`[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Rules and Regulations]
[Pages 10568-10628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4132]



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Part II





Department of Commerce





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48 CFR Chapter 13



Commerce Acquisition Regulation (CAR); Final Rule

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

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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.

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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.

[[Page 10569]]

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, 
Pre-proposal 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, Should-cost 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.

[[Page 10570]]

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.

0
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.

[[Page 10571]]

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.

[[Page 10572]]

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 post-award 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, 
service-disabled 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.

[[Page 10573]]

    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 day-to-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

[[Page 10574]]

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 Anti-Kickback 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.

[[Page 10575]]

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

[[Page 10576]]

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

[[Page 10577]]

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

[[Page 10578]]

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 architect-engineer 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.

[[Page 10579]]

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 non-commercial 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

[[Page 10580]]

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, Labor-Hour, 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.

[[Page 10581]]

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 cost-reimbursement contracts.
    (b) Insert a clause similar to 1352.216-71, Level of Effort (Cost-
Plus-Fixed-Fee, Term Contract), in Cost-Plus-Fixed-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 cost-
plus-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.


[[Page 10582]]


    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 Set-Aside 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

[[Page 10583]]

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

[[Page 10584]]

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 Energy-
Efficient 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

[[Page 10585]]

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.

[[Page 10586]]

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 cost-reimbursement 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) tax-free for non-beverage Government use.
    (b) When purchasing spirits for non-beverage 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.

[[Page 10587]]

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.

[[Page 10588]]

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

[[Page 10589]]

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

[[Page 10590]]

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 architect-engineer 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 architect-engineer contracts.


1336.602-2  Evaluation boards.

    Permanent and ad hoc architect-engineer 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.

[[Page 10591]]

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.

[[Page 10592]]

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 newly-established 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


Sec.  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


Sec.  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.

[[Page 10593]]

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 quantities-indefinite 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-fixed-fee, 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.

[[Page 10594]]

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 $-------- for 
the following items/services:
-----------------------------------------------------------------------
-----------------------------------------------------------------------
    (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:------------------------------------------------
Date:------------------------------------------------------------------


(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:

-----------------------------------------------------------------------

-----------------------------------------------------------------------

-----------------------------------------------------------------------

Phone Number:----------------------------------------------------------

E-mail:----------------------------------------------------------------

    (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

[[Page 10595]]

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 
10\3/4\ by 14\1/4\ inches. A ``production unit'' is one sheet, size 
8\1/2\ 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).

[[Page 10596]]

    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.


[[Page 10597]]



(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--NON-COMMERCIAL (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 --------.
    (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 (cross-indexed 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 8\1/2\'' by 11'' paper, not 
exceeding ---- pages, single-sided, exclusive of resumes and related 
corporate experience documentation. Any pages in excess of ---- 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

[[Page 10598]]

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 ---- years. References 
can include both Government and commercial contracts and 
subcontracts.
    The offeror shall submit one original of Volume II, marked as 
such, and -------- 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 ------
-- 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 ----. Questions should be received no later than ---- 
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:

[[Page 10599]]

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 non-price 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

[[Page 10600]]

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 $--
------ [insert total cost of contract], which consists of $-------- 
[insert amount of cost that is reimbursable] for reimbursable costs 
and $-------- [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 $-------- [insert 
amount being funded], which consists of $-------- [insert amount of 
reimbursable costs funded] for reimbursable costs and $ -------- 
[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:
-------------------- [Insert billing rate]


(End of clause)


1352.216-71  Level of effort (cost-plus-fixed-fee, term contract).

    As prescribed in 48 CFR 1316.307(b), insert the following clause:

 LEVEL OF EFFORT (COST-PLUS-FIXED-FEE, 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 --------. 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:

----------------------------------------------------------------------------------------------------------------
                                                                Option  period   Option  period   Option  period
               Labor category                   Base  period          I                II              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 x Estimated DPLH)) x 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 x Estimated DPLH)) x 
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 self-evaluation of its 
performance in an evaluation period. The FDO shall consider

[[Page 10601]]

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 --------. The amount of all orders 
shall not exceed --------.


(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:
-----------------------------------------------------------------------
-----------------------------------------------------------------------

    (c) If multiple awards have been made, the contact information 
for the DOC task and delivery order ombudsman is --------.


(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 $--------. 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:
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------

    [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:

[[Page 10602]]

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) ---------------- [insert name of contractor] will notify the 
---------------- [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 $-------- [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

[[Page 10603]]

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) $--------; 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 ------
-- to the award date of this contract in an amount not to exceed $--
------.


(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

[[Page 10604]]

``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 --------, 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)

[[Page 10605]]

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 non-exempt 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:-----------------------------------------------------------
(IRB  --------)
Title of IRB Protocol:-------------------------------------------------
Recruiting Letter Approval Date (if appropriate):----------------------
Consent Form Approval Date:--------------------------------------------
Assurance of Compliance Number:----------------------------------------

    (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:

[[Page 10606]]

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 pre-appointment 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 non-U.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

[[Page 10607]]

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 Critical-Sensitive 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)

[[Page 10608]]

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 -------- [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:

------ 1194.21 Software applications and operating systems
------ 1194.22 Web-based intranet and internet information and 
applications
------ 1194.23 Telecommunications products
------ 1194.24 Video and multimedia products
------ 1194.25 Self-contained, closed products
------ 1194.26 Desktop and portable computers
------ 1194.31 Functional performance criteria
------ 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.

[[Page 10609]]

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.

----------------------------------------------------------------------------------------------------------------
                                                                                           Property/Tag No.  (if
            Item No.                Description          Quantity        Delivery date          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:
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------


(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 ----
---- through --------. 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)

[[Page 10610]]

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 pre-proposal 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 [----] 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 --] on Standard Form [--] 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:------------------------------------------------------------------
Time:------------------------------------------------------------------
Location:--------------------------------------------------------------

    [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 re-qualify 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/

[[Page 10611]]

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 ----------------.'' (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

[[Page 10612]]

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 ---------------- to the 
contractor's facility at a cruising speed of ---- 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 $-------- 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 $-------- 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 ------ 
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 ---- 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 ---- 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 ---- 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,

[[Page 10613]]

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

[[Page 10614]]

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 contractor-furnished 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.


[[Page 10615]]



(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 ``non-work'' 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 ---- 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

[[Page 10616]]

exceeds the ----day 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 ---- 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).

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[[Page 10627]]

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, Pre-Bid/Pre-Proposal Conference and 
Site Visit, in solicitations where a pre-proposal 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.

[[Page 10628]]

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`