52542 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 

DEPARTMENT OF COMMERCE 

48 CFR Chapter 13 

[Document Number: 080730954–8955–01] 

RIN 0605–AA26 

Commerce Acquisition Regulation 

(CAR): Plain Language Rewrite; 

Proposed Rule 

AGENCY: Department of Commerce. 

ACTION: Proposed rule. 

SUMMARY: The Commerce Acquisition 

Regulation (CAR) was originally 

codified March 30, 1984, and amended 

by subsequent regulations published in 

the Federal Register. The Department of 

Commerce (DOC) proposes to update 

the entire CAR through FAC–2005–21. 

This proposed rule will bring the CAR 

in alignment with the FAR through FAC 

2005–21 and streamline DOC internal 

policy and guidance. 

DATES: Comments on the proposed rule 

should be submitted on or before 

December 14, 2009 to be considered in 

the formulation of the final rule. 

ADDRESSES: Comments may be 

submitted through any of the following: 

• Federal Rulemaking Portal: http:// 

www.Regulations.gov. Please follow the 

instructions for submitting a comment. 

• Mail: Virna Evans, U.S. Department 

of Commerce, Room 1854, 1401 

Constitution Avenue, NW., Washington, 

DC 20230. 

All comments should indicate that 

they are submitted in response to RIN 

0605–AA26. 

FOR FURTHER INFORMATION CONTACT: 

Virna Evans, 202–482–3483. 

SUPPLEMENTARY INFORMATION: 

Drafting Information 

The Department of Commerce used 

the FAR version dated November 7, 

2007, updated through FAC 2005–21 

and located on the http:// 

farsite.hill.af.mil/ Web site as the 

reference FAR during development. 

Background 

The CAR is the Department of 

Commerce acquisition regulation that 

implements or supplements the FAR.. 

The CAR was originally codified March 

30, 1984 and last updated by Federal 

Register Notice on September 12, 1995. 

The update will bring the CAR in 

alignment with the FAR through FAC 

2005–21 and streamline Department of 

Commerce policies and procedures. 

The following is a discussion of 

common changes made throughout the 

CAR. Various sections of the CAR have 

been renumbered and/or renamed to 

align with the FAR. Significant 

information has been added to address 

those instances where the FAR indicates 

that agency procedures are required or 

instructs the agency to act in accordance 

with agency procedures. Many 

references to chapters of the 

Department’s internal guidance 

document called Commerce Acquisition 

Manual, or CAM, have been added to 

provide a relationship between the FAR, 

the CAR, and DOC internal guidance. 

Information was also added to clarify 

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)), usually in the 

form of a reference to the CAM outlining 

delegations of authority. In addition, 

numerous new clauses have been added 

that correspond to new requirements 

added to the CAR. Finally, the authority 

citations for the CAR have been revised 

to correspond to current authority. A 

summary of the changes by CAR Part 

follows. 

Part 1301: Department of Commerce 

Acquisition Regulations System 

We propose to renumber various 

sections of Part 1301 to align with the 

FAR. We propose to add sections 1301.3 

and 1301.4 to clarify the location and 

format of agency policy and guidance, 

the role of bureaus in issuing directives, 

and the designees authorized to approve 

deviations. We propose to expand 

section 1301.6 to highlight significant 

agency policy and guidance related to 

contracting authority; ratification 

practices; and selection, appointment, 

and termination of appointment of 

Contracting Officers. The first references 

are made to internal guidance 

documents CAM 1301.70 and CAM 

1301.6. We propose to add the following 

clauses: 

1352.201–70 Contracting Officer’s 

Authority 

1352.201–71 Ratification Release 

1352.201–72 Contracting Officer’s 

Representative (COR) 

Part 1302: Definitions of Words and 

Terms 

We propose to add Part 1302 in order 

to clarify significant and/or frequently 

used terms and acronyms within the 

agency and foster common 

understanding and proper usage across 

the agency. 

Part 1303: Improper Business Practices 

and Personal Conflicts of Interest 

We propose to renumber and rename 

various sections of Part 1303 to align 

with the FAR. We propose to add 

multiple new sections to the Part in 

order to clarify roles and 

responsibilities, agency process, and 

legal requirements. 

Part 1304: Administrative Matters 

We propose to add Part 1304 in order 

to describe procedures related to 

accountable personal property and to 

provide a reference to CAM chapters 

describing Federal Procurement Data 

System reporting procedures and 

contract closeout, storage, handling, and 

disposal procedures. 

Part 1305: Publicizing Contract Actions 

We propose to add Part 1305 in order 

to clarify various roles and 

responsibilities related to publicizing 

contract actions. 

Part 1306: Competition Requirements 

We propose to add Part 1306 in order 

to clarify various roles and 

responsibilities related to competition, 

and to highlight internal processes and 

legal requirements involving sole source 

acquisitions. 

Part 1307: Acquisition Planning 

We propose to add Part 1307 in order 

to clarify agency head responsibilities in 

relation to FAR 7.103, describe agency 

policy related to inherently 

governmental functions, and to provide 

a reference to internal Web sites and/or 

CAM chapters covering acquisition 

planning and competitive sourcing 

policy and procedures. 

Part 1308: Required Sources of 

Supplies and Services 

We propose to add Part 1308 in order 

to clarify the designee authorized as the 

Department’s central printing authority. 

We propose to add the following clause 

related to the new provision: 

1352.208–70 Restrictions on Printing and 

Duplicating 

Part 1309: Contractor Qualifications 

We propose to redesignate current 

section 1309.106–70 Preaward surveys 

for ship construction, ship alteration, 

and ship repair to Part 1371 of the CAR, 

which addresses specialty 

procurements. We propose to add 

multiple references to CAM 1301.70 that 

define responsibilities and delegations 

of authority related to qualification 

requirements, debarment, suspension 

and ineligibility, and organizational and 

consultant conflicts of interest. We 

propose to remove 1309.470–4, 


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Procedures on Debarment and 

1309.470–7, Procedures on Suspension, 

and update this information in 

redesignated Sections 1309.406, 

Debarment, and 1309.407, Suspension. 

We propose to add Subpart 1309.5, 

Organizational and Consultant Conflicts 

of Interest to address waivers, 

procedures and the process for 

addressing organizational conflicts of 

interest (OCI). We also propose to add 

the following provisions and clauses: 

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 

Part 1311: Describing Agency Needs 

We propose to add Part 1311 in order 

to clarify roles and responsibilities 

related to market acceptance and 

liquidated damages. 

Part 1312: Acquisition of Commercial 

Items 

We propose to add Part 1312 in order 

to define the individual with the 

authority to approve requests to tailor 

provisions, clauses or terms and 

conditions that are inconsistent with 

customary commercial practice. 

Part 1313: Simplified Acquisition 

Procedures 

We propose to update Part 1313 to 

align the CAR with the FAR and current 

agency practices. Such updates include 

updating the title of the part; adding 

references to the CAM chapters that 

define the authority for delegating 

micro-purchase authority and the 

training required by DOC employees 

prior to being delegated micro-purchase 

authority; adding references to the CAM 

chapter covering departmental 

procedures for the use and control of the 

Governmentwide commercial purchase 

card; and outlining agency policy 

related to contractor acceptance of 

purchase order modifications, purchases 

under BPAs, third-party drafts, and 

imprest funds. 

The following clauses were added to 

this part: 

1352.213–70 Evaluation Utilizing 

Simplified Acquisition Procedures 

1352.213–71 Instructions for Submitting 

Quotations Under the Simplified 

Acquisition Threshold—NonCommercial 

Part 1314: Sealed Bidding 

We propose to add Part 1314 to define 

roles and responsibilities and legal 

requirements for rejection of bids, 

mistakes in bids, and information to 

bidders. 

Part 1315: Contracting by Negotiation 

We propose to revise Part 1315 to 

align with the FAR and current agency 

practices. Revisions include defining 

roles and responsibilities related to 

granting exceptions from the uniform 

contract format, waiving examination of 

records requirement, define 

responsibilities, permissions, and other 

requirements related to source selection; 

redesignating section 1315.5, originally 

amended Sept. 12, 1995, as subpart 

1315.6 Unsolicited Proposals to describe 

procedures for unsolicited proposals, 

and deleting subpart 1315.504 Advance 

Guidance. 

We also propose to add the following 

provisions and clauses: 

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 

Part 1316: Types of Contracts 

We propose to revise Part 1316 by 

redesignating section 1316.404–2 as 

1316.405–2 and adding associated 

clause 1352.216–72 Determination of 

Award Fee; define roles and 

responsibilities for use of economic 

price adjustment clause, use of fixedceiling-price contracts with retroactive 

price redetermination, designation of 

task order ombudsman, approval of 

time-and-materials contracts, and 

approval of letter contracts; and 

addressing FAR requirements of 

agencies related to contract type. 

We also propose to add the following 

provisions and clauses: 

1352.216–70 Estimated and Allowable 

Costs 

1352.216–71 Level of Effort (Cost-PlusFixed 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 

Part 1317: Special Contracting Methods 

We propose to revise Part 1317 to 

include references to CAM 1301.70 that 

define responsibilities and delegations 

of authority. We propose housing all 

specialty procurements in new Part 

1370, Universal Solicitation Provisions 

and Contract Clauses. Subpart 1317.70, 

Contracts for Ship Construction, Ship 

Alteration, and Ship Repair has been 

redesignated as Part 1371, Acquisitions 

Involving Ship Construction and Ship 

Repair. 

Part 1318: Emergency Acquisitions 

We propose to add Part 1318 in order 

to clarify agency procedures and 

expectations related to emergency 

acquisitions. We propose to add 

references to CAM 1301.70 that define 

responsibilities and delegations of 

authority. 

Part 1319: Small Business Programs 

We propose to update Part 1319 to 

align with the FAR and current agency 

practices. Such updates include 

clarifying agency policy, procedures and 

expectations related to setting aside 

acquisitions for small businesses; 

providing the procedure for determining 

lack of competency; providing the 

procedure for reviewing subcontracting 

plans; and providing the procedure for 

contracting with the Small Business 

Administration 8(a) Program. 

We also propose to add the following 

and clauses: 

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, 

Alternative III (Deviation) 

Part 1322: Application of Labor Laws to 

Government Acquisitions 

We propose to add Part 1322 in order 

to define roles and responsibilities and 

approval chains for notification of 

potential labor disputes, approval of 

requests for overtime, determination of 

liquidated damages, modifications of 

wage determinations, processing labor 

standards investigations, and requesting 

exemptions or waivers of labor 

standards. We also set forth the 

proposing instructions detailing when 

and from whom contracting officers 

should seek legal advice and assistance 

for potential or actual labor disputes, 

and removal of items affected by work 

stoppage. 

Part 1323: Environment, Energy and 

Water Efficiency, Renewable Energy 

Technologies, Occupational Safety, and 

Drug-Free Workplace 

We propose to add Part 1323 in order 

to clarify roles and responsibilities, and 

to reference the CAM chapters that 

describe the agency’s affirmative 

procurement program and the 

procedures for granting exceptions to 


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procurement of an Energy Star or 

Federal Energy Management Program 

designated product or exceptions to 

Electronic Product Environmental 

Assessment Tool requirements 

indicated under FAR Part 23.705(c). 

Part 1324: Protection of Privacy and 

Freedom of Information 

We propose to add Part 1324 in order 

to provide a cross-reference to the CFR 

title describing the agency’s 

implementation of the Freedom of 

Information Act. 

Part 1325: Foreign Acquisition 

We propose to add Part 1325 in order 

to define roles and responsibilities for 

various actions and to define procedures 

related to exceptions to the Buy 

American Act for supplies. 

Part 1326: Other Socioeconomic 

Programs 

We propose to add Part 1326 in order 

to define the designee authorized to 

determine that transitioning response, 

relief, and/or reconstruction activity to 

local firms is not feasible or practicable. 

Part 1327: Patents, Data, and 

Copyrights 

We propose to add Part 1327 in order 

to define roles and responsibilities for 

various actions and to permit 

contracting officers to place limitations 

or restrictions on the contractor’s 

exercise of its rights in data first 

produced in the performance of a 

contract. We also propose to add the 

following clause: 

1352.227–70 Rights in Data, Assignment of 

Copyright 

Part 1328: Bonds and Insurance 

We propose to add Part 1328 in order 

to define multiple roles and 

responsibilities related to various 

actions and to define the legal entity 

from which to obtain opinion when 

determining acceptability of individual 

surety. We also propose to add the 

following provisions and clauses: 

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 

1352.228–75 Risk and Indemnities 

1352.228–76 Approval of Group Insurance 

Plans 

Part 1329: Taxes 

We propose to add Part 1329 in order 

to define the process for DOC and its 

contractors for purchases of spirits taxfree for non-beverage Government use. 

We also propose to define the group to 

whom contracting officers should refer 

legal questions relating to tax issues. We 

also propose to identify responsibility 

for review of proposed designation of a 

contractor as an agent of the 

Government. 

Part 1330: Cost Accounting Standards 

Administration 

We propose to add Part 1330 in order 

to clarify roles and responsibilities 

related to Cost Accounting Standards 

program requirements. 

Part 1331: Contract Cost Principles and 

Procedures 

We propose to add Part 1331 in order 

to clarify roles and responsibilities for 

approval of individual deviations 

concerning cost principles, and waiver 

of cost allowability limitations. We also 

propose adding the following clauses: 

1352.231–70 Precontract Costs 

1352.231–71 Duplication of Effort 

Part 1332: Contract Financing 

We propose to revise Part 1332 to 

clarify roles and responsibilities across 

multiple actions. We propose to permit, 

under 1332.003, contract financing for 

purchases made under the authority of 

FAR Part 13. Under 1332.702, we 

propose to clarify the contract funding 

process and the individual who 

represents the responsible fiscal 

authority. We also propose to reference 

the various agency policies and 

procedures that need to be followed 

when using the Governmentwide 

commercial purchase card. 

Part 1333: Protests, Disputes, and 

Appeals 

We propose to revise all of Part 1333 

to make the Part current to agency 

policy and procedures. Revisions 

include defining roles and 

responsibilities for protest decisions and 

determinations related to disputes and 

appeals, and defining legal review and 

handoff procedures. We also propose to 

add the following clauses: 

1352.233–70 Agency Protests 

1352.233–71 GAO and Court of Federal 

Claims Protests 

Part 1334: Major System Acquisition 

We propose to add Part 1334 in order 

to identify the designated authority and 

procedures for acquiring major systems. 

We propose to clarify policy and dollar 

thresholds regarding the FAR regulation 

requiring Earned Value Management 

Systems. 

Part 1335: Research and Development 

Contracting 

We propose to add Part 1335 in order 

to define terms for research and 

development contracting and identify 

procedures. We also propose to add the 

following provisions and clauses: 

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 

Part 1336: Construction and ArchitectEngineer Contracts 

We propose to define the acceptable 

composition of permanent and ad hoc 

architect-engineer evaluation boards, 

the appropriate means for selecting 

firms for contracts not expected to 

exceed the simplified acquisition 

threshold, and the appropriate means 

for designating the selection authority. 

We propose to define the designee 

authorized to make the determination 

described at FAR 36.609–1(c). 

Part 1337: Service Contracting 

We propose to refer to the CAM 

chapter outlining agency procedures for 

personnel security processing for 

contractors performing services on or 

within a Department of Commerce 

facility or through and information 

technology (IT) system. We propose to 

refer to the CAM chapter that indicates 

the designee authorized to make the 

determinations described under FAR 

37.204. 

We propose to add the following 

clauses: 

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 

Part 1339: Acquisition of Information 

Technology 

We propose to describe agency 

procedures and provision/clause 

options for processing contractors that 

are competing for and winning 

information technology service 

acquisitions over the micro-purchase 

threshold, and/or will require electronic 

access to Department of Commerce 

information technology systems. We 

also propose to add the following 

provisions and clauses: 

1352.239–70 Software License Addendum 


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1352.239–71 Electronic and Information 

Technology 

1352.239–72 Security Requirements for 

Information Technology Resources. 

Part 1341: Acquisition of Utility 

Services 

We propose to add Part 1341 to clarify 

the roles and responsibilities for 

entering into contracts with utility 

providers and making determinations 

related to contracts and agreements of 

utility services. 

Part 1342: Contract Administration 

We propose to revise Part 1342 to 

define roles and responsibilities related 

to contract administration and 

certification of indirect cost rates. We 

propose to add the following provision: 

1352.242–70 Postaward Conference 

Part 1344: Subcontracting Policies and 

Procedures 

We propose to add Part 1334 to 

identify the designee authorized to 

lower or raise the $25 million sales 

threshold for performing a review to 

determine if a Contractors Purchasing 

Systems Review is needed. 

Part 1345: Government Property 

We propose to add Part 1345 in order 

to address when government property is 

to be furnished to the contractor. We 

propose to add the following clause: 

1352.245–70 Government Furnished 

Property 

Part 1346: Quality Assurance 

We propose requiring DOC operating 

units to develop instructions and 

procedures related to material 

inspection and receiving reports. We 

also propose to authorize contracting 

officers to approve the use of warranties. 

We propose adding the following 

clause: 

1352.246–70 Place of Acceptance 

Part 1348: Value Engineering 

We propose to add Part 1348 in order 

to clarify the policy for processing Value 

Engineering Change Proposals (VECPs). 

We also propose to define the roles and 

responsibilities related to VECP 

processing and to granting exemptions 

from the requirements of FAR Part 48 

for a contract or class of contracts. 

Part 1349: Termination of Contracts 

We propose to revise Part 1349 to 

reflect current agency procedures for 

dealing with default terminations and 

terminations involving fraud or other 

criminal conduct. 

Part 1350: Extraordinary Contractual 

Actions 

We propose to add Part 50 in order to 

define roles and responsibilities for 

various actions. 

Part 1352: Solicitation Provisions and 

Clauses 

We propose to revise Part 1352 in 

order to reflect currently approved 

provisions and clauses. The clauses we 

propose to add for each CAR Part are 

identified in the discussion of each CAR 

Part summary. An agency-specific 

matrix, similar in format and intent to 

the FAR Part 52 matrix (See CAR Part 

1352.3), is added to assist users identify 

the location of the provision and clause 

for each prescription in the CAR. The 

changes made to existing CAR 

provisions and clauses are summarized 

in the table below. 

Existing CAR provision or clause number and title Action taken 

1352.217–90, Inspection and Manner of Doing Work ............................. Revised and moved to CAR Part 1371. 

1352.217–91, Delivery of Vessel to the Contractor ................................. Revised, renamed Delivery and Shifting of the Vessel, and moved to 

CAR Part 1371. 

1352.217–92, Performance ...................................................................... Revised and moved to CAR Part 1371. 

1352.217–93, Delays ................................................................................ Revised and moved to CAR Part 1371. 

1352.217–94, Minimization of Delay Due to Government Furnished 

Property.

Revised and moved to CAR Part 1371. 

1352.217–95, Additional Provisions Relating to Government Property ... Removed. 

1352.217–96, Liability and Insurance ...................................................... Revised and moved to CAR Part 1371. 

1352.217–97, Title .................................................................................... Revised and moved to CAR Part 1371. 

1352.217–98, Discharge of Liens ............................................................ Revised and moved to CAR Part 1371. 

1352.217–99, Department of Labor Occupational Safety and Health 

Standards for Ship Repairing.

Revised and moved to CAR Part 1371. 

1352.217–100, Regulations Governing Asbestos Work .......................... Removed. 

1352.217–101, Complete and Final Equitable Adjustments .................... Removed. 

1352.217–102, Government Review, Comment, Acceptance, and Approval.Revised and moved to CAR Part 1371. 

1352.217–103, Access to the Vessel(s) .................................................. Revised and moved to CAR Part 1371. 

1352.217–104, Documentation of Requests for Equitable Adjustment ... Revised and moved to CAR Part 1371. 

1352.217–105, Change Proposals ........................................................... Removed. 

1352.217–106, Lay Days ......................................................................... Revised and moved to CAR Part 1371. 

1352.217–107, Changes—Ship Repair .................................................... Revised and moved to CAR Part 1371. 

1352.217–108, Default—Ship Repair ....................................................... Removed. 

1352.217–109, Insurance Requirements ................................................. Revised and moved to CAR Part 1371. 

1352.217–110, Guarantees ...................................................................... Revised and moved to CAR Part 1371. 

1352.217–111, Temporary Services ........................................................ Revised and moved to CAR Part 1371. 

1352.217–112, Self-Insurance Information .............................................. Removed. 

1352.233.2, Service of Protest ................................................................. Revised and renumbered 1352.233–70. 

Part 1353: Forms 

We propose to revise Part 1353 in 

order to align the part with current 

agency procedures and acquisitionrelated forms. 

Part 1370: Universal Solicitation 

Provisions and Contract Clauses 

We propose to add Part 1370 in order 

to group the provisions and contract 

clauses that have prescriptions 

applicable to more than one FAR Part. 

We propose to insert the following 

provisions and clauses: 

1352.270–70 Period of Performance 

1352.270–71 Pre-Bid/Pre-Proposal 

Conference and Site Visit 

Part 1371: Acquisitions Involving Ship 

Construction and Ship Repair 

We propose to add Part 1371 in order 

to group the unique provisions and 

contract clauses that pertain to ship 


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construction and ship repair. We 

propose to insert the following 

provisions and clauses: 

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 

Classification 

This proposed rule has been 

determined to be not significant for 

purposes of Executive Order 12866, 

Regulatory Planning and Review. 

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 this proposed rule 

will not have a significant economic 

impact on a substantial number of small 

entities. The rule would update the 

Commerce Acquisition Regulations; it 

does not directly regulate any small 

entities. As a result, an initial regulatory 

flexibility analysis is not required and 

none has been prepared. 

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. 

48 CFR Part 1305 

Government procurement, Reporting 

and recordkeeping requirements. 

48 CFR Part 1306 

Government procurement, 

Justifications, Sole source acquisitions. 

48 CFR Part 1307 

Acquisition planning, Government 

procurement, Inherently governmental 

functions, Reporting and recordkeeping 

requirement. 

48 CFR Part 1308 

Government procurement, Printing. 

48 CFR Part 1309 

Debarment, Government procurement, 

Suspension, Reporting and 

recordkeeping requirement. 

48 CFR Part 1311 

Government procurement, Liquidated 

damages, Market acceptance. 

48 CFR Part 1312 

Government procurement, Tailoring 

clauses, Tailoring provisions, Tailoring 

terms and conditions. 

48 CFR Part 1313 

BPA, Blanket purchase agreement, 

Government procurement, Imprest 

funds, Micro-purchase authority, 

Purchase order modifications, Small 

business, Third-party drafts, Training. 

48 CFR Part 1314 

Equipment inspection, Government 

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

recordkeeping requirements, Site visit. 

48 CFR Part 1315 

Evaluation, Indefinite quantity, 

Inquiries, Government procurement, 

Oral presentations, Proposal 

preparation, Reporting and 

recordkeeping requirements, Shouldcost review, Source selection, 

Unsolicited proposals. 

48 CFR Part 1316 

Government procurement, 

Ombudsman. 

48 CFR Part 1317 

Multi-year contract, Congressional 

notification, Interagency agreement. 

48 CFR Part 1318 

Emergency procurement, Reporting 

and recordkeeping requirements, 

Contingency operation, Warrants. 

48 CFR Part 1319 

Partnership agreement, Set aside, 

Small business, SBA. 

48 CFR Part 1322 

Aged, Child labor, Civil rights, Equal 

employment opportunity, Government 

procurement, Individuals with 

disabilities, Labor, Labor disputes, 

Prisoners, Reporting and recordkeeping 

requirements, Veterans, Wages, Work 

stoppages. 

48 CFR Part 1323 

Affirmative procurement program, Air 

pollution control, Drug abuse, Drug-free 

workplace, Energy conservation, 

Environmental, Government 

procurement, Hazardous substances, 

Recycling, Renewable energy, Water 

pollution control. 

48 CFR Part 1324 

Freedom of Information, Government 

procurement, privacy. 

48 CFR Part 1325 

Buy American Act, Customs duties 

and inspection, Foreign currencies, 

Foreign trade, Government 

procurement. 

48 CFR Part 1326 

Disaster assistance, Government 

procurement. 


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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 1347 

Freight, Government procurement, 

Marking, Reporting and recordkeeping 

requirements, Transportation. 

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. 

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: September 4, 2009. 

John F. Charles, 

Deputy Assistant Secretary for 

Administration. 

For the reasons stated in the 

preamble, the Department of Commerce 

proposes to revise 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 Administration 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. 


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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. 

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. 

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. 


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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. 

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 postVerDate Nov<24>2008 15:30 Oct 09, 2009 Jkt 220001 PO 00000 Frm 00009 Fmt 4701 Sfmt 4700 E:\FR\FM\13OCP2.SGM 13OCP2

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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, servicedisabled veteran-owned, and HUBZone 

small businesses within the Department 

acquisition process. 

Office of the Assistant General 

Counsel for Administration, 

Employment & Labor Law Division 

means the Department Legal Office that 

provides advice and guidance to 

management regarding employment and 

labor law issues, including the legal 

standards for taking adverse and 

performance-based actions. 

Office of the Assistant General 

Counsel for Administration, Ethics Law 

and Program Division means the 

Department Legal Office that provides 

advice and guidance regarding conflict 

of interest statutes, ethics regulations, 

and related laws. 

Operating Units are organizational 

entities outside the Office of the 

Secretary charged with carrying out 

specified substantive functions (i.e., 

programs) of the Department and are 

identified in DAO 208–2. 

Procurement Counsel means, except 

for the Patent and Trademark Office 

(PTO), the Office of the Assistant 

General Counsel for Finance & 

Litigation, Contract Law Division, the 

office responsible for providing legal 

review of applicable contract actions 

and procurement legal advice to all 

operating units, and handling 

procurement-related litigation. 

‘‘Procurement Counsel’’ for all PTO 

procurement-related actions means 

Office of General Law. 

Procurement Executive (or Senior 

Procurement Executive (PE)) means the 

official appointed pursuant to Executive 

Order 12931 and the Services 

Acquisition Reform Act of 2003 to carry 

out the responsibilities identified in 

both the Executive Order and the Act. 

The Director for Acquisition 

Management is the Procurement 

Executive for the Department of 

Commerce. 

Senior Bureau Procurement Official 

(BPO) means the senior career 

procurement official, within each 

operating unit that has been delegated 

contracting authority, who is designated 

as the Senior Bureau Procurement 

Official. The BPO must be a 

procurement professional who has both 

experience and training in the area of 

Federal procurement and contracting. 

HCAs may designate one BPO within 

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

contracting activity. BPOs may also 

serve as the Head of Contracting Office. 

The Procurement Executive will issue 

each BPO a Contracting Officer Warrant 

which delegates the authority to enter 

into, administer, and/or terminate 

contracts and to make related 

determinations and findings. 

1302.170 Abbreviations. 

AIR Additional Item Requirements 

BPO Senior Bureau Procurement 

Official 

CAAC Civilian Agency Acquisition 

Council 

CAM Commerce Acquisition Manual 

CAO Chief Acquisition Officer 

CAR Commerce Acquisition 

Regulation 

CFO/ASA Chief Financial Officer/ 

Assistant Secretary for Administration 

CFR Code of Federal Regulations 

CO Contracting Officer 

COR Contracting Officer’s 

Representative 

DAO Departmental Administrative 

Order 

DOC Department of Commerce 

DOO Departmental Organizational 

Order 

D&F Determination and Findings 

EVMS Earned Value Management 

System 

FAR Federal Acquisition Regulation 

HCA Head of Contracting Activity 

HCO Head of Contracting Office 

IRB Institutional Review Board 

JOFOC Justification for Other than Full 

and Open Competition 

NIST National Institute of Standards 

and Technology 

NOAA National Oceanic and 

Atmospheric Administration 

OCI Organizational Conflict of Interest 

OCIO Office of the Chief Information 

Officer 

OFPP Office of Federal Procurement 

Policy 

OIG Office of Inspector General 

OMB Office of Management and 

Budget 

OS Office of the Secretary 

OSDBU Office of Small and 

Disadvantaged Business Utilization 

PE Procurement Executive 

PTO Patent and Trademark Office 

RFP Request for Proposals 

SBA Small Business Administration 

OU Operating Unit 

PART 1303—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST 

Subpart 1303.1—Safeguards 

Sec. 

1303.101 Standards of conduct. 

1303.101–2 Solicitation and acceptance of 

gratuities by government personnel. 

1303.101–3 Agency regulations. 

1303.104 Procurement integrity. 

1303.104–4 Disclosure, protection and 

marking of contractor bid or proposal 

information and source selection 

information. 


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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 

appropriate action to be taken. If a reply 

is received from the contractor within 

45 calendar days of sending the notice, 

the information in the reply must be 

considered before making a decision on 

the appropriate action to be taken. Upon 

request of the contractor, the contractor 

shall be provided an opportunity to 

appear in person to present information 

concerning the matter. A report shall be 

prepared following the presentation and 

the information must be considered 

when making a decision. A decision 

shall be made on the basis of all 

information available, including 

findings of fact and oral or written 

information submitted by the contractor. 

All mitigating factors shall be 

considered prior to making a final 

decision concerning what action will be 

taken. 

Subpart 1303.3—Reports of Suspected 

Antitrust Violations 

1303.303 Reporting suspected antitrust 

violations. 

Suspected anti-competitive practices 

and antitrust law violations, as 

described in FAR 3.301 and FAR 3.303, 

shall be reported to the Contract Law 

Division, by the HCO. A copy of the 

report shall be sent to the Procurement 

Executive concurrently with the 

submission to the Office of the Assistant 

General Counsel for Administration, 

Ethics Law and Program Division. The 

Office of the Assistant General Counsel 

will submit any required reports to the 

Attorney General. 

Subpart 1303.4—Contingent Fees 

1303.405 Misrepresentations or violations 

of the covenant against contingent fees. 

If the contracting officer has specific 

evidence or other reasonable basis to 

believe that a violation of the Covenant 

Against Contingent Fees has occurred, 

the matter shall be referred to the HCO, 

who shall, in appropriate 

circumstances, take one or more of the 

actions described in FAR 3.405(b). The 

HCO shall also refer the matter to the 

DOC Office of the Inspector General as 

well as the Office of the Assistant 

General Counsel for Administration, 

Ethics Law and Program Division. The 

Office of the Assistant General Counsel 

for Administration, Ethics Law and 

Program Division shall refer the matter 

to the Department of Justice, as 

appropriate. 

Subpart 1303.5—Other Improper 

Business Practices 

1303.502 Subcontractor kickbacks. 

1303.502–2 Subcontractor kickbacks. 

Suspected violations of the AntiKickback Act of 1986 shall be reported 

to the DOC Office of Inspector General. 


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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. 

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. 


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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. 

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. 


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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 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 

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 


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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 

from the Senior Bureau Procurement 

Official. 

1309.507 Solicitation provisions and 

contract clauses. 

1309.507–1 Solicitation provisions. 

(a) Insert provision 1352.209–70, 

Potential Organizational Conflict of 

Interest, substantially as written, in 

solicitations when the contracting 

officer determines there is a potential 

organizational conflict of interest. 

(b) Insert the clause with its Alternate 

I when the contracting officer 

determines the basic clause should not 

be modified. 

1309.507–2 Contract clauses. 

(a) In accordance with FAR 9.507–2, 

insert clause 1352.209–71, Limitation of 

Future Contracting, substantially as 

written, when the contractor’s eligibility 

for future prime contract or subcontract 

awards shall be restricted because of 

services being provided as stated in FAR 

9.505–1 through 9.505–4. 

(1) Insert the basic clause when the 

contractor will be providing systems 

engineering and/or technical direction. 

(See FAR 9.505–1) 

(2) Insert the clause with its Alternate 

I when the contractor will be preparing 

specifications or work statements. (See 

FAR 9.505–2) 

(3) Insert the clause with its Alternate 

II when the contractor will be providing 

technical evaluation or advisory and 

assistance services. (See FAR 9.505–3) 

(4) Insert the clause with its Alternate 

III when the contractor will be obtaining 

access to proprietary information. (See 

FAR 9.505–4) 

(5) Insert the clause with its Alternate 

IV when the contract is a task order 

contract. The contracting officer may 

modify Alternate IV to include a list of 

systems for which task orders may be 

issued and indicate which 

organizational conflict of interest 

provision in paragraph (a)(2) of this 

clause shall apply. 

(6) Insert the clause with its Alternate 

V when the contract provides for 

delivery orders. The contracting officer 

shall indicate in each delivery order 

which organizational conflict of interest 

provision in paragraph (a)(2) of this 

clause shall apply. 

(7) Insert the language in Alternate VI 

when it is necessary to have the 

restrictions of this clause included in all 

or some subcontracts, teaming 

arrangements, and other agreements 

calling for performance of work related 

to the contract. 

(b) Insert clause 1352.209–72, 

Restrictions against Disclosure, in 

service contracts, including architectengineer contracts, and supply and 

construction contracts requiring a 

restriction on the release of information 


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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. 

1313.302 Purchase orders. 

1313.302–1–70 Non-commercial purchase 

orders. 

Insert provision 1352.213–71, 

Instructions for Submitting Quotations 

under the Simplified Acquisition 

Threshold—Non-Commercial, or similar 

language in all solicitations for noncommercial purchase orders under the 

simplified acquisition threshold. The 

contracting officer shall indicate 

whether electronic submissions of 

quotations will be accepted. Paragraph 

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

tailored based on the evaluation factors. 

1313.302–3 Obtaining contractor 

acceptance and modifying purchase orders. 

A contractor’s written acceptance of a 

purchase order modification is required, 

unless the contracting officer 

determines otherwise. 

1313.303 Blanket Purchase Agreements 

(BPAs). 

1313.303–5 Purchases under BPAs. 

(a) Individual purchases shall not 

exceed the simplified acquisition 

threshold, subject to the following: 

(1) The limitations for individual 

purchases against BPAs established 

against Federal Supply Schedule 

contracts shall be those set forth in the 

terms and conditions of the schedule 

contract. 

(2) The limitations for individual 

purchases for commercial item 

acquisitions against BPAs established 

under FAR Subpart 13.5 ‘‘Test Program 

for Certain Commercial Items’’ is the 

simplified acquisition threshold set 

forth in FAR Subpart 13.5. 

1313.305 Imprest funds and third party 

drafts. 

1313.305–1 General. 

(a) Third-Party Drafts. Third-party 

drafts are not authorized for use by 

Department of Commerce agencies. 

(b) Imprest Funds. The Imprest Fund 

Policy Directive, issued November 9, 

1999, by the Department of Treasury, 

required that all Federal agencies 

eliminate agency use of imprest funds 

by October 1, 2001, except where 

provided under the Imprest Fund Policy 

Directive. Requests for exceptions to the 

requirements of the Imprest Fund Policy 

Directive should be addressed to DOC’s 

Director of Financial Management. In 

the case of an approved exception, 

DOC’s procedures for using imprest 

funds can be found in the Cash 

Management Policies and Procedures 

Handbook, available at the Department 

of Commerce, Office of Financial 

Management Web site. A copy of all 

approved exceptions shall be submitted 


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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 

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. 


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52558 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 

Subpart 1315.6—Unsolicited Proposals 

1315.602 Policy. 

In accord with FAR 16.602, the DOC 

encourages the submission of new and 

innovative ideas which support the 

DOC mission. 

1315.603 General. 

DOC will accept for review and 

consideration unsolicited proposals 

from any entity. DOC will not pay any 

costs associated with the preparation of 

unsolicited proposals. Proposals which 

do not meet the definition and 

applicable content and marking 

requirements of FAR 15.6 will not be 

considered under any circumstances 

and will be returned to the submitter. 

Unsolicited proposals may not be 

submitted electronically. 

1315.604 Agency points of contact. 

(a) Unsolicited proposals are to be 

submitted to the appropriate DOC 

contracting office. Any person or entity 

considering the submission of an 

unsolicited proposal should first 

determine, based on the subject matter 

of the proposal, to which DOC operating 

unit the proposal applies. Proposers 

should contact the applicable operating 

unit contracting office to determine 

procedures for submission and to whom 

to send the proposal. 

(b) Program offices must immediately 

transmit any unsolicited proposals sent 

to them to their contracting office. If 

there is a question concerning which 

operating unit should evaluate an 

unsolicited proposal, the contracting 

office shall identify the proper office, in 

coordination with the Office of 

Acquisition Management, if necessary, 

and transmit the proposal to the 

applicable contracting office. 

1315.606 Agency procedures. 

(a) The operating unit contracting 

office is designated as the point of 

contact for receipt of unsolicited 

proposals. Persons within DOC (e.g. 

technical personnel) who receive 

unsolicited proposals shall forward all 

documents to their cognizant 

contracting office. 

(b) Within ten working days after 

receipt by the contracting office of an 

unsolicited proposal, the contracting 

office shall review the proposal and 

determine whether the proposal meets 

the content and marking requirements 

of FAR 15.6. If the proposal does not 

meet these requirements, it shall be 

returned to the submitter, giving the 

reasons for noncompliance. 

1315.606–2 Evaluation. 

(a) If the contracting officer 

determines, upon initial review, that the 

unsolicited proposal meets all criteria in 

FAR 15.606–1, the contracting officer 

will acknowledge receipt of the 

proposal, coordinate evaluation with the 

program office, and provide to the 

submitter an estimated date that 

evaluation of the proposal is expected to 

be completed. The contracting officer 

shall transmit the proposal to the 

program office for evaluation, marking it 

in accord with FAR 15.609(d). If the 

estimated date for completion of the 

evaluation cannot be met, the submitter 

should be informed in a timely manner 

and provided with a revised evaluation 

completion date. 

(b) The evaluating office shall not 

reproduce or disseminate the proposal 

to other offices without the consent of 

the contracting officer. If the evaluating 

office requires additional information 

from the proposer, the evaluator shall 

request the information through the 

contracting officer, who will contact the 

proposer. The evaluator shall not 

communicate directly with the 

proposer. 

(c) Evaluators shall notify the 

contracting officer of their 

recommendations when the evaluation 

is complete. Following evaluation, the 

contracting officer shall proceed in 

accord with FAR 15.607. 

PART 1316—TYPES OF CONTRACTS 

Subpart 1316.1—Selecting Contract Types 

Sec. 

1316.103 Negotiating contract type. 

1316.103–70 Identifying contract type. 

Subpart 1316.2—Fixed Price Contracts 

1316.203 Fixed price contracts with 

economic price adjustment. 

1316.203–4 Contract clauses. 

1316.206 Fixed-ceiling-price contracts with 

retroactive price redetermination. 

1316.206–3 Limitations. 

Subpart 1316.3—Cost-Reimbursement 

Contracts 

1316.307 Contract clauses. 

Subpart 1316.4—Incentive Contracts 

1316.405 Cost-reimbursement incentive 

contracts. 

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

1316.406 Contract clauses. 

Subpart 1316.5—Indefinite Delivery 

Contracts 

1316.501–2–70 Task orders. 

1316.505 Ordering. 

1316.506 Solicitation provisions and 

contract clauses. 

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

1316.601 Time-and-materials contracts. 

1316.601–70 Contract clauses. 

1316.602 Labor-hour contracts. 

1316.602–70 Contract clauses. 

1316.603 Letter contracts. 

1316.603–2 Application. 

1316.603–3 Limitations. 

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

1.304. 

Subpart 1316.1—Selecting Contract 

Types 

1316.103 Negotiating contract type. 

1316.103–70 Identifying contract type. 

The type of contract shall be stated in 

each contract awarded. 

Subpart 1316.2—Fixed-Price Contracts 

1316.203 Fixed-price contracts with 

economic price adjustment. 

1316.203–4 Contract clauses. 

Contracting officers shall use an 

economic price adjustment clause based 

on cost indexes of labor or material after 

obtaining approval for use of the clause 

from the head of the contracting office. 

1316.206 Fixed-ceiling-price contract with 

retroactive price redetermination. 

1316.206–3 Limitations. 

The designee authorized to approve 

use of fixed-ceiling-price contracts with 

retroactive price redetermination is set 

forth in CAM 1301.70. 

Subpart 1316.3—Cost-Reimbursement 

Contracts 

1316.307 Contract clauses. 

(a) Insert a clause that is substantially 

the same as 1352.216–70, Estimated and 

Allowable Costs, in all costreimbursement contracts. 

(b) Insert a clause similar to 

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

Subpart 1316.4—Incentive Contracts 

1316.405 Cost-reimbursement incentive 

contracts. 

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

Insert clause 1352.216–72, 

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

1316.406 Contract clauses. 

Insert a clause substantially the same 

as 1352.216–73, Distribution of Award 

Fee, in all cost-plus-award-fee 

solicitations and contracts, as 

determined by the contracting officer. 

Subpart 1316.5—Indefinite-Delivery 

Contracts 

1316.501–2–70 Task orders. 

Insert clause 1352.216–74, Task 

Orders, or a substantially similar clause 

in task order solicitations and contracts, 

making changes, as appropriate. 


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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 318.2—Emergency Acquisitions 

Flexibilities 

Sec. 

1318.201 Contingency operation. 

1318.202 Defense or recovery from certain 

attacks. 

1318.270 Emergency acquisition 

flexibilities. 

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. 


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52560 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 

Subchapter D—Socioeconomic Programs 

PART 1319—SMALL BUSINESS 

PROGRAMS 

Subpart 1319.2—Policies 

Sec. 

1319.201 General policy. 

1319.202 Specific policies. 

1319.202–70 Small business set-aside 

review form. 

Subpart 1319.5—Set-Asides For Small 

Business 

1319.502 Setting aside acquisitions. 

1319.502–3 Partial set-asides. 

1319.505 Rejecting Small Business 

Administration recommendations. 

Subpart 1319.6—Certificates of 

Competency and Determination of 

Responsibility 

1319.602 Procedures. 

1319.602–1 Referral. 

Subpart 1319.7—The Small Business 

Subcontracting Program 

1319.705 Responsibilities of the contracting 

officer under the subcontracting 

assistance program. 

1319.705–4 Reviewing the subcontracting 

plan. 

Subpart 1319.8—Contracting with the Small 

Business Administration (the 8(a) Program) 

1319.800 General. 

1319.811 Preparing the contracts. 

1319.811–3 Contract clauses. 

1319.812 Contract administration. 

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

1.304. 

Subpart 1319.2–Policies 

1319.201 General policy. 

(a) The DOC Office of Small and 

Disadvantaged Business Utilization 

(OSDBU) is headed by a Director who 

shall report and be responsible to the 

Deputy Secretary on matters of policy 

and legislative requirements. 

(b) Each Contracting Office shall 

appoint Small Business Specialists to 

assist the HCA in effectively 

implementing the small business 

programs, including achieving program 

goals. 

1319.202 Specific policies. 

Procurement actions valued above 

$100,000 will be reviewed by the 

Director, OSDBU, or designee for the 

purpose of making recommendations for 

solicitation/award under FAR Part 19. 

1319.202–70 Small business set-aside 

review form. 

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

approval to the Operating Unit Counsel 

Small Business Specialist, and 

forwarded to the OSDBU for approval. 

If applicable, the Form CD 570 will be 

submitted to the SBA Procurement 

Center Representative (PCR) for review. 

The Form CD 570 is required for: 

(a) Procurement actions valued above 

$100,000; 

(b) Modifications to existing contracts 

that add new work valued over 

$550,000 or that increase the total 

contract cost to over $550,000; 

(c) Consolidation of two or more 

procurement requirements for goods 

and services. 

Subpart 1319.5—Set-Asides for Small 

Business 

1319.502 Setting aside acquisitions. 

1319.502–3 Partial set-asides. 

A partial set-aside shall not be made 

if there is a reasonable expectation that 

only two capable concerns (one large 

and one small) will respond with offers 

unless the set-aside is authorized by the 

designee set forth in CAM 1301.70. 

1319.505 Rejecting Small Business 

Administration recommendations. 

(a) The designee authorized to render 

a decision on the Small Business 

Administration’s appeal of the 

contracting officer’s decision is set forth 

in CAM 1301.70. 

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

agency head, the designee authorized in 

CAM 1301.70 shall forward justification 

for their decision to the agency head. 

(c) The designee authorized in CAM 

1301.70 shall reply to the SBA within 

30 working days after receiving the 

appeal. The decision of the designee 

shall be final. 

Subpart 1319.6—Certificates of 

Competency and Determination of 

Responsibility 

1319.602 Procedures. 

1319.602–1 Referral. 

When the contracting officer 

determines that the successful small 

business offeror lacks certain elements 

of responsibility, the contracting officer 

will withhold award and refer the 

matter to the cognizant Small Business 

Administration Government Contracting 

Area Office. A copy of the referral shall 

be provided to the Director of the 

OSDBU. 

Subpart 1319.7—The Small Business 

Subcontracting Program 

1319.705 Responsibilities of the 

contracting officer under the 

subcontracting assistance program. 

1319.705–4 Reviewing the subcontracting 

plan. 

The prime contractor’s proposed 

subcontracting plan shall be reviewed 

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. 


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(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 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 

contractor 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 

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 


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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 

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 is 

set forth in CAM 1301.70. 


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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. 

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. 


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Subpart 1328.3—Insurance 

1328.305 Overseas workers’ 

compensation and war-hazard insurance. 

The designee authorized to 

recommend a waiver to the Secretary of 

Labor is set forth in CAM 1301.70. 

1328.310 Contract clause for work on a 

Government installation. 

1328.310–70 Solicitation provisions and 

contract clauses. 

(a) Insert clause 1352.228–70, 

Insurance Coverage, in all contracts 

when: 

(1) Government property is involved; 

(2) The contract amount is expected to 

be over the simplified acquisition 

threshold, and 

(3) The contract will require work on 

a Government installation. 

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

fixed-price solicitations and contracts if: 

(i) Only a small amount of work is 

required on the Government installation 

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

(ii) All the work on the Government 

installation is to be performed outside 

the United States, its possessions and 

Puerto Rico. 

(2) The contracting officer may 

increase the dollar limits established in 

the clause when it is determined to be 

in the best interest of the Government. 

Prior to increasing the dollar limits the 

contracting officer shall seek the advice 

of Procurement Counsel. 

(c) Insert clause 1352.228–71, 

Deductibles Under Required Insurance 

Coverage—Cost-Reimbursement, in all 

cost-reimbursement contracts when the 

clause at 1352.228–70, Insurance 

Coverage, is used. 

(d) Insert clause 1352.228–72, 

Deductibles Under Required Insurance 

Coverage—Fixed Price, in all fixed-price 

contracts when the clause at 1352.228– 

70, Insurance Coverage, is used. 

(e) Insert clauses 1352.228–73 through 

1352.228–75, unless otherwise 

indicated by the specific instructions for 

their use below, in any contract for the 

lease of aircraft. 

(f) Insert clause 1252.228–73, Loss of 

or Damage to Leased Aircraft, in any 

contract for the lease of aircraft, except 

in the following circumstances: 

(1) When the hourly rental rate does 

not exceed $250 and the total rental cost 

for any single transaction is not in 

excess of $2,500: 

(2) When the cost of hull insurance 

does not exceed 10 percent of the 

contract rate; or 

(3) When the lessor’s insurer does not 

grant a credit for uninsured hours, 

thereby preventing the lessor from 

granting the same to the Government. 

(g) Insert clause 1352.228–74, Fair 

Market Value of Aircraft, in all aircraft 

lease/rentals. 

(h) The contracting officer shall insert 

the clause at 1352.228–75, Risk and 

Indemnities, in any contract for the 

lease of aircraft when the Government 

will have exclusive use of the aircraft 

for a period of less than thirty days. 

(i) Insert clause 1352.228–76, 

Approval of Group Insurance Plans, in 

all cost reimbursable contracts. 

(j) The contractor shall submit the 

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

insurance under a group insurance plan. 

Any change in benefits provided under 

an approved plan that can reasonably be 

expected to increase significantly the 

cost to the Government shall require 

similar approval. 

PART 1329—TAXES 

Subpart 1329.1—General 

Sec. 

1329.101 Resolving tax problems. 

Subpart 1329.2—Federal Excise Taxes. 

1329.203 Other Federal tax exemptions. 

1329.203–70 DOC Federal tax exemption. 

Subpart 1329.3—State and Local Taxes 

1329.303 Application of State and local 

taxes to government contractors and 

subcontractors. 

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

1.304. 

Subpart 1329.1—General 

1329.101 Resolving tax problems. 

Legal questions relating to tax issues 

should be referred to the Procurement 

Counsel. 

Subpart 1329.2—Federal Excise Taxes 

1329.203 Other Federal tax exemptions. 

1329.203–70 DOC Federal tax exemption. 

(a) The Office of Acquisition 

Management has obtained a permit from 

the U.S. Bureau of Alcohol, Tobacco, 

Firearms and Explosives enabling DOC 

and its contractors to purchase spirits 

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

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

contracting officer shall attach a copy of 

the permit to the contract. Upon receipt 

of the spirits, the contractor shall return 

the permit to the contracting officer 

unless future orders are anticipated 

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. 


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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. 

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. 


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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 

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 


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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 announcement. 

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 

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 

from 15 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 

from 15 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. 


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1335.017 Federal funded research and 

development centers. 

1335.017–2 Establishing or changing an 

FFRDC. 

The designee authorized to approve 

the establishment of an FFRDC, or 

change its basic purpose and mission, is 

set forth in CAM 1301.70. 

1335.017–4 Reviewing FFRDCs. 

The designee authorized to approve 

the continuation or termination of the 

sponsorship of an FFRDC is set forth in 

CAM 1301.70. 

PART 1336—CONSTRUCTION AND 

ARCHITECT-ENGINEER CONTRACTS 

Subpart 1336.2—Special Aspects of 

Contract for Construction 

Sec. 

1336.203 Government estimate of 

construction costs. 

1336.270 Special requirements for ship 

construction. 

Subpart 1336.6—Architect-Engineer 

Services 

1336.602 Selection of firms for architectengineer contracts. 

1336.602–2 Evaluation boards. 

1336.602–4 Selection authority. 

1336.602–5 Short selection process for 

contracts not to exceed the simplified 

acquisition threshold. 

1336.605 Government cost estimate for 

architect-engineer work. 

1336.609 Contract clauses. 

1336.609–1 Design within funding 

limitations. 

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

1.304. 

Subpart 1336.2—Special Aspects of 

Contracting for Construction 

1336.203 Government estimate of 

construction costs. 

After award, the independent 

Government estimated price can be 

released, upon request, to those firms or 

individuals who submitted proposals. 

1336.270 Special requirements for ship 

construction. 

See 48 CFR 1371 for special 

requirements for acquisition involving 

ship construction and ship repair. 

Subpart 1336.6—Architect-Engineer 

Services 

1336.602 Selection of firms for architectengineer contracts. 

1336.602–2 Evaluation boards. 

Permanent and ad hoc architectengineer evaluation boards may include 

preselection boards. When necessary, 

members of permanent, ad hoc, and 

preselection boards may be appointed 

from private practitioners of 

architecture, engineering, or related 

professions. Private practitioners may be 

appointed as deemed necessary by the 

BPO or higher agency official. The 

permanent and ad hoc evaluation 

boards should be comprised of at least 

a majority of government personnel. 

1336.602–4 Selection authority. 

Each contracting office shall designate 

the selection authority based on the 

complexity of each procurement. 

1336.602–5 Short selection process for 

contracts not to exceed the simplified 

acquisition threshold. 

(a) In contracts not expected to exceed 

the simplified acquisition threshold, 

either or both of the short selection 

processes set out at FAR 36.602–5 may 

be used. 

(b) Each contracting office shall 

designate the selection authority based 

on the complexity of each procurement. 

The selection authority shall review the 

selection report and approve it or return 

it to the chairperson for appropriate 

revision. 

1336.605 Government cost estimate for 

architect-engineer work. 

After award, the independent 

Government estimated price can be 

released, upon request, to those firms or 

individuals who submitted proposals. 

1336.609 Contract clauses. 

1336.609–1 Design within funding 

limitations. 

The designee authorized to make the 

determination described at FAR 36.609– 

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

at FAR 52.236–22 from the contract is 

set forth in CAM 1301.70. 

PART 1337—SERVICE CONTRACTING 

Subpart 1337.1—Service Contracts— 

General 

Sec. 

1337.110 Solicitation provisions and 

contract clauses. 

1337.110–70 Personnel security processing 

requirements. 

1337.110–71 Additional DOC clauses 

related to service contracting. 

Subpart 1337.2—Advisory and Assistance 

Services 

1337.204 Guidelines for determining 

availability of personnel. 

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

1.304. 

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. 


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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 (ET) 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 area wide 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 Area wide Contracts. 

The designee authorized to determine 

that the use of an area wide 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. 

Subpart 1342.5—Post award Orientation 

1342.503 Postaward conferences. 

1342.503–70 Notice of postaward 

conference. 

Subpart 1342.6—Corporate Administrative 

Contracting Officer 

1342.602 Assignment and location. 

Subpart 1342.7—Indirect Cost Rates 

1342.703 General. 

1342.703–2 Certificate of indirect costs. 

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

1.304. 

Subpart 1342.1—Contract Audit 

Services 

1342.102 Assignment of contract audit 

services. 

1342.102–70 Interagency contract 

administration and audit services. 

(a) Generally, the final invoice shall 

not be approved until a close-out audit 

has been performed and all outstanding 

issues have been negotiated or resolved 

on the following types of contracts 

valued at $500,000 and above: 

(1) Cost-reimbursement type 

contracts; 

(2) The cost-reimbursement portion of 

fixed-price contracts; 

(3) Letter contracts which provide for 

reimbursement of costs; 

(4) Time-and-materials contracts; and 

(5) Labor-hour contracts. 

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

an audit may be requested regardless of 

the contract value when the contracting 

officer determines that an audit is 

justified under one of the following 

circumstances: 

(1) There is some evidence of fraud or 

waste; 

(2) The contractor’s performance 

under the contract has been 

questionable; 

(3) The contractor had a high 

incidence of unallowable costs under a 

previous contract; 

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

begun dealing with the Government. 

Subpart 1342.2—Contract 

Administration Services 

1342.202 Assignment of contract 

administration. 

The designee authorized to approve 

delegations of CAO functions not listed 

in FAR 42.302 is set forth in CAM 

1301.70. 


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Subpart 1342.5—Postaward 

Orientation 

1342.503 Postaward conferences. 

1342.503–70 Notice of postaward 

conference. 

Insert a provision similar to 

1352.242–70, Postaward Conference, in 

solicitations when the contracting 

officer determines that a postaward 

conference is needed. 

Subpart 1342.6—Corporate 

Administrative Contracting Officer 

1342.602 Assignment and location. 

The designee authorized to approve 

the need for a corporate administrative 

contracting officer is set forth in CAM 

1301.70. 

Subpart 1342.7—Indirect Cost Rates 

1342.703 General. 

1342.703–2 Certificate of indirect costs. 

The designee authorized to waive the 

requirement for contractor certification 

of proposed final indirect cost rates is 

set forth in CAM 1301.70. 

PART 1344—SUBCONTRACTING 

POLICIES AND PROCEDURES 

Subpart 1344.3—Contractors’ Purchasing 

Systems Reviews 

Sec. 

1344.302 Requirements. 

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

1.304. 

Subpart 1344.3—Contractors’ 

Purchasing Systems Reviews 

1344.302 Requirements. 

The designee authorized to lower or 

raise the $25 million sales threshold for 

performing a review to determine if a 

contractor purchasing system review is 

needed is set forth in CAM 1301.70. 

PART 1345—GOVERNMENT 

PROPERTY 

Subpart 1345.1—General 

Sec. 

1345.107 Contract clauses. 

1345.107–70 Government furnished 

property. 

Subpart 1345.6—Reporting, Reutilization, 

and Disposal 

1345.604 Disposal of surplus property. 

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

1.304. 

Subpart 1345.1—General 

1345.107 Contract clauses. 

1345.107–70 Government furnished 

property. 

Insert clause 1352.245–70, 

Government Furnished Property, when 

Government property is to be furnished 

to the contractor and the contractor will 

be accountable for, and have 

stewardship of, the property. 

Subpart 1345.6—Reporting, 

Reutilization, and Disposal 

1345.604 Disposal of surplus property. 

Surplus property shall be disposed of 

in accordance with procedures outlined 

in the DOC Personal Property 

Management Manual. 

PART 1346—QUALITY ASSURANCE 

Subpart 1346.4—Government Contract 

Quality Assurance 

Sec. 

1346.401 General. 

Subpart 1346.5—Acceptance 

1346.503 Place of acceptance. 

Subpart 1346.6—Material Inspection and 

Receiving Reports 

1346.601 General. 

Subpart 1346.7—Warranties 

1346.704 Authority for use of warranties. 

1346.705 Limitations. 

1346.710 Contract clauses. 

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

1.304. 

Subpart 1346.4—Government Contract 

Quality Assurance 

1346.401 General. 

Agency procedures for documenting 

government inspection are set forth 

under Subpart 1346.6. 

Subpart 1346.5—Acceptance 

1346.503 Place of acceptance. 

Insert a clause substantially similar to 

1352.246–70, Place of Acceptance, in 

contracts and solicitations to indicate 

where the acceptance of supplies and/ 

or services will take place. 

Subpart 1346.6—Material Inspection 

and Receiving Reports 

1346.601 General. 

Each DOC operating unit shall 

develop instructions and procedures 

regarding material inspection and 

receiving reports as appropriate. 

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. 


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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 on 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-fixedfee, term contract). 

1352.216–72 Determination of award fee. 

1352.216–73 Distribution of award fee. 

1352.216–74 Task orders. 

1352.216–75 Minimum and maximum 

contract amounts. 

1352.216–76 Placement of orders. 

1352.216–77 Ceiling price. 

1352.219–70 Section 8(a) direct award 

(Deviation). 

1352.219–71 Notification to delay 

performance (Deviation). 

1352.219–72 Notification of competition 

limited to eligible 8(a) concerns, 

Alternate III (Deviation). 

1352.227–70 Rights in data, assignment of 

copyright. 

1352.228–70 Insurance coverage. 

1352.228–71 Deductibles under required 

insurance coverage—cost 

reimbursement. 

1352.228–72 Deductibles under required 

insurance coverage—fixed price. 

1352.228–73 Loss of or damage to leased 

aircraft. 

1352.228–74 Fair market value of aircraft. 

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). 


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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 provision and clauses are 

located at 48 CFR Chapter 1 and CAM 

provisions and clauses are located at 48 

CFR Chapter 13. 

Subpart 1352.2—Text of Provisions 

and Clauses 

1352.200 Scope of subpart. 

This subpart sets forth the text of all 

CAR provisions and clauses and 

provides a cross-reference to the 

location in the CAR that prescribes their 

use. 

1352.201–70 Contracting officer’s 

authority. 

As prescribed in 48 CFR 1301.602– 

170, insert the following clause: 

Contracting Officer’s Authority 

The Contracting Officer is the only 

person authorized to make or approve 

any changes in any of the requirements 

of this contract, and, notwithstanding 

any provisions contained elsewhere in 

this contract, the said authority remains 

solely in the Contracting Officer. In the 

event the contractor makes any changes 

at the direction of any person other than 

the Contracting Officer, the change will 

be considered to have been made 

without authority and no adjustment 

will be made in the contract terms and 

conditions, including price. 

(End of clause) 

1352.201–71 Ratification release. 

As prescribed in 48 CFR 1301.602–3, 

insert the following clause: 

Ratification Release (DATE) 

(a) The Government agrees to pay the 

contractor $llll for the following 

items/services: 

llllllllllllllllllllllllllllllllllllll

(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 maters 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 nofitication to the 

Contracting Officer and relating to the 

defense or prosecution of litigation. 

Contractor’s Signature: lllllll

Date: llllllllllllllll

(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) llllll 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: 

lllllllllllllllllll

lllllllllllllllllll

lllllllllllllllllll

Phone Number: lllllllllll

E-mail: lllllllllllllll

lllllllllllllllllll

(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 referred to 

the Contracting Officer directly or 

through the COR. No such changes shall 

be made without the express written 

prior authorization of the Contracting 

Officer. The Contracting Officer may 

designate assistant or alternate COR(s) 

to act for the COR by naming such 

assistant/alternate(s) in writing and 

transmitting a copy of such designation 

to the contractor. 

(End of clause) 

1352.208–70 Restrictions on printing and 

duplicating. 

As prescribed in 48 CFR 1308.802–70, 

insert the following clause: 

Restrictions on Printing and 

Duplicating (DATE) 

(a) The contractor is authorized to 

duplicate or copy production units 

provided the requirement does not 

exceed 5,000 production units of any 

one page or 25,000 production units in 

the aggregate of multiple pages. Such 

pages may not exceed a maximum 

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

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

× 11 inches (215 × 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 


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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). 

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 


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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. 


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(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. 

(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 

llllll. 

(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); and 

(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: 


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(1) Use of the Form—The Proposal 

Form (Standard Form 33 or 1449), is to 

be executed fully and used as the cover 

sheet (or first page) of Volume I. Include 

three (3) original signed copies of the 

form in the original Volume I. 

(2) Acceptance Period—The 

acceptance period entered on the 

Proposal Form by the offeror shall not 

be less than that prescribed in the 

solicitation, which shall apply if no 

other period is offered. 

(3) Signature Authority—The person 

signing the Proposal Form must have 

the authority to commit the offeror to all 

of the provisions of the proposal, fully 

recognizing that the Government has the 

right, by terms of the Solicitation, to 

make an award without discussion if it 

so elects. 

(B) Other documentation identified in 

Section (A) above. The offeror shall 

submit one original of Volume I, marked 

as such. 

(2) VOLUME II—TECHNICAL 

PROPOSAL 

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

proposal, consists of the offeror’s 

proposal delineating its capabilities and 

how it intends to perform contract 

requirements. The Technical proposal 

will be evaluated in accord with the 

criteria contained in Section M. 

(B) In order that the technical 

proposal may be evaluated strictly on 

the merit of the material submitted, no 

contractual price information is to be 

included in Volume II. However, the 

type and quantity of labor and materials 

is to be included in the Technical 

Proposal, without any associated cost 

information. 

(C) The technical proposal must be 

typed, double-spaced, with one inch 

margins, using elite font, 12 pitch type 

(or equivalent) and printed, unreduced 

in size, on 81⁄2′′ by 11′′ paper, not 

exceeding __ pages, single-sided, 

exclusive of resumes and related 

corporate experience documentation. 

Any pages in excess of ll will be 

disregarded, and will not be included in 

the proposal evaluation. Failure of the 

offeror to comply with the page 

limitations, resulting in the excess pages 

not being evaluated, shall not constitute 

grounds for a protest. 

(ii) Format and Content. Volume II, 

Technical Proposal, shall include the 

following contents: 

(A) Table of Contents 

(B) List of Tables and Figures 

(C) Summary of Technical Proposal 

(D) Technical Proposal 

(E) Exceptions and Deviations 

These major headings may be 

subdivided or supplemented by the 

offeror as appropriate. 

(1) Summary. This section shall 

provide a summary that addresses each 

of the technical evaluation factors set 

out in Section M. 

(2) Technical Proposal. The offeror 

shall clearly address each of the 

technical evaluation criteria in Section 

M, and, at a minimum, cover each 

subfactor. 

(3) Exceptions and Deviations. This 

section shall identify and explain any 

exceptions or 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 to 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 laborhours 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 


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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 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 

llll. Questions should be received 

no later than ll calendar days after 

the issuance date of this solicitation. 

Any responses to questions will be 

made in writing, without identification 

of the questioner, and will be included 

in an amendment to the solicitation. 

Even if provided in other form, only the 

question responses included in the 

amendment to the solicitation will 

govern performance of the contract. 

(End of clause) 

1352.215–73 Evaluation quantities– 

indefinite quantity contract. 

As prescribed in 48 CFR 1315.204– 

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

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 highlyrated 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. 


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(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 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. Companywide, 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 


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so, it should state the percentage and 

provide a justification for that figure. 

(6) Other Direct Costs. The offeror 

shall briefly describe the following: 

(i) Travel/Subsistence costs; 

(ii) Subcontractor costs; and 

(iii) How subcontracting costs were 

analyzed. 

(c) Audit Reports. If the offeror or any 

subcontractor has been audited by a 

Government agency within the last two 

years, or has approved indirect cost 

rates, provide a copy of the audit report, 

or, if not available, the name, address, 

and telephone number of the audit 

office. Similarly, information on any 

Government-approved indirect cost 

rates should be provided. 

(End of clause) 

1352.216–70 Estimated and allowable 

costs. 

As prescribed in 48 CFR 1316.307(a), 

insert the following clause: 

Estimated and Allowable Costs (DATE) 

(a) Estimated Costs. The estimated 

cost of this contract is $llll [insert 

total cost of contract], which consists of 

$llll [insert amount of cost that is 

reimbursable] for reimbursable costs 

and $llll [insert amount of fixed 

fee] for fixed/incentive fee. These costs 

shall be subject to the provisions of FAR 

clause 52.232–20, ‘‘Limitation of Cost,’’ 

FAR clause 52.216–7, ‘‘Allowable Cost 

and Payments,’’ and FAR clause 52.216– 

8, ‘‘Fixed Fee.’’ 

(b) Subject to Availability of Funds 

[Insert paragraph (b) when the contract 

is issued subject to the availability of 

funds]. 

‘‘The amount of funding for this 

contract is $llll [insert amount 

being funded], which consists of 

$llll [insert amount of 

reimbursable costs funded] for 

reimbursable costs and $llll [insert 

amount of fixed fee funded] for Fixed/ 

Incentive Fee. These costs shall be 

subject to the provisions of FAR 52.232– 

22, ‘Limitations of Funds.’ ’’ 

(c) Allowable Costs. 

(1) Final annual indirect cost rate(s) 

and the appropriate base(s) shall be 

established in accordance with FAR 

Subpart 42.7, in effect for the period 

covered by the indirect cost rate 

proposal. 

(2) Until final annual indirect cost 

rates are established for any period, the 

Government shall reimburse the 

contractor at billing rates established by 

the Contracting Officer (or cognizant 

Federal agency official) or auditor in 

accordance with FAR 42.704, subject to 

adjustment when the final rates are 

established. The established billing rates 

are currently as follows: 

llllllllllll [Insert billing 

rate] 

(End of clause) 

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

As prescribed in 48 CFR 1316.307(b), 

insert the following clause: 

Level of Effort (Cost-Plus-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 ll. DPLH is 

defined as actual work hours exclusive 

of vacation, holidays, sick leave, and 

other absences. 

(b) Only the DPLH categories 

indicated below shall be charged 

directly to the contract. It is estimated 

that the DPLH will be expended 

approximately as follows: 

Labor Category Base 

Period 

Option 

Period I 

Option 

Period II 

Option 

Period III 

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

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

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

(c) The hours specified above are 

provided as estimates only. If the actual 

amount of hours incurred falls within 

90% to 110% of this estimate, the fee 

shall not be adjusted. 

(d) In the event that the contractor 

shall be required to provide less than 

90% of the estimated DPLH, the fixed 

fee of the contract shall be equitably 

adjusted by unilateral modification to 

the contract. The fixed fee adjustment 

shall be based solely upon the 

difference between the DPLH actually 

provided and 90% of the estimated 

DPLH, calculated as follows: 

Adjusted Fixed Fee = (Actual DPLH/(.9 

× Estimated DPLH)) × Specified 

Fixed Fee 

(e) In the event that the contractor 

shall be required to provide more than 

110% of the estimated DPLH, the fixed 

fee of the Contract shall be equitably 

adjusted by unilateral modification to 

the Contract. The fixed fee adjustment 

shall be based solely upon the 

difference between the DPLH actually 

provided and 110% of the estimated 

DPLH, calculated as follows: 

Adjusted Fixed Fee = (Actual DPLH/(1.1 

× Estimated DPLH)) × Specified 

Fixed Fee 

(f) These terms and conditions do not 

supersede the requirements of either 

FAR clause 52.232–20 ‘‘Limitation of 

Cost’’ or FAR clause 52.232–22 

‘‘Limitation of Funds.’’ 

(End of clause) 

1352.216–72 Determination of award fee. 

As prescribed in 48 CFR 1316.405–2, 

insert the following clause: 

Determination of Award Fee (DATE) 

Based upon the quality of its 

performance and the results of the 

Government’s performance evaluation, 

the contractor may earn an award fee. 

(a) The total amount of award fee 

available under this contract is assigned 

according to the following: 

[insert appropriate information] 

(b) A Performance Evaluation Plan 

shall be unilaterally established by the 

Government as part of the contract and 

used for the determination of award 

fees. This plan shall include the criteria 

that will be used to evaluate the 

contractor’s performance and to 

determine the percentage of award fee 

(if any) available for each performance 

period. 

(c) The criteria contained within the 

Performance Evaluation Plan may relate 

to: 

(1) Quality of performance of the 

contract requirements; 

(2) Effective management of the 

contract; and 

(3) Cost controls. 

(d) The Performance Evaluation Plan 

may be revised unilaterally by the 

Government at any time during the 

period of performance, however unless 

mutually-agreed to a revision shall not 

affect the current evaluation period. 

Notification of such changes shall be 

provided to the contractor [insert 

number] calendar days prior to the start 

of the evaluation period to which the 

change will apply. 

(e) At the conclusion of each 

evaluation period, and in accordance 


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with the performance evaluation plan, a 

determination of the amount of the 

award fee earned shall be made in 

writing to the contractor by the 

Government Fee Determination Official 

(FDO). The FDO’s unilateral 

determination of the amount of award 

fee earned in any evaluation period or 

a determination that no fee was earned 

shall be conclusive. 

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

evaluation period. The FDO shall 

consider 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: 

lllllllllllllllllll

lllllllllllllllllll

(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 


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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: 

lllllllllllllllllll

lllllllllllllllllll

lllllllllllllllllll

[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: 

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 


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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 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) below: 

(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) 

1352.231–70 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 

$ ____. 


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(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 

‘‘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 approvedmodification without written approval 

by the Contracting Officer. 


erowe on DSK5CLS3C1PROD with PROPOSALS2
52584 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 

(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) 

1352.235–72 Protection of human 

subjects—institutional approval. 

As prescribed in 48 CFR 1335.006(c), 

insert the following clause: 

Protection of Human Subjects— 

Institutional Approval (DATE) 

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

must be conducted pursuant to the 

requirements of the Federal Policy for 

the Protection of Human Subjects (the 

‘‘Common Rule’’), adopted by the 

Department of Commerce at 15 CFR Part 

27. Contractor has submitted 

documentation establishing review and 

approval of the human subjects research 

protocol, including all informed consent 

forms, advertisements, and other 

recruitment materials, by a qualified 

Institutional Review Board (IRB) that 

has a current Federal-wide Assurance 

(FWA) issued by the Department of 

Health and Human Services (DHHS). 

(b) By accepting this contract/order, 

the contractor certifies the accuracy of 

the documentation provided to its 

cognizant IRB and to the Government in 

support of the human subjects research 

specified therein. Based upon the 

contractor’s documentation, and 

following the Government institutional 

review thereof, the following specific 

involvement of human subjects in 

research is hereby approved by the 

Contracting Officer: 

Name of IRB: llll (IRB #ll) 

Title of IRB Protocol: llll llll

Recruiting Letter Approval Date (if appropriate): llll lllllllll

Consent Form Approval Date: llll 


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Assurance of Compliance Number: 

llll llllllllllllll

(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 IRBapproved 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 IRBapproved 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: 


erowe on DSK5CLS3C1PROD with PROPOSALS2
52586 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 

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. 


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(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 eQIP 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 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 


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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 NonCritical 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) 

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 AntiDeficiency Act, 31 U.S.C. Section 

1341(a). 

(e) Assignment: Payments may only 

be assigned in accordance with the 


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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: 

ll 1194.21 Software applications and 

operating systems 

ll 1194.22 Web-based intranet and 

Internet information and 

applications 

ll 1194.23 Telecommunications 

products 

ll 1194.24 Video and multimedia 

products 

ll 1194.25 Self-contained, closed 

products 

ll 1194.26 Desktop and portable 

computers 

ll 1194.31 Functional performance 

criteria 

ll 1194.41 Information, 

documentation and support 

(b) The standards do not require the 

installation of specific accessibilityrelated 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 nonnational 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. 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 


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required by section 15.4 of the DOC IT 

Security Program Policy. 

(g) Within 5 days of contract award, 

the contractor shall provide the COR 

with signed acknowledgement of the 

provisions as contained in Commerce 

Acquisition Regulation (CAR), 

1352.209–72, Restrictions Against 

Disclosures. 

(h) The contractor shall afford DOC, 

including the Office of Inspector 

General, access to the contractor’s and 

subcontractor’s facilities, installations, 

operations, documentation, databases, 

and personnel used in performance of 

the contract. Access shall be provided to 

the extent required to carry out a 

program of IT inspection, investigation, 

and audit to safeguard against threats 

and hazards to the integrity, availability, 

and confidentiality of DOC data or to 

the function of computer systems 

operated on behalf of DOC, and to 

preserve evidence of computer crime. 

(i) For all contractor-owned systems 

for which performance of the contract 

requires interconnection with a DOC 

network on which DOC data will be 

stored or processed, the contractor shall 

provide, implement, and maintain a 

System Accreditation Package in 

accordance with the DOC IT Security 

Program Policy. Specifically, the 

contractor shall: 

(1) Within 14 days after contract 

award, submit for DOC approval a 

System Certification Work Plan, 

including project management 

information (at a minimum the tasks, 

resources, and milestones) for the 

certification effort, in accordance with 

DOC IT Security Program Policy and 

[Insert agency or operating unit counsel 

specific guidance, if applicable]. The 

Certification Work Plan, approved by 

the COR, in consultation with the DOC 

IT Security Officer, or Agency/operating 

unit counsel IT Security Manager/ 

Officer, shall be incorporated as part of 

the contract and used by the COR to 

monitor performance of certification 

activities by the contractor of the system 

that will process DOC data or connect 

to DOC networks. Failure to submit and 

receive approval of the Certification 

Work Plan may result in termination of 

the contract. 

(2) Upon approval, follow the work 

plan schedule to complete system 

certification activities in accordance 

with DOC IT Security Program Policy 

Section 6.2, and provide the COR with 

the completed System Security Plan and 

Certification Documentation Package 

portions of the System Accreditation 

Package for approval and system 

accreditation by an appointed DOC 

official. 

(3) Upon receipt of the Security 

Assessment Report and Authorizing 

Official’s written accreditation decision 

from the COR, maintain the approved 

level of system security as documented 

in the Security Accreditation Package, 

and assist the COR in annual 

assessments of control effectiveness in 

accordance with DOC IT Security 

Program Policy, Section 6.3.1.1. 

(j) The contractor shall incorporate 

this clause in all subcontracts that meet 

the conditions in paragraph (a) of this 

clause. 

(End of clause) 

1352.242–70 Postaward conference. 

As prescribed in 48 CFR 1342.503–70, 

insert the following provision: 

Postaward Conference (DATE) 

A postaward conference with the 

successful offeror may be required. If 

required, the Contracting Officer will 

contact the contractor within 10 days of 

contract award to arrange the 

conference. 

(End of clause) 

1352.245–70 Government furnished 

property. 

As prescribed in 48 CFR 1345.107–70, 

insert the following clause: 

Government Furnished Property 

(DATE) 

The Government will provide the 

following item(s) of Government 

property to the contractor . The 

contractor shall be accountable for, and 

have stewardship of, the property in the 

performance of this contract. This 

property shall be used and maintained 

by the contractor in accordance with 

provisions of the ‘‘Government 

Property’’ clause included in this 

contract. 

Item No. Description Quantity Delivery 

Date 

Property/ 

Tag Number (if 

applicable) 

(End of clause) 

1352.246–70 Place of acceptance. 

As prescribed in 1346.503, insert the 

following clause: 

Place of Acceptance (DATE) 

(a) The Contracting Officer or the duly 

authorized representative will accept 

supplies and services to be provided 

under this contract. 

(b) The place of acceptance will be: 

lllllllllllllllllll

lllllllllllllllllll

lllllllllllllllllll

(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) 

1352.270–71 Pre-bid/pre-proposal 

conference and site visit. 

As prescribed in 48 CFR 1370.102, 

insert the following provision: 

Pre-Bid/Pre-Proposal Conference and 

Site Visit (DATE) 

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

potential contractors may obtain a better 

understanding of the work required. 

(b) Offerors are encouraged to submit 

all questions in writing at least [__] 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 


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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: llllllllllllllll

Time: lllllllllllllll

Location: llllllllllllll

[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 


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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/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: 


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(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 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-toport. If the delivery time exceeds eight 

(8) hours, but is less than 24 hours, it 


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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 coachtype 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, 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 ensure 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. 


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(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 Governmentowned 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 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 


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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. 

(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 


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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 


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obsolete or excess by the change, the 

Contracting Officer shall have the right 

to prescribe the manner of the 

disposition of the property. 

(e) Failure to agree to any adjustment 

shall be a dispute under the Disputes 

clause. However, nothing in this clause 

shall excuse the contractor from 

proceeding with the contract as 

changed. 

(End of clause) 

1352.271–88 Guarantees. 

As prescribed in 48 CFR 1371.119, 

insert the following clause: 

Guarantees (DATE) 

(a) In the event any work performed 

or materials furnished by the contractor 

under this contract prove defective or 

deficient within ll days from the date 

of redelivery of the vessel, the 

contractor, as directed by the 

Contracting Officer and at its own 

expense, shall correct and repair the 

deficiency to the satisfaction of the 

Contracting Officer. 

(b) The Government shall be entitled 

to rely upon any guarantee secured by 

the contractor or any sub-contractor 

covering work done or materials 

furnished which exceeds the ll-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 ll-day 

guarantee period on those defects or 

deficiencies which it corrected. 

However, this clause does not limit the 

responsibility or relieve the liability of 

the contractor under the Liability and 

Insurance clause. 

(f) At the Contracting Officer’s option, 

defects and deficiencies may be left in 

their uncorrected condition. In that 

event, the contractor and the 

Contracting Officer shall agree on an 

equitable deduction in the contract 

price. Failure to agree upon an equitable 

reduction shall constitute a dispute 

under the Disputes clause of this 

contract. 

(g) The rights and remedies of the 

Government provided in this clause are 

in addition to and do not limit any 

rights afforded to the Government by 

any other clause of the contract. If a 

defect or deficiency that exists at the 

time of redelivery of the vessel was not 

discovered by a reasonable inspection 

and is discovered after the expiration of 

the time frame stated in this clause, it 

is not subject to the time limitations 

stated in this clause. 

(End of clause) 

1352.271–89 Temporary services. 

As prescribed in 48 CFR 1371.120, 

insert the following clause: 

Temporary Services (DATE) 

(a) Temporary services are services 

incidental to the performance of work 

which are required in the schedule or 

specifications to be provided by the 

contractor. Temporary services may 

include the furnishing of water, 

electricity, telephone service, toilet 

facilities, garbage removal, office space, 

parking places or similar facilities. 

(b) If performance time is extended 

due to Government-caused delay, the 

contractor may request an equitable 

adjustment for providing temporary 

services at the rate stated in the 

Schedule. 

(End of clause) 

1352.271–90 Insurance requirements. 

As prescribed in 48 CFR 1371.121, 

insert the following clause: 

Insurