S.C. 

637(a)(21). These contracts shall contain 

the clause 1352.219–70, Section 8(a) 

Direct Award (Deviation), which 

requires the contractor to notify the SBA 

and the contracting officer when 

ownership of the firm is being 

transferred. 

PART 1322—APPLICATION OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS 

Subpart 1322.1—Basic Labor Policies 

Sec. 

1322.101 Labor relations. 

1322.101–1 General. 

1322.101–3 Reporting labor disputes. 

1322.101–4 Removal of items from 

contractor’s facilities affected by work 

stoppages. 

1322.103 Overtime. 

1322.103–4 Approvals. 

Subpart 1322.3—Contract Work Hours and 

Safety Standards Act 

1322.302 Liquidated damages and overtime 

pay. 

Subpart 1322.4—Labor Standards for 

Contracts Involving Construction 

1322.404 Davis-Bacon Act wage 

determination. 

1322.404–6 Modification of wage 

determination. 

1322.406 Administration and enforcement. 

1322.406–8 Investigations. 

Subpart 1322.6—Walsh-Healey Public 

Contracts Act 

1322.604 Exemptions. 

1322.604–2 Regulatory exemptions. 

Subpart 1322.8—Equal Employment 

Opportunity 

1322.805 Procedures. 

1322.807 Exemptions. 

Subpart 1322.10—Service Contract Act of 

1965, as Amended 

1322.1001 Definitions. 

Subpart 1322.13—Special Disabled 

Veterans, Veterans of the Vietnam Era, and 

Other Eligible Veterans 

1322.1305 Waivers. 

Subpart 1322.14—Employment of Workers 

With Disabilities 

1322.1403 Waivers. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1322.1—Basic Labor Policies 

1322.101 Labor relations. 

1322.101–1 General. 

The designee authorized to designate 

programs or requirements for 

contractors notifying the Government of 

actual or potential labor disputes is set 

forth in CAM 1301.70. 

1322.101–3 Reporting labor disputes. 

(a) The designee authorized to report 

any potential or actual labor disputes 

that may interfere with performing any 

contracts under its cognizance is 

designated in CAM 1301.70. 

(b) The contracting officer shall seek 

legal advice and assistance from 

Procurement Counsel when a potential 

or actual labor dispute that may 

interfere with the contract performance 

occurs. 

1322.101–4 Removal of items from 

contractors’ facilities affected by work 

stoppages. 

The contracting officer shall obtain 

approval from the head of the 

contracting office and seek legal advice 

before initiating any action in 

accordance with FAR 22.101–4. 

1322.103 Overtime. 

1322.103–4 Approvals. 

Approval of use of overtime may be 

granted by the approving official as set 

forth in CAM 1301.70. 

Subpart 1322.3—Contract Work Hours 

and Safety Standards Act 

1322.302 Liquidated damages and 

overtime pay. 

The designee authorized to find that 

the administratively determined 

liquidated damages due under FAR 

22.302(a) are incorrect or that the 

contactor or subcontractor inadvertently 

violated the Contract Work Hours and 

Safety Standards Act is set forth in CAM 

1301.70. 

Subpart 1322.4—Labor Standards for 

Contracts Involving Construction 

1322.404 Davis-Bacon Act wage 

determination. 

1322.404–6 Modification of wage 

determination. 

The designee authorized to request an 

extension beyond 90 days after bid 

opening from the Department of Labor 

Administrator, Wage and Hour Division 

is set forth in CAM 1301.70. 

1322.406 Administration and enforcement. 

1322.406–8 Investigations. 

The designee authorized to process a 

contracting officer’s report on labor 


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standards investigations is set forth in 

CAM 1301.70. 

Subpart 1322.6—Walsh-Healey Public 

Contracts Act 

1322.604 Exemptions. 

1322.604–2 Regulatory exemptions. 

The designee authorized to request 

that the Secretary of Labor exempt a 

contract or class of contracts from 

Walsh-Healey Act stipulations is set 

forth in CAM 1301.70. 

Subpart 1322.8—Equal Employment 

Opportunity 

1322.805 Procedures. 

The designee authorized to approve 

award without pre-award clearance is 

set forth in CAM 1301.70. 

1322.807 Exemptions. 

The designee authorized to exempt a 

contract from all or part of Executive 

Order 11246 for national security 

purposes is set forth in CAM 1301.70. 

Subpart 1322.10—Service Contract Act 

of 1965, as Amended 

1322.1001 Definitions. 

The DOC labor advisor is the 

Assistant General Counsel for 

Administration/Employment & Labor 

Law Division. 

Subpart 1322.13—Special Disabled 

Veterans, Veterans of the Vietnam Era, 

and Other Eligible Veterans 

1322.1305 Waivers. 

(a) The designee authorized to waive 

any requirement in FAR 22.13 if it is 

determined that the contract is essential 

to national security is set forth in CAM 

1301.70. 

(b) The contracting officer must 

submit requests for waivers to the 

designee authorized under 1322.1305 

(a). The request shall include a 

justification for the waiver and be 

available in electronic format. 

Subpart 1322.14—Employment of 

Workers With Disabilities 

1322.1403 Waivers. 

(a) The designee authorized to waive 

any or all terms of the clause at FAR 

52.222–36 is set forth in CAM 1301.70. 

(b) The designee authorized, with the 

concurrence of the Deputy Assistant 

Secretary of Labor, to waive any 

requirement of FAR Subpart 22.14 when 

it is determined that the contract is 

essential to the national security, is set 

forth in CAM 1301.70. 

(c) The contracting officer must 

submit requests for waivers to the 

designee authorized under 48 CFR 

1322.1403 (a) and (b). The request shall 

include a justification for the waiver 

and be available in electronic format. 

PART 1323—ENVIRONMENT, ENERGY 

AND WATER EFFICIENCY, 

RENEWABLE ENERGY 

TECHNOLOGIES, OCCUPATIONAL 

SAFETY, AND DRUG-FREE 

WORKPLACE 

Subpart 1323.2—Energy and Water 

Efficiency and Renewable Energy 

Sec. 

1323.204 Procurement exemptions. 

Subpart 1323.4—Use of Recovered 

Materials 

1323.404 Agency affirmative procurement 

programs. 

1323.404–70 DOC affirmative procurement 

program. 

Subpart 1323.5—Drug-Free Workplace 

1323.506 Suspension of payments, 

termination of contract and debarment 

and suspension actions. 

Subpart 1323.7—Contracting for 

Environmentally Preferable and EnergyEfficient Products and Services 

1323.705 Electronic products 

environmental assessment tool. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1323.2—Energy and Water 

Efficiency and Renewable Energy 

1323.204 Procurement exemptions. 

The designee authorized to exempt 

the procurement of an ENERGY STAR 

or Federal Energy Management Program 

(FEMP)-designated product as described 

in FAR 23.203 is set forth in CAM 

1301.70. 

Subpart 1323.4—Use of Recovered 

Materials 

1323.404 Agency affirmative procurement 

programs. 

1323.404–70 DOC affirmative procurement 

program. 

The Department of Commerce’s 

affirmative procurement program is 

described in CAM 1323.70. 

Subpart 1323.5—Drug-Free Workplace 

1323.506 Suspension of payments, 

termination of contract and debarment and 

suspension actions. 

The designee authorized to waive a 

determination to suspend contract 

payments, terminate a contract for 

default, or debar or suspend a contractor 

for Drug-Free Workplace violations, is 

set forth in CAM 1301.70. This authority 

may not be delegated. 

Subpart 1323.7—Contracting for 

Environmentally Preferable and 

Energy-Efficient Products and 

Services 

1323.705 Electronic products 

environmental assessment tool. 

The procedures for granting 

exceptions to the requirement in FAR 

23.705 are set forth in CAM 1323.70. 

PART 1324—PROTECTION OF 

PRIVACY AND FREEDOM OF 

INFORMATION 

Subpart 1324.1—Protection of Individual 

Privacy 

Sec. 

1324.103 Procedures. 

Subpart 1324.2—Freedom of Information 

Act 

1324.203 Policy. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1324.1—Protection of 

Individual Privacy 

1324.103 Procedures. 

DOC rules implementing the Privacy 

Act of 1974 are described in 15 CFR Part 

4. 

Subpart 1324.2—Freedom of 

Information Act 

1324.203 Policy. 

DOC’s implementation of the 

Freedom of Information Act is described 

in 15 CFR Part 4 and DAO 205–14. 

PART 1325—FOREIGN ACQUISITION 

Subpart 1325.1—Buy American Act— 

Supplies 

Sec. 

1325.103 Exceptions. 

1325.105 Determining reasonableness of 

cost. 

Subpart 1325.2—Buy American Act— 

Construction Materials 

1325.204 Evaluating offers of foreign 

construction material. 

Subpart 1325.10—Additional Foreign 

Acquisition Regulations 

1325.1001 Waiver of right to examination 

of records. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1325.1—Buy American Act— 

Supplies 

1325.103 Exceptions. 

(a) The designee authorized to make 

a determination that domestic 

preference would be inconsistent with 

the public interest in a case where the 

DOC has an agreement with a foreign 

government providing a blanket 


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exception to the Buy America Act is set 

forth in CAM 1301.70. 

(b)(1) The contracting officer shall 

submit documentation supporting a 

nonavailability determination to the 

DOC’s representative to the Civilian 

Agency Acquisition Council (CAAC). 

The DOC representative shall forward 

the documentation to the CAAC for 

possible removal of the product from 

the product nonavailablity list at FAR 

25.104. 

(2) The contracting officer shall 

submit documentation supporting a 

determination that nonavailabilty of an 

article is likely to affect future 

acquisitions to the DOC’s representative 

to the CAAC for possible addition to the 

product nonavailability list at FAR 

25.104. 

1325.105 Determining reasonableness of 

cost. 

The designee authorized to make a 

written determination that the use of 

higher evaluation factors than those in 

FAR 25.105(b) is appropriate is set forth 

in CAM 1301.70. 

Subpart 1325.2—Buy American Act— 

Construction Materials 

1325.204 Evaluating offers of foreign 

construction material. 

The designee authorized to specify a 

percentage higher than the 6 percent 

that the contracting officer must add to 

the cost of any foreign construction 

material proposed for exception from 

the requirements of the Buy America 

Act is set forth in CAM 1301.70. 

Subpart 1325.10—Additional Foreign 

Acquisition Regulations 

1325.1001 Waiver of right to examination 

of records. 

The designee authorized to execute a 

determination and findings in 

accordance with FAR 25.1001(a)(2)(iii) 

set forth in CAM 1301.70. 

PART 1326—OTHER 

SOCIOECONOMIC PROGRAMS 

Subpart 1326.2—Disaster or Emergency 

Assistance Activities 

Sec. 

1326.203 Transition of work. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1326.2—Disaster or 

Emergency Assistance Activities 

1326.203 Transition of work. 

The designee authorized to determine 

that transitioning response, relief, and/ 

or reconstruction activity to a local firm, 

or firms, is not feasible or practicable as 

set forth in CAM 1301.70. 

SUBCHAPTER E—GENERAL 

CONTRACTING REQUIREMENTS 

PART 1327—PATENTS, DATA, AND 

COPYRIGHTS 

Subpart 1327.2—Patents and Copyrights 

Sec. 

1327.201 Patent and copyright 

infringement liability. 

1327.201–2 Contract clauses. 

Subpart 1327.3—Patent Rights Under 

Government Contracts 

1327.303 Contract clauses. 

1327.304 Procedures. 

1327.304–4 Appeals. 

1327.305 Administration of patent rights 

clauses. 

1327.305–2 Administration by the 

Government. 

Subpart 1327.4—Rights in Data and 

Copyrights 

1327.404 Basic rights in data clause. 

1327.404–4 Contractor’s release, 

publication, and use of data. 

1327.404–5 Unauthorized, omitted, or 

incorrect markings. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1327.2—Patents and 

Copyrights 

1327.201 Patent and copyright 

infringement liability. 

1327.201–2 Contract clauses. 

The designee authorized to approve 

the insertion of clause 52.227–5, Waiver 

of Indemnity, in solicitations and 

contracts is set forth in CAM 1301.70. 

Subpart 1327.3—Patent Rights Under 

Government Contracts 

1327.303 Contract clauses. 

(a) The designee authorized to 

determine, at contract award, that it 

would be in the national interest to 

sublicense foreign governments or 

international organizations pursuant to 

any existing or future treaty or 

agreement is set forth in CAM 1301.70. 

(b) The designee authorized to 

determine that restriction or elimination 

of the right to retain title to any subject 

invention will better promote the policy 

and objectives of chapter 18 of title 35 

of the United States Code is set forth in 

CAM 1301.70. 

(c) The designee authorized to 

determine, at contract award, that it 

would be in the national interest to 

sublicense foreign governments or 

international organizations pursuant to 

any existing or future treaty or 

agreement is set forth in CAM 1301.70. 

1327.304 Procedures. 

1327.304–4 Appeals. 

The designee authorized to provide 

the contractor with a written statement 

of the basis for taking the actions 

described in FAR 27.304–5(a) is set 

forth in CAM 1301.70. 

1327.305 Administration of patent rights 

clauses. 

1327.305–2 Administration by the 

Government. 

The contracting officer shall promptly 

furnish all invention disclosures, 

reports, confirmatory instruments, 

notices, requests, and other documents 

and information relating to patent rights 

clauses to the DOC Patent Attorney. 

Subpart 1327.4—Rights in Data and 

Copyrights 

1327.404 Basic rights in data clause. 

1327.404–4 Contractor’s release, 

publication, and use of data. 

(a) Insert clause 1352.227–70, Rights 

in Data, Assignment of Copyright, in all 

solicitations and contracts if FAR Clause 

52.227–17 has been used in the 

solicitation or contract and the 

contracting officer wants the contractor 

to assign copyright to the Government. 

(b) In appropriate cases, the 

contracting officer may place limitations 

or restrictions on the contractor’s 

exercise of its rights in data first 

produced in the performance of the 

contract, including a requirement to 

assign copyright to the Government or 

another party. 

1327.404–5 Unauthorized, omitted, or 

incorrect markings. 

The designee authorized to concur 

with the contracting officer’s 

determination that markings are not 

authorized is set forth in CAM 1301.70. 

PART 1328—BONDS AND INSURANCE 

Subpart 1328.1—Bonds and Other Financial 

Protections 

Sec. 

1328.101 Bid guarantees. 

1328.101–1 Policy on use. 

1328.105 Other types of bonds. 

1328.106 Administration. 

1328.106–2 Substitution of surety bonds. 

1328.106–6 Furnishing information. 

Subpart 1328.2—Sureties and Other 

Security for Bonds 

1328.203 Acceptability of individual 

sureties. 

1328.203–7 Exclusion of individual 

sureties. 

Subpart 1328.3—Insurance 

1328.305 Overseas workers’ compensation 

and war-hazard insurance. 


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1328.310 Contract clause for work on a 

Government installation. 

1328.310–70 Solicitation provisions and 

contract clauses. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1328.1—Bonds and Other 

Financial Protections 

1328.101 Bid guarantees. 

1328.101–1 Policy on use. 

The designee authorized to make a 

class waiver for the requirement to 

obtain a bid guarantee when a 

performance bond or a performance and 

payment bond is required is set forth in 

CAM 1301.70. 

1328.105 Other types of bonds. 

The designee authorized to approve 

using other types of bonds in 

connection with acquiring particular 

supplies or services is set forth in CAM 

1301.70. 

1328.106 Administration. 

1328.106–2 Substitution of surety bonds. 

The designee authorized to approve 

substituting a new surety bond for the 

previously approved original bond is set 

forth in CAM 1301.70. 

1328.106–6 Furnishing information. 

When a payment bond has been 

provided for a contract, the designee 

authorized to furnish a certified copy of 

the bond and the contract to any person 

who makes a proper request is set forth 

in CAM 1301.70. 

Subpart 1328.2—Sureties and Other 

Security for Bonds 

1328.203 Acceptability of individual 

sureties. 

(a) Contracting officers shall obtain 

the opinion of the Procurement Counsel 

as to the adequacy of the documents 

pledging the assets of an individual 

surety prior to accepting bid guarantee 

and payment and performance bonds. 

(b) Evidence of possible criminal or 

fraudulent activities by an individual 

surety shall be referred to the DOC 

Office of Inspector General. Policies and 

procedures for the initiation and 

conduct of investigations by the Office 

of Inspector General are prescribed in 

DAO 207–10, Inspector General 

Investigations. 

1328.203–7 Exclusion of individual 

sureties. 

The designee authorized to exclude 

an individual from acting as a surety on 

bonds submitted by offerors on 

procurements by the executive branch 

of the Federal Government is set forth 

in CAM 1301.70. 

Subpart 1328.3—Insurance 

1328.305 Overseas workers’ 

compensation and war-hazard insurance. 

The designee authorized to 

recommend a waiver to the Secretary of 

Labor is set forth in CAM 1301.70. 

1328.310 Contract clause for work on a 

Government installation. 

1328.310–70 Solicitation provisions and 

contract clauses. 

(a) Insert clause 1352.228–70, 

Insurance Coverage, in all contracts 

when: 

(1) Government property is involved; 

(2) The contract amount is expected to 

be over the simplified acquisition 

threshold, and 

(3) The contract will require work on 

a Government installation 

(b)(1) The clause is not required in 

fixed-price solicitations and contracts if: 

(i) Only a small amount of work is 

required on the Government installation 

(e.g., a few brief visits per month); or 

(ii) All the work on the Government 

installation is to be performed outside 

the United States, its possessions and 

Puerto Rico. 

(2) The contracting officer may 

increase the dollar limits established in 

the clause when it is determined to be 

in the best interest of the Government. 

Prior to increasing the dollar limits the 

contracting officer shall seek the advice 

of Procurement Counsel. 

(c) Insert clause 1352.228–71, 

Deductibles Under Required Insurance 

Coverage—Cost-Reimbursement, in all 

cost-reimbursement contracts when the 

clause at 1352.228–70, Insurance 

Coverage, is used. 

(d) Insert clause 1352.228–72, 

Deductibles Under Required Insurance 

Coverage—Fixed Price, in all fixed-price 

contracts when the clause at 1352.228– 

70, Insurance Coverage, is used. 

(e) Insert clauses 1352.228–73 through 

1352.228–75, unless otherwise 

indicated by the specific instructions for 

their use below, in any contract for the 

lease of aircraft. 

(f) Insert clause 1252.228–73, Loss of 

or Damage to Leased Aircraft, in any 

contract for the lease of aircraft, except 

in the following circumstances: 

(1) When the hourly rental rate does 

not exceed $250 and the total rental cost 

for any single transaction is not in 

excess of $2,500: 

(2) When the cost of hull insurance 

does not exceed 10 percent of the 

contract rate; or 

(3) When the lessor’s insurer does not 

grant a credit for uninsured hours, 

thereby preventing the lessor from 

granting the same to the Government. 

(g) Insert clause 1352.228–74, Fair 

Market Value of Aircraft, in all aircraft 

lease/rentals. 

(h) The contracting officer shall insert 

the clause at 1352.228–75, Risk and 

Indemnities, in any contract for the 

lease of aircraft when the Government 

will have exclusive use of the aircraft 

for a period of less than thirty days. 

(i) Insert clause 1352.228–76, 

Approval of Group Insurance Plans, in 

all cost reimbursable contracts. 

(j) The contractor shall submit the 

plan to the CO for approval under costreimbursement contracts, before buying 

insurance under a group insurance plan. 

Any change in benefits provided under 

an approved plan that can reasonably be 

expected to increase significantly the 

cost to the Government shall require 

similar approval. 

PART 1329—TAXES 

Subpart 1329.1—General 

Sec. 

1329.101 Resolving tax problems. 

Subpart 1329.2—Federal Excise Taxes 

1329.203 Other Federal tax exemptions. 

1329.203–70 DOC Federal tax exemption. 

Subpart 1329.3—State and Local Taxes 

1329.303 Application of State and local 

taxes to government contractors and 

subcontractors. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1329.1—General 

1329.101 Resolving tax problems. 

Legal questions relating to tax issues 

should be referred to the Procurement 

Counsel. 

Subpart 1329.2—Federal Excise Taxes 

1329.203 Other Federal tax exemptions. 

1329.203–70 DOC Federal tax exemption. 

(a) The Office of Acquisition 

Management has obtained a permit from 

the U.S. Bureau of Alcohol, Tobacco, 

Firearms and Explosives enabling DOC 

and its contractors to purchase spirits 

(e.g., specially denatured spirits) taxfree for non-beverage Government use. 

(b) When purchasing spirits for nonbeverage use by DOC personnel, the 

contracting officer shall attach a copy of 

the permit to the contract. Upon receipt 

of the spirits, the contractor shall return 

the permit to the contracting officer 

unless future orders are anticipated. 


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Subpart 1329.3—State and Local Taxes 

1329.303 Application of State and local 

taxes to government contractors and 

subcontractors. 

The designee authorized to review a 

proposed designation of a contractor as 

an agent of the Government is set forth 

in CAM 1301.70. 

PART 1330—COST ACCOUNTING 

STANDARDS ADMINISTRATION 

Subpart 1330.2—CAS Program 

Requirements 

Sec. 

1330.201 Contract requirements. 

1330.201–5 Waiver. 

1330.202 Disclosure requirements. 

1330.202–2 Impracticality of submission. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1330.2—CAS Program 

Requirements 

1330.201 Contract requirements. 

1330.201–5 Waiver. 

The designee authorized to waive the 

applicability of Cost Accounting 

Standards for a particular contract or 

subcontract is set forth in CAM 1301.70. 

1330.202 Disclosure requirements. 

1330.202–2 Impracticality of submission. 

The DOC Head of Agency for 

Procurement is authorized to determine 

that it is impractical to secure a 

Disclosure Statement, although 

submission is required, and to authorize 

contract award without obtaining the 

Statement. 

PART 1331—CONTRACT COST 

PRINCIPLES AND PROCEDURES 

Subpart 1331.1—Applicability 

Sec. 

1331.101 Objectives. 

Subpart 1331.2—Contracts With 

Commercial Organizations 

1331.205 Selected costs. 

1331.205–6 Compensation for personal 

services. 

1331.205–32 Precontract costs. 

1331.205–70 Duplication of effort. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1331.1—Applicability 

1331.101 Objectives. 

The designee authorized to approve 

individual deviations concerning cost 

principles is set forth in CAM 1301.70. 

Subpart 1331.2—Contracts With 

Commercial Organizations 

1331.205 Selected costs. 

1331.205–6 Compensation for personal 

services. 

The designee authorized to waive cost 

allowability limitations under certain 

circumstances regarding compensation 

of foreign nationals is set forth in CAM 

1301.70. 

1331.205–32 Precontract costs. 

If precontract costs are anticipated, 

pursuant to negotiations and in 

anticipation of contract award, insert 

clause 1352.231–70 Precontract Costs, 

in the contract. 

1331.205–70 Duplication of effort. 

The Department will not pay any 

costs for work that is duplicative of 

costs charged against any other contract, 

subcontract or Government source. 

Insert clause 1352.231–71, Duplication 

of Effort, in all cost-reimbursement, time 

and materials, and labor hour 

solicitations and contracts when 

applicable. 

PART 1332—CONTRACT FINANCING 

Sec. 

1332.003 Simplified acquisition procedures 

financing. 

1332.006 Reduction or suspension of 

contract payments upon finding of fraud. 

1332.006–1 General. 

1332.006–3 Responsibilities. 

1332.006–4 Procedures. 

1332.006–5 Reporting. 

Subpart 1332.1—Non-Commercial Item 

Purchase Financing 

1332.114 Unusual contract financing. 

Subpart 1332.2—Commercial Item Purchase 

Financing 

1332.201 Statutory authority. 

1332.202 General. 

1332.202–1 Policy. 

Subpart 1332.4—Advance Payments for 

Non-Commercial Items 

1332.402 General. 

1332.404 Exclusions. 

1332.407 Interest. 

Subpart 1332.5—Progress Payments Based 

on Costs 

1332.501 General. 

1332.501–2 Unusual progress payments. 

Subpart 1332.7—Contract funding 

1332.702 Policy. 

1332.702–70 Forms. 

Subpart 1332.8—Assignment of claims 

1332.802 Conditions. 

Subpart 1332.9—Prompt Payment 

1332.903 Responsibilities. 

1332.906 Making payments. 

Subpart 1332.11—Electronic Funds 

Transfer 

1332.1108 Payment by Governmentwide 

commercial purchase card. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

1332.003 Simplified acquisition 

procedures financing. 

Contract financing may be provided 

for purchases made under the authority 

of FAR Part 13. Contract financing shall 

be made in accordance with FAR Part 

32. 

1332.006 Reduction or suspension of 

contract payments under finding of fraud. 

1332.006–1 General. 

The designee authorized to exercise 

the responsibility to reduce or suspend 

contract payments is set forth in CAM 

1301.70. 

1332.006–3 Responsibilities. 

DOC personnel shall immediately 

report to the Office of Inspector General 

any apparent or suspected instances 

where a contractor’s request for 

advance, partial or progress payments is 

based on fraud in accordance with DAO 

207–10, Inspector General 

Investigations. 

1332.006–4 Procedures. 

(a) The Agency Head as described 

under 1332.006–4 is set forth in CAM 

1301.70. 

(b) The Office of Inspector General 

shall perform the function of the 

Remedy Coordination Official. 

1332.006–5 Reporting. 

In accordance with 41 U.S.C. 255, the 

head of an agency shall prepare a report 

for each fiscal year in which a 

recommendation has been received 

pursuant to FAR 32.006–4(a). 

Subpart 1332.1—Non-Commercial Item 

Purchase Financing 

1332.114 Unusual contract financing. 

The designee authorized to approve 

unusual contract financing 

arrangements is set forth in CAM 

1301.70. 

Subpart 1332.2—Commercial Item 

Purchase Financing 

1332.201 Statutory authority. 

Payment for commercial items may be 

made under such terms and conditions 

as the designee authorized in CAM 

1301.70 determines are appropriate or 

customary in the commercial 

marketplace and are in the best interest 

of the United States. 


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1332.202 General. 

1332.202–1 Policy. 

The designee authorized to approve 

unusual contract financing is set forth in 

CAM 1301.70. 

Subpart 1332.4—Advance Payments 

for Non-Commercial Items 

1332.402 General. 

(a) Advanced payment may be 

authorized for contracts, other than 

those at FAR 32.403(a) and (b), only if 

other types of financing are not 

reasonably available to the contractor in 

adequate amounts. 

(b) The designee authorized to 

determine when advance payment is in 

the public interest or facilitates national 

defense is set forth in CAM 1301.70. 

1332.404 Exclusions. 

Advance payments may be authorized 

for items listed in FAR 32.404(a). 

1332.407 Interest. 

The designee authorized to approve 

advance payment without interest is as 

set forth in CAM 1301.70. 

Subpart 1332.5—Progress Payments 

Based on Costs 

1332.501 General. 

1332.501–2 Unusual progress payments. 

The designee authorized to approve a 

contractor’s request for unusual progress 

payments is set forth in CAM 1301.70. 

Subpart 1332.7—Contract Funding 

1332.702 Policy. 

Contracting officers shall obtain 

assurances of available funds only from 

properly authorized designated 

certifying officers in accordance with 

Part 4, Section 1110 of the Treasury 

Financial Manual. 

1332.702–70 Forms. 

Contracting officers must obtain an 

electronic or hardcopy procurement 

request form on which the availability 

of adequate funds have been certified by 

a designated certifying officer. This form 

must have the name of the certifying 

official and the certified available funds, 

as well as the technical and other 

specifications of the request, 

administrative approvals, clearances, 

and information for processing 

payment. 

Subpart 1332.8—Assignment of Claims 

1332.802 Conditions. 

The designee authorized to receive 

the written notice of assignment is set 

forth in CAM 1301.70. 

Subpart 1332.9—Prompt Payment 

1332.903 Responsibilities. 

The designee authorized to establish 

Prompt Payment policies and 

procedures is set forth in CAM 1301.70. 

1332.906 Making payments. 

The designee authorized to allow 

invoice payments earlier than 7 days 

prior to the due date as specified in the 

contract is set forth in CAM 1301.70. 

Subpart 1332.11—Electronic Funds 

Transfer 

1332.1108 Payment by Governmentwide 

commercial purchase card. 

Use of the Governmentwide 

commercial purchase card is subject to 

the requirements of the FAR, other 

internal Departmental policies, as well 

as operating unit policies and 

procedures related to the purchase card. 

All purchases made with the purchase 

card must comply with all procedures 

and documentation requirements that 

apply to the procurement action. 

PART 1333—PROTESTS, DISPUTES, 

AND APPEALS 

Subpart 1333.1—Protests 

Sec. 

1333.101 Definitions. 

1333.102 General. 

1333.103 Protests to the agency. 

1333.104 Protests to GAO. 

1333.104–70 Protests to GAO and Court of 

Federal Claims. 

Subpart 1333.2—Disputes and Appeals 

1333.203 Applicability. 

1333.206 Initiation of a claim. 

1333.211 Contracting officer’s decision. 

1333.212 Contracting officer’s duties upon 

appeals. 

1333.215 Contract clauses. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1333.1—Protests 

1333.101 Definitions. 

Protest Decision Authority means 

agency officials above the level of the 

contracting officer who have been 

designated by the Procurement 

Executive to issue agency protest 

decisions under Executive Order 12979. 

1333.102 General. 

(a) Contracting officers shall promptly 

notify the Procurement Counsel, and 

seek legal advice upon receiving notice 

that a protest has been filed in any 

forum. 

(b) The designee authorized to 

determine that a solicitation, proposed 

award, or award under protest does not 

comply with the requirements of law or 

regulation, and to take the actions 

specified at FAR 33.102 (b) is set forth 

in CAM 1301.70. Corrective action shall 

only be taken after consultation with 

Procurement Counsel. 

1333.103 Protests to the agency. 

(a) Insert provision 1352.233–70, 

Agency Protests, in all DOC 

solicitations, except these issued by the 

U.S. Patent and Trademark Office. 

(b) All agency protest decisions shall 

be reviewed by Procurement Counsel 

before submission to the protester. 

1333.104 Protests to GAO. 

1333.104–70 Protests to GAO and Court of 

Federal Claims. 

(a) Insert clause 1352.233–71, GAO 

and Court of Federal Claims Protests, in 

all DOC solicitations, except those for 

the U.S. Patent and Trademark Office. 

(b) Only Procurement Counsel shall 

communicate with the Government 

Accountability Office (GAO), the Court 

of Federal Claims and the Department of 

Justice regarding applicable protests. 

Procurement Counsel shall be 

responsible for preparation and 

submission of the agency report to the 

GAO and litigation reports to the 

Department of Justice. 

(c) The designee authorized to 

authorize, on a nondelegable basis, the 

award of a contract when the agency has 

received notice from the GAO of a 

preaward protest filed directly with the 

GAO is set forth in CAM 1301.70. 

(d) The designee authorized to 

authorize, on a nondelegable basis, 

contract performance notwithstanding 

protest after award is set forth in CAM 

1301.70. 

(e) The designee authorized to report 

and explain the reasons why the agency 

has not fully implement GAO 

recommendations with respect to a 

protest is set forth in CAM 1301.70. 

Subpart 1333.2—Disputes and Appeals 

1333.203 Applicability. 

The designee authorized to determine 

that the application of the Contract 

Disputes Act of 1978 to a contract with 

an international organization or a 

subsidiary body of that organization 

would not be in the public interest is set 

forth in CAM 1301.70. 

1333.206 Initiation of a claim. 

Contracting officers shall promptly 

notify Procurement Counsel and seek 

legal advice upon receiving a contractor 

claim. 

1333.211 Contracting officer’s decision. 

All contracting officer decisions on 

claims shall be reviewed by 


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Procurement Counsel before submission 

to the contractor. 

1333.212 Contracting officer’s duties upon 

appeals. 

Only Procurement Counsel will 

communicate with the Civilian Board of 

Contract Appeals or the Department of 

Justice regarding appeals of contracting 

officer decisions. Procurement Counsel 

shall be responsible for preparation and 

submission of all filings with the Board. 

1333.215 Contract clauses. 

Alternate I of FAR 52.233–1, Disputes, 

may be used at the discretion of the 

contracting officer. 

SUBCHAPTER F—SPECIAL CATEGORIES 

OF CONTRACTING 

PART 1334—MAJOR SYSTEM 

ACQUISITION 

Subpart 1334.0—General 

Sec. 

1334.003 Responsibilities. 

1334.005 General requirements. 

1334.005–6 Full production. 

Subpart 1334.2—Earned Value Management 

System 

1334.201 Policy. 

1334.201–70 Policy. 

1334.202 Integrated baseline reviews. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1334.0—General 

1334.003 Responsibilities. 

(a) The designee authorized to carry 

out the responsibilities described under 

FAR 34.003 is set forth in CAM 1301.70. 

(b) Agency procedures related to 

major system acquisitions are set forth 

in DAO 208–3. 

1334.005 General requirements. 

1334.005–6 Full production. 

The designee authorized to reaffirm 

mission need and program objectives 

and grant approval to proceed with the 

award of a contract for full production 

of a successfully tested major system is 

set forth in CAM 1301.70. 

Subpart 1334.2—Earned Value 

Management System 

1334.201 Policy. 

1334.201–70 Policy. 

(a) In accordance with the 

Department’s Information Technology 

Investment Performance Measurement 

and Performance Reporting Policy, the 

use of an Earned Value Management 

System (EVMS) is required for major 

acquisitions for information technology 

development in which the 

development/modernization/ 

enhancement costs are anticipated to 

equal or exceed $25 million over the life 

of the acquisition. The Chief 

Information Officer may require EVMS 

on other acquisitions if the project 

merits special attention due to 

sensitivity, mission criticality, or risk 

potential. 

(b) If a project manager considers the 

use of an EVMS to be necessary for a 

major acquisition that does not meet the 

$25 million threshold, the project 

manager should conduct a cost/benefit 

analysis and consult with the OCIO on 

the advisability of requiring an EVMS. 

(c) Project managers, contracting 

officers, and contracting officer 

representatives responsible for major 

acquisitions requiring an EVMS must 

successfully complete an Earned Value 

Management course that meets the 

requirements of the OCIO. 

(d) The use of firm-fixed-price type 

contracts, subcontracts and other 

agreements are generally not suited to 

developmental efforts and the use of an 

EVMS is of limited utility under such 

arrangements. In the rare cases where a 

fixed-price type contract is 

contemplated for a developmental 

effort, the project manager and 

contracting officer must consult with 

the OCIO for guidance to determine 

whether an EVMS will be required. 

(e) The use of an EVMS is generally 

discouraged for contracts, subcontracts, 

and other agreements where the period 

of performance is less than 12 months 

in duration. Additionally, application of 

an EVMS to work efforts that are not 

discrete in nature should be considered 

on a case-by-case basis. 

(f) In cases where the nature of the 

work does not lend itself to the 

meaningful use of an EVMS, the OCIO 

may waive the EVMS requirement if 

appropriate. 

1334.202 Integrated baseline reviews. 

An Integrated Baseline Review shall 

be conducted when an Earned Value 

Management System is required. 

PART 1335—RESEARCH AND 

DEVELOPMENT CONTRACTING 

Sec. 

1335.001 Definitions. 

1335.006 Contracting methods and contract 

type. 

1335.014 Government property and title. 

1335.016 Broad agency announcement. 

1335.016–70 DOC procedures for the use of 

broad agency announcements. 

1335.017 Federally funded research and 

development centers. 

1335.017–2 Establishing or changing an 

FFRDC. 

1335.017–4 Reviewing FFRDCs 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

1335.001 Definitions. 

Human subject means a living 

individual about whom an investigator 

(whether professional or student) 

conducting research obtains: 

(1) Data through intervention or 

interaction with the individual, or 

(2) Identifiable private information. 

Intervention includes both physical 

procedures by which data are gathered 

(for example, venipuncture) and 

manipulations of the subject or the 

subject’s environment that are 

performed for research purposes. 

Interaction includes communication or 

interpersonal contact between 

investigator and subject. ‘‘Private 

information’’ includes information about 

behavior that occurs in a context in 

which an individual can reasonably 

expect that no observation or recording 

is taking place, and information which 

has been provided for specific purposes 

by an individual and which the 

individual can reasonably expect will 

not be made public (for example, a 

medical record). Private information 

must be individually identifiable (i.e., 

the identity of the subject is or may 

readily be ascertained by the 

investigator or associated with the 

information) in order for obtaining the 

information to constitute research 

involving human subjects. 

Research means a systematic 

investigation, including research, 

development, testing and evaluation, 

designed to develop or contribute to 

generalizable knowledge. Activities 

which meet this definition constitute 

research for purposes of this policy, 

whether or not they are conducted or 

supported under a program which is 

considered research for other purposes. 

For example, some demonstration and 

service programs may include research 

activities. 

1335.006 Contracting methods and 

contract type. 

(a) Insert provision 1352.235–70, 

Protection of Human Subjects, in all 

solicitations where research services 

under the contract might involve the use 

of human subjects. The provision is 

mandatory where human subjects may 

be used in performance of the award 

and may not be modified without 

consultation with Program Counsel. 

(b) Insert clause 1352.235–71, 

Protection of Human Subjects— 

Exemption, in all contracts where the 

agency has determined based on 

documentation submitted by the offeror 

in response to provision 1352.235–70, 

Protection of Human Subjects, that the 

research involving human subjects is 

exempt from the requirements of 15 CFR 

Part 27 and does not require 


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Institutional Review Board (IRB) review. 

The provision is mandatory where an 

appropriate agency official has 

determined that the research involving 

human subjects to be carried out in 

performance of the award is exempt 

from15 CFR Part 27, and may not be 

modified without consultation with 

Program Counsel. 

(c) Insert clause 1352.235–72, 

Protection of Human Subjects— 

Institutional Approval, in all contracts 

where the agency has determined based 

on documentation submitted by the 

offeror in response to provision 

1352.235–70, Protection of Human 

Subjects, that the research involving 

human subjects is not exempt from the 

requirements of 15 CFR Part 27 and 

requires review by a cognizant 

Institutional Review Board (IRB). The 

provision is mandatory where an 

appropriate Agency official has 

determined that the research involving 

human subjects to be carried out in 

performance of the award is not exempt 

from15 CFR Part 27 and requires review 

by a cognizant IRB, and may not be 

modified without consultation with 

Program Counsel. 

(d) Insert clause 1352.235–73, 

Protection of Human Subjects—After 

Initial Contract Award, in all contracts 

where at the time of award no research 

involving human subjects is anticipated, 

but where decisions made in the course 

of the research may necessitate the 

addition of research involving human 

subjects to the work performed. The 

provision is mandatory where it is 

possible that the use of human subjects 

may be required in performance of the 

award but is not anticipated at the time 

of award, and may not be modified 

without consultation with Program 

Counsel. 

1335.014 Government property and title. 

The designee authorized to determine 

that the policies in FAR 35.014(b)(1)–(4) 

will not apply regarding title to 

equipment purchased by nonprofit 

institutions of higher learning and 

nonprofit organizations whose primary 

purpose is the conduct of scientific 

research is set forth in CAM 1301.70. 

1335.016 Broad agency announcement. 

1335.016–70 DOC procedures for the use 

of broad agency announcements. 

Procedures for the use of broad 

agency announcements within the 

Department of Commerce are set forth in 

CAM 1335.016. 

1335.017 Federal funded research and 

development centers. 

1335.017–2 Establishing or changing an 

FFRDC. 

The designee authorized to approve 

the establishment of an FFRDC, or 

change its basic purpose and mission, is 

set forth in CAM 1301.70. 

1335.017–4 Reviewing FFRDCs. 

The designee authorized to approve 

the continuation or termination of the 

sponsorship of an FFRDC is set forth in 

CAM 1301.70. 

PART 1336—CONSTRUCTION AND 

ARCHITECT-ENGINEER CONTRACTS 

Subpart 1336.2—Special Aspects of 

Contract for Construction 

Sec. 

1336.203 Government estimate of 

construction costs. 

1336.270 Special requirements for ship 

construction. 

Subpart 1336.6—Architect-Engineer 

Services 

1336.602 Selection of firms for architectengineer contracts. 

1336.602–2 Evaluation boards. 

1336.602–4 Selection authority. 

1336.602–5 Short selection process for 

contracts not to exceed the simplified 

acquisition threshold. 

1336.605 Government cost estimate for 

architect-engineer work. 

1336.609 Contract clauses. 

1336.609–1 Design within funding 

limitations. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1336.2—Special Aspects of 

Contracting for Construction 

1336.203 Government estimate of 

construction costs. 

After award, the independent 

Government estimated price can be 

released, upon request, to those firms or 

individuals who submitted proposals. 

1336.270 Special requirements for ship 

construction 

See 48 CFR 1371 for special 

requirements for acquisition involving 

ship construction and ship repair. 

Subpart 1336.6—Architect-Engineer 

Services 

1336.602 Selection of firms for architectengineer contracts. 

1336.602–2 Evaluation boards. 

Permanent and ad hoc architectengineer evaluation boards may include 

preselection boards. When necessary, 

members of permanent, ad hoc, and 

preselection boards may be appointed 

from private practitioners of 

architecture, engineering, or related 

professions. Private practitioners may be 

appointed as deemed necessary by the 

BPO or higher agency official. The 

permanent and ad hoc evaluation 

boards should be comprised of at least 

a majority of government personnel. 

1336.602–4 Selection authority. 

Each contracting office shall designate 

the selection authority based on the 

complexity of each procurement. 

1336.602–5 Short selection process for 

contracts not to exceed the simplified 

acquisition threshold. 

(a) In contracts not expected to exceed 

the simplified acquisition threshold, 

either or both of the short selection 

processes set out at FAR 36.602–5 may 

be used. 

(b) Each contracting office shall 

designate the selection authority based 

on the complexity of each procurement. 

The selection authority shall review the 

selection report and approve it or return 

it to the chairperson for appropriate 

revision. 

1336.605 Government cost estimate for 

architect-engineer work. 

After award, the independent 

Government estimated price can be 

released, upon request, to those firms or 

individuals who submitted proposals. 

1336.609 Contract clauses. 

1336.609–1 Design within funding 

limitations. 

The designee authorized to make the 

determination described at FAR 36.609– 

1(c)(1) to enable exclusion of the clause 

at FAR 52.236–22 from the contract is 

set forth in CAM 1301.70. 

PART 1337—SERVICE CONTRACTING 

Subpart 1337.1—Service Contracts— 

General 

Sec. 

1337.110 Solicitation provisions and 

contract clauses. 

1337.110–70 Personnel security processing 

requirements. 

1337.110–71 Additional DOC clauses 

related to service contracting. 

Subpart 1337.2—Advisory and Assistance 

Services 

1337.204 Guidelines for determining 

availability of personnel. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 


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Subpart 1337.1—Service Contracts— 

General 

1337.110 Solicitation provisions and 

contract clauses. 

1337.110–70 Personnel security 

processing requirements. 

(a) CAM 1337.70 establishes 

procedures for personnel security 

processing for contractors performing 

services on or within a Department of 

Commerce facility or through an 

information technology (IT) system, as 

required by the Department of 

Commerce Security Manual and 

Department of Commerce Security 

Program Policy and Minimum 

Implementation Standards. 

(b) Insert clause 1352.237–70, 

Security Processing Requirements— 

High or Moderate Risk Contracts, in all 

service contracts designated as High or 

Moderate risk that will be performed on 

a DOC facility or when the contractor 

will access a DOC IT system. 

(c) Insert clause 1352.237–71, Security 

Processing Requirements—Low Risk 

Contracts, in all service contracts 

designated as Low Risk that will be 

performed on or within a Department of 

Commerce facility or when the 

contractor will access a DOC IT system. 

(d) Insert clause 1352.237–72, 

Security Processing Requirements— 

National Security Contracts, in all 

service contracts designated as National 

Security Contracts that will be 

performed on or within a Department of 

Commerce facility or when the 

contractor will access a DOC IT system. 

(e) Insert clause 1352.237–73, Foreign 

National Visitor and Guest Access to 

Departmental Resources, in all DOC 

solicitations and contracts for services 

where foreign national access to any 

DOC facility or DOC IT system is 

required. The language of the clause 

may only be modified by adding more 

restrictive agency or operating unit 

counsel-specific guidance. 

1337.110–71 Additional DOC clauses 

related to service contracting. 

(a) Insert a clause substantially similar 

to 1352.237–74, Progress Reports, where 

progress reports are required in order to 

make periodic payments based upon 

contract progress made, or if the 

contracting officer otherwise determines 

that progress reports are needed. 

(b) Insert a clause substantially 

similar to 1352.237–75, Key Personnel, 

when contract performance requires 

identification of contractor key 

personnel. 

Subpart 1337.2—Advisory and 

Assistance Services 

1337.204 Guidelines for determining 

availability of personnel. 

The designee authorized to make the 

determinations described under FAR 

37.204 is set forth in CAM 1301.70. 

PART 1339—ACQUISITION OF 

INFORMATION TECHNOLOGY 

Subpart 1339.1—General 

Sec. 

1339.107 Contract clauses. 

1339.107–70 Information security. 

Subpart 1339.2—Electronic and Information 

Technology 

1339.270 Solicitation provisions and 

contract clauses. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1339.1—General 

1339.107 Contract clauses. 

Insert clause 1352.239–70, Software 

License Addendum, in all contracts 

when the primary purpose is to 

purchase new software licenses or 

renew existing licenses. 

1339.107–70 Information security. 

(a) For all service acquisitions over 

the micro-purchase threshold, 

contracting professionals shall 

coordinate with the designated 

Contracting Officer Representative 

(COR) to complete the Information 

Security in Acquisition Checklist. 

(b) When the Information Security in 

Acquisition Checklist indicates that 

Clause 1352.239–73, Security 

Requirements for Information 

Technology Resources, is needed, 

contracting officers shall insert the 

clause in the solicitation and contracts. 

If the checklist indicates that the 

Certification and Accreditation 

requirement in Clause 1352.239–73 is 

not required, the contracting officer 

shall include the statement ‘‘The 

Certification and Accreditation (C&A) 

requirements of Clause 1352.239–73 do 

not apply, and a Security Accreditation 

Package is not required’’ in the 

statement of work. 

(c) Contracting professionals shall 

insert the appropriate risk designation 

clause from CAM 1337.70 into DOC 

solicitations and contracts for services 

depending upon the level of contractor 

access privileges to DOC IT systems. In 

addition, contracting professionals shall 

document the official contract file to 

include the rationale for the designated 

risk level. 

Subpart 1339.2—Electronic and 

Information Technology 

1339.270 Solicitation provisions and 

contract clauses. 

(a) Insert provision substantially 

similar to 1352.239–71, Electronic and 

Information Technology, in solicitations 

for Electronic and Information (EIT) to 

which it applies. 

(b) Insert clause 1352.239–72, 

Security Requirements for Information 

Technology Resources, in all DOC 

solicitations and contracts for 

Information Technology services. The 

clause language may only be modified 

by adding more restrictive agency- or 

operating unit counsel -specific 

guidance. 

PART 1341—ACQUISITION OF UTILITY 

SERVICES 

Subpart 1341.2—Acquiring Utility Services 

Sec. 

1341.201 Policy. 

1341.202 Procedures. 

1341.204 GSA areawide contracts. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1341.2—Acquiring Utility 

Services 

1341.201 Policy. 

The designee authorized to enter into 

a contract pursuant to 42 U.S.C. 8287 

(regarding shared energy savings, 

including cogeneration) is set forth in 

CAM 1301.70. 

1341.202 Procedures. 

The designee authorized to approve a 

determination that a written contract 

cannot be obtained from a utility 

supplier refusing to execute a tendered 

contract, and that the issuance of a 

purchase order is not feasible, is set 

forth in CAM 1301.70. 

1341.204 GSA areawide Contracts. 

The designee authorized to determine 

that the use of an areawide contract is 

not advantageous to the Government is 

set forth in CAM 1301.70. 

SUBCHAPTER G—CONTRACT 

MANAGEMENT 

PART 1342—CONTRACT 

ADMINISTRATION 

Subpart 1342.1—Contract Audit Services 

Sec. 

1342.102 Assignment of contract audit 

services. 

1342.102–70 Interagency contract 

administration and audit services. 

Subpart 1342.2—Contract Administration 

Services 

1342.202 Assignment of contract 

administration. 


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Subpart 1342.5—Postaward Orientation 

1342.503 Postaward conferences. 

1342.503–70 Notice of postaward 

conference. 

Subpart 1342.6—Corporate Administrative 

Contracting Officer 

1342.602 Assignment and location. 

Subpart 1342.7—Indirect Cost Rates 

1342.703 General. 

1342.703–2 Certificate of indirect costs. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1342.1—Contract Audit 

Services 

1342.102 Assignment of contract audit 

services. 

1342.102–70 Interagency contract 

administration and audit services. 

(a) Generally, the final invoice shall 

not be approved until a close-out audit 

has been performed and all outstanding 

issues have been negotiated or resolved 

on the following types of contracts 

valued at $500,000 and above: 

(1) Cost-reimbursement type 

contracts; 

(2) The cost-reimbursement portion of 

fixed-price contracts; 

(3) Letter contracts which provide for 

reimbursement of costs; 

(4) Time-and-materials contracts; and 

(5) Labor-hour contracts. 

(b) If a close-out audit is not required, 

an audit may be requested regardless of 

the contract value when the contracting 

officer determines that an audit is 

justified under one of the following 

circumstances: 

(1) There is some evidence of fraud or 

waste; 

(2) The contractor’s performance 

under the contract has been 

questionable; 

(3) The contractor had a high 

incidence of unallowable costs under a 

previous contract; 

(4) The contract is with a newlyestablished firm, or a firm that has just 

begun dealing with the Government. 

Subpart 1342.2—Contract 

Administration Services 

1342.202 Assignment of contract 

administration. 

The designee authorized to approve 

delegations of CAO functions not listed 

in FAR 42.302 is set forth in CAM 

1301.70. 

Subpart 1342.5—Postaward 

Orientation 

1342.503 Postaward conferences. 

1342.503–70 Notice of postaward 

conference. 

Insert a provision similar to 

1352.242–70, Postaward Conference, in 

solicitations when the contracting 

officer determines that a postaward 

conference is needed. 

Subpart 1342.6—Corporate 

Administrative Contracting Officer 

1342.602 Assignment and location. 

The designee authorized to approve 

the need for a corporate administrative 

contracting officer is set forth in CAM 

1301.70. 

Subpart 1342.7—Indirect Cost Rates 

1342.703 General. 

1342.703–2 Certificate of indirect costs. 

The designee authorized to waive the 

requirement for contractor certification 

of proposed final indirect cost rates is 

set forth in CAM 1301.70. 

PART 1344—SUBCONTRACTING 

POLICIES AND PROCEDURES 

Subpart 1344.3—Contractors’ Purchasing 

Systems Reviews 

Sec. 

1344.302 Requirements. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1344.3—Contractors’ 

Purchasing Systems Reviews 

§ 1344.302 Requirements. 

The designee authorized to lower or 

raise the $25 million sales threshold for 

performing a review to determine if a 

contractor purchasing system review is 

needed is set forth in CAM 1301.70. 

PART 1345—GOVERNMENT 

PROPERTY 

Subpart 1345.1—General 

Sec. 

1345.107 Contract clauses. 

1345.107–70 Government furnished 

property. 

Subpart 1345.6—Reporting, Reutilization, 

and Disposal 

1345.604 Disposal of surplus property. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1345.1—General 

1345.107 Contract clauses. 

1345.107–70 Government furnished 

property. 

Insert clause 1352.245–70, 

Government Furnished Property, when 

Government property is to be furnished 

to the contractor and the contractor will 

be accountable for, and have 

stewardship of, the property. 

Subpart 1345.6—Reporting, 

Reutilization, and Disposal 

§ 1345.604 Disposal of surplus property. 

Surplus property shall be disposed of 

in accordance with procedures outlined 

in the DOC Personal Property 

Management Manual. 

PART 1346—QUALITY ASSURANCE 

Subpart 1346.4—Government Contract 

Quality Assurance 

Sec. 

1346.401 General. 

Subpart 1346.5—Acceptance 

1346.503 Place of acceptance. 

Subpart 1346.6—Material Inspection and 

Receiving Reports 

1346.601 General. 

Subpart 1346.7—Warranties 

1346.704 Authority for use of warranties. 

1346.705 Limitations. 

1346.710 Contract clauses. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1346.4—Government Contract 

Quality Assurance 

1346.401 General. 

Agency procedures for documenting 

government inspection are set forth 

under Subpart 1346.6. 

Subpart 1346.5—Acceptance 

1346.503 Place of acceptance. 

Insert a clause substantially similar to 

1352.246–70, Place of Acceptance, in 

contracts and solicitations to indicate 

where the acceptance of supplies and/ 

or services will take place. 

Subpart 1346.6—Material Inspection 

and Receiving Reports 

1346.601 General. 

Each DOC operating unit shall 

develop instructions and procedures 

regarding material inspection and 

receiving reports as appropriate. 


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Subpart 1346.7—Warranties 

1346.704 Authority for use of warranties. 

Contracting officers are authorized to 

approve the use of warranties. 

1346.705 Limitations. 

Warranties in cost reimbursement 

contracts are authorized. 

1346.710 Contract clauses. 

The warranty clauses and alternates 

under FAR Subpart 46.710 may be used 

in solicitations and contracts. 

PART 1348—VALUE ENGINEERING 

Subpart 1348.1—Policies and Procedures 

Sec. 

1348.102 Policies. 

Subpart 1348.2—Contract Clauses 

1348.201 Clauses for supply or service 

contracts. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1348.1—Policies and 

Procedures 

1348.102 Policies. 

(a) Contracting activities shall send 

contractor-submitted Value Engineering 

Change Proposals (VECPs) to the 

appropriate technical personnel for 

review. 

(b) Technical personnel shall conduct 

a comprehensive review of VECPs for 

technical feasibility, usefulness, and 

adequacy of the contractor’s estimate of 

cost savings; make a written report; and 

recommend acceptance or rejection to 

the contracting officer. 

(c) The designee authorized to grant 

exemptions from value engineering 

provisions in appropriate supply, 

service, architect-engineer and 

construction contracts is set forth in 

CAM 1301.70. 

Subpart 1348.2—Contract Clauses 

1348.201 Clauses for supply or service 

contracts. 

The designee authorized to grant 

exemptions from the requirements of 

FAR Part 48 for a contract or class of 

contracts is set forth in CAM 1301.70. 

PART 1349—TERMINATION OF 

CONTRACTS 

Subpart 1349.1—General Principles 

Sec. 

1349.106 Fraud or other criminal conduct. 

Subpart 1349.4—Termination for Default 

1349.402 Termination of fixed-price 

contracts for default. 

1349.402–3 Procedure for default. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1349.1—General Principles 

1349.106 Fraud or other criminal conduct. 

If the terminating contracting officer 

(TCO) suspects fraud or other criminal 

conduct related to the settlement of a 

terminated contract, the TCO shall 

immediately discontinue negotiations 

and prepare a written report concerning 

the matter. The report shall be 

submitted to the Bureau Procurement 

Official, the Office of Inspector General, 

and the DOC suspension and debarring 

official. An informational copy shall be 

provided to Procurement Counsel. 

Subpart 1349.4—Termination for 

Default 

1349.402 Termination of fixed-price 

contracts for default. 

1349.402–3 Procedure for default 

No action relating to a default 

termination, including issuance of a 

show cause letter, cure notice, or notice 

of default, shall be taken unless notice 

has been provided to Procurement 

Counsel and the Procurement Executive, 

and the action has been reviewed for 

legal sufficiency. 

PART 1350—EXTRAORDINARY 

CONTRACTUAL ACTIONS 

Subpart 1350.1—Extraordinary Contractual 

Actions 

Sec. 

1350.102 Delegation of and limitation on 

exercise of authority. 

1350.102–1 Delegation of authority. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1350.1—Extraordinary 

Contractual Actions 

1350.102 Delegation of and limitation on 

exercise of authority. 

1350.102–1 Delegation of authority. 

(a) The designee authorized to 

approve requests to obligate the 

government in excess of $55,000 under 

the extraordinary emergency authority 

set forth in CAM 1301.70. Such 

authority may not be delegated below 

the secretarial level for requests to 

obligate the Government in excess of 

$55,000. 

(b) The designee authorized to 

approve any amendment without 

consideration that increases the contract 

price or unit price is set forth in CAM 

1301.70. 

(c) The designee authorized to 

indemnify against unusually hazardous 

or nuclear risks, including extension of 

such indemnification to subcontracts, is 

set forth in CAM 1301.70. 

SUBCHAPTER H—CLAUSES AND FORMS 

PART 1352—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

Sec. 

1352.000 Scope of part. 

Subpart 1352.1—Instructions for Using 

Provisions and Clauses 

1352.102 Incorporating provisions and 

clauses. 

Subpart 1352.2—Text of Provisions and 

Clauses 

1352.200 Scope of subpart. 

1352.201–70 Contracting officer’s authority. 

1352.201–71 Ratification release. 

1352.201–72 Contracting officer’s 

representative (COR). 

1352.208–70 Restrictions on printing and 

duplicating. 

1352.209–70 Potential organizational 

conflict of interest. 

1352.209–71 Limitation of future 

contracting. 

1352.209–72 Restrictions against 

disclosure. 

1352.209–73 Compliance with the laws. 

1352.209–74 Organizational conflict of 

interest. 

1352.209–75 Title 13 and non-disclosure 

requirements. 

1352.213–70 Evaluation utilizing simplified 

acquisition procedures. 

1352.213–71 Instructions for submitting 

quotations under the simplified 

acquisition threshold—non-commercial. 

1352.215–70 Proposal preparation. 

1352.215–71 Instructions for oral 

presentations. 

1352.215–72 Inquiries. 

1352.215–73 Evaluation quantitiesindefinite quantity contract. 

1352.215–74 Best value evaluation. 

1352.215–75 Evaluation criteria. 

1352.215–76 Cost or pricing data. 

1352.216–70 Estimated and allowable costs. 

1352.216–71 Level of effort (cost-plus-fixedfee, term contract). 

1352.216–72 Determination of award fee. 

1352.216–73 Distribution of award fee. 

1352.216–74 Task orders. 

1352.216–75 Minimum and maximum 

contract amounts. 

1352.216–76 Placement of orders. 

1352.216–77 Ceiling price. 

1352.219–70 Section 8(a) direct award 

(Deviation). 

1352.219–71 Notification to delay 

performance (Deviation). 

1352.219–72 Notification of competition 

limited to eligible 8(a) concerns, 

Alternate III (Deviation). 

1352.227–70 Rights in data, assignment of 

copyright. 

1352.228–70 Insurance coverage. 

1352.228–71 Deductibles under required 

insurance coverage—cost 

reimbursement. 

1352.228–72 Deductibles under required 

insurance coverage—fixed price. 

1352.228–73 Loss of or damage to leased 

aircraft. 

1352.228–74 Fair market value of aircraft. 


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1352.228–75 Risk and indemnities. 

1352.228–76 Approval of group insurance 

plans. 

1352.231–70 Precontract costs. 

1352.231–71 Duplication of effort. 

1352.233–70 Agency protests. 

1352.233–71 GAO and Court of Federal 

Claims protests. 

1352.235–70 Protection of human subjects. 

1352.235–71 Protection of human 

subjects—exemption. 

1352.235–72 Protection of human 

subjects—institutional approval. 

1352.235–73 Research involving human 

subjects—after initial contract award. 

1352.237–70 Security processing 

requirements—high or moderate risk 

contracts. 

1352.237–71 Security processing 

requirements—low risk contracts. 

1352.237–72 Security processing 

requirements—national security 

contracts. 

1352.237–73 Foreign national visitor and 

guest access to departmental resources. 

1352.237–74 Progress reports. 

1352.237–75 Key personnel. 

1352.239–70 Software license addendum. 

1352.239–71 Electronic and information 

technology. 

1352.239–72 Security requirements for 

information technology resources. 

1352.242–70 Postaward conference. 

1352.245–70 Government furnished 

property. 

1352.246–70 Place of acceptance. 

1352.270–70 Period of performance. 

1352.270–71 Pre-bid/pre-proposal 

conference and site visit. 

1352.271–70 Inspection and manner of 

doing work. 

1352.271–71 Method of payment and 

invoicing instructions for ship repair. 

1352.271–72 Additional item requirements 

(AIR)—growth work. 

1352.271–73 Schedule of work. 

1352.271–74 Foreseeable cost factors 

pertaining to different shipyard 

locations. 

1352.271–75 Delivery and shifting of the 

vessel. 

1352.271–76 Performance. 

1352.271–77 Delays. 

1352.271–78 Minimization of delay due to 

Government furnished property. 

1352.271–79 Liability and insurance. 

1352.271–80 Title. 

1352.271–81 Discharge of liens. 

1352.271–82 Department of Labor 

occupational safety and health standards 

for ship repair. 

1352.271–83 Government review, comment, 

acceptance and approval. 

1352.271–84 Access to the vessel. 

1352.271–85 Documentation of requests for 

equitable adjustment. 

1352.271–86 Lay days. 

1352.271–87 Changes—ship repair. 

1352.271–88 Guarantees. 

1352.271–89 Temporary services. 

1352.271–90 Insurance requirements. 

Subpart 1352.3—Provisions and 

Clauses Matrix 

1352.301 Solicitation provisions and 

contract clauses (Matrix). 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

1352.000 Scope of part. 

This part sets forth solicitation 

provisions and contract clauses, in 

addition to those prescribed in FAR Part 

52, for use in DOC acquisitions. 

Subpart 1352.1—Instructions for Using 

Provisions and Clauses 

1352.102 Incorporating provisions and 

clauses. 

As stated in the FAR, provisions and 

clauses should be incorporated by 

reference in solicitations and contracts 

to the maximum practical extent, rather 

than being incorporated in full text. 

Incorporation by reference is the listing 

only by title, regulatory citation, and 

date of the provision or clause. The full 

text of the referenced solicitation 

provision or contract clause is contained 

in the Code of Federal Regulations 

(CFR). FAR provisions and clauses are 

located at 48 CFR Chapter 1 and CAM 

provisions and clauses are located at 48 

CFR Chapter 13. 

Subpart 1352.2—Text of Provisions 

and Clauses 

1352.200 Scope of subpart. 

This subpart sets forth the text of all 

CAR provisions and clauses and 

provides a cross-reference to the 

location in the CAR that prescribes their 

use. 

1352.201–70 Contracting Officer’s 

Authority. 

As prescribed in 48 CFR 1301.602– 

170, insert the following clause: 

CONTRACTING OFFICER’S AUTHORITY. 

The Contracting Officer is the only person 

authorized to make or approve any changes 

in any of the requirements of this contract, 

and, notwithstanding any provisions 

contained elsewhere in this contract, the said 

authority remains solely in the Contracting 

Officer. In the event the contractor makes any 

changes at the direction of any person other 

than the Contracting Officer, the change will 

be considered to have been made without 

authority and no adjustment will be made in 

the contract terms and conditions, including 

price. 

(End of clause) 

1352.201–71 Ratification release. 

As prescribed in 48 CFR 1301.602–3, 

insert the following clause: 

RATIFICATION RELEASE (DATE) 

(a) The Government agrees to pay the 

contractor $llll for the following items/ 

services: 

lllllllllllllllllllll

lllllllllllllllllllll

(b) In consideration for the sum stated 

above, which is to be paid to the Contractor, 

or its assignees, the Contractor, upon 

payment of the said sum by the UNITED 

STATES OF AMERICA (hereinafter called 

the Government), does remise, release, and 

discharge the Government, its officers, 

agents, and employees of and from all 

liabilities, obligations, claims, and demands 

whatsoever under or arising from the said 

contract, except: 

(1) Specified claims in stated amounts or 

in estimated amounts where the amounts are 

not susceptible of exact statement by the 

Contractor, as follows: (or state ‘‘None’’). 

(2) Claims, together with reasonable 

expenses incidental thereto, based upon the 

liabilities of the Contractor to third parties 

arising out of the performance of this 

contract, which are not known to the 

Contractor on the date of the execution of 

this release and of which the Contractor gives 

notice in writing to the Contracting Officer 

within the period specified in said contract. 

(3) Claims for reimbursement of costs 

(other than expenses of the Contractor by 

reason of his indemnification of the 

Government against patent liability) 

including reasonable expenses incidental 

thereto, incurred by the Contractor under any 

provisions of the said contract relating to 

patents. 

(c) The Contractor agrees, in connection 

with patent matters and with claims which 

are not released as set forth above, that it will 

comply with provisions of the said contract, 

including without limitation, those 

provisions relating to notification to the 

Contracting Officer and relating to the 

defense or prosecution of litigation. 

Contractor’s Signature: llllllllll

Date: llllllllllllllllll

(End of clause) 

1352.201–72 Contracting Officer’s 

Representative (COR). 

As prescribed in 48 CFR 1301.670–70, 

insert the following clause: 

CONTRACTING OFFICER’S 

REPRESENTATIVE (COR) (DATE) 

(a) ___________ is hereby designated as the 

Contracting Officer’s Representative (COR). 

The COR may be changed at any time by the 

Government without prior notice to the 

contractor by a unilateral modification to the 

contract. The COR is located at: 

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Phone Number: lllllllllllll

E-mail: lllllllllllllllll

(b) The responsibilities and limitations of 

the COR are as follows: 

(1) The COR is responsible for the 

technical aspects of the contract and serves 

as technical liaison with the contractor. The 

COR is also responsible for the final 

inspection and acceptance of all deliverables 

and such other responsibilities as may be 

specified in the contract. 

(2) The COR is not authorized to make any 

commitments or otherwise obligate the 

Government or authorize any changes which 

affect the contract price, terms or conditions. 

Any contractor request for changes shall be 


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referred to the Contracting Officer directly or 

through the COR. No such changes shall be 

made without the express written prior 

authorization of the Contracting Officer. The 

Contracting Officer may designate assistant 

or alternate COR(s) to act for the COR by 

naming such assistant/alternate(s) in writing 

and transmitting a copy of such designation 

to the contractor. 

(End of clause) 

1352.208–70 Restrictions on printing and 

duplicating. 

As prescribed in 48 CFR 1308.802–70, 

insert the following clause: 

RESTRICTIONS ON PRINTING AND 

DUPLICATING (DATE) 

(a) The contractor is authorized to 

duplicate or copy production units provided 

the requirement does not exceed 5,000 

production units of any one page or 25,000 

production units in the aggregate of multiple 

pages. Such pages may not exceed a 

maximum image size of 103⁄4 by 141⁄4 inches. 

A ‘‘production unit’’ is one sheet, size 81⁄2 x 

11 inches (215 x 280 mm), one side only, and 

one color ink. Production unit requirements 

are outlined in the Government Printing and 

Binding Regulations. 

(b) This clause does not preclude writing, 

editing, preparation of manuscript copy, or 

preparation of related illustrative material as 

a part of this contract, or administrative 

duplicating/copying (for example, necessary 

forms and instructional materials used by the 

contractor to respond to the terms of the 

contract). 

(c) Costs associated with printing, 

duplicating, or copying in excess of the limits 

in paragraph (a) of this clause are 

unallowable without prior written approval 

of the Contracting Officer. If the contractor 

has reason to believe that any activity 

required in fulfillment of the contract will 

necessitate any printing or substantial 

duplicating or copying, it shall immediately 

provide written notice to the Contracting 

Officer and request approval prior to 

proceeding with the activity. Requests will be 

processed by the Contracting Officer in 

accordance with FAR 8.802. 

(d) The contractor shall include in each 

subcontract which may involve a 

requirement for any printing, duplicating, 

and copying in excess of the limits specified 

in paragraph (a) of this clause, a provision 

substantially the same as this clause, 

including this paragraph (d). 

(End of clause) 

1352.209–70 Potential organizational 

conflict of interest. 

As prescribed in 48 CFR 1309.507– 

1(a), insert the following provision, 

modified appropriately: 

POTENTIAL ORGANIZATIONAL 

CONFLICT OF INTEREST (DATE) 

(a) There is a potential organizational 

conflict of interest (see FAR Subpart 9.5, 

Organizational and Consultant Conflicts of 

Interest) due to [state the nature of the 

potential conflict]. Accordingly: 

(1) Restrictions are needed to ensure that 

(state the nature of the proposed restraint 

and the applicable time period). 

(2) As a part of the proposal, the offeror 

shall provide the Contracting Officer with 

complete information regarding previous or 

ongoing work that is in any way associated 

with the contemplated acquisition. 

(b) If award is made to the offeror, the 

resulting contract may include an 

organizational conflict of interest limitation 

applicable to subsequent Government work, 

at either a prime contract level, at any 

subcontract tier, or both. During evaluation of 

proposals, the Government may, after 

discussions with the offeror and 

consideration of ways to avoid the conflict of 

interest, insert a provision in the resulting 

contract that shall disqualify the offeror from 

further consideration for award of specified 

future contracts. 

(c) The organizational conflict of interest 

clause included in this solicitation may be 

modified or deleted during negotiations. 

Alternate I (DATE). At the discretion of the 

Contracting Officer, substitute the following 

paragraph (b) for paragraphs (b) and (c) in the 

basic provision: 

(b) The organizational conflict of interest 

clause in this solicitation may not be 

modified or deleted. 

(End of clause) 

1352.209–71 Limitation of future 

contracting. 

As prescribed in 48 CFR 1309.507– 

2(a), insert the following clause: 

LIMITATION OF FUTURE CONTRACTING 

(DATE) 

(a) The following restrictions and 

definitions apply to prevent conflicting roles, 

which may bias the contractor’s judgment or 

objectivity, or to preclude the contractor from 

obtaining an unfair competitive advantage in 

concurrent or future acquisitions. 

(1) Descriptions or definitions: 

(i) ‘‘Contractor’’ means the business entity 

receiving the award of this contract, its 

parents, affiliates, divisions and subsidiaries, 

and successors in interest. 

(ii) ‘‘Development’’ means all efforts 

towards solution of broadly defined 

problems. This may encompass research, 

evaluating technical feasibility, proof of 

design and test, or engineering of programs 

not yet approved for acquisition or operation. 

(iii) ‘‘Proprietary Information’’ means all 

information designated as proprietary in 

accordance with law and regulation, and 

held in confidence or disclosed under 

restriction to prevent uncontrolled 

distribution. Examples include limited or 

restricted data, trade secrets, sensitive 

financial information, and computer 

software; and may appear in cost and pricing 

data or involve classified information. 

(iv) ‘‘System’’ means the system that is the 

subject of this contract. 

(v) ‘‘System Life’’ means all phases of the 

system’s development, production, or 

support. 

(vi) ‘‘Systems Engineering’’ means 

preparing specifications, identifying and 

resolving interface problems, developing test 

requirements, evaluating test data, and 

supervising design. 

(vii) ‘‘Technical Direction’’ means 

developing work statements, determining 

parameters, directing other contractors’ 

operations, or resolving technical 

controversies. 

(2) Restrictions: The contractor shall 

perform systems engineering and/or 

technical direction, but will not have overall 

contractual responsibility for the system’s 

development, integration, assembly and 

checkout, or production. The parties 

recognize that the contractor shall occupy a 

highly influential and responsible position in 

determining the system’s basic concepts and 

supervising their execution by other 

contractors. The contractor’s judgment and 

recommendations must be objective, 

impartial, and independent. To avoid the 

prospect of the contractor’s judgment or 

recommendations being influenced by its 

own products or capabilities, it is agreed that 

the contractor is precluded for the life of the 

system from award of a DOC contract to 

supply the system or any of its major 

components, and from acting as a 

subcontractor or consultant to a DOC 

supplier for the system or any of its major 

components. 

Alternate I (DATE). As prescribed in CFR 

1309.507–2(a)(2), either substitute paragraph 

(a)(2) of the basic clause with one or both of 

the following paragraphs, or use one or both 

in addition to the basic paragraph (a)(2). 

(a)(2)(i) The contractor shall prepare and 

submit complete specifications for 

nondevelopmental items to be used in a 

competitive acquisition. The contractor shall 

not furnish these items to DOC, either as a 

prime contractor or subcontractor, for the 

duration of the initial production contract 

plus [insert a specific period of time or an 

expiration date]. 

(ii) The contractor shall either prepare or 

assist in preparing a work statement for use 

in competitively acquiring the [identify the 

system or services], or provide material 

leading directly, predictably, and without 

delay to such a work statement. The 

contractor may not supply [identify the 

services, the system, or the major 

components of the system] for a period [state 

the duration of the constraint, however, the 

duration of the initial production contract 

shall be the minimum], as either the prime 

or subcontractor unless it becomes the sole 

source, has participated in the design or 

development work, or more than one 

contractor has participated in preparing the 

work statement. 

Alternate II (DATE). As prescribed in 48 

CFR 1309.507–2(a)(3), either substitute 

paragraph (a) (2) of the basic clause with the 

following paragraph, or add the following in 

addition to the basic restriction. Redesignate 

the paragraphs as needed if more than one 

restriction applies. 

(a)(2) The contractor shall participate in 

the technical evaluation of other contractors’ 

proposals or products. To ensure objectivity, 

the contractor is precluded from award of 

any supply or service contract or subcontract 

for the system or its major components. This 

restriction shall be effective for (insert a 

definite period of time). 


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Alternate III (DATE). As prescribed in 48 

CFR 1309.507–2(a)(4), add the following 

paragraph (b) to the basic clause: 

(b) The contractor may gain access to 

proprietary information of other companies 

during contract performance. The contractor 

agrees to enter into company-to-company 

agreements to protect another company’s 

information from unauthorized use or 

disclosure for as long as it is considered 

proprietary by the other company, and to 

refrain from using the information for any 

purpose other than that for which it was 

furnished. For information purposes, the 

contractor shall furnish copies of these 

agreements to the Contracting Officer. These 

agreements are not intended to protect 

information which is available to the 

Government or to the contractor from other 

sources and information furnished 

voluntarily without restriction. 

Alternate IV (DATE). As prescribed in 48 

CFR 1309.507–2(a)(5), add the following 

paragraph (b) to the basic clause substantially 

as written. If Alternate III is also used, 

designate this paragraph (c). 

(b) The contractor agrees to accept and to 

complete all issued task orders, and to not 

contract with Government prime contractors 

or first-tier subcontractors in such a way as 

to create an organizational conflict of 

interest. 

Alternate V (DATE). As prescribed in 48 

CRF 1309.507–2(a)(6), add the following 

paragraph (b) to the basic clause. If more than 

one Alternate is used, redesignate this 

paragraph accordingly. 

(b) The contractor agrees to accept and to 

complete issued delivery orders, provided 

that no new organizational conflicts of 

interest are created by the acceptance of such 

orders. The Contracting Officer shall identify 

any and all organizational conflicts of 

interest in each order. The contractor shall 

not contract with Government prime 

contractors or first-tier subcontractors in such 

a way as to create an organizational conflict 

of interest. 

Alternative VI (DATE). As prescribed in 48 

CFR 1309.507–2(a)(7), add the following 

paragraph (b) to the basic clause. If either 

Alternate III or IV or both are used, 

redesignate this paragraph accordingly. 

(b) The above restrictions shall be included 

in all subcontracts, teaming arrangements, 

and other agreements calling for performance 

of work which is subject to the organizational 

conflict of interest restrictions identified in 

this clause, unless excused in writing by the 

Contracting Officer. 

(End of clause) 

1352.209–72 Restrictions against 

disclosure. 

As prescribed in 48 CFR 1309.507– 

2(b), insert the following clause: 

RESTRICTIONS AGAINST DISCLOSURE 

(DATE) 

(a) The contractor agrees, in the 

performance of this contract, to keep the 

information furnished by the Government or 

acquired/developed by the contractor in 

performance of the contract and designated 

by the Contracting Officer or Contracting 

Officer’s Representative, in the strictest 

confidence. The contractor also agrees not to 

publish or otherwise divulge such 

information, in whole or in part, in any 

manner or form, nor to authorize or permit 

others to do so, taking such reasonable 

measures as are necessary to restrict access 

to such information while in the contractor’s 

possession, to those employees needing such 

information to perform the work described 

herein, i.e., on a ‘‘need to know’’ basis. The 

contractor agrees to immediately notify the 

Contracting Officer in writing in the event 

that the contractor determines or has reason 

to suspect a breach of this requirement has 

occurred. 

(b) The contractor agrees that it will not 

disclose any information described in 

subsection (a) to any person unless prior 

written approval is obtained from the 

Contracting Officer. The contractor agrees to 

insert the substance of this clause in any 

consultant agreement or subcontract 

hereunder. 

(End of clause) 

1352.209–73 Compliance with the laws. 

As prescribed in 48 CFR 1309.507– 

2(c), insert the following clause: 

COMPLIANCE WITH THE LAWS (DATE) 

The contractor shall comply with all 

applicable laws, rules and regulations which 

deal with or relate to performance in accord 

with the terms of the contract. 

(End of clause) 

1352.209–74 Organizational conflict of 

interest. 

As prescribed in 48 CFR 1309.507– 

2(d), insert the following clause: 

ORGANIZATIONAL CONFLICT OF 

INTEREST (DATE) 

(a) Purpose. The purpose of this clause is 

to ensure that the contractor and its 

subcontractors: 

(1) Are not biased because of their 

financial, contractual, organizational, or 

other interests which relate to the work 

under this contract, and 

(2) Do not obtain any unfair competitive 

advantage over other parties by virtue of their 

performance of this contract. 

(b) Scope. The restrictions described herein 

shall apply to performance or participation 

by the contractor, its parents, affiliates, 

divisions and subsidiaries, and successors in 

interest (hereinafter collectively referred to as 

‘‘contractor’’) in the activities covered by this 

clause as a prime contractor, subcontractor, 

co-sponsor, joint venturer, consultant, or in 

any similar capacity. For the purpose of this 

clause, affiliation occurs when a business 

concern is controlled by or has the power to 

control another or when a third party has the 

power to control both. 

(c) Warrant and Disclosure. The warrant 

and disclosure requirements of this 

paragraph apply with full force to both the 

contractor and all subcontractors. The 

contractor warrants that, to the best of the 

contractor’s knowledge and belief, there are 

no relevant facts or circumstances which 

would give rise to an organizational conflict 

of interest, as defined in FAR Subpart 9.5, 

and that the contractor has disclosed all 

relevant information regarding any actual or 

potential conflict. The contractor agrees it 

shall make an immediate and full disclosure, 

in writing, to the Contracting Officer of any 

potential or actual organizational conflict of 

interest or the existence of any facts that may 

cause a reasonably prudent person to 

question the contractor’s impartiality because 

of the appearance or existence of bias or an 

unfair competitive advantage. Such 

disclosure shall include a description of the 

actions the contractor has taken or proposes 

to take in order to avoid, neutralize, or 

mitigate any resulting conflict of interest. 

(d) Remedies. The Contracting Officer may 

terminate this contract for convenience, in 

whole or in part, if the Contracting Officer 

deems such termination necessary to avoid, 

neutralize or mitigate an actual or apparent 

organizational conflict of interest. If the 

contractor fails to disclose facts pertaining to 

the existence of a potential or actual 

organizational conflict of interest or 

misrepresents relevant information to the 

Contracting Officer, the Government may 

terminate the contract for default, suspend or 

debar the contractor from Government 

contracting, or pursue such other remedies as 

may be permitted by law or this contract. 

(e) Subcontracts. The contractor shall 

include a clause substantially similar to this 

clause, including paragraphs (f) and (g), in 

any subcontract or consultant agreement at 

any tier expected to exceed the simplified 

acquisition threshold. The terms ‘‘contract,’’ 

‘‘contractor,’’ and ‘‘Contracting Officer’’ shall 

be appropriately modified to preserve the 

Government’s rights. 

(f) Prime Contractor Responsibilities. The 

contractor shall obtain from its 

subcontractors or consultants the disclosure 

required in FAR Part 9.507–1, and shall 

determine in writing whether the interests 

disclosed present an actual, or significant 

potential for, an organizational conflict of 

interest. The contractor shall identify and 

avoid, neutralize, or mitigate any 

subcontractor organizational conflict prior to 

award of the contract to the satisfaction of the 

Contracting Officer. If the subcontractor’s 

organizational conflict cannot be avoided, 

neutralized, or mitigated, the contractor must 

obtain the written approval of the 

Contracting Officer prior to entering into the 

subcontract. If the contractor becomes aware 

of a subcontractor’s potential or actual 

organizational conflict of interest after 

contract award, the contractor agrees that the 

Contractor may be required to eliminate the 

subcontractor from its team, at the 

contractor’s own risk. 

(g) Waiver. The parties recognize that this 

clause has potential effects which will 

survive the performance of this contract and 

that it is impossible to foresee each 

circumstance to which it might be applied in 

the future. Accordingly, the contractor may at 

any time seek a waiver from the Head of the 

Contracting Activity by submitting such 

waiver request to the Contracting Officer, 

including a full written description of the 

requested waiver and the reasons in support 

thereof. 


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(End of clause) 

1352.209–75 Title 13 and non-disclosure 

requirements. 

As prescribed in 48 CFR 1309.507– 

2(e), insert the following clause: 

TITLE 13 AND NON-DISCLOSURE 

REQUIREMENTS (DATE) 

The Census Bureau’s data are protected by 

Title 13 of the United States Code. The 

contractor may not use Title 13 data for any 

purpose other than the intended purpose for 

which it is supplied or obtained. All 

contractor personnel who will have access to 

Title 13 data must take an oath and complete 

the Census Bureau Form BC–1759 (Special 

Sworn Status) that requires nondisclosure of 

Title 13 data. An authorized Census 

employee or a Notary Public must administer 

the oath of nondisclosure. 

(End of clause) 

1352.213–70 Evaluation utilizing simplified 

acquisition procedures. 

As prescribed in 48 CFR 1313.106–2– 

70, insert the following provision: 

EVALUATION UTILIZING SIMPLIFIED 

ACQUISITION PROCEDURES (DATE) 

The Government will issue an order 

resulting from this request for quotation to 

the responsible offeror whose quotation 

results in the best value to the Government, 

considering both price and non-price factors. 

The following factors will be used to evaluate 

quotations: 

[This section is to be tailored to conform 

to individual procurements. Text is provided 

as an example only. Stating relative 

importance of the evaluation factors is not 

required.] 

(1) Personnel Qualifications. The 

experience, education, and qualifications of 

personnel proposed to work on the contract 

will be evaluated to determine their ability to 

perform their proposed duties. 

(2) Technical Approach and Capability. 

The offeror’s approach to performing contract 

requirements and its capability to 

successfully perform the contract will be 

evaluated. 

(3) Past Performance. The offeror’s past 

performance on related contracts will be 

evaluated to determine, as appropriate, 

successful performance of contract 

requirements, quality and timeliness of 

delivery of goods and services, cost 

management, communications between 

contracting parties, proactive management 

and customer satisfaction. 

(4) Price. 

(End of clause) 

1352.213–71 Instructions for submitting 

quotations under the simplified acquisition 

threshold—non-commercial. 

As prescribed in 48 CFR 1313.302–1– 

70, insert the following provision: 

INSTRUCTIONS FOR SUBMITTING 

QUOTATIONS UNDER THE SIMPLIFIED 

ACQUISITION THRESHOLD—NONCOMMERCIAL (DATE) 

(a) North American Industry Classification 

System (NAICS) code and small business size 

standard. The NAICS code and small 

business size standard for this acquisition is 

llll. 

(b) Submission of quotations. Submit 

quotations to the office specified in this 

solicitation at or before the exact time 

specified in this solicitation. At a minimum, 

quotations must show— 

(1) The solicitation number; 

(2) The name, address, and telephone 

number of the offeror; 

(3) Acknowledgment of solicitation 

amendments; 

(4) A technical description showing that 

the offeror can supply the requirements in 

the specifications or statement of work in 

sufficient detail to allow the Government to 

evaluate the quotation in accordance with the 

evaluation factors stated in the solicitation. 

(5) Past performance information, when 

included as an evaluation factor, to include 

recent and relevant contracts for the same or 

similar items and reference information 

(including contract numbers, points of 

contact with telephone numbers and other 

relevant information). 

(6) Price and any supporting details for the 

price, as requested in the solicitation. 

(c) Offerors are responsible for submitting 

quotations, and any modifications thereto, so 

as to reach the Government office designated 

in the solicitation by the time specified. The 

offeror’s initial quotation should contain the 

offeror’s best terms from a price and 

technical standpoint. The Government may 

reject any or all quotations if such action is 

in the public interest; accept other than the 

lowest quotation; and waive informalities 

and minor irregularities in quotations 

received. 

(End of clause) 

1352.215–70 Proposal preparation. 

As prescribed in 48 CFR 1315.204– 

570(a)(1), insert the following provision, 

tailored as applicable: 

PROPOSAL PREPARATION (DATE) 

(a) General Instructions. Proposals are 

expected to conform to solicitation 

provisions and be prepared in accordance 

with this section. To aid in evaluation, the 

proposal shall be clearly and concisely 

written, neatly presented, indexed (crossindexed as appropriate), and logically 

assembled. All pages of each part shall be 

appropriately numbered and identified with 

the name of the offeror, the date of the offer, 

and the solicitation number. Each volume 

shall be clearly marked by volume number 

and title. 

(b) Overall Arrangement of Proposal. (1) 

VOLUME I—BUSINESS PROPOSAL 

(i) Volume I, Business Proposal, consists of 

the actual offer to enter into a contract to 

perform the desired work. It also includes 

required representations, certifications, and 

acknowledgments, if applicable; 

justifications for noncompetitive proposed 

subcontracts; identification of technical data 

to be withheld; and any other required 

administrative information. 

(ii) Format and Content. Volume I, 

Business Proposal, shall include the 

following documents (in the order listed): 

(A) Proposal Form: 

(1) Use of the Form—The Proposal Form 

(Standard Form 33 or 1449), is to be executed 

fully and used as the cover sheet (or first 

page) of Volume I. Include three (3) original 

signed copies of the form in the original 

Volume I. 

(2) Acceptance Period—The acceptance 

period entered on the Proposal Form by the 

offeror shall not be less than that prescribed 

in the solicitation, which shall apply if no 

other period is offered. 

(3) Signature Authority—The person 

signing the Proposal Form must have the 

authority to commit the offeror to all of the 

provisions of the proposal, fully recognizing 

that the Government has the right, by terms 

of the Solicitation, to make an award without 

discussion if it so elects. 

(B) Other documentation identified in 

Section (A) above. The offeror shall submit 

one original of Volume I, marked as such. 

(2) VOLUME II—TECHNICAL PROPOSAL 

(i) General. (A) Volume II, technical 

proposal, consists of the offeror’s proposal 

delineating its capabilities and how it 

intends to perform contract requirements. 

The Technical proposal will be evaluated in 

accord with the criteria contained in Section 

M. 

(B) In order that the technical proposal 

may be evaluated strictly on the merit of the 

material submitted, no contractual price 

information is to be included in Volume II. 

However, the type and quantity of labor and 

materials is to be included in the Technical 

Proposal, without any associated cost 

information. 

(C) The technical proposal must be typed, 

double-spaced, with one inch margins, using 

elite font, 12 pitch type (or equivalent) and 

printed, unreduced in size, on 81⁄2′′ by 11′′ 

paper, not exceeding ll pages, singlesided, exclusive of resumes and related 

corporate experience documentation. Any 

pages in excess of ll will be disregarded, 

and will not be included in the proposal 

evaluation. Failure of the offeror to comply 

with the page limitations, resulting in the 

excess pages not being evaluated, shall not 

constitute grounds for a protest. 

(ii) Format and Content. Volume II, 

Technical Proposal, shall include the 

following contents: 

(A) Table of Contents 

(B) List of Tables and Figures 

(C) Summary of Technical Proposal 

(D) Technical Proposal 

(E) Exceptions and Deviations. These major 

headings may be subdivided or 

supplemented by the offeror as appropriate. 

(1) Summary. This section shall provide a 

summary that addresses each of the technical 

evaluation factors set out in Section M. 

(2) Technical Proposal. The offeror shall 

clearly address each of the technical 

evaluation criteria in Section M, and, at a 

minimum, cover each subfactor. 

(3) Exceptions and Deviations. This section 

shall identify and explain any exceptions or 


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deviations taken to any part of the 

solicitation or conditional assumptions made 

with respect to the technical requirements of 

the solicitation. Offerors should note that 

taking exceptions to the Government’s 

requirements may indicate an unwillingness 

or inability to perform the contract, and the 

proposal may be evaluated as such. 

(iii) Specific areas to be addressed: 

[This section is to be tailored to conform 

to the technical evaluation factors. Text is 

provided as an example. Provide instructions 

concerning what information is required in 

order to evaluate proposals in accord with 

the evaluation factors. Do not request 

information that is not covered in an 

evaluation factor.] 

Evaluation Factor 1—Technical Approach. 

Provide information on how the project is to 

be organized, staffed, and managed that 

demonstrates the offeror’s understanding and 

effective management of important events or 

tasks. If applicable, the offeror shall (i) 

describe the facilities and equipment which 

will be used in the performance of the 

contract, and (ii) how the management and 

coordination of consultant and subcontractor 

efforts will be accomplished. Fully discuss 

how the contract requirements will be met 

and the means used to accomplish them. 

Merely repeating the contract requirements 

and stating that they will be accomplished, 

without discussing how the offeror will 

accomplish them, is not acceptable. 

Evaluation Factor 2—Experience. In a 

general fashion, describe the offeror’s 

experience and qualifications to perform the 

contract requirements. Explain how the 

experience provides confidence that the 

offeror can perform all contract requirements. 

Evaluation Factor 3—Key Personnel. 

Provide the names, titles, and a description 

of the duties of those individuals proposed 

as key personnel to be assigned to the 

contract. For each key person, submit a 

resume that provides information concerning 

their education, background, recent work 

experience, and accomplishments. Specify 

the approximate percentage of time each 

individual will be available for this project, 

and, if necessary, explain why the key person 

possesses the qualifications to perform the 

proposed position. 

Evaluation Factor 4—Past Performance. 

Complete the Past Performance 

Questionnaire (Attachment X) for all 

contracts containing requirements similar in 

scope those in the Statement of Work 

performed in whole or part over the last ll 

years. References can include both 

Government and commercial contracts and 

subcontracts. 

The offeror shall submit one original of 

Volume II, marked as such, and llll 

copies. 

(3) Volume III—Price/cost proposal 

(i) Price/Cost proposals must generally 

adhere to the pricing structure established in 

Section B, Schedule of Prices. The offeror 

shall submit one original of Volume III, 

marked as such, and llll copies. 

[INSERT FOR COST TYPE CONTRACTS:] 

(ii) The offeror must also submit the 

following detailed information to support its 

proposed costs, as applicable: 

(A) Direct Labor: Breakdown of direct labor 

cost by named person or labor category 

including number of labor-hours and current 

actual average hourly rates based on a work 

year of 2,080 hours. Indicate whether current 

rates or escalated rates are used. If escalation 

is included, state the degree (percent) and 

methodology. Direct labor or levels of effort 

are to be identified as labor-hours and not as 

a percentage of an individual’s time. Indicate 

fringe benefit rate, if separate from indirect 

cost rate. 

(B) Other Direct Costs: Specify the amount 

proposed for duplication/reproduction, 

meetings and conferences, postage, 

communication and any other applicable 

items. Travel, subsistence and local 

transportation shall be supported with a 

breakdown, which shall include: number of 

trips anticipated, number of person days, 

cost-per-trip-per person, destination(s) 

proposed, number of person(s) scheduled for 

travel, mode of transportation, and mileage 

allowances, if privately-owned vehicles will 

be used. 

(C) Materials: Cost breakdown of materials 

or equipment must be supported with the 

methodology used and vendor quotations 

supplied as applicable. 

(D) Consultants: If consultants are 

proposed, state the total estimated price of 

the services to be required and the 

consultant’s quoted daily or hourly rate. 

Include Consulting Agreements entered into 

between consultant(s) and the offeror, or 

invoices submitted by consultant(s) for 

similar services previously provided to the 

offeror. 

(E) Subcontracts: If proposed, cost 

information for each subcontractor shall be 

furnished in the same format and level of 

detail as prescribed for the prime offeror. 

Additionally, in relation to such 

subcontracts, the offeror shall submit the 

following information: 

(1) A description of the items to be 

furnished by the subcontractor; 

(2) Identification of the proposed 

subcontractor and an explanation of why and 

how the proposed subcontractor was 

selected, including the extent of competition; 

(3) The proposed subcontract price and 

cost detail and performance/delivery 

schedule; and 

(4) Identification of the type of subcontract 

to be used. 

(F) Indirect Rates: Offerors lacking 

Government-approved indirect cost rates 

must provide detailed background data 

indicating the cost elements included in the 

applicable pool and a statement that such 

treatment is in accordance with the 

company’s established accounting practice. 

Offerors with established rate agreements 

with cognizant Federal agencies shall submit 

one copy of such agreements. 

(G) Profit: Specify the profit proposed and 

the rationale justifying the amount of profit. 

[INSERT FOR FIXED-PRICE TYPE 

CONTRACTS:] 

(iii) Each offeror’s price proposal must be 

based on the offeror’s own technical 

proposal, the Government’s specifications, 

and other contractual requirements. If the 

prices to be used are based on a published 

price list or catalog, the offeror shall so state, 

and provide a copy of the document with its 

price proposal. If the prices are to be based 

on established market prices, not otherwise 

published, or are prices applicable only to 

the proposed contract, the offeror shall so 

state. 

(iv) The Government expects that this 

contract will be awarded based upon 

adequate price competition. However, in 

order to determine that offered prices are fair 

and reasonable, the Government reserves the 

right to request that the offeror to provide 

cost breakdowns to support proposed prices. 

Information to support unit prices should 

include, but not be limited to, the following: 

(A) Salary/wage information with 

associated payroll expenses, for personnel to 

be used in performance of the contract; 

(B) Cost for equipment, supplies, and 

consumable materials; 

(C) A breakout of related support costs, 

such as equipment maintenance, rental, 

transportation, etc.; 

(D) Overhead costs; 

(E) General Administrative expenses; and 

(F) Profit 

(End of clause) 

1352.215–71 Instructions for oral 

presentations. 

As prescribed in 48 CFR 1315.204– 

570(a)(2), insert the following provision: 

INSTRUCTIONS FOR ORAL 

PRESENTATIONS (DATE) 

The Government intends to conduct oral 

presentations with the offerors in the 

competitive range as part of the evaluation 

process. 

Oral presentations will be conducted at the 

following location: 

[INSERT LOCATION] 

The Contracting Officer will determine the 

order of oral presentations and the schedule. 

The Contracting Officer will contact each 

offeror to schedule the date and time for oral 

presentations and provide detailed 

instructions. Once a presentation date and 

time are confirmed, rescheduling is at the 

discretion of the Contracting Officer. 

(End of clause) 

1352.215–72 Inquiries. 

As prescribed in 48 CFR 1315.204– 

570(a)(3), insert the following provision: 

INQUIRIES (DATE) 

Offerors must submit all questions 

concerning this solicitation in writing to 

ll. Questions should be received no later 

than ll calendar days after the issuance 

date of this solicitation. Any responses to 

questions will be made in writing, without 

identification of the questioner, and will be 

included in an amendment to the 

solicitation. Even if provided in other form, 

only the question responses included in the 

amendment to the solicitation will govern 

performance of the contract. 

(End of clause) 

1352.215–73 Evaluation quantities— 

indefinite quantity contract. 

As prescribed in 48 CFR 1315.204– 

570(b)(1), insert the following provision: 


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EVALUATION QUANTITIES—INDEFINITE 

QUANTITY CONTRACT (DATE) 

To evaluate offers for award purposes, the 

Government will apply the offeror’s proposed 

fixed-prices/rates to the estimated quantities 

included in the solicitation (and add to this 

amount other direct costs, if applicable). 

(End of clause) 

1352.215–74 Best value evaluation. 

As prescribed in 48 CFR 1315.204– 

570(b)(2), insert the following provision: 

BEST VALUE EVALUATION (DATE) 

(a) Award will be made to the offeror: 

whose offer conforms to the solicitation 

requirements; who is determined responsible 

in accordance with FAR Subpart 9.1 by 

possessing the financial and other 

capabilities to fulfill the requirements of the 

contract; and whose proposal is judged, by an 

integrated assessment of price/cost and nonprice evaluation factors, to provide the best 

value to the Government in accordance with 

CAR 1352.215–75, Evaluation Criteria. 

(b) The Government intends to award 

[specify ‘‘a single contract’’ or ‘‘multiple 

contracts’’] in response to the solicitation. 

The Government reserves the right not to 

award a contract depending on the quality of 

the proposals submitted and the availability 

of funds. 

(c) Evaluation of Proposals. 

(1) Initial Evaluation of Proposals. All 

offers received will be evaluated in 

accordance with the stated evaluation factors. 

The Government reserves the right to make 

an award without discussions based solely 

upon initial proposals. Therefore, offerors 

should ensure that their initial proposal 

constitutes their best offer in terms of both 

price and the technical solution being 

proposed. 

If award is not made upon initial 

proposals, then the Contracting Officer will 

establish a competitive range comprised of 

the most highly rated proposals. If the 

Contracting Officer determines that the 

number of proposals that would otherwise be 

in the competitive range exceeds the number 

at which an efficient competition can be 

conducted, the Contracting Officer may limit 

the number of proposals in the competitive 

range to the greatest number that will permit 

an efficient competition among the most 

highly-rated proposals. Only those offerors in 

the competitive range will be offered an 

opportunity to participate further in the 

procurement. 

(2) Discussions/Final Proposal Revisions. 

The Contracting Officer will engage in 

discussions with all offerors in the 

competitive range in accordance with FAR 

15.306. At the conclusion of discussions, a 

final common cut-off date for submission of 

final proposal revisions will be established. 

Those offerors remaining in the competitive 

range will be notified to submit Final 

Proposal Revisions. 

(3) Final Evaluation of Offers. A final 

proposal evaluation will be performed after 

receipt of Final Proposal Revisions. 

(End of clause) 

1352.215–75 Evaluation criteria. 

As prescribed in 48 CFR 1315.204– 

570(b)(2) and (3), insert the following 

provision: 

EVALUATION CRITERIA (DATE) 

[This section is to be tailored to conform 

to individual procurements. Text is provided 

as an example only.] 

In determining which proposal provides 

the best value to the Government, non-price 

(technical) evaluation factors are 

[significantly more important/somewhat 

more important/approximately equal in 

importance/somewhat less important/ 

significantly less important] than evaluated 

price. 

[Insert relative importance among the 

technical evaluation factors.] 

Based upon the results of the integrated 

assessment of the technical and cost/price 

proposals, the Government may make an 

award to other than the lowest-priced offeror 

or the offeror with the highest technical score 

if the source selection official determines that 

to do so would result in the best value to the 

Government. 

(a) Technical Evaluation Factors. 

Factor 1—TECHNICAL APPROACH. The 

proposal will be evaluated on how the offeror 

intends to organize, staff and manage the 

contract and the means that will be used to 

accomplish the contract requirements. The 

degree to which the proposal demonstrates 

an understanding of the requirements will be 

evaluated, as well as the offeror’s planned 

management of consultants and 

subcontractors, if applicable. 

Factor 2—EXPERIENCE. The offeror’s 

background, experience, and qualifications 

will be assessed to determine the likelihood 

that that offeror can successfully perform the 

contract requirements and the degree of the 

risk of non-performance. 

Factor 3—KEY PERSONNEL. The 

education, experience, and accomplishments 

of key personnel will be evaluated to 

determine the degree to which they possess 

the qualifications to perform their proposed 

duties under the contract. 

Factor 4—PAST PERFORMANCE. The 

offeror’s past performance on related 

contracts will be evaluated to determine, as 

appropriate, successful performance of 

contract requirements, quality and timeliness 

of delivery of goods and services, effective 

management of subcontractors, cost 

management, level of communication 

between the contracting parties, proactive 

management and customer satisfaction. 

The Government reserves the right to 

assess the past performance of proposed 

subcontractors. 

The Government will use its discretion to 

determine the sources of past performance 

information used in the evaluation, and the 

information may be obtained from references 

provided by the offeror, the agency’s 

knowledge of contractor performance, other 

government agencies or commercial entities, 

or past performance databases. 

If an offeror does not have a history of 

relevant contract experience, or if past 

performance information is not available, the 

offeror will receive a neutral past 

performance rating; however, an offeror 

without a history of relevant experience may 

receive a lowered rating for the experience 

evaluation factor. 

(b) Cost/Price Evaluation. 

(1) The proposed prices/costs will be 

evaluated but not scored. The cost evaluation 

will determine whether the proposed costs 

are realistic, complete, and reasonable in 

relation to the solicitation requirements. 

Proposed costs must be entirely compatible 

with the technical proposal. 

(2) The Government may use the results of 

cost/price realism analysis to adjust the 

offeror’s proposal to a most probable cost to 

the Government. The analysis may include 

information from a government auditing 

agency, Government technical personnel, and 

other sources. 

(End of clause) 

1352.215–76 Cost or pricing data. 

As prescribed in 48 CFR 1315.204– 

570(b)(4), insert the following provision: 

COST OR PRICING DATA 

Additional Instructions for Preparation of 

Cost/Price Proposals 

(a) General. In addition to the information 

required by CAR 1352.215–70, the cost/price 

proposal must contain an explanation of the 

offeror’s and proposed subcontractors’ fully 

burdened rates, including direct salary rates, 

overhead rates, and profit; and information 

regarding other direct costs. 

(b) Specific Requirements. (1) Direct Salary 

Rates: The offeror shall list the categories of 

professional or technical personnel required 

to perform the Statement of Work. A brief 

definition of the education and experience 

requirements which qualify an employee for 

inclusion in a listed category should be 

provided. Further, if some proposed labor 

categories are classified by multiple grades 

within a given discipline (e.g., Architect I 

and II, or Senior and Junior Engineer), a brief 

explanation as to how they are differentiated 

shall be provided. 

(2) The offeror, and major subcontractors, 

should provide individual rates for key 

personnel. Designation of an individual as a 

key person is subject to agreement of the 

parties. Where no key personnel are listed, 

category average rates are appropriate. Rates 

should be provided by year for the life of the 

contract. If rates are escalated, the degree 

(percent) and methodology must be shown. 

Escalation increases should reflect recent 

experience or established personnel policy. 

Types of salary increases given—merit, cost 

of living, etc.—should be discussed. 

(3) Overhead Costs. Generally, the offeror’s 

accounting system and estimating practices 

will determine the method used to allocate 

overhead costs. The offeror’s established 

practices, if in accordance with generally 

accepted accounting principles, will be 

accepted. Proposed overhead rates should 

represent the offeror’s best estimate of the 

rates to be experienced during the contract 

period as projected by company budgets or 

by recent experience adjusted for factors 

which will influence trends. A narrative 

statement outlining the offeror’s policies and 

practices for accumulating overhead costs 

and the method used to compute the 


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proposed rate or rates is required. In the case 

of multi-branch firms, joint ventures or 

affiliates, it is expected that overhead costs 

applicable to the specific location(s) where 

work is to be performed will be proposed. 

Company-wide, joint venture, or affiliate rate 

averages may not be appropriate. The rates 

should be tailored to the work location(s). 

(4) Profit. (i) A fair and reasonable 

provision for profit cannot be made by 

simply applying a certain predetermined 

percentage to the total estimated cost. Rather, 

profit should be established as a percentage/ 

dollar amount after considering such factors 

as: 

(A) Degree of risk; 

(B) Nature of the work to be performed; 

(C) Joint venture responsibilities; 

(D) Extent of offeror’s investment; 

(E) Subcontracting of work; and 

(F) Other criteria discussed in FAR 

15.404–4. 

(ii) Separate percentage rates for profit are 

also required for major subcontractors. 

(5) Markup. The offeror may request a 

markup on subcontract labor. If it does so, it 

should state the percentage and provide a 

justification for that figure. 

(6) Other Direct Costs. The offeror shall 

briefly describe the following: 

(i) Travel/Subsistence costs; 

(ii) Subcontractor costs; and 

(iii) How subcontracting costs were 

analyzed. 

(c) Audit Reports. If the offeror or any 

subcontractor has been audited by a 

Government agency within the last two years, 

or has approved indirect cost rates, provide 

a copy of the audit report, or, if not available, 

the name, address, and telephone number of 

the audit office. Similarly, information on 

any Government-approved indirect cost rates 

should be provided. 

(End of clause) 

1352.216–70 Estimated and allowable 

costs. 

As prescribed in 48 CFR 1316.307(a), 

insert the following clause: 

ESTIMATED AND ALLOWABLE COSTS 

(DATE) 

(a) Estimated Costs. The estimated cost of 

this contract is $llll [insert total cost of 

contract], which consists of $llll [insert 

amount of cost that is reimbursable] for 

reimbursable costs and $llll [insert 

amount of fixed fee] for fixed/incentive fee. 

These costs shall be subject to the provisions 

of FAR clause 52.232–20, ‘‘Limitation of 

Cost,’’ FAR clause 52.216–7, ‘‘Allowable Cost 

and Payments,’’ and FAR clause 52.216–8, 

‘‘Fixed Fee.’’ 

(b) Subject to Availability of Funds [Insert 

paragraph (b) when the contract is issued 

subject to the availability of funds]. 

‘‘The amount of funding for this contract is 

$llll [insert amount being funded], 

which consists of $llll [insert amount of 

reimbursable costs funded] for reimbursable 

costs and $ llll [insert amount of fixed 

fee funded] for Fixed/Incentive Fee. These 

costs shall be subject to the provisions of 

FAR 52.232–22, ‘‘Limitations of Funds.’’ ’’ 

(c) Allowable Costs. 

(1) Final annual indirect cost rate(s) and 

the appropriate base(s) shall be established in 

accordance with FAR Subpart 42.7, in effect 

for the period covered by the indirect cost 

rate proposal. 

(2) Until final annual indirect cost rates are 

established for any period, the Government 

shall reimburse the contractor at billing rates 

established by the Contracting Officer (or 

cognizant Federal agency official) or auditor 

in accordance with FAR 42.704, subject to 

adjustment when the final rates are 

established. The established billing rates are 

currently as follows: 

llllllllll [Insert billing rate] 

(End of clause) 

1352.216–71 Level of effort (cost-plusfixed-fee, term contract). 

As prescribed in 48 CFR 1316.307(b), 

insert the following clause: 

LEVEL OF EFFORT (COST-PLUS-FIXEDFEE, TERM CONTRACT) (DATE) 

(a) In performance of the effort directed in 

this contract, the contractor shall provide the 

total of Direct Productive Labor Hours 

(DPLH) as specified in Part I, Section B 

during the term specified in Section 

llll. DPLH is defined as actual work 

hours exclusive of vacation, holidays, sick 

leave, and other absences. 

(b) Only the DPLH categories indicated 

below shall be charged directly to the 

contract. It is estimated that the DPLH will 

be expended approximately as follows: 

Labor category Base 

period 

Option 

period I 

Option 

period II 

Option 

period III 

xxxxxxxxxx ....................................................................................................... xxxx xxxx xxxx xxxx 

xxxxxxxxxx ....................................................................................................... xxxx xxxx xxxx xxxx 

Total Direct Labor ..................................................................................... xxxx xxxx xxxx xxxx 

(c) The hours specified above are provided 

as estimates only. If the actual amount of 

hours incurred falls within 90% to 110% of 

this estimate, the fee shall not be adjusted. 

(d) In the event that the contractor shall be 

required to provide less than 90% of the 

estimated DPLH, the fixed fee of the contract 

shall be equitably adjusted by unilateral 

modification to the contract. The fixed fee 

adjustment shall be based solely upon the 

difference between the DPLH actually 

provided and 90% of the estimated DPLH, 

calculated as follows: 

Adjusted Fixed Fee = (Actual DPLH/(.9 × 

Estimated DPLH)) × Specified Fixed Fee 

(e) In the event that the contractor shall be 

required to provide more than 110% of the 

estimated DPLH, the fixed fee of the Contract 

shall be equitably adjusted by unilateral 

modification to the Contract. The fixed fee 

adjustment shall be based solely upon the 

difference between the DPLH actually 

provided and 110% of the estimated DPLH, 

calculated as follows: 

Adjusted Fixed Fee = (Actual DPLH/(1.1 × 

Estimated DPLH)) × Specified Fixed Fee 

(f) These terms and conditions do not 

supersede the requirements of either FAR 

clause 52.232–20 ‘‘Limitation of Cost’’ or FAR 

clause 52.232–22 ‘‘Limitation of Funds.’’ 

(End of clause) 

1352.216–72 Determination of award fee. 

As prescribed in 48 CFR 1316.405–2, 

insert the following clause: 

DETERMINATION OF AWARD FEE (DATE) 

Based upon the quality of its performance 

and the results of the Government’s 

performance evaluation, the contractor may 

earn an award fee. 

(a) The total amount of award fee available 

under this contract is assigned according to 

the following: 

[Insert appropriate information] 

(b) A Performance Evaluation Plan shall be 

unilaterally established by the Government 

as part of the contract and used for the 

determination of award fees. This plan shall 

include the criteria that will be used to 

evaluate the contractor’s performance and to 

determine the percentage of award fee (if 

any) available for each performance period. 

(c) The criteria contained within the 

Performance Evaluation Plan may relate to: 

(1) Quality of performance of the contract 

requirements; 

(2) Effective management of the contract; 

and 

(3) Cost controls. 

(d) The Performance Evaluation Plan may 

be revised unilaterally by the Government at 

any time during the period of performance, 

however unless mutually-agreed to a revision 

shall not affect the current evaluation period. 

Notification of such changes shall be 

provided to the contractor [insert number] 

calendar days prior to the start of the 

evaluation period to which the change will 

apply. 

(e) At the conclusion of each evaluation 

period, and in accordance with the 

performance evaluation plan, a 

determination of the amount of the award fee 

earned shall be made in writing to the 

contractor by the Government Fee 

Determination Official (FDO). The FDO’s 

unilateral determination of the amount of 

award fee earned in any evaluation period or 

a determination that no fee was earned shall 

be conclusive. 

(f) The contractor may submit a selfevaluation of its performance in an 

evaluation period. The FDO shall consider 


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the self-evaluation, as the FDO deems 

appropriate. 

(g) The contractor shall submit a voucher 

for payment of any earned award fee. 

(End of clause) 

1352.216–73 Distribution of award fee. 

As prescribed in 48 CFR 1316.406, 

insert the following clause: 

DISTRIBUTION OF AWARD FEE (DATE) 

(a) The total amount of award fee available 

under this contract is assigned according to 

the following: 

[Insert appropriate information] 

(b) Payment of the base fee and award fee 

shall be made, provided that after payment 

of 85 percent of the base fee and potential 

award fee, the Government may withhold 

further payment of the base fee and award fee 

until a reserve is set aside in an amount that 

the Government considers necessary to 

protect its interest. This reserve shall not 

exceed 15 percent of the total base fee and 

potential award fee. 

(c) In the event of contract termination for 

convenience, either in whole or in part, the 

amount of award fee available shall represent 

a prorated distribution associated with 

evaluation period activities or events as 

determined by the Government. 

(d) The Government will promptly make 

payment of any award fee upon submission 

by the contractor to the Contracting Officer’s 

authorized representative of a public voucher 

or invoice in the amount of the total fee 

earned for the period evaluated. Payment 

may be made without executing a contract 

modification. 

(End of clause) 

1352.216–74 Task orders. 

As prescribed in 48 CFR 1316.501–2– 

70, insert the following clause: 

TASK ORDERS (DATE) 

(a) In task order contracts, all work shall 

be initiated only by issuance of fully 

executed task orders issued by the 

Contracting Officer. The work to be 

performed under these orders must be within 

the scope of the contract. The Government is 

only liable for labor hours and costs 

expended under the terms and conditions of 

this contract to the extent that a fully 

executed task order has been issued and 

covers the required work and costs. Charges 

for any work not authorized shall be 

disallowed. 

(b) For each task order under the contract, 

the Contracting Office shall send a request for 

proposal to the contractor(s). The request will 

contain a detailed description of the tasks to 

be achieved, a schedule for completion of the 

task order, and deliverables to be provided by 

the contractor. 

(c) The contractor shall submit a proposal 

defining the technical approach to be taken 

to complete the task order, work schedule 

and proposed cost/price. 

(d) After any necessary negotiations, the 

contractor shall submit a final proposal. 

(e) Task orders will be considered fully 

executed upon signature of the Contracting 

Officer. The contractor shall begin work on 

the task order in accordance with the 

effective date of the order. 

(f) The contractor shall notify the 

Contracting Officer of any instructions or 

guidance given that may impact the cost, 

schedule or deliverables of the task order. A 

formal modification to the task order must be 

issued by the Contracting Officer before any 

changes can be made. 

(g) Task orders may be placed during the 

period of performance of the contract. Labor 

rates applicable to hours expended in 

performance of an order will be the contract 

rates that are in effect at the time the task 

order is issued. 

(h) If multiple awards are made by the 

Government, the CO shall provide each 

awardee a fair opportunity to be considered 

for each task order over the micro-purchase 

threshold unless one of the exceptions at 

FAR 16.505(b) applies. 

(End of Clause) 

1352.216–75 Minimum and maximum 

contract amounts. 

As prescribed in 48 CFR 1316.506(a), 

insert the following clause: 

MINIMUM AND MAXIMUM CONTRACT 

AMOUNTS (DATE) 

During the term of the contract, the 

Government shall place orders totaling a 

minimum of llll. The amount of all 

orders shall not exceed llll. 

(End of clause) 

1352.216–76 Placement of orders. 

As prescribed in 48 CFR 1316.506(b), 

insert the following clause: 

PLACEMENT OF ORDERS (DATE) 

(a) The contractor shall provide goods and/ 

or services under this contract only as 

directed in orders issued by authorized 

individuals. In accordance with FAR 16.505, 

each order will include: 

(1) Date of order; 

(2) Contract number and order number; 

(3) Item number and description, quantity, 

and unit price or estimated cost or fee; 

(4) Delivery or performance date; 

(5) Place of delivery or performance 

(including consignee); 

(6) Packaging, packing, and shipping 

instructions, if any; 

(7) Accounting and appropriation data; 

(8) Method of payment and payment office, 

if not specified in the contract; 

(9) Any other pertinent information. 

(b) In accordance with FAR 52.216–18, 

Ordering, the following individuals (or 

activities) are authorized to place orders 

against this contract: 

lllllllllllllllllllll

lllllllllllllllllllll

(c) If multiple awards have been made, the 

contact information for the DOC task and 

delivery order ombudsman is llll. 

(End of clause) 

1352.216–77 Ceiling price. 

As prescribed in 48 CFR 1316.601–70 

and 1316.602–70, insert the following 

clause: 

CEILING PRICE (DATE) 

The ceiling price of this contract is 

$llll. The contractor shall not make 

expenditures nor incur obligations in the 

performance of this contract which exceed 

the ceiling price specified herein, except at 

the contractor’s own risk. 

(End of clause) 

1352.219–70 Section 8(a) direct award 

(Deviation). 

As prescribed in 48 CFR 1319.811– 

3(a), insert the following clause: 

SECTION 8(A) DIRECT AWARD 

(DEVIATION) (DATE) 

(a) This contract is issued as a direct award 

between the contracting activity and the 8(a) 

contractor pursuant to a Partnership 

Agreement between the Small Business 

Administration (SBA) and the Department of 

Commerce (DOC). Accordingly, the SBA, 

even if not identified in Section A of this 

contract, is the prime contractor and retains 

responsibility for 8(a) certification, 8(a) 

eligibility determinations and related issues, 

and providing counseling and assistance to 

the 8(a) contractor under the 8(a) program. 

The cognizant SBA district office is: 

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

[To be completed by the Contracting 

Officer at time of award] 

(b) The contracting activity is responsible 

for administering the contract and taking any 

action on behalf of the Government under the 

terms and conditions of the contract. 

However, the contracting activity shall give 

advance notice to the SBA before it issues a 

final notice terminating performance, either 

in whole or in part, under the contract. The 

contracting activity shall also coordinate 

with SBA prior to processing any novation 

agreement. The contracting activity may 

assign contract administration functions to a 

contract administration office. 

(c) The 8(a) 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 prior to 

the actual relinquishing of ownership or 

control; and 

(2) To adhere to the requirements of FAR 

52.219–14, Limitations on Subcontracting. 

(End of Clause)] 

1352.219–71 Notification to delay 

performance (Deviation). 

As prescribed in 48 CFR 1319.811– 

3(b), insert the following clause: 


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NOTIFICATION TO DELAY 

PERFORMANCE (DEVIATION) (DATE) 

The contractor shall not begin performance 

under this purchase order until 2 working 

days have passed from the date of its receipt. 

Unless the contractor receives notification 

from the Small Business Administration that 

it is ineligible for this 8(a) award, or 

otherwise receives instructions from the 

Contracting Officer, performance under this 

purchase order may begin on the third 

working day following receipt of the 

purchase order. If a determination of 

ineligibility is issued within the 2-day 

period, the purchase order shall be 

considered cancelled. 

(End of clause) 

1352.219–72 Notification of competition 

limited to eligible 8(a) concerns, Alternate III 

(Deviation). 

As prescribed in 48 CFR 1319.811–3 

(c), insert the following clause: 

NOTIFICATION OF COMPETITION 

LIMITED TO ELIGIBLE 8(a) CONCERNS, 

ALTERNATE III (DEVIATION) (DATE) 

(a) Offers are solicited only from small 

business concerns expressly certified by the 

Small Business Administration (SBA) for 

participation in the SBA’s 8(a) Program and 

which meet the following criteria at the time 

of submission of offers— 

(1) The Offeror is in conformance with the 

8(a) support limitation set forth in its 

approved business plan; and 

(2) The Offeror is in conformance with the 

Business Activity Targets set forth in its 

approved business plan or any remedial 

action directed by the SBA. 

(b) By submission of its offer, the Offeror 

represents that it meets all of the criteria set 

forth in paragraph (a) of this clause. 

(c) Any award resulting from this 

solicitation shall be made directly by the 

Contracting Officer to the successful 8(a) 

offeror selected through the evaluation 

criteria set forth in this solicitation. 

(d)(1) Agreement. A small business 

concern submitting an offer in its own name 

shall furnish, in performing the contract, 

only end items manufactured or produced by 

small business concerns in the United States 

or its outlying areas. If this procurement is 

processed under simplified acquisition 

procedures and the total amount of this 

contract does not exceed $25,000, a small 

business concern may furnish the product of 

any domestic firm. This paragraph does not 

apply to construction or service contracts. 

(2) llllllll [insert name of 

contractor] will notify the llllllll 

[insert name of contracting agency] 

Contracting Officer in writing immediately 

upon entering an agreement (either oral or 

written) to transfer all or part of its stock or 

other ownership interest to any other party. 

(End of clause) 

1352.227–70 Rights in data, assignment of 

copyright. 

As prescribed in 48 CFR 1327.404– 

4(a), insert the following clause: 

RIGHTS IN DATA, ASSIGNMENT OF 

COPYRIGHT (DATE) 

In accordance with 48 CFR 52.227–17, 

Rights in Data—Special Works, the contractor 

agrees to assign copyright to data, including 

reports and other copyrightable materials, 

first produced in performance of this contract 

to the United States Government, as 

represented by the Secretary of Commerce. 

(End of clause) 

1352.228–70 Insurance coverage. 

As prescribed in 48 CFR 1328.310– 

70(a), insert the following clause: 

INSURANCE COVERAGE (DATE) 

(a) Workers Compensation and Employer’s 

Liability. The contractor is required to 

comply with applicable Federal and State 

workers’ compensation and occupational 

disease statutes. If occupational diseases are 

not compensable under those statutes, they 

shall be covered under the employer’s 

liability section of the insurance policy, 

except when contract operations are so 

commingled with a contractor’s commercial 

operations that it would not be practical to 

require this coverage. Employer’s liability 

coverage of at least $100,000 shall be 

required, except in states with exclusive or 

monopolistic funds that do not permit 

workers’ compensation to be written by 

private carriers. 

(b) General liability. (1) The contractor 

shall have bodily injury liability insurance 

coverage written on the comprehensive form 

of policy of at least $500,000 per occurrence. 

(2) When special circumstances apply in 

accordance with FAR 28.307–2(b), Property 

Damage Liability Insurance shall be required 

in the amount of $llll [insert zero 

unless special circumstances apply, if 

applicable, insert dollar amount.]. 

(c) Automobile liability. The contractor 

shall have automobile liability insurance 

written on the comprehensive form of policy. 

The policy shall provide for bodily injury 

and property damage liability covering the 

operation of all automobiles used in 

connection with performing the contract. 

Policies covering automobiles operated in the 

United States shall provide coverage of at 

least $200,000 per person and $500,000 per 

occurrence for bodily injury and $20,000 per 

occurrence for property damage. 

(d) Aircraft public and passenger liability. 

When aircraft are used in connection with 

performing the contract, the contractor shall 

have aircraft public and passenger liability 

insurance. Coverage shall be at least $200,000 

per person and $500,000 per occurrence for 

bodily injury, other than passenger liability, 

and $200,000 per occurrence for property 

damage. Coverage for passenger liability 

bodily injury shall be at least $200,000 

multiplied by the number of seats or 

passengers, whichever is greater. 

(e) Vessel liability. When contract 

performance involves use of vessels, the 

Contractor shall provide, vessel collision 

liability and protection and indemnity 

liability insurance as determined by the 

Government. 

(End of clause) 

1352.228–71 Deductibles under required 

insurance coverage—cost reimbursement. 

As prescribed in 48 CFR 1328.310– 

70(c), insert the following clause: 

DEDUCTIBLES UNDER REQUIRED 

INSURANCE COVERAGE—COST 

REIMBURSEMENT (DATE) 

(a) The contractor is required to present 

evidence of the amount of any deductibles in 

its insurance coverage. 

(b) For any insurance required pursuant to 

1352.228–70, Insurance Coverage, the 

contractor’s deductible is not allowable as a 

direct or indirect cost under this contract. 

The Government is not liable, and cannot be 

invoiced, for any losses up to the minimum 

amounts of coverage required in paragraphs 

(a) through (d) of clause 1352.228–70. If the 

contractor obtains an insurance policy with 

deductibles, the contractor, and not the 

Government, is responsible for any 

deductible amount up to the minimum 

amounts of coverage stated. 

(c) If the contractor fails to follow all 

procedures stated in this subsection and in 

FAR 52.228–7(g), any amounts above the 

amount of the obtained insurance coverage 

which are not covered by insurance will not 

be reimbursable under the contract. 

(End of clause) 

1352.228–72 Deductibles under required 

insurance coverage—fixed price. 

As prescribed in 48 CFR 1328.310– 

70(d), insert the following clause: 

DEDUCTIBLES UNDER REQUIRED 

INSURANCE COVERAGE—FIXED PRICE 

(DATE) 

When the Government is injured, wholly 

or partially as a result of the contractor’s 

actions and such actions are covered by the 

insurance required by 1352.228–70, 

Insurance Coverage, the Government is 

entitled to recover from the contractor the 

full amount of any such injury attributable to 

the contractor regardless of a deductible. The 

Contracting Officer may offset the amount of 

recovery against any payment due to the 

contractor. 

(End of clause) 

1352.228–73 Loss of or damage to leased 

aircraft 

As prescribed in 48 CFR 1328.310– 

70(e) and 1328.310–70(f), insert the 

following clause: 

LOSS OF OR DAMAGE TO LEASED 

AIRCRAFT (DATE) 

(a) The Government assumes all risk of loss 

of, or damage (except normal wear and tear) 

to, the leased aircraft during the term of this 

lease while the aircraft is in the possession 

of the Government. 

(b) In the event of damage to the aircraft, 

the Government, at its option, shall make the 

necessary repairs with its own facilities or by 

contract, or pay the contractor the reasonable 

cost of repair of the aircraft. 

(c) In the event the aircraft is lost or 

damaged beyond repair, the Government 

shall pay the contractor a sum equal to the 


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fair market value of the aircraft at the time 

of such loss or damage, which value may be 

specifically agreed to in clause 1252.228–74, 

Fair Market Value of Aircraft, less the salvage 

value of the aircraft. However, the 

Government may retain the damaged aircraft 

or dispose of it as it wishes. In that event, the 

contractor will be paid the fair market value 

of the aircraft as stated in the clause. 

(d) The contractor agrees that the contract 

price does not include any cost attributable 

to hull insurance or to any reserve fund it has 

established to protect its interest in the 

aircraft. If, in the event of loss or damage to 

the leased aircraft, the contractor receives 

compensation for such loss or damage in any 

form from any source, the amount of such 

compensation shall be: 

(1) Credited to the Government in 

determining the amount of the Government’s 

liability; or 

(2) For an increment of value of the aircraft 

beyond the value for which the Government 

is responsible. 

(e) In the event of loss of or damage to the 

aircraft, the Government shall be subrogated 

to all rights of recovery by the contractor 

against third parties for such loss or damage 

and the contractor shall promptly assign such 

rights in writing to the Government. 

(End of clause) 

1352.228–74 Fair market value of aircraft. 

As prescribed in 48 CFR 1328.310– 

70(e) and 48 CFR 1328.310–70(g) insert 

the following in all applicable contracts 

for leased aircraft: 

FAIR MARKET VALUE OF AIRCRAFT 

(DATE) 

For purposes of the clause entitled ‘‘Loss of 

or Damage to Leased Aircraft,’’ it is agreed 

that the fair market value of the aircraft to be 

used in the performance of this contract shall 

be the lesser of the two values set out in 

paragraphs (a) and (b) of this clause: 

(a) $llll; or 

(b) If the contractor has insured the same 

aircraft against loss or destruction in 

connection with other operations, the 

amount of such insurance coverage on the 

date of the loss or damage is the maximum 

amount for which the Government may be 

responsible under this contract. 

(End of clause) 

1352.228–75 Risk and indemnities. 

As prescribed in 48 CFR 1328.310– 

70(e) and 48 CFR 1328.310–70(h), insert 

the following in all applicable contracts 

for leased aircraft: 

RISK AND INDEMNITIES (DATE) 

The contractor hereby agrees to indemnify 

and hold harmless the Government, its 

officers and employees from and against all 

claims, demands, damages, liabilities, losses, 

suits and judgments (including all costs and 

expenses incident thereto) which may be 

suffered by, accrue against, be charged to or 

recoverable from the Government, its officers 

and employees by reason of injury to or death 

of any person other than officers, agents, or 

employees of the Government or by reason of 

damage to property of others of whatsoever 

kind (other than the property of the 

Government, its officers, agents or 

employees) arising out of the operation of the 

aircraft. In the event the contractor holds or 

obtains insurance in support of this 

covenant, evidence of insurance shall be 

delivered to the Contracting Officer. 

1352.228–76 Approval of group insurance 

plans. 

As prescribed in 48 CFR 1328.310– 

70(i), insert the following clause: 

APPROVAL OF GROUP INSURANCE 

PLANS (DATE) 

Under cost-reimbursement contracts, 

before buying insurance under a group 

insurance plan, the contractor shall submit 

the plan for approval to the Contracting 

Officer. Any change in benefits provided 

under an approved plan that can reasonably 

be expected to increase significantly the cost 

to the Government shall require similar 

approval. 

(End of clause) 

352.231–70 Precontract costs. 

As prescribed in 48 CFR 1331.205–32, 

insert the following clause: 

PRECONTRACT COSTS (DATE) 

The contractor is entitled to reimbursement 

for allowable, allocable, and reasonable costs 

incurred during the period of llll to the 

award date of this contract in an amount not 

to exceed $llll. 

(End of clause) 

1352.231–71 Duplication of effort. 

As prescribed in 48 CFR 1331.205–70, 

insert the following clause: 

DUPLICATION OF EFFORT (DATE) 

The contractor hereby certifies that costs 

for work to be performed under this contract 

and any subcontract hereunder are not 

duplicative of any costs charged against any 

other Government contract, subcontract, or 

other Government source. The contractor 

agrees to advise the Contracting Officer, in 

writing, of any other Government contract or 

subcontract it has performed or is performing 

which involves work directly related to the 

purpose of this contract. The contractor also 

certifies and agrees that any and all work 

performed under this contract shall be 

directly and exclusively for the use and 

benefit of the Government, and not incidental 

to any other work, pursuit, research, or 

purpose of the contractor, whose 

responsibility it will be to account for it 

accordingly. 

(End of clause) 

1352.233–70 Agency protests. 

As prescribed in 48 CFR 1333.103(a), 

insert the following provision: 

AGENCY PROTESTS (DATE) 

(a) An agency protest may be filed with 

either: (1) The contracting officer, or (2) at a 

level above the contracting officer, with the 

appropriate agency Protest Decision 

Authority. See 64 FR 16,651 (April 6, 1999). 

(b) Agency protests filed with the 

Contracting Officer shall be sent to the 

following address: [Insert Contracting Officer 

name and Address] 

(c) Agency protests filed with the agency 

Protest Decision Authority shall be sent to 

the following address: [Insert appropriate 

Protest Decision Authority name and 

Address] 

(d) A complete copy of all agency protests, 

including all attachments, shall be served 

upon the Contract Law Division of the Office 

of the General Counsel within one day of 

filing a protest with either the Contracting 

Officer or the Protest Decision Authority. 

(e) Service upon the Contract Law Division 

shall be made as follows: U.S. Department of 

Commerce, Office of the General Counsel, 

Chief, Contract Law Division, Room 5893, 

Herbert C. Hoover Building, 14th Street and 

Constitution Avenue, NW., Washington, DC 

20230. FAX: (202) 482–5858. 

(End of clause) 

1352.233–71 GAO and Court of Federal 

Claims protests. 

As prescribed in 48 CFR 1333.104– 

70(a), insert the following provision: 

GAO AND COURT OF FEDERAL CLAIMS 

PROTESTS (DATE) 

(a) A protest may be filed with either the 

Government Accountability Office (GAO) or 

the Court of Federal Claims unless an agency 

protest has been filed. 

(b) A complete copy of all GAO or Court 

of Federal Claims protests, including all 

attachments, shall be served upon (i) the 

Contracting Officer, and (ii) the Contract Law 

Division of the Office of the General Counsel, 

within one day of filing a protest with either 

GAO or the Court of Federal Claims. 

(c) Service upon the Contract Law Division 

shall be made as follows: U.S. Department of 

Commerce, Office of the General Counsel, 

Chief, Contract Law Division, Room 5893, 

Herbert C. Hoover Building, 14th Street and 

Constitution Avenue, NW., Washington, DC 

20230. FAX: (202) 482–5858. 

(End of clause) 

1352.235–70 Protection of human 

subjects. 

As prescribed in 48 CFR 1335.006(a), 

insert the following provision: 

PROTECTION OF HUMAN SUBJECTS 

(DATE) 

(a) Research involving human subjects is 

not permitted under this award unless 

expressly authorized in writing by the 

Contracting Officer. Such authorization will 

specify the details of the approved research 

involving human subjects and will be 

incorporated by reference into this contract. 

(b) The Federal Policy for the Protection of 

Human Subjects (the ‘‘Common Rule’’), 

adopted by the Department of Commerce at 

15 CFR Part 27, requires contractors to 

maintain appropriate policies and procedures 

for the protection of human subjects in 

research. The Common Rule defines a 


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‘‘human subject’’ as a living individual about 

whom an investigator conducting research 

obtains data through intervention or 

interaction with the individual, or 

identifiable private information. The term 

‘‘research’’ means a systematic investigation, 

including research development, testing and 

evaluation, designed to develop or contribute 

to generalizable knowledge. The Common 

Rule also sets forth categories of research that 

may be considered exempt from 15 CFR Part 

27. These categories may be found at 15 CFR 

27.101(b). 

(c) In the event the human subjects 

research involves pregnant women, 

prisoners, or children, the contractor is also 

required to follow the guidelines set forth at 

45 CFR Part 46 Subpart B, C and D, as 

appropriate, for the protection of members of 

a protected class. 

(d) Should research involving human 

subjects be included in the proposal, prior to 

issuance of an award, the contractor shall 

submit the following documentation to the 

Contracting Officer: 

(1) Documentation to verify that contractor 

has established a relationship with an 

appropriate Institutional Review Board 

(‘‘cognizant IRB’’). An appropriate IRB is one 

that is located within the United States and 

within the community in which the human 

subjects research will be conducted; 

(2) Documentation to verify that the 

cognizant IRB possesses a valid registration 

with the United States Department of Health 

and Human Services’ Office for Human 

Research Protections (‘‘OHRP’’); 

(3) Documentation to verify that contractor 

has a valid Federal-wide Assurance (FWA) 

issued by OHRP. 

(e) Prior to starting any research involving 

human subjects, the contractor shall submit 

appropriate documentation to the 

Contracting Officer for institutional review 

and approval. This documentation may 

include: 

(1) Copies of the human subjects research 

protocol, all questionnaires, surveys, 

advertisements, and informed consent forms 

approved by the cognizant IRB; 

(2) Documentation of approval for the 

human subjects research protocol, 

questionnaires, surveys, advertisements, and 

informed consent forms by the cognizant IRB; 

(3) Documentation of continuing IRB 

approval by the cognizant IRB at appropriate 

intervals as designated by the IRB, but not 

less than annually; and/or 

(4) Documentation to support an 

exemption for the project from the Common 

Rule [Note: this option is not available for 

activities that fall under 45 CFR Part 46 

Subpart C]. 

(f) In addition, if the contractor modifies a 

human subjects research protocol, 

questionnaire, survey, advertisement, or 

informed consent form approved by the 

cognizant IRB, the contractor shall submit a 

copy of all modified material along with 

documentation of approval for said 

modification by the cognizant IRB to the 

Contracting Officer for institutional review 

and approval. The contractor shall not 

implement any IRB approved-modification 

without written approval by the Contracting 

Officer. 

(g) No work involving human subjects may 

be undertaken, conducted, or costs incurred 

and/or charged to the project, until the 

Contracting Officer approves the required 

appropriate documentation in writing. 

(End of provision) 

1352.235–71 Protection of human 

subjects—exemption. 

As prescribed in 48 CFR 1335.006(b), 

insert the following clause: 

PROTECTION OF HUMAN SUBJECTS 

(DATE) 

(a) Contractor has satisfied the 

requirements set forth in solicitation 

#llll, related to the Protection of Human 

Subjects in research. The Government has 

determined that the research involving 

human subjects to be conducted under this 

contract is exempt from the requirements of 

the Common Rule for the Protection of 

Human Subjects. The exemption 

memorandum executed by the Government 

and the attachments are hereby incorporated 

by reference into this contract. If contractor 

uses an informed consent form for the 

exempt research, contractor must use the 

informed consent form contained in the 

attachments in its conduct of research 

involving human subjects under this 

contract. 

(b) If the conditions upon which the 

exemption is based should change in any 

way, contractor shall immediately notify the 

Contracting Officer in writing of the specified 

change. The Government will review the 

change and make a determination as to 

whether the change requires a change to the 

exemption approval. Contractor shall not 

proceed until notified in writing of the 

Contracting Officer’s approval. Contractor 

shall obtain prior written approval from the 

Contracting Officer for any change to the 

existing human subjects protocol or informed 

consent form before proceeding. 

(c) No other research involving human 

subjects is permitted under this award unless 

expressly authorized in writing by the 

Contracting Officer. Such writing will specify 

the details of the approved research 

involving human subjects and will be 

incorporated by reference into this contract. 

(d) The Federal Policy for the Protection of 

Human Subjects (the ‘‘Common Rule’’), 

adopted by the Department of Commerce at 

15 CFR Part 27, requires contractors to 

maintain appropriate policies and procedures 

for the protection of human subjects in 

research. The Common Rule defines a 

‘‘human subject’’ as a living individual about 

whom an investigator conducting research 

obtains data through intervention or 

interaction with the individual, or 

identifiable private information. The term 

‘‘research’’ means a systematic investigation, 

including research development, testing and 

evaluation, designed to develop or contribute 

to generalizable knowledge. 

(e) The Common Rule also sets forth 

categories of research that may be considered 

exempt from this policy. These categories 

may be found at 15 CFR 27.101(b). 

(f) In the event the human subjects research 

involves pregnant women, prisoners, or 

children, contractor is also required to follow 

the guidelines set forth at 45 CFR Part 46 

Subpart B, C and D, as appropriate, for the 

protection of members of a protected class. 

(g) Should additional research involving 

human subjects be required under the 

contract, prior to beginning such research, 

contractor shall submit the following 

documentation to the Contracting Officer: 

(1) Documentation to verify that contractor 

has established a relationship with an 

appropriate Institutional Review Board 

(‘‘cognizant IRB’’). An appropriate IRB is one 

that is located within the United States and 

within the community in which the human 

subjects research will be conducted; 

(2) Documentation to verify that the 

cognizant IRB is registered with the United 

States Department of Health and Human 

Services’ Office for Human Research 

Protections (‘‘OHRP’’) and is designated as 

contractor’s cognizant IRB; 

(3) Documentation to verify that contractor 

has a valid Federal-wide Assurance (FWA) 

issued by OHRP; or 

(4) Documentation necessary to support a 

determination that the research is exempt 

from the requirements of the Common Rule 

for the Protection of Human Subjects. 

(h) Prior to starting any additional research 

involving human subjects, the contractor 

shall submit appropriate documentation to 

the Contracting Officer for institutional 

review and approval or exemption 

determination. This documentation may 

include: 

(1) Copies of the human subjects research 

protocol, all questionnaires, surveys, 

advertisements, and informed consent forms 

approved by the cognizant IRB; 

(2) Documentation of approval for the 

human subjects research protocol, 

questionnaires, surveys, advertisements, and 

informed consent forms by the cognizant IRB; 

(3) Documentation of continuing IRB 

approval by the cognizant IRB at appropriate 

intervals as designated by the IRB, but not 

less than annually; and/or 

(4) Documentation to support an 

exemption for the project from the Common 

Rule [Note: this option is not available for 

activities that fall under 45 CFR Part 46 

Subpart C]. 

(i) In addition, if the contractor modifies a 

human subjects research protocol, 

questionnaire, survey, advertisement, or 

informed consent form approved by the 

cognizant IRB, the contractor shall submit a 

copy of all modified material along with 

documentation of approval for said 

modification by the cognizant IRB to the 

Contracting Officer for institutional review 

and approval. The contractor may not 

implement any IRB approved modification 

without written approval by the Contracting 

Officer. 

No work involving human subjects may be 

undertaken, conducted, or costs incurred 

and/or charged to the project, until the 

Contracting Officer approves the required 

appropriate documentation in writing. 

(End of clause) 


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1352.235–72 Protection of human 

subjects—institutional approval. 

As prescribed in 48 CFR 1335.006(c), 

insert the following clause: 

PROTECTION OF HUMAN SUBJECTS— 

INSTITUTIONAL APPROVAL (DATE) 

(a) This contract/order includes nonexempt human subjects research that must be 

conducted pursuant to the requirements of 

the Federal Policy for the Protection of 

Human Subjects (the ‘‘Common Rule’’), 

adopted by the Department of Commerce at 

15 CFR Part 27. Contractor has submitted 

documentation establishing review and 

approval of the human subjects research 

protocol, including all informed consent 

forms, advertisements, and other recruitment 

materials, by a qualified Institutional Review 

Board (IRB) that has a current Federal-wide 

Assurance (FWA) issued by the Department 

of Health and Human Services (DHHS). 

(b) By accepting this contract/order, the 

contractor certifies the accuracy of the 

documentation provided to its cognizant IRB 

and to the Government in support of the 

human subjects research specified therein. 

Based upon the contractor’s documentation, 

and following the Government institutional 

review thereof, the following specific 

involvement of human subjects in research is 

hereby approved by the Contracting Officer: 

Name of IRB: llllllllllllll

(IRB # llll) 

Title of IRB Protocol: lllllllllll

Recruiting Letter Approval Date (if appropriate): lllllllllllllllll

Consent Form Approval Date: lllllll

Assurance of Compliance Number: llll

(c) Unless incorporated by written contract 

modification approved by the Contracting 

Officer, no other involvement of human 

subjects in research under this contract may 

be undertaken or conducted, or costs 

incurred and/or charged to the project, 

except as specified in the study plan 

reviewed and approved by the cognizant IRB 

and Government. Therefore, if the contractor 

modifies a human subjects research protocol, 

advertisement, or informed consent form 

approved by the cognizant IRB, contractor 

shall submit a copy of all modified material, 

along with documentation of approval for 

said modification by the cognizant IRB, to the 

Contracting Officer for agency institutional 

review and approval. Contractor may not 

implement any IRB-approved modification 

without written approval by the Contracting 

Officer. 

Documentation of continuing IRB approval 

is required each year by the renewal date 

assigned by the cognizant IRB. 

Documentation of continuing IRB approval 

must be submitted to the Government for 

review and approval as soon as it occurs. 

Continuing approval of the human subjects 

research must be obtained from the cognizant 

IRB and provided to the Government until 

the research is completed or terminated. The 

contractor may proceed with previously 

approved human subjects research, if any, 

under this contract while the Government is 

conducting continuing review and approval 

of the human subjects research protocol. In 

the event that the Government determines, 

during the course of its review, that the 

human subjects research in this contract is 

not in compliance with the regulations set 

forth at 15 CFR Part 27, or this contract, the 

Contracting Officer may take the appropriate 

enforcement action, including disallowing 

costs, suspending or terminating the human 

subjects protocol or the contract, by notifying 

the contractor in writing. 

(d) It is incumbent upon contractor to 

ensure that continuing IRB review approval 

occurs in accordance with 15 CFR Part 27. In 

the event that continuing review approval 

does not occur as set forth by 15 CFR Part 

27, contractor is to notify the Contracting 

Officer immediately. 

(e) Contractor must report all adverse 

events to the cognizant IRB and to the 

Contracting Officer. In the event that adverse 

events are reported to the cognizant IRB and 

the Contracting Officer, the Government may 

suspend this contract pending a full review 

of the adverse event by the cognizant IRB. 

(f) If the conditions upon which IRB 

approval is based should change in any way, 

contractor shall immediately notify the 

Contracting Officer, in writing, of the 

specified change. 

(g) Failure to comply with this contract 

clause will be considered material 

noncompliance with the contract, and the 

Contracting Officer may take appropriate 

enforcement action, including disallowing 

costs, suspension or termination of the 

contract. 

(End of clause) 

1352.235–73 Research involving human 

subjects—after initial contract award. 

As prescribed in 48 CFR 1335.006(d), 

insert the following clause: 

RESEARCH INVOLVING HUMAN 

SUBJECTS—AFTER INITIAL CONTRACT 

AWARD (DATE) 

(a) No research involving human subjects 

is currently included in this contract/task 

order, and no research involving human 

subjects is permitted under this contract/task 

order unless expressly authorized, in writing, 

by the Contracting Officer. 

(b) The Federal Policy for the Protection of 

Human Subjects (the ‘‘Common Rule’’), 

adopted by the Department of Commerce at 

15 CFR Part 27, requires that contractors 

maintain appropriate policies and procedures 

for the protection of human subjects in 

research. The Common Rule defines a 

‘‘human subject’’ as a living individual about 

whom an investigator conducting research 

obtains data through intervention or 

interaction with the individual, or 

identifiable private information. The term 

‘‘research’’ means a systematic investigation, 

including research, development, testing and 

evaluation, designed to develop or contribute 

to generalizable knowledge. 

(c) The Common Rule also sets forth 

categories of research that may be considered 

exempt from this policy. These categories are 

specified at 15 CFR 27.101(b). 

(d) In the event that human subjects 

research involves pregnant women, 

prisoners, or children, the contractor is also 

required to follow the guidelines set forth at 

45 CFR Part 46 Subparts B, C and D, as 

appropriate, for the protection of members of 

a protected class. 

(e) Should research involving human 

subjects become necessary for carrying out 

this contract/task order, prior to undertaking 

or conducting such human subjects research, 

contractor shall submit the following 

documentation to the Contracting Officer: 

(1) Documentation to verify that contractor 

has established a relationship with an 

appropriate Institutional Review Board 

(‘‘cognizant IRB’’). An appropriate IRB is one 

that is located within the United States and 

within the community in which the human 

subjects research will be conducted; 

(2) Documentation to verify that the 

cognizant IRB is registered with the United 

States Department of Health and Human 

Services’ Office for Human Research 

Protections (‘‘OHRP’’); 

(3) Documentation to verify that contractor 

has a valid Federal-wide Assurance (FWA) 

issued by the OHRP. 

(f) Prior to starting any research involving 

human subjects, contractor shall submit 

appropriate documentation to the 

Contracting Officer for Government 

institutional review and approval. This 

documentation may include: 

(1) Copies of the human subjects research 

protocol, advertisements, recruitment 

material, and informed consent forms 

approved by the cognizant IRB; 

(2) Documentation of approval for the 

human subjects research protocol, 

advertisements, recruitment material, and 

informed consent forms by the cognizant IRB; 

(3) Documentation of continuing IRB 

approval by the cognizant IRB at appropriate 

intervals as designated by the IRB, but not 

less than annually; and/or 

(4) Documentation to support an 

exemption for the project from the Common 

Rule [Note: this option is not available for 

activities that fall under 45 CFR Part 46 

Subpart C]. 

(g) In addition, if contractor modifies a 

human subjects research protocol, 

advertisement, recruitment material, or 

informed consent form approved by the 

cognizant IRB, contractor shall submit a copy 

of all modified material, along with 

documentation of approval for said 

modification by the cognizant IRB, to the 

Contracting Officer for Agency institutional 

review and approval. Contractor may not 

implement any IRB-approved modification 

without written approval by the Contracting 

Officer. 

(h) No work involving human subjects may 

be undertaken, conducted, or costs incurred 

and/or charged to the project, until the 

Contracting Officer approves the required 

appropriate documentation in writing. 

(End of clause) 

1352.237–70 Security processing 

requirements—high or moderate risk 

contracts. 

As prescribed in 48 CFR 1337.110–70 

(b), insert the following clause: 


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SECURITY PROCESSING 

REQUIREMENTS—HIGH OR MODERATE 

RISK CONTRACTS (DATE) 

(a) Investigative Requirements for High and 

Moderate Risk Contracts. All contractor (and 

subcontractor) personnel proposed to be 

employed under a High or Moderate Risk 

contract shall undergo security processing by 

the Department’s Office of Security before 

being eligible to work on the premises of any 

Department of Commerce owned, leased, or 

controlled facility in the United States or 

overseas, or to obtain access to a Department 

of Commerce IT system. All Department of 

Commerce security processing pertinent to 

this contract will be conducted at no cost to 

the contractor. The level of contract risk will 

determine the type and scope of such 

processing, as noted below. 

(1) Investigative requirements for Non-IT 

Service Contracts are: 

(i) High Risk—Background Investigation 

(BI). 

(ii) Moderate Risk—Moderate Background 

Investigation (MBI). 

(2) Investigative requirements for IT 

Service Contracts are: 

(i) High Risk IT—Background Investigation 

(BI). 

(ii) Moderate Risk IT—Background 

Investigation (BI). 

(b) In addition to the investigations noted 

above, non-U.S. citizens must have a preappointment check that includes an 

Immigration and Customs Enforcement 

agency check. 

(c) Additional Requirements for Foreign 

Nationals (Non-U.S. Citizens). To be 

employed under this contract within the 

United States, non-U.S. citizens must have: 

(1) Official legal status in the United States; 

(2) Continuously resided in the United 

States for the last two years; and 

(3) Obtained advance approval from the 

servicing Security Officer of the contracting 

operating unit in consultation with the DOC 

Office of Security (OSY) headquarters. (OSY 

routinely consults with appropriate agencies 

regarding the use of non-U.S. citizens on 

contracts and can provide up-to-date 

information concerning this matter.) 

(d) Security Processing Requirement. 

Processing requirements for High and 

Moderate Risk Contracts are as follows: 

(1) The contractor must complete and 

submit the following forms to the Contracting 

Officer’s Representative (COR): 

(i) Standard Form 85P (SF–85P), 

Questionnaire for Public Trust Positions; 

(ii) FD–258, Fingerprint Chart with OPM’s 

designation in the ORI Block; and 

(iii) Credit Release Authorization. 

(2) The Sponsor will ensure that these 

forms have been properly completed, initiate 

the CD–254, Contract Security Classification 

Specification, and forward the documents to 

the cognizant Security Officer. 

(3) Upon completion of security 

processing, the Office of Security, through 

the servicing Security Officer and the 

Sponsor, will notify the contractor in writing 

of an individual’s eligibility to be provided 

access to a Department of Commerce facility 

or Department of Commerce IT system. 

(4) Security processing shall consist of 

limited personal background inquiries 

pertaining to verification of name, physical 

description, marital status, present and 

former residences, education, employment 

history, criminal record, personal references, 

medical fitness, fingerprint classification, 

and other pertinent information. For nonU.S. citizens, the Sponsor must request an 

Immigration and Customs Enforcement 

agency check. It is the option of the Office 

of Security to repeat the security processing 

on any contract employee at its discretion. 

(e) Notification of Disqualifying 

Information. If the Office of Security receives 

disqualifying information on a contract 

employee, the COR will be notified. The 

Sponsor, in coordination with the 

Contracting Officer, will immediately remove 

the contract employee from duties requiring 

access to Departmental facilities or IT 

systems. Contract employees may be barred 

from working on the premises of a facility for 

any of the following: 

(1) Conviction of a felony crime of violence 

or of a misdemeanor involving moral 

turpitude; 

(2) Falsification of information entered on 

security screening forms or on other 

documents submitted to the Department; 

(3) Improper conduct once performing on 

the contract, including criminal, infamous, 

dishonest, immoral, or notoriously 

disgraceful conduct or other conduct 

prejudicial to the Government, regardless of 

whether the conduct was directly related to 

the contract; 

(4) Any behavior judged to pose a potential 

threat to Departmental information systems, 

personnel, property, or other assets. 

(f) Failure to comply with security 

processing requirements may result in 

termination of the contract or removal of 

contract employees from Department of 

Commerce facilities or denial of access to IT 

systems. 

(g) Access to National Security 

Information. Compliance with these 

requirements shall not be construed as 

providing a contract employee clearance to 

have access to national security information. 

(h) The contractor shall include the 

substance of this clause, including this 

paragraph, in all subcontracts. 

(End of clause) 

1352.237–71 Security processing 

requirements—low risk contracts. 

As prescribed in 48 CFR 1337.110– 

70(c), insert the following clause: 

SECURITY PROCESSING 

REQUIREMENTS—LOW RISK CONTRACTS 

(DATE) 

(a) Investigative Requirements for Low Risk 

Contracts. All contractor (and subcontractor) 

personnel proposed to be employed under a 

Low Risk contract shall undergo security 

processing by the Department’s Office of 

Security before being eligible to work on the 

premises of any Department of Commerce 

owned, leased, or controlled facility in the 

United States or overseas, or to obtain access 

to a Department of Commerce IT system. All 

Department of Commerce security processing 

pertinent to this contract will be conducted 

at no cost to the contractor. 

(b) Investigative requirements for Non-IT 

Service Contracts are: 

(1) Contracts more than 180 days— 

National Agency Check and Inquiries (NACI). 

(2) Contracts less than 180 days—Special 

Agency Check (SAC). 

(c) Investigative requirements for IT 

Service Contracts are: 

(1) Contracts more than 180 days— 

National Agency Check and Inquiries (NACI). 

(2) Contracts less than 180 days—National 

Agency Check and Inquiries (NACI). 

(d) In addition to the investigations noted 

above, non-U.S. citizens must have a 

background check that includes an 

Immigration and Customs Enforcement 

agency check. 

(e) Additional Requirements for Foreign 

Nationals (Non-U.S. Citizens). Non-U.S. 

citizens (lawful permanent residents) to be 

employed under this contract within the 

United States must have: 

(1) Official legal status in the United States; 

(2) Continuously resided in the United 

States for the last two years; and 

(3) Obtained advance approval from the 

servicing Security Officer in consultation 

with the Office of Security headquarters. 

(f) DOC Security Processing Requirements 

for Low Risk Non-IT Service Contracts. 

Processing requirements for Low Risk non-IT 

Service Contracts are as follows: 

(1) Processing of a NACI is required for all 

contract employees employed in Low Risk 

non-IT service contracts for more than 180 

days. The Contracting Officer’s 

Representative (COR) will invite the 

prospective contractor into e-QIP to complete 

the SF–85. The contract employee must also 

complete fingerprinting. 

(2) Contract employees employed in Low 

Risk non-IT service contracts for less than 

180 days require processing of Form OFI–86C 

Special Agreement Check (SAC), to be 

processed. The Sponsor will forward a 

completed Form OFI–86C, FD–258, 

Fingerprint Chart, and Credit Release 

Authorization to the servicing Security 

Officer, who will send the investigative 

packet to the Office of Personnel 

Management for processing. 

(3) Any contract employee with a favorable 

SAC who remains on the contract over 180 

days will be required to have a NACI 

conducted to continue working on the job 

site. 

(4) For Low Risk non-IT service contracts, 

the scope of the SAC will include checks of 

the Security/Suitability Investigations Index 

(SII), other agency files (INVA), Defense 

Clearance Investigations Index (DCII), FBI 

Fingerprint (FBIF), and the FBI Information 

Management Division (FBIN). 

(5) In addition, for those individuals who 

are not U.S. citizens (lawful permanent 

residents), the Sponsor may request a 

Customs Enforcement SAC on Form OFI– 

86C, by checking Block #7, Item I. In Block 

13, the Sponsor should enter the employee’s 

Alien Registration Receipt Card number to 

aid in verification. 

(6) Copies of the appropriate forms can be 

obtained from the Sponsor or the Office of 

Security. Upon receipt of the required forms, 

the Sponsor will forward the forms to the 

servicing Security Officer. The Security 


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Officer will process the forms and advise the 

Sponsor and the Contracting Officer whether 

the contract employee can commence work 

prior to completion of the suitability 

determination based on the type of work and 

risk to the facility (i.e., adequate controls and 

restrictions are in place). The Sponsor will 

notify the contractor of favorable or 

unfavorable findings of the suitability 

determinations. The Contracting Officer will 

notify the contractor of an approved contract 

start date. 

(g) Security Processing Requirements for 

Low Risk IT Service Contracts. Processing of 

a NACI is required for all contract employees 

employed under Low Risk IT service 

contracts. 

(1) Contract employees employed in all 

Low Risk IT service contracts will require a 

National Agency Check and Inquiries (NACI) 

to be processed. The Contracting Officer’s 

Representative (COR) will invite the 

prospective contractor into e-QIP to complete 

the SF–85. Fingerprints and a Credit Release 

Authorization must be completed within 

three working days from start of work, and 

provided to the Servicing Security Officer, 

who will forward the investigative package to 

OPM. 

(2) For Low Risk IT service contracts, 

individuals who are not U.S. citizens (lawful 

permanent residents) must undergo a NACI 

that includes an agency check conducted by 

the Immigration and Customs Enforcement 

Service. The Sponsor must request the ICE 

check as a part of the NAC. 

(h) Notification of Disqualifying 

Information. If the Office of Security receives 

disqualifying information on a contract 

employee, the Sponsor and Contracting 

Officer will be notified. The Sponsor shall 

coordinate with the Contracting Officer for 

the immediate removal of the employee from 

duty requiring access to Departmental 

facilities or IT systems. Contract employees 

may be barred from working on the premises 

of a facility for any of the following reasons: 

(1) Conviction of a felony crime of violence 

or of a misdemeanor involving moral 

turpitude. 

(2) Falsification of information entered on 

security screening forms or of other 

documents submitted to the Department. 

(3) Improper conduct once performing on 

the contract, including criminal, infamous, 

dishonest, immoral, or notoriously 

disgraceful conduct or other conduct 

prejudicial to the Government regardless of 

whether the conduct was directly related to 

the contract. 

(4) Any behavior judged to pose a potential 

threat to Departmental information systems, 

personnel, property, or other assets. 

(i) Failure to comply with security 

processing requirements may result in 

termination of the contract or removal of 

contract employees from Department of 

Commerce facilities or denial of access to IT 

systems. 

(j) Access to National Security Information. 

Compliance with these requirements shall 

not be construed as providing a contract 

employee clearance to have access to 

national security information. 

(k) The contractor shall include the 

substance of this clause, including this 

paragraph, in all subcontracts. 

(End of clause) 

1352.237–72 Security processing 

requirements—national security contracts. 

As prescribed in 48 CFR 1337.110– 

70(d), use the following clause: 

SECURITY PROCESSING 

REQUIREMENTS—NATIONAL SECURITY 

CONTRACTS (DATE) 

(a) Security Investigative Requirements for 

National Security Contracts. National 

Security Contracts require contractor 

employees to gain access to national security 

information in the performance of their work. 

Regardless of the contractor employees’ 

location, appropriate security access and 

fulfillment of cleared facility requirements, 

as determined by the National Industrial 

Security Program (NISP) Operation Manual 

must be met. All contractors are subject to 

the appropriate investigations indicated 

below and may be granted appropriate 

security access by the Office of Security 

based on favorable results. No national 

security material or documents shall be 

removed from a Department of Commerce 

facility. The circumstances of the work 

performance must allow the Department of 

Commerce to retain control over national 

security information and keep the number of 

contract personnel with access to the 

information to a minimum. 

(b) All employees working on Special or 

Critical Sensitive contracts require an 

updated personnel security background 

investigation every five (5) years. Employees 

on Non-Critical Sensitive contracts will 

require an updated personnel security 

background investigation every ten (10) 

years. 

(c) Security Procedures. Position 

sensitivity/risk assessments must be 

conducted on all functions that are 

performed under the contract. Risk 

assessments for contractor employees are 

determined in the same manner as 

assessment of those functions performed by 

government employees. The Contracting 

Officer and Contracting Officer’s 

Representative should determine the level of 

sensitivity or risk with the assistance of the 

servicing Security Officer. 

(1) Contractor employees working on 

National Security Contracts must have a 

completed investigation and be granted an 

appropriate security level clearance by the 

Office of Security before start of work. 

(2) The Contracting Officer’s 

Representative must send the contract 

employee’s existing security clearance 

information, if applicable, or appropriate 

investigative request package, to the servicing 

Security Officer, who will review and 

forward it to the Office of Security. 

(3) The Office of Security must confirm 

that contract employees have the appropriate 

security clearance before starting any work 

under a National Security Contract. 

(d) Security Forms Required. For CriticalSensitive positions with Top Secret access, 

Critical-Sensitive positions with Secret 

access, and Non-Critical Sensitive positions 

with Secret or Confidential access, the 

following forms are required: 

(1) Form SF–86, Questionnaire for National 

Security Positions, marked ‘‘CON’’ in Block 1, 

Position Title, to distinguish it as a contractor 

case; 

(2) Form FD–258, Fingerprint Chart, with 

OPM’s designation in the ORI Block; and 

(3) Credit Release Authorization Form. 

(e) Contracting Officer’s Representative 

Responsibilities are: 

(1) Coordinate submission of a proper 

investigative request package with the 

servicing Security Officer, the Contracting 

Officer, and the contractor. 

(2) Review the request package for 

completeness, ensuring that the subject of 

each package is identified as a contract 

employee, the name of the contractor is 

identified, and that each package clearly 

indicates the contract sensitivity designation. 

(3) Send the request package to the 

servicing Security Officer for investigative 

processing. 

(f) Servicing Security Officer 

Responsibilities are: 

(1) Review the package for completeness. 

(2) Ensure that the forms are complete and 

contain all the pertinent information 

necessary to request the background 

investigation. 

(3) Forward the request for investigation to 

the Defense Investigative Service 

Coordinating Office (DISCO). 

(4) Maintain records of contractor 

personnel in their units subject to the NISP. 

(5) Ensure that all contractor personnel 

have been briefed on the appropriate 

procedures for handling and safeguarding 

national security information. 

(g) The contractor shall include the 

substance of this clause, including this 

paragraph, in all subcontracts. 

(End of clause) 

1352.237–73 Foreign national visitor and 

guest access to departmental resources. 

As prescribed in 48 CFR 1337.110–70 

(e), insert the following clause: 

FOREIGN NATIONAL VISITOR AND 

GUEST ACCESS TO DEPARTMENTAL 

RESOURCES (DATE) 

(a) The contractor shall comply with the 

provisions of Department Administrative 

Order 207–12, Foreign National Visitor and 

Guest Access Program; Bureau of Industry 

and Security Export Administrative 

Regulations Part 734, and [insert operating 

unit counsel specific procedures]. The 

contractor shall provide the Government 

with notice of foreign nationals requiring 

access to any Department of Commerce 

facility or through a Department of 

Commerce IT system. 

(b) The contractor shall identify each 

foreign national who requires access to any 

Departmental resources, and shall provide all 

requested information in writing to the 

Contracting Officer’s Representative. 

(c) The contractor shall include the 

substance of this clause, including this 

paragraph, in all subcontracts. 

(End of clause) 


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1352.237–74 Progress reports. 

As prescribed in 48 CFR 1337.110– 

71(a), insert the following clause: 

PROGRESS REPORTS (DATE) 

The contractor shall submit, to the 

Government, a progress report every llll 

[insert time period] month(s) after the 

effective date of the contract, and every 

________ [insert time period] thereafter 

during the period of performance. The 

contractor shall deliver progress reports that 

summarize the work completed during the 

performance period, the work forecast for the 

following period, and state the names, titles 

and number of hours expended for each of 

the contractor’s professional personnel 

assigned to the contract, including officials of 

the contractor. The report shall also include 

any additional information—including 

findings and recommendations—that may 

assist the Government in evaluating progress 

under this contract. The first report shall 

include a detailed work outline of the project 

and the contractor’s planned phasing of work 

by reporting period. 

(End of clause) 

1352.237–75 Key personnel. 

As prescribed in 48 CFR 1337.110– 

71(b), insert the following clause: 

KEY PERSONNEL (DATE) 

(a) The contractor shall assign to this 

contract the following key personnel: 

(Name) (Position Title) 

(Name) (Position Title) 

(b) The contractor shall obtain the consent 

of the Contracting Officer prior to making key 

personnel substitutions. Replacements for 

key personnel must possess qualifications 

equal to or exceeding the qualifications of the 

personnel being replaced, unless an 

exception is approved by the Contracting 

Officer. 

(c) Requests for changes in key personnel 

shall be submitted to the Contracting Officer 

at least 15 working days prior to making any 

permanent substitutions. The request should 

contain a detailed explanation of the 

circumstances necessitating the proposed 

substitutions, complete resumes for the 

proposed substitutes, and any additional 

information requested by the Contracting 

Officer. The Contracting Officer will notify 

the contractor within 10 working days after 

receipt of all required information of the 

decision on substitutions. The contract will 

be modified to reflect any approved changes. 

(End of clause) 

1352.239–70 Software license addendum. 

As prescribed in 48 CFR 1339.107, 

insert the following clause: 

SOFTWARE LICENSE ADDENDUM (DATE) 

(a) This Addendum incorporates certain 

terms and conditions relating to Federal 

procurement actions. The terms and 

conditions of this Addendum take 

precedence over the terms and conditions 

contained in any license agreement or other 

contract documents entered into between the 

parties. 

(b) Governing Law: Federal procurement 

law and regulations, including the Contract 

Disputes Act, 41 U.S.C. Section 601 et. seq., 

and the Federal Acquisition Regulation 

(FAR), govern the agreement between the 

parties. Litigation arising out of this contract 

may be filed only in those fora that have 

jurisdiction over Federal procurement 

matters. 

(c) Attorney’s Fees: Attorney’s fees are 

payable by the Federal government in any 

action arising under this contract only 

pursuant to the Equal Access in Justice Act, 

5 U.S.C. Section 504. 

(d) No Indemnification: The Federal 

government will not be liable for any claim 

for indemnification; such payments may 

violate the Anti-Deficiency Act, 31 U.S.C. 

Section 1341(a). 

(e) Assignment: Payments may only be 

assigned in accordance with the Assignment 

of Claims Act, 31 U.S.C. Section 3727, and 

FAR Subpart 32.8, ‘‘Assignment of Claims.’’ 

(f) Invoices: Invoices will be handled in 

accordance with the Prompt Payment Act (31 

U.S.C. Section 3903) and Office of 

Management and Budget (OMB) Circular 

A–125, Prompt Payment. 

(g) Patent and Copyright Infringement: 

Patent or copyright infringement suits 

brought against the United States as a party 

may only be defended by the U.S. 

Department of Justice (28 U.S.C. Section 

516). 

(h) Renewal of Support after Expiration of 

this Award: Service will not automatically 

renew after expiration of the initial term of 

this agreement. 

(i) Renewal may only occur in accord with 

(1) the mutual agreement of the parties; or 

(2) an option renewal clause allowing the 

Government to unilaterally exercise one or 

more options to extend the term of the 

agreement. 

(End of clause) 

1352.239–71 Electronic and information 

technology. 

As prescribed in 48 CFR 1339.270(a), 

insert the following provision: 

ELECTRONIC AND INFORMATION 

TECHNOLOGY (DATE) 

(a) To be considered eligible for award, 

offerors must propose electronic and 

information technology (EIT) that meet the 

applicable Access Board accessibility 

standards at 36 CFR 1194 designated below: 

lll 1194.21 Software applications and 

operating systems 

lll 1194.22 Web-based intranet and 

internet information and applications 

lll 1194.23 Telecommunications 

products 

lll 1194.24 Video and multimedia 

products 

lll 1194.25 Self-contained, closed 

products 

lll 1194.26 Desktop and portable 

computers 

lll 1194.31 Functional performance 

criteria 

lll 1194.41 Information, documentation 

and support 

(b) The standards do not require the 

installation of specific accessibility-related 

software or the attachment of an assistive 

technology device, but merely require that 

the EIT be compatible with such software 

and devices so that it can be made accessible 

if so required by the agency in the future. 

(c) Alternatively, offerors may propose 

products and services that provide equivalent 

facilitation. Such offers will be considered to 

have met the provisions of the Access Board 

standards for the feature or components 

providing equivalent facilitation. If none of 

the offers that meet all applicable provisions 

of the standards could be accepted without 

imposing an undue burden on the agency or 

component, or if none of the offerors propose 

products or services that fully meet all of the 

applicable Access Board’s provisions, those 

offerors whose products or services meet 

some of the applicable provisions will be 

considered eligible for award. Awards will 

not be made to an offeror meeting all or some 

of the applicable Access Board provisions if 

award would impose an undue burden upon 

the agency. 

(d) Offerors must submit representation 

information concerning their products by 

completing the VPAT template at http:// 

www.Section508.gov. 

(End of clause) 

1352.239–72 Security requirements for 

information technology resources. 

As prescribed in 48 CFR 1339.270(b), 

insert the following clause: 

SECURITY REQUIREMENTS FOR 

INFORMATION TECHNOLOGY 

RESOURCES (DATE) 

(a) Applicability. This clause is applicable 

to all contracts that require contractor 

electronic access to Department of Commerce 

sensitive non-national security or national 

security information contained in systems, or 

administrative control of systems by a 

contractor that process or store information 

that directly supports the mission of the 

Agency. 

(b) Definitions. For purposes of this clause, 

the term ‘‘Sensitive’’ is defined by the 

guidance set forth in the Computer Security 

Act of 1987 (Pub. L. 100–235), including the 

following definition of the term: 

(1) Sensitive information is ‘‘ * * * any 

information, the loss, misuse, or 

unauthorized access to, or modification of 

which could adversely affect the national 

interest or the, conduct of Federal programs, 

or the privacy to which individuals are 

entitled under section 552a of title 5, United 

States Code (The Privacy Act), but which has 

not been specifically authorized under 

criteria established by an Executive Order or 

an Act of Congress to be kept secret in the 

interest of national defense or foreign policy.’’ 

(2) For purposes of this clause, the term 

‘‘National Security’’ is defined by the 

guidance set forth in: 

(i) The DOC IT Security Program Policy 

and Minimum Implementation Standards, 

Section 4.3. 

(ii) The DOC Security Manual, Chapter 18. 

(iii) Executive Order 12958, as amended, 

Classified National Security Information. 


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Classified or national security information is 

information that has been specifically 

authorized to be protected from unauthorized 

disclosure in the interest of national defense 

or foreign policy under an Executive Order 

or Act of Congress. 

(3) Information technology resources 

include, but are not limited to, hardware, 

application software, system software, and 

information (data). Information technology 

services include, but are not limited to, the 

management, operation (including input, 

processing, transmission, and output), 

maintenance, programming, and system 

administration of computer systems, 

networks, and telecommunications systems. 

(c) The contractor shall be responsible for 

implementing sufficient Information 

Technology security, to reasonably prevent 

the compromise of DOC IT resources for all 

of the contractor’s systems that are 

interconnected with a DOC network or DOC 

systems that are operated by the contractor. 

(d) All contractor personnel performing 

under this contract and contractor equipment 

used to process or store DOC data, or to 

connect to DOC networks, must comply with 

the requirements contained in the DOC 

Information Technology Management 

Handbook (see DOC, Office of the Chief 

Information Officer Web site), or equivalent/ 

more specific agency or operating unit 

counsel guidance as specified immediately 

hereafter [insert agency or operating unit 

counsel specific guidance, if applicable]. 

(e) Contractor personnel requiring a user 

account for access to systems operated by the 

contractor for DOC or interconnected to a 

DOC network to perform contract services 

shall be screened at an appropriate level in 

accordance with Commerce Acquisition 

Manual 1337.70, Security Processing 

Requirements for Service Contracts. 

(f) Within 5 days after contract award, the 

contractor shall certify in writing to the COR 

that its employees, in performance of the 

contract, have completed initial IT security 

orientation training in DOC IT Security 

policies, procedures, computer ethics, and 

best practices, in accordance with DOC IT 

Security Program Policy, chapter 15, section 

15.3. The COR will inform the contractor of 

any other available DOC training resources. 

Annually thereafter the contractor shall 

certify in writing to the COR that its 

employees, in performance of the contract, 

have completed annual refresher training as 

required by section 15.4 of the DOC IT 

Security Program Policy. 

(g) Within 5 days of contract award, the 

contractor shall provide the COR with signed 

acknowledgement of the provisions as 

contained in Commerce Acquisition 

Regulation (CAR), 1352.209–72, Restrictions 

Against Disclosures. 

(h) The contractor shall afford DOC, 

including the Office of Inspector General, 

access to the contractor’s and subcontractor’s 

facilities, installations, operations, 

documentation, databases, and personnel 

used in performance of the contract. Access 

shall be provided to the extent required to 

carry out a program of IT inspection, 

investigation, and audit to safeguard against 

threats and hazards to the integrity, 

availability, and confidentiality of DOC data 

or to the function of computer systems 

operated on behalf of DOC, and to preserve 

evidence of computer crime. 

(i) For all contractor-owned systems for 

which performance of the contract requires 

interconnection with a DOC network on 

which DOC data will be stored or processed, 

the contractor shall provide, implement, and 

maintain a System Accreditation Package in 

accordance with the DOC IT Security 

Program Policy. Specifically, the contractor 

shall: 

(1) Within 14 days after contract award, 

submit for DOC approval a System 

Certification Work Plan, including project 

management information (at a minimum the 

tasks, resources, and milestones) for the 

certification effort, in accordance with DOC 

IT Security Program Policy and [Insert agency 

or operating unit counsel specific guidance, 

if applicable]. The Certification Work Plan, 

approved by the COR, in consultation with 

the DOC IT Security Officer, or Agency/ 

operating unit counsel IT Security Manager/ 

Officer, shall be incorporated as part of the 

contract and used by the COR to monitor 

performance of certification activities by the 

contractor of the system that will process 

DOC data or connect to DOC networks. 

Failure to submit and receive approval of the 

Certification Work Plan may result in 

termination of the contract. 

(2) Upon approval, follow the work plan 

schedule to complete system certification 

activities in accordance with DOC IT Security 

Program Policy Section 6.2, and provide the 

COR with the completed System Security 

Plan and Certification Documentation 

Package portions of the System Accreditation 

Package for approval and system 

accreditation by an appointed DOC official. 

(3) Upon receipt of the Security 

Assessment Report and Authorizing Official’s 

written accreditation decision from the COR, 

maintain the approved level of system 

security as documented in the Security 

Accreditation Package, and assist the COR in 

annual assessments of control effectiveness 

in accordance with DOC IT Security Program 

Policy, Section 6.3.1.1. 

(j) The contractor shall incorporate this 

clause in all subcontracts that meet the 

conditions in paragraph (a) of this clause. 

(End of clause) 

1352.242–70 Postaward conference. 

As prescribed in 48 CFR 1342.503–70, 

insert the following provision: 

POSTAWARD CONFERENCE (DATE) 

A postaward conference with the 

successful offeror may be required. If 

required, the Contracting Officer will contact 

the contractor within 10 days of contract 

award to arrange the conference. 

(End of clause) 

1352.245–70 Government furnished 

property. 

As prescribed in 48 CFR 1345.107–70, 

insert the following clause: 

GOVERNMENT FURNISHED PROPERTY 

(DATE) 

The Government will provide the 

following item(s) of Government property to 

the contractor . The contractor shall be 

accountable for, and have stewardship of, the 

property in the performance of this contract. 

This property shall be used and maintained 

by the contractor in accordance with 

provisions of the ‘‘Government Property’’ 

clause included in this contract. 

Item No. Description Quantity Delivery date Property/Tag No. 

(if applicable) 

.................................... .................................... .................................... .................................... .........................................................................

(End of clause) 

1352.246–70 Place of acceptance. 

As prescribed in 1346.503, insert the 

following clause: 

PLACE OF ACCEPTANCE (DATE) 

(a) The Contracting Officer or the duly 

authorized representative will accept 

supplies and services to be provided under 

this contract. 

(b) The place of acceptance will be: 

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

(End of clause) 

1352.270–70 Period of performance. 

As prescribed in 48 CFR 1370.101, 

insert the following clause: 

PERIOD OF PERFORMANCE (DATE) 

(a) The base period of performance of this 

contract is from llll through llll. 

If an option is exercised, the period of 

performance shall be extended through the 

end of that option period. 

(b) The option periods that may be 

exercised are as follows: 

Period Start date End date 

Option I ............. .................... ....................

Option II ............ .................... ....................

Option III ........... .................... ....................

Option IV ........... .................... ....................

(c) The notice requirements for unilateral 

exercise of option periods are set out in FAR 

52.217–9. 

(End of clause) 


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1352.270–71 Pre-bid/pre-proposal 

conference and site visit. 

As prescribed in 48 CFR 1370.102, 

insert the following provision: 

PRE-BID/PRE-PROPOSAL CONFERENCE 

AND SITE VISIT (DATE) 

(a) The Government is planning a preproposal conference, during which potential 

contractors may obtain a better 

understanding of the work required. 

(b) Offerors are encouraged to submit all 

questions in writing at least [ll] days prior 

to the conference. Questions will be 

considered at any time prior to, or during, the 

conference; however, offerors will be asked 

to confirm verbal questions in writing. 

Subsequent to the conference, an amendment 

to the solicitation containing an abstract of 

the questions and the Government’s answers, 

and a list of attendees, will be made publicly 

available. 

(c) In order to facilitate conference 

preparations, contact the person identified in 

[Block l] on Standard Form [l] of this 

solicitation to make arrangements for security 

processing for entry of attendees into the 

Government facility. 

(d) In no event shall failure to attend the 

pre-proposal conference constitute grounds 

supporting a protest or contract claim. 

(e) Offerors are cautioned that, 

notwithstanding any remarks, clarifications, 

or responses provided at the conference, all 

terms and conditions of the solicitation 

remain unchanged unless they are changed 

by written amendment. It is the 

responsibility of each offeror, prior to 

submitting a proposal, to seek clarification of 

any perceived ambiguity in the solicitation or 

created by an amendment of the solicitation. 

(f) The pre-proposal conference will be 

held: 

Date: llllllllllllllllll

Time: llllllllllllllllll

Location: llllllllllllllll

[Instructions: If the conference also 

includes a site or equipment inspection visit, 

insert the following paragraph]: 

(g) During the conference, an opportunity 

to visit the site of the work, and, if 

applicable, inspect equipment on which 

maintenance or repairs are to be performed 

will be offered to attendees. 

(h) Offerors are expected to satisfy 

themselves regarding all conditions that may 

affect the work required or the cost of 

contract performance. In no event shall 

failure to inspect the site and/or equipment 

constitute grounds for any protest or contract 

claim. 

(End of clause) 

1352.271–70 Inspection and manner of 

doing work. 

As prescribed in 48 CFR 1371.101, 

insert the following clause: 

INSPECTION AND MANNER OF DOING 

WORK (DATE) 

(a) All work and material shall be subject 

to the approval of the Contracting Officer or 

duly authorized representative. Work shall be 

performed in accordance with the plans and 

specifications of this contract as modified by 

any contract modification. 

(b) Unless otherwise specifically provided 

for in the contract, all operational practices 

of the contractor and all workmanship and 

material, equipment and articles used in the 

performance of work shall be in accordance 

with American Bureau of Shipping ‘‘Rules for 

Building and Classing Steel Vessels’’, U.S. 

Coast Guard Marine Engineering Regulations 

and Material Specifications (46 CFR 

Subchapter F), U.S. Coast Guard Electrical 

Engineering Regulations (46 CFR Subchapter 

J), and U.S. Public Health Service ‘‘Handbook 

on Sanitation of Vessel Construction’’, in 

effect at the time of the contract award; and 

the best commercial maritime practices, 

except where military specifications are 

specified, in which case such standards of 

material and workmanship shall be followed. 

(c) All material and workmanship shall be 

subject to inspection and test at all times 

during the contractor’s performance of the 

work to determine their quality and 

suitability for the purpose intended and 

compliance with the contract. In case any 

material or workmanship furnished by the 

contractor is found to be defective prior to 

redelivery of the vessel, or not in accordance 

with the requirements of the contract, the 

Government shall have the right prior to 

redelivery of the vessel to reject such 

material or workmanship, and to require its 

correction or replacement by the contractor at 

the contractor’s cost and expense. This 

Government right is in addition to its rights 

under any Guarantee clause in this contract. 

If the contractor fails to proceed promptly 

with the replacement or correction of such 

material or workmanship, as required by the 

Contracting Officer, the Government may, by 

contract or otherwise, replace or correct such 

material or workmanship and charge to the 

contractor the excess cost to the Government. 

The contractor shall provide and maintain an 

inspection system acceptable to the 

Government covering the work specified in 

the contract. Records of all inspection work 

by the contractor shall be kept complete and 

available to the Government during the 

performance of the contract and for a period 

of two (2) years after delivery of the vessel 

to the Government. 

(d) No welding, including tack welding 

and brazing, shall be permitted in connection 

with repairs, completions, alterations, or 

addition to hulls, machinery or components 

of vessels unless the welder is, at the time, 

qualified to the standards established by the 

U.S. Coast Guard, the American Bureau of 

Shipping, or the Department of the Navy. The 

welder’s qualifications shall be appropriate 

for the particular service application, filler 

material type, position of welding, and 

welding process involved in the work being 

undertaken. A welder may be required to requalify if the Contracting Officer believes 

there is a reasonable doubt concerning the 

welder’s ability. Welders’ qualifications for 

this purpose shall be governed by the U.S. 

Coast Guard Marine Engineering Regulations 

and Material Specifications (46 CFR 

Subchapter F). When a welding process other 

than manual shielded arc is proposed or 

required, the contractor or fabricator shall 

submit procedure qualification tests for 

approval prior to production welding. 

Procedure qualification tests shall be 

conducted in accordance with the United 

States Coast Guard Marine Engineering 

Regulations and Material Specifications (46 

CFR Subchapter F). 

(e) The contractor shall exercise reasonable 

care to protect the vessel from fire, and the 

contractor shall maintain a reasonable system 

of inspection over the activities of welders, 

burners, riveters, painters, plumbers and 

similar workers, particularly where such 

activities are undertaken in the vicinity of the 

vessel’s fuel oil tanks, magazines or 

storerooms containing flammable material. A 

reasonable number of hose lines shall be 

maintained by the contractor ready for 

immediate use on the vessel at all times 

while the vessel is berthed alongside the 

contractor’s pier or in dry dock or on a 

marine railway. All tanks or bilge areas under 

alteration or repair shall be cleaned, washed, 

and steamed out or otherwise made safe by 

the contractor if and to the extent necessary 

as required by good marine practice or by 

current Occupational Safety and Health 

Administration regulations. The Contracting 

Officer’s Representative (COR) shall be 

furnished with a ‘‘gas free’’ or ‘‘safe for hot 

work’’ or ‘‘safe for workers’’ certificate before 

any hot work or entry is done. Unless 

otherwise provided in this contract, the 

contractor shall at all times maintain a 

reasonable fire watch about the vessel, 

including a fire watch on the vessel while 

work is being performed thereon. 

(f) The contractor shall place proper 

safeguards and/or effect such safety 

precautions as necessary, including suitable 

and sufficient lighting, for the prevention of 

accidents or injury to persons or property 

during the prosecution of work under this 

contract and/or from time of receipt of the 

vessel until acceptance by the Government of 

the work performed. 

(g) Except as otherwise provided in this 

contract, when the vessel is in the custody 

of the contractor or in dry dock or on a 

marine railway and the temperature becomes 

as low as 35 degrees Fahrenheit, the 

contractor shall keep all pipelines, fixtures, 

traps, tanks, and other receptacles on the 

vessel drained to avoid damage from 

freezing, or if this is not practicable, the 

vessel shall be kept heated to prevent such 

damage. The vessel’s stern tube and propeller 

hubs shall be protected from frost damage by 

applied heat through the use of a salamander 

or other proper means, as approved by the 

COR. 

(h) Whenever practicable, the work shall be 

performed in a manner which does not 

interfere with the berthing and messing of 

personnel attached to the vessel. The 

contractor shall ensure that assigned 

personnel have access to the vessel at all 

times. It is understood that such personnel 

will not interfere with the work or the 

contractor’s workers. 

(i) The Government does not guarantee the 

correctness of the dimensions, sizes, and 

shapes shown in any sketches, drawings, 

plans or specifications prepared or furnished 

by the Government. Prior to submitting an 

offer, it is the responsibility of the bidder/ 


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offeror to verify the dimensions, sizes, and 

shapes in materials provided by the 

Government. Where practical, the 

Government will make the vessel available 

for inspection prior to bid opening or the 

date for receipt of proposals. If the contractor, 

as a result of inspection or otherwise, 

discovers any error in the sketches, drawings, 

plans or specifications, it shall immediately 

inform the Contracting Officer of the error 

and proceed in accord with instructions 

received from the Contracting Officer. The 

Government is not liable for any claims or 

charges resulting from additional work 

performed by the contractor as a result of a 

patent ambiguity in the sketches, drawings, 

plans or specifications that was not brought 

to the attention of the Contracting Officer. 

The contractor shall be responsible for the 

correctness of the shape, sizes and 

dimensions of parts furnished by the 

contractor under the contract. 

(j) The contractor shall at all times keep the 

site of the work on the vessel free from 

accumulation of waste material or rubbish 

caused by contractor employees or the work, 

and at the completion of the work shall 

remove all rubbish from and about the site 

of the work and shall leave the work and its 

immediate vicinity ‘‘broom-clean’’ unless 

more exactly specified in this contract. 

(k) While in drydock or on a marine 

railway, the contractor shall be responsible 

for the closing, before the end of working 

hours, of all valves and openings upon which 

work is being done by its workers when such 

closing is practicable. The contractor shall 

establish a list and keep the COR cognizant 

of the closure status of all valves and 

openings upon which the contractor’s 

workers have been working. 

(l) Without additional expense to the 

Government, the contractor shall employ 

specialty subcontractors where required by 

the specifications or when necessary for 

satisfactory performance of the work. 

(m)(1) Unless otherwise stated in the 

contract, the contractor shall notify the COR 

at least 72 hours in advance: 

(i) Prior to starting inspections or tests; and 

(ii) When supplies will be ready for 

Government inspection. 

(2) Such notification shall be provided 

either verbally or in writing at the discretion 

of the COR. 

(End of clause) 

1352.271–71 Method of payment and 

invoicing instructions for ship repair. 

As prescribed in 48 CFR 1371.102, 

insert the following clause: 

METHOD OF PAYMENT AND INVOICING 

INSTRUCTIONS FOR SHIP REPAIR (DATE) 

(a) The Government will make payment 

under this contract based on a percentage of 

completion. The contractor may invoice for 

the percentage completed for each work item 

as work progresses. The amount invoiced 

shall be calculated based on prices stated in 

the Schedule, as follows: A work item may 

not be invoiced until the percentage 

complete reaches 25 percent. Future invoices 

for that work item have no limitation as to 

the percentage of completion required before 

invoicing, but in no event may invoices be 

submitted more frequently than every 2 

weeks, or for amounts less than $10,000, 

unless it is the final payment. The minimum 

percentage of completion (25%) to be 

reached prior to billing each work item may 

be waived by the Contracting Officer for large 

dollar work items on a case-by-case basis. 

(b) Invoices submitted by the contractor 

which are deemed not proper, in accordance 

with FAR 52.232–25, will be returned. 

Invoices shall include: 

(1) Name and Address of the contractor; 

(2) DUNS Number; 

(3) Invoice Date; 

(4) Contract Number/Modification Number; 

(5) CLIN/Work Item Number, to include: 

Description, Quantity, Unit of Measure, Unit 

Price and Extended Price; 

(6) Shipping and Payment Terms; and, 

(7) Contractor Point of Contact, including: 

Name, Title, Phone Number, and Mailing 

Address; 

(8) The percentage of completion for each 

CLIN/work item identified; 

(9) Name of the Contracting Officer ; 

(10) Ship name; 

(11) The overall percentage and dollar 

amount previously billed, currently billed 

and unbilled. 

(c) When invoicing for changed work, the 

contractor shall identify it as a contract 

change and shall identify the modification 

authorizing the change, and the CLIN/Work 

Item associated with the change. 

(d) All items of work invoiced under this 

contract will be verified and confirmed by 

the Contracting Officer’s Representative as 

accurate and complete and approved by the 

designated billing office before payment will 

be made. 

(e) Mail the original invoice to: 

[insert] 

(f) The contractor’s final invoice submitted 

under the contract must be marked as 

follows: ‘‘THIS INVOICE CONSTITUTES 

THE FINAL INVOICE—UPON PAYMENT OF 

THIS INVOICE NO OTHER MONIES ARE 

DUE UNDER CONTRACT NUMBER 

llllllll.’’ (To be assigned at 

contract award) 

(End of clause) 

1352.271–72 Additional Item Requirements 

(AIR)—growth work 

As prescribed in 48 CFR 1371.103, 

insert the following clause: 

ADDITIONAL ITEM REQUIREMENTS 

(AIR)—GROWTH WORK (DATE) 

(a) This clause applies to Additional Item 

Requirements (AIR), also known as growth 

and emergent work ordered by the 

Contracting Officer pursuant to the 

Changes—Ship Repair clause or mutually 

agreed upon by the parties. The contractor 

shall perform AIR at the labor billing rates 

designated in the Schedule, as described in 

paragraph (c) of this clause. The AIR 

handling fee designated in the Schedule shall 

be the sole fee used for direct material 

purchases and subcontractor handling. The 

estimated quantity of labor hours and 

handling fees represent the Government’s 

best estimate for growth that may be required 

throughout the contract performance period. 

All growth work shall be paid at the prices 

stated in the Schedule. 

(b) The contractor shall take into account 

the potential for ordering all estimated AIR 

quantities in developing the Production 

Schedule. The ordering of any portion of the 

AIR quantities does not in itself warrant an 

extension to the original contract completion 

date; however, for planning purposes, the 

Government anticipates ordering AIR in 

accordance with the following schedule: 

(1) No more than 75% of the hours during 

the first half of the contract period of 

performance. 

(2) No more than 50% of the hours during 

the third quarter of the contract period of 

performance. 

(3) No more than 30% of the hours during 

the fourth quarter of the contract period of 

performance. 

(c) The AIR labor rate shall be a flat, hourly 

rate to cover the entire effort and shall be 

burdened to include: 

(1) Direct production labor hour functions 

only. Direct production labor hours are hours 

of skilled labor at the journeyman level 

expended in direct production. Direct 

production is defined as work performed by 

a qualified craftsman that is directly related 

to the alteration, modification, or repair of 

the item or system identified as needing 

alteration, modification, or repair. The 

following functions are identified as direct 

production: Abrasive Cleaning/Water 

Blasting, Tank Cleaning, Welding, Burning, 

Brazing, Blacksmithing, Machining (inside 

and outside), Carpentry, Electrical/Electronic 

Work, Crane Operation, Shipfitting, Lagging/ 

Insulating, Painting, Boilermaking, Pipe 

Fitting, Engineering (Production), Sheetmetal 

Work, Staging/Scaffolding, and Rigging. 

(2) Non-production labor hours (whether 

charged directly or indirectly by contractor’s 

accounting system) shall be for labor in 

support of production functions. For 

purposes of this clause, support functions are 

defined as functions that do not directly 

contribute to the alteration, modification, or 

repair of the item or system identified as 

needing alteration, modification, or repair. 

Necessary support functions should be 

priced into the burdened rate for production 

labor hours. Examples of support functions 

include: Testing, Quality Assurance 

(inspection), Engineering (support), Planning 

(including involvement of craft foreman/ 

journeyman in planning a task), Estimating 

(including determination of necessary 

materials and equipment needed to perform 

a task), Material Handling, Set-up (moving 

tools and equipment from shop to ship to 

perform a task), Fire Watch, General Labor 

(including general support of journeyman 

tasks), Cleaning (including debris pickup and 

removal), Surveying, Security, 

Transportation, Supervision, and Lofting 

(sail/pattern making). 

(d) Additional Item Requirements do not 

include replacement work performed 

pursuant to the Inspection and Manner of 

Doing Work or Guarantees clauses. 

(e) It is the Government’s intention to 

award any growth work identified during the 

repair to the contractor, if a fair and 

reasonable price can be negotiated for such 


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work, based upon Schedule rates. If a fair and 

reasonable price cannot be negotiated, the 

Government may, at its discretion, obtain 

services outside of the contract. Such 

services may be performed while the ship is 

undergoing repair in the contractor’s facility 

pursuant to the Access to Vessels clause. 

(f) The contractor shall submit to the 

Contracting Officer the following information 

in all AIR proposals: 

(1) Number of labor hours estimated; 

broken down by specific direct production 

labor category. 

(2) Material estimates, individually broken 

out and priced. When requested by the 

Contracting Officer, material quotes shall be 

provided. 

(3) Subcontractor estimates, individually 

broken out and priced along with the actual 

subcontractor quotes. The requirement to 

submit subcontractor quotes may be waived 

if deemed appropriate by the Contracting 

Officer. 

(4) Material/subcontractor handling fee and 

the basis for the fee. 

(g) The contractor shall not be entitled to 

payment for any hours ordered pursuant to 

this clause until such time as a written 

contract modification is executed. 

(End of clause) 

1352.271–73 Schedule of work. 

As prescribed in 48 CFR 1371.104, 

insert the following clause. 

SCHEDULE OF WORK (DATE) 

(a) Notwithstanding other requirements 

specified in this contract, the contractor shall 

provide to the Contracting Officer and COR 

the following documents within five (5) 

working days of the vessel’s arrival at the 

contractor’s facility: 

(1) Production Schedule. 

(2) Work Package Network. 

(3) Total Manpower Loading Curve. 

(4) Trade Manning Curves. 

(5) Subcontracting List. 

(b) The Production Schedule shall list the 

earliest, latest, and scheduled start and 

completion date for each work item awarded 

and shall identify the critical path. The Work 

Package Network shall show the work items, 

milestones, key events, and activities and 

shall clearly identify the critical path. The 

Total Manpower Loading Curve shall show 

the required manning for the duration of the 

contract. The Trade Manning Curves shall 

show the required manning for each trade for 

the duration of the contract. The 

Subcontracting List shall show work items, 

milestones, key events, and activities to be 

accomplished by subcontractors. 

(c) Additional Item Requirements ordered 

and agreed upon, whether or not yet 

formalized via a change order (contract 

modification), shall be added to the 

Production Schedule, Trade Manning Curves, 

and Subcontracting List and submitted to the 

Contracting Officer and COR at each weekly 

Progress Meeting. Any anticipated or 

unanticipated deviation (greater than five (5) 

calendar days) from the Production Schedule 

shall be immediately brought to the attention 

of the Contracting Officer and COR. 

(d) Any unauthorized deviation in the 

Production Schedule which results in a delay 

in the completion of work on a vessel past 

the established performance period 

completion date may entitle the Government 

to remedies for late performance, including, 

but not limited to, liquidated damages. 

(End of clause) 

1352.271–74 Foreseeable cost factors 

pertaining to different shipyard locations. 

As prescribed in 48 CFR 1371.105, 

insert the following provision: 

FORESEEABLE COST FACTORS 

PERTAINING TO DIFFERENT SHIPYARD 

LOCATIONS (DATE) 

(a) The Contracting Officer will evaluate 

certain foreseeable costs that will vary with 

the location of the commercial shipyard to be 

used by bidders/offerors under this 

solicitation. Costs will be calculated based on 

the bidder’s/offeror’s shipyard location and 

these costs will be added, for the purposes 

of evaluation only, to the bidder’s/offeror’s 

overall price. 

(b) These elements of foreseeable costs 

consist of the following: 

(1) Vessel Transit: (i) Vessel delivery costs 

will be based on one round trip from the 

vessel’s homeport of llllllll to the 

contractor’s facility at a cruising speed of 

ll knots. Distances will be based on the 

NOAA publication, ‘‘Distance Between U.S. 

Ports’’. 

(ii) Daily vessel operational cost to navigate 

the vessel between its homeport and the 

contractor’s offered place of performance is 

$llll per day. The number of days to 

transit to the contractor’s offered place of 

performance from the vessel’s homeport will 

be multiplied by the per-day operational cost. 

(iii) No operational costs will be applied if 

the ship can be delivered to the contractor’s 

facility from its homeport within eight (8) 

hours port-to-port. If the delivery time 

exceeds eight (8) hours, but is less than 24 

hours, it will be considered one full day. Any 

fraction of subsequent day(s) will be 

considered as a full day. 

(2) Shore Leave Costs: If the contractor’s 

facility is outside of a 50-mile radius of the 

vessel’s homeport— 

(i) An assessment of $llll for each 15- 

day period or portion thereof, beginning with 

the vessel’s departure from the homeport and 

concluding with the vessel’s return to 

homeport. 

(ii) There will be an additional 

transportation cost for lll vessel crew 

members for one (1) round trip(s) between 

the contractor’s offered place of performance 

and the vessel’s homeport at the cost of 

coach-type airfare. 

(3) Travel and Per Diem Costs: If the 

contractor’s facility is outside of a 50-mile 

radius of the vessel’s homeport— 

(i) There will be a transportation cost for 

one (1) Contracting Officer’s Representative 

(COR) for ll round trip(s) between the 

contractor’s offered place of performance and 

the COR’s official duty station at the cost of 

coach-type airfare. 

(ii) There will be a per diem expense for 

ll calendar days to support one (1) COR 

while in the city of the place of contract 

performance, to be determined in accordance 

with the Joint Federal Travel Regulations 

(JFTR). The cost of car rental for the 

estimated performance period will also be 

included. 

(iii) There will be a transportation cost for 

one (1) Contracting Officer for ll round 

trip(s) between the Contracting Officer’s 

official duty station and the contractor’s 

offered place of performance at the cost of 

coach-type airfare, plus per diem expenses 

and a rental car. 

(End of clause) 

1352.271–75 Delivery and shifting of the 

vessel. 

As prescribed in 48 CFR 1371.106, 

insert the following clause: 

DELIVERY AND SHIFTING OF THE VESSEL 

(DATE) 

(a) The Government shall deliver the vessel 

to the contractor, at the location specified in 

the contract. 

(b) Whether the specified location of 

performance is the contractor’s own facility 

or any other authorized facility, it shall be 

understood to mean the fairway of the 

facility. The contractor shall provide 

necessary tugs and pilot services to move the 

vessel from the fairway to the pier or dock, 

and, upon completion of all work, from the 

pier or dock to the fairway of the facility. 

(c) While the vessel is in the possession of 

the contractor, any necessary movement of 

the vessel incidental to the work specified in 

the contract shall be furnished by the 

contractor without additional charge to the 

Government. 

(End of clause) 

1352.271–76 Performance. 

As prescribed in 48 CFR 1371.107, 

insert the following clause: 

PERFORMANCE (DATE) 

(a) The contractor shall not commence 

work until a notice to proceed has been 

issued by the Contracting Officer. 

(b) The Government shall deliver the vessel 

described in the contract at such time and 

location as may be specified in the contract. 

Upon completion of the work, the 

Government shall accept delivery of the 

vessel at such time and location as may be 

specified in the contract. 

(c) Without additional charge to the 

Government, and without specific 

requirement in the contract, the contractor 

shall: 

(1) Make available, at the facility, to 

personnel of the vessel while in drydock or 

on a marine railway, sanitary facilities 

adequate for the number of personnel using 

them and acceptable to the Contracting 

Officer; 

(2) Supply and maintain, in such condition 

as the Contracting Officer may reasonably 

require, suitable brows and gangways from 

the pier, drydock or marine railway to the 

vessel; 

(3) Perform, or pay the cost of, any repair, 

reconditioning or replacement made 

necessary as the result of the use by the 

contractor of any of the vessel’s machinery, 


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equipment or fittings, including, but not 

limited to, winches, pumps, riggings, or pipe 

lines; and 

(4) Furnish suitable offices, office 

equipment and telephones at or near the site 

of the work as the Contracting Officer 

reasonably requires for personnel designated 

by the Government. 

(d) Except as otherwise provided in the 

contract, the contractor shall furnish all 

necessary material, labor, supervision, 

services, equipment, tools, supplies, power, 

accessories, facilities, and other things and 

services necessary for accomplishing the 

work. 

(e) The contractor shall conduct dock and 

sea trials of the vessel as required by the 

contract. Unless otherwise expressly 

provided in the contract, during the conduct 

of these trials the vessel shall be under the 

control of the vessel’s commander and crew 

with representatives of the contractor and the 

Government on board to determine whether 

the work provided by the contractor has been 

satisfactorily performed. Dock and sea trials 

not specified which the contractor requires 

for its own benefit shall not be undertaken 

by the contractor without prior notice to and 

approval of the Contracting Officer; any such 

dock or sea trial shall be conducted at the 

risk and expense of the contractor. The 

contractor shall provide and install all 

fittings and appliances which may be 

necessary for the dock and sea trials to enable 

the representatives of the Government to 

determine whether the requirements of the 

contract plans and specifications have been 

met. The contractor shall also be responsible 

for the care, installation and removal of any 

instruments and apparatus furnished by the 

Government for such trials. 

(End of clause) 

1352.271–77 Delays. 

As prescribed in 48 CFR 1371.108, 

insert the following clause: 

DELAYS (DATE) 

When, during the performance of this 

contract, the contractor is required to delay 

the work on a vessel temporarily, due to 

orders or actions of the Government 

respecting stoppage of work to permit 

shifting the vessel, stoppage of hot work to 

permit bunkering, fueling, embarking or 

debarking of passengers or loading or 

discharging of cargo, and the contractor is not 

given sufficient advance notice or is 

otherwise unable to avoid incurring 

additional costs on account thereof, an 

equitable adjustment may be made in the 

contract. Any such request for equitable 

adjustment shall be asserted in writing as 

soon as practicable after the delay or 

disruption, but not later than the day of final 

payment under the contract. 

(End of clause) 

1352.271–78 Minimization of delay due to 

Government furnished property. 

As prescribed in 48 CFR 1371.109, 

insert the following clause: 

MINIMIZATION OF DELAY DUE TO 

GOVERNMENT FURNISHED PROPERTY 

(DATE) 

(a) In order to assure timely performance 

under this contract, it is imperative that 

delay in the contract’s performance period 

resulting from late, damaged, or unsuitable 

Government furnished property be held to an 

absolute minimum. In order to achieve 

minimization of delay, it is agreed that: 

(1) Subject to adjustment as provided in 

paragraph (b) of this clause, the Government 

shall deliver each item of Government 

furnished property to the contractor on or 

before the date specified in the contract or, 

if later, in sufficient time for the contractor 

to meet the contract performance period. 

(2) The Government may forego furnishing 

any item of Government property to the 

contractor. In that event, the contractor shall 

prepare the vessel in terms of piping, wiring, 

structure, foundation, ventilation, and any 

other pre-installation requirements of the 

item, so that the work on the vessel may 

continue without delay and disruption 

resulting from the absence of the item. If the 

Government does not furnish an item 

designated as Government furnished 

property, the contract price may be adjusted 

accordingly. 

(b) The delivery or performance dates for 

the supplies or services to be furnished by 

the contractor under this contract are based 

upon the expectation that Government 

furnished property suitable for use (except 

for such property furnished ‘‘as is’’) will be 

delivered to the contractor at the time stated 

in the specification or, if not so stated, in 

sufficient time to enable the contractor to 

meet such delivery or performance dates. If 

the Government furnished property is not 

furnished in the time stated in the contract, 

or, if a date is not specified, and the late 

delivery does not give the contractor 

sufficient time to enable the contractor to 

meet required contract delivery or 

performance dates, the contractor shall notify 

the Government in writing of the late 

delivery. Notification shall include cost and 

schedule impacts, including delays and 

disruptions to schedules. This notification 

shall be submitted as soon as practical or 

known. 

(c) The provisions in subsection (b) of this 

clause and in FAR 52.245–1, if applicable, 

provide the exclusive remedies to the 

contractor resulting from delay in delivery of 

Government furnished property or delivery 

of such property in a condition not suitable 

for its intended use. 

(End of clause) 

1352.271–79 Liability and insurance. 

As prescribed in 48 CFR 1371.110, 

insert the following clause: 

LIABILITY AND INSURANCE (DATE) 

(a) The contractor shall exercise reasonable 

care and use its best efforts to prevent 

accidents, injury or damage to all employees, 

persons and property, in and about the work, 

and to the vessel or part thereof upon which 

work is done. 

(b) The contractor shall be responsible for 

and make good at its own cost and expense 

any and all loss of or damage of whatsoever 

nature to the vessel (or part thereof), its 

equipment, movable stores and cargo, and 

Government-owned material and equipment 

for the repair, completion, alteration of or 

addition to the vessel in the possession of the 

contractor, whether at the plant or elsewhere, 

arising or growing out of the performance of 

the work, except where the contractor can 

affirmatively show that such loss or damage 

was due to causes beyond the contractor’s 

control, was proximately caused by the fault 

or negligence of agents or employees of the 

Government, or which loss or damage the 

contractor by exercise of reasonable care was 

unable to prevent. However, the contractor 

shall not be responsible for any such loss or 

damage discovered after redelivery of the 

vessel unless the loss or damage is 

discovered within 90 days after redelivery of 

the vessel and loss or damage is affirmatively 

shown to be the result of the fault or 

negligence of the contractor. To induce the 

contractor to perform the work for the 

compensation provided, it is specifically 

agreed that the contractor’s aggregate liability 

on account of loss of or damage to the vessel 

(or part thereof), its equipment, movable 

stores and cargo and Government-owned 

materials and equipment, shall in no event 

exceed the sum of $1,000,000.00. As to the 

contractor, the Government assumes the risk 

of loss or damage to the Government-owned 

vessel (or part thereof), its equipment, 

movable stores and cargo and said 

Government-owned materials and equipment 

in excess of $1,000,000.00. This assumption 

of risk includes but is not limited to loss or 

damage from negligence of whatsoever 

degree of the contractor’s servants, 

employees, agents or subcontractors, but 

specifically excludes loss or damage from 

willful misconduct or lack of good faith on 

the part of contractor’s personnel, who have 

supervision or direction of all or 

substantially all of the contractor’s business, 

or all or substantially all of the contractor’s 

operation at any one plant. However, as to 

such risk assumed and borne by the 

Government, the Government shall be 

subrogated to any claim, demand or cause of 

action against third persons which exists in 

favor of the contractor, and the contractor 

shall, if required, execute a formal 

assignment or transfer of claims, demands or 

causes of action. Nothing contained in this 

paragraph shall create or give rise to any 

right, privilege or power in any person except 

the contractor, nor shall any person (except 

the contractor) be or become entitled thereby 

to proceed directly against the Government, 

or join the Government as a co-defendant in 

any action against the contractor brought to 

determine the contractor’s liability, or for any 

other purpose. 

(c) The contractor indemnifies and holds 

harmless the Government, its agencies and 

instrumentalities, and the vessel against all 

suits, actions, claims, costs or demands 

(including without limitation, suits, actions, 

claims, costs or demands resulting from 

death, personal injury and property damage) 

to which the Government, its agencies and 

instrumentalities, or the vessel may be 

subject or put by reason of damage or injury 

(including death) to the property or person of 


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anyone other than the Government, its 

agencies, instrumentalities and personnel, or 

the vessel, arising or resulting in whole or in 

part from the fault, negligence, wrongful act 

or wrongful omission of the contractor, or 

any subcontractor, its or their servants, 

agents or employees; provided that the 

contractor’s obligation to indemnify under 

this paragraph (c) shall not exceed the sum 

of $1,000,000.00 on account of any one 

accident or occurrence in respect of any one 

vessel. Such indemnity shall include, 

without limitation, suits, actions, claims, 

costs or demands of any kind whatsoever, 

resulting from death, personal injury or 

property damage occurring during the period 

of performance of work on the vessel or 

within 90 days after redelivery of the vessel. 

Any new equipment warranties that extend 

beyond the 90 days after redelivery of the 

vessel shall be assigned to the Government 

upon redelivery of the vessel. With respect to 

any such suits, actions, claims, costs or 

demands resulting from death, personal 

injury or property damage occurring after the 

expiration of such period, the rights and 

liabilities of the Government and the 

contractor shall be as determined by other 

provisions of this contract and by law; 

provided that such indemnity shall apply to 

death occurring after such period which 

results from any personal injury received 

during the period covered by the contractor’s 

indemnity as provided herein. 

(d) The contractor shall, at its own 

expense, procure, and thereafter maintain 

such casualty, accident and liability 

insurance, in such forms and amounts as may 

be approved by the Contracting Officer, 

insuring the performance of its obligations 

under paragraph (c) of this clause. In 

addition, the contractor shall at its own 

expense procure and thereafter maintain 

such ship repairer’s legal liability insurance 

as may be necessary to insure the contractor 

against its liability as ship repairer in the 

amount of $1,000,000.00, or the value of the 

vessel as determined by the Contracting 

Officer, whichever is the lesser, with respect 

to each vessel on which work is performed. 

The contractor shall cause the Government to 

be named as an additional insured under any 

and all liability insurance policies, however, 

at the discretion of the Contracting Officer, 

such insurance need not be procured 

whenever the job order requires work on 

parts of a vessel only and the work is to be 

performed at a plant other than the site of the 

vessel. Further, the contractor shall procure 

and maintain in force Worker’s 

Compensation Insurance (or its equivalent) 

covering its employees engaged in the work 

and shall ensure the procurement and 

maintenance of such insurance by all 

subcontractors engaged in the work. The 

contractor shall provide evidence of 

insurance as required by the Government. 

(e) The contractor shall receive no 

allowance in the contract price for inclusion 

of any premium expense or charge for any 

reserve made on account of self-insurance for 

coverage against any risk assumed by the 

Government under this clause. 

(f) As soon as practicable after the 

occurrence of any loss or damage, the risk of 

which the Government has assumed, written 

notice of the damage shall be given by the 

contractor to the Contracting Officer. The 

notice shall contain full particulars of the 

loss or damage. If claim is made or suit is 

brought thereafter against the contractor as 

the result or because of such event, the 

contractor shall immediately deliver to the 

Government every demand, notice, summons 

or other process received by it or its 

representatives. The contractor shall 

cooperate with the Government, and, upon 

the Government’s request, shall assist in 

effecting settlements, securing and giving 

evidence; obtaining the attendance of 

witnesses, and other assistance required in 

the conduct of suits. The Government shall 

pay to the contractor the expense, other than 

the cost of maintaining the contractor’s usual 

organization, incurred in this assistance. 

Except at its own cost, the contractor shall 

not voluntarily make any payment, assume 

any obligation or incur any expense not 

imperative for the protection of the vessel or 

vessels at the time of the event. 

(End of clause) 

1352.271–80 Title. 

As prescribed in 48 CFR 1371.111, 

insert the following clause: 

TITLE (DATE) 

(a) Title to all materials and equipment 

acquired, produced for, or allocated to the 

performance of this contract and 

incorporated in or placed on the vessel or 

any part thereof, shall vest in the 

Government. 

(b) The contractor shall assume, without 

limitation, the risk of loss for any contractorfurnished materials and equipment until 

final acceptance by the Government of work 

performed under the contract. 

(End of clause) 

1352.271–81 Discharge of liens. 

As prescribed in 48 CFR 1371.112, 

insert the following clause: 

DISCHARGE OF LIENS (DATE) 

The contractor shall immediately discharge 

or cause to be discharged any lien or right in 

rem of any kind, other than in favor of the 

Government, which at any time exists or 

arises in connection with work done or 

materials furnished under the contract. If any 

such lien or right in rem is not immediately 

discharged, the Government may discharge 

or cause to be discharged such lien or right 

at the expense of the contractor. 

(End of clause) 

1352.271–82 Department of Labor 

occupational safety and health standards 

for ship repair. 

As prescribed in 48 CFR 1371.113, 

insert the following clause: 

DEPARTMENT OF LABOR 

OCCUPATIONAL SAFETY AND HEALTH 

STANDARDS FOR SHIP REPAIR (DATE) 

The contractor, in performance of all work 

under the contract, shall comply with the 

requirements of 29 CFR 1910.15. Nothing 

contained in this contract shall be construed 

as relieving the contractor from any 

obligations which it may have for compliance 

with the aforesaid regulations. 

(End of clause) 

1352.271–83 Government review, 

comment, acceptance and approval. 

As prescribed in 48 CFR 1371.114, 

insert the following clause: 

GOVERNMENT REVIEW, COMMENT, 

ACCEPTANCE AND APPROVAL (DATE) 

(a) Documentation, including drawings and 

other engineering products and reports, 

required by the contract to be submitted for 

review, comment, acceptance or approval 

will be acted upon by the Government within 

30 calendar days after receipt by the 

Government, unless another period of time is 

specified. 

(b) The Government shall respond to 

Condition Reports, as defined in the 

Specifications, within five (5) working days, 

unless the Government notifies the contractor 

that a longer period of time will be required. 

If the contractor requests a response in less 

than five (5) working days, the Government 

will attempt to accommodate the request, but 

does not guarantee a response in less than the 

time limits stated above. 

(c) Review, comment, acceptance or 

approval by the Government as required 

under this contract and applicable 

specifications shall not relieve the contractor 

of its obligation to comply with the 

specifications and with all other 

requirements of the contract, nor shall it 

impose upon the Government any liability it 

would not have had in the absence of such 

review, comment and acceptance or 

approval. 

(End of clause) 

1352.271–84 Access to the vessel. 

As prescribed in 48 CFR 1371.115, 

insert the following clause: 

ACCESS TO THE VESSEL (DATE) 

(a) As authorized by the Contracting 

Officer, a reasonable number of officers, 

employees and personnel designated by the 

Government, or representatives of other 

contractors and their subcontractors shall 

have admission to the facility and access to 

the vessel at all reasonable times to perform 

and fulfill their respective obligations to the 

Government on a noninterference basis. The 

contractor shall make reasonable 

arrangements to provide access for these 

personnel to office space, work areas, storage 

or shop areas, and other facilities and 

services reasonable and necessary to perform 

their duties. All such personnel shall comply 

with contractor rules and regulations 

governing personnel at its shipyard, 

including those regarding safety and security. 

(b) The contractor further agrees to allow 

a reasonable number of officers, employees, 

and designated personnel of offerors on other 

contemplated work, the same privileges of 

admission to the contractor’s facility and 

access to the vessel(s) on a noninterference 

basis, subject to contractor rules and 

regulations governing personnel in its 

shipyard, including those regarding safety 

and security. 


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(End of clause) 

1352.271–85 Documentation of requests 

for equitable adjustment. 

As prescribed in 48 CFR 1371.116, 

insert the following clause: 

DOCUMENTATION OF REQUESTS FOR 

EQUITABLE ADJUSTMENT (DATE) 

(a) For the purpose of this clause, the term 

‘‘change’’ includes not only a change made 

pursuant to a written order designated as a 

‘‘change order,’’ but also any act or omission 

to act on the part of the Government where 

a request is made for equitable adjustment. 

(b) Whenever the contractor requests or 

proposes an equitable adjustment to the 

contract price for a change or an act or 

omission on the part of the Government, the 

request shall include a breakdown of the 

price adjustment in such form and supported 

by such reasonable detail as the Contracting 

Officer may request. As a minimum, the 

contractor shall provide a breakdown of 

direct labor hours, labor dollars, overhead, 

material, subcontracts, contingencies and 

profit for each change and a justification for 

any extension of the delivery date. 

(c) Whenever the contractor requests or 

proposes an equitable adjustment of $100,000 

or greater gross (aggregate increases and/or 

decreases) for a change made pursuant to a 

written order designated as a ‘‘change order,’’ 

or whenever the contractor requests an 

equitable adjustment in any amount for any 

other act or omission to act on the part of the 

Government, the proposal supporting such 

request shall contain the following 

information for each individual item or 

element of the request: 

(1) A description of the unperformed work 

required by the contract before the change 

which has been deleted by the change and 

the work deleted by the change that already 

has been completed in whole or in part. The 

description shall include a list of 

components, equipment, and other 

identifiable property involved. Also, the 

status of manufacture, procurement, or 

installation of such property shall be 

indicated. A separate description shall be 

furnished for design and production work. 

Items of raw material, purchased parts, 

components, and other identifiable hardware 

which are made excess by the change, and 

which are not to be retained by the 

contractor, are to be listed for later 

disposition; 

(2) A description of the work necessary to 

undo work already completed which has 

been deleted by the change; 

(3) A description of the work substituted or 

added by the change that was not required 

by the terms of the contract before the 

change. A list of components and equipment 

(not bulk material or items) involved should 

be included. A separate description shall be 

furnished for design work and production 

work; 

(4) A description of any interference or 

inefficiency encountered in performing the 

change; 

(5) A description of disruption attributable 

solely to the change, which shall include the 

following information: 

(i) A specific description of each element 

of disruption which states how the work has 

been, or will be, disrupted; 

(ii) The calendar time period when 

disruption occurred, or will occur, illustrated 

via critical path analysis; 

(iii) The area(s) aboard ship where 

disruption occurred, or will occur; 

(iv) The trade(s) disrupted, with a 

breakdown of man-hours for each trade; 

(v) The scheduling of trades before, during, 

and after the period of disruption; 

(vi) A description of measures taken to 

lessen the disruptive effect of the change. 

(6) The delay in delivery attributable solely 

to the change; 

(7) A description of other work attributed 

to the change; 

(8) A narrative statement of the direct 

causal relationship between any alleged 

Government act or omission and the claimed 

result, cross-referenced to the detailed 

information required above; and 

(9) A statement setting forth a comparative 

enumeration of the amounts ‘‘budgeted’’ for 

the cost elements, including the materials 

cost, labor hours, and indirect costs pertinent 

to the change estimated by the contractor in 

preparing its proposal(s) for this contract, 

and the amounts claimed to have been 

incurred, or projected to be incurred, 

corresponding to each such ‘‘budgeted cost’’ 

element. 

(10) At the time of agreement upon the 

price of the equitable adjustment, the 

contractor shall submit a signed Certificate of 

Current Cost or Pricing Data. 

(d) Pending execution of a bilateral 

agreement or the direction of the Contracting 

Officer pursuant to the Changes clause, the 

contractor shall proceed diligently with 

contract performance without regard to the 

effect of any such proposed change. 

(End of clause) 

1352.271–86 Lay days. 

As prescribed in 48 CFR 1371.117, 

insert the following clause: 

LAY DAYS (DATE) 

(a) A lay day is defined as an additional 

day on dry dock or marine railway caused by 

a Government-issued change. Reimbursement 

for lay days shall be paid at the rate stated 

in the Schedule. 

(b) No amount for lay day time shall be 

paid until all contract line items (including 

optional items) that require drydocking of the 

vessel have been completed. Lay days for 

work ordered pursuant to the Additional 

Item Requirements Clause shall not be 

compensable unless all dry dock work 

included in the contract line items is 

complete. 

(c) Days of hauling out and floating, 

whatever the hour, shall not be paid as lay 

day time, and days when no work is 

performed by the contractor shall not be paid 

as lay day time. Days in which work is 

performed that are considered normal ‘‘nonwork’’ days (weekends or holidays) shall not 

be paid as lay day time if the ship would 

have otherwise been in dry dock. 

(d) Payment of lay day time shall constitute 

complete compensation for all costs 

associated with lay days except for costs 

directly related to the changed work. 

(End of clause) 

1352.271–87 Changes—ship repair. 

As prescribed in 48 CFR 1371.118, 

insert the following clause: 

CHANGES—SHIP REPAIR (DATE) 

(a) The Contracting Officer may, at any 

time, by written order, and without notice to 

the sureties, if any, make changes within the 

general scope of this contract, in any one or 

more of the following: 

(1) Drawings, designs, or specifications, 

when the supplies to be furnished are to be 

specially manufactured for the Government 

in accordance with the drawings, designs, or 

specifications; 

(2) Method of shipment or packing; 

(3) Place of performance of the work; 

(4) Time of commencement or completion 

of the work; and 

(5) Other requirements within the general 

scope of the contract. 

(b) If any such change causes an increase 

or decrease in the cost of, or the time 

required for, performance of any part of the 

work under this contract, whether changed or 

not changed by the order, the Contracting 

Officer shall make an equitable adjustment in 

the contract price, the delivery schedule, or 

both, and shall modify the contract 

accordingly. 

(c) The contractor must submit any 

proposal for adjustment under this clause 

within 5 days from the date of receipt of the 

written order. At the Contracting Officer’s 

discretion, the 5-day period may be 

shortened. However, if the Contracting 

Officer decides that the facts justify it, the 

Contracting Officer may receive and act upon 

a proposal submitted before final payment of 

the contract. 

(d) If the contractor’s proposal includes the 

cost of property rendered obsolete or excess 

by the change, the Contracting Officer shall 

have the right to prescribe the manner of the 

disposition of the property. 

(e) Failure to agree to any adjustment shall 

be a dispute under the Disputes clause. 

However, nothing in this clause shall excuse 

the contractor from proceeding with the 

contract as changed. 

(End of clause) 

1352.271–88 Guarantees. 

As prescribed in 48 CFR 1371.119, 

insert the following clause: 

GUARANTEES (DATE) 

(a) In the event any work performed or 

materials furnished by the contractor under 

this contract prove defective or deficient 

within ll days from the date of redelivery 

of the vessel, the contractor, as directed by 

the Contracting Officer and at its own 

expense, shall correct and repair the 

deficiency to the satisfaction of the 

Contracting Officer. 

(b) The Government shall be entitled to 

rely upon any guarantee secured by the 

contractor or any sub-contractor covering 

work done or materials furnished which 


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exceeds the llday period until its 

expiration. 

(c) With respect to any individual work 

item identified and listed as incomplete at 

the redelivery of the vessel, the guarantee 

period shall run from the date of completion 

of such item. 

(d) If and when practicable, the 

Government shall afford the contractor an 

opportunity to effect such corrections and 

repairs. 

(1) If the Contracting Officer determines it 

is impracticable or is otherwise not advisable 

to return the vessel to the contractor, or the 

contractor fails to proceed promptly with any 

such repairs as directed by the Contracting 

Officer, the Contracting Officer may direct 

that the repairs be performed elsewhere, at 

the contractor’s expense. 

(2) Where corrections and repairs are to be 

made by other than the contractor due to 

nonreturn of the vessel to the contractor, the 

contractor’s liability may be discharged by an 

equitable deduction in the price of the 

contract. 

(e) The contractor’s liability shall only 

extend for an additional ll day guarantee 

period on those defects or deficiencies which 

it corrected. However, this clause does not 

limit the responsibility or relieve the liability 

of the contractor under the Liability and 

Insurance clause. 

(f) At the Contracting Officer’s option, 

defects and deficiencies may be left in their 

uncorrected condition. In that event, the 

contractor and the Contracting Officer shall 

agree on an equitable deduction in the 

contract price. Failure to agree upon an 

equitable reduction shall constitute a dispute 

under the Disputes clause of this contract. 

(g) The rights and remedies of the 

Government provided in this clause are in 

addition to and do not limit any rights 

afforded to the Government by any other 

clause of the contract. If a defect or 

deficiency that exists at the time of redelivery 

of the vessel was not discovered by a 

reasonable inspection and is discovered after 

the expiration of the time frame stated in this 

clause, it is not subject to the time limitations 

stated in this clause. 

(End of clause) 

1352.271–89 Temporary services. 

As prescribed in 48 CFR 1371.120, 

insert the following clause: 

TEMPORARY SERVICES (DATE) 

(a) Temporary services are services 

incidental to the performance of work which 

are required in the schedule or specifications 

to be provided by the contractor. Temporary 

services may include the furnishing of water, 

electricity, telephone service, toilet facilities, 

garbage removal, office space, parking places 

or similar facilities. 

(b) If performance time is extended due to 

Government-caused delay, the contractor 

may request an equitable adjustment for 

providing temporary services at the rate 

stated in the Schedule. 

(End of clause) 

1352.271–90 Insurance requirements. 

As prescribed in 48 CFR 1371.121, 

insert the following clause: 

INSURANCE REQUIREMENTS (DATE) 

(a) The contractor shall procure and 

thereafter maintain the following insurance: 

(1) Ship contractor’s legal liability 

insurance to insure the risks described in 

paragraph (b) of clause 1352.271–79. This 

insurance shall be for $1,000,000.00. 

(2) Comprehensive general liability 

insurance and automobile insurance to 

insure the risks described in paragraph (c) of 

clause 1352.271–79. This insurance shall be 

for $1,000,000.00 on account of any one 

accident or occurrence with respect to each 

vessel, boat, and/or barge upon which work 

is performed. The contractor shall cause the 

Government to be named as an additional 

insured under any and all liability insurance 

policies. 

(3) Full coverage in accordance with the 

State Worker’s Compensation law; and 

(4) Full coverage in accordance with the 

United States Longshoremen’s and Harbor 

Worker’s Act. 

(b) As evidence that it has obtained the 

insurance specified in paragraph (a) of this 

clause, the contractor shall furnish the 

Contracting Officer with a certificate or 

certificates executed by an agent of the 

insurer authorized to execute such 

certificates. Such certificates shall be 

furnished prior to commencement of the 

work. Each certificate shall state that (name 

of insurer) has insured (name of contractor) 

awarded contract number ______ for repair/ 

alteration of (name of vessel) in accordance 

with the Liability and Insurance clause and 

the Insurance Requirements clause contained 

herein. Each certificate shall set forth that 

each policy of insurance represented thereby 

will expire on (date) and that each such 

policy contains the following clause: 

‘‘It is agreed that in the event of 

cancellation or any material change in the 

policy adversely affecting the interest of the 

Government in this insurance, 30 days prior 

written notice will be given to the 

Contracting Officer.’’ 

(End of clause) 

Subpart 1352.3—Provisions and 

Clauses Matrix 

1352.301 Solicitation provisions and 

contract clauses (Matrix). 

BILLING CODE 3510–03–P 


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BILLING CODE 3510–03–C 


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PART 1353—FORMS 

Subpart 1353.1—General 

Sec. 

1353.100 Scope of subpart. 

1353.107 Obtaining forms. 

Subpart 1353.2—Prescription of Forms 

1353.200 Scope of subpart. 

1353.206 Competition requirements. 

Subpart 1353.3—Illustration of Forms 

353.300 Scope of subpart. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1353.1—General 

1353.100 Scope of subpart. 

This subpart prescribes DOC forms 

that are supplemental to those provided 

in FAR Part 53. 

1353.107 Obtaining forms. 

The DOC forms may be obtained from 

any DOC contracting office. 

Subpart 1353.2—Prescription of Forms 

1353.200 Scope of subpart. 

This subpart prescribes or references 

DOC forms for use in acquisitions. 

Consistent with FAR 53.200, this 

subpart is arranged by subject matter, in 

the same order as and keyed to the parts 

of the CAR in which the form usage 

requirements are addressed. 

1353.206 Competition requirements. 

As prescribed in 48 CFR 1306.303–70, 

use Form CD–492, Justification for 

Other Than Full and Open Competition, 

to support the requirements under FAR 

Subpart 6.3 (see Appendix A: Forms). 

1353.219 Small business programs. 

Use Form CD–570, Small Business 

Set-Aside Review, to fulfill and 

document the requirements under FAR 

19.5 (see Appendix A: Forms). 

Subpart 1353.3—Illustration of Forms 

1353.300 Scope of subpart. 

DOC Forms will not be illustrated in 

this CAR. Persons wishing to obtain 

copies of DOC forms prescribed in the 

CAR may do so in accordance with 

1353.107. 

SUBCHAPTER I—DEPARTMENT 

SUPPLEMENTAL REGULATIONS 

PART 1370—UNIVERSAL 

SOLICITATION PROVISIONS AND 

CONTRACT CLAUSES 

Subpart 1370.1—Provisions and 

Clauses 

Sec. 

1370.101 Period of performance. 

1370.102 Pre-bid/pre-proposal conference 

and site visit. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1370.1—Provisions and 

Clauses 

1370.101 Period of performance. 

Insert the clause 1352.270–70, Period 

of Performance, in all solicitations and 

contracts where a period of performance 

will be specified. 

1370.102 Pre-bid/pre-proposal conference 

and site visit. 

Insert provision 1352.270–71, PreBid/Pre-Proposal Conference and Site 

Visit, in solicitations where a preproposal conference will be held. The 

provision is optional for construction 

and may be modified as necessary. The 

contracting officer shall include or 

delete the paragraph regarding site 

visits. 

PART 1371—ACQUISITIONS 

INVOLVING SHIP CONSTRUCTION 

AND SHIP REPAIR 

Subpart 1371.1—Provisions and 

Clauses 

Sec. 

1371.101 Inspection and manner of doing 

work. 

1371.102 Method of payment and invoicing 

instructions for ship repair. 

1371.103 Additional item requirements 

(AIR)—growth work. 

1371.104 Schedule of work. 

1371.105 Foreseeable cost factors pertaining 

to different shipyard locations. 

1371.106 Delivery and shifting of the 

vessel. 

1371.107 Performance. 

1371.108 Delays. 

1371.109 Minimization of delay due to 

government furnished property. 

1371.110 Liability and insurance. 

1371.111 Title. 

1371.112 Discharge of liens. 

1371.113 Department of Labor occupational 

safety and health standards for ship 

repair. 

1371.114 Government review, comment, 

acceptance, and approval. 

1371.115 Access to the vessel. 

1371.116 Documentation of requests for 

equitable adjustment. 

1371.117 Lay days. 

1371.118 Changes—ship repair. 

1371.119 Guarantees. 

1371.120 Temporary services. 

1371.121 Insurance requirements. 

Authority: 41 U.S.C. 414; 48 CFR 1.301– 

1.304. 

Subpart 1371.1—Provisions and 

Clauses 

1371.101 Inspection and manner of doing 

work. 

Insert clause 1352.271–70, Inspection 

and Manner of Doing Work, in all 

solicitations and contracts for ship 

construction and ship repair. 

1371.102 Method of payment and 

invoicing instructions for ship repair. 

Insert clause 1352.271–71, Method of 

Payment and Invoicing Instructions for 

Ship Repair, in all solicitations and 

contracts for ship repair. 

1371.103 Additional item requirements 

(AIR)—growth work. 

Insert clause 1352.271–72, Additional 

Item Requirements (AIR)—Growth 

Work, in all solicitations and contracts 

for ship repair. 

1371.104 Schedule of work. 

Insert clause 1352.271–73, Schedule 

of Work, in all solicitations and 

contracts for ship repair. 

1371.105 Foreseeable cost factors 

pertaining to different shipyard locations. 

Insert provision 1352.271–74, 

Foreseeable Cost Factors Pertaining to 

Different Shipyard Locations, in all 

solicitations for ship repair. 

1371.106 Delivery and shifting of the 

vessel. 

Insert clause 1352.271–75, Delivery 

and Shifting of the Vessel, in all 

solicitations and contracts for ship 

repair to be performed at the 

contractor’s facility. 

1371.107 Performance. 

Insert clause 1352.271–76, 

Performance, in all solicitations and 

contracts for ship construction and ship 

repair. 

1371.108 Delays. 

Insert clause 1352.271–77, Delays, in 

all solicitations and contracts for ship 

repair. 

1371.109 Minimization of delay due to 

Government furnished property. 

Insert clause 1352.271–78, 

Minimization of Delay Due to 

Government Furnished Property, in all 

solicitations and contracts for ship 

construction and ship repair. 

1371.110 Liability and insurance. 

Insert clause 1352.271–79, Liability 

and Insurance, in all solicitations and 

contracts for ship repair. 

1371.111 Title. 

Insert clause 1352.271–80, Title, in all 

solicitations and contracts for ship 

repair. 


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1371.112 Discharge of liens. 

Insert clause 1352.271–81, Discharge 

of Liens, in all solicitations and 

contracts for ship construction and ship 

repair. 

1371.113 Department of Labor 

occupational safety and health standards 

for ship repair. 

Insert clause 1352.271–82, 

Department of Labor Occupational 

Safety and Health Standards for Ship 

Repair, in all solicitations and contracts 

for ship repair. 

1371.114 Government review, comment, 

acceptance, and approval. 

Insert clause 1352.271–83, 

Government Review, Comment, 

Acceptance and Approval, in all 

solicitations and contracts for ship 

construction and ship repair. 

1371.115 Access to the vessel. 

Insert clause 1352.271–84, Access to 

the Vessel, in all solicitations and 

contracts for ship construction and ship 

repair. 

1371.116 Documentation of requests for 

equitable adjustment. 

Insert clause 1352.271–85, 

Documentation of Requests for 

Equitable Adjustment, in all 

solicitations and contracts for ship 

construction and ship repair. 

1371.117 Lay days. 

Insert clause 1352.271–86, Lay Days, 

in all solicitations and contracts for ship 

repair. 

1371.118 Changes—ship repair. 

Insert clause 1352.271–87, Changes— 

Ship Repair, in all solicitations and 

contracts for ship repair. 

1371.119 Guarantees. 

Insert clause 1352.271–88, 

Guarantees, in all solicitations and 

contracts for ship construction and ship 

repair. 

1371.120 Temporary services. 

Insert clause 1352.271–89, Temporary 

Services, in all solicitations and 

contracts for ship repair. 

1371.121 Insurance requirements. 

Insert clause 1352.271–90, Insurance 

Requirements, in all solicitations and 

contracts for ship construction and ship 

repair. 

[FR Doc. 2010–4132 Filed 3–5–10; 8:45 am] 

BILLING CODE 3510–03–P 


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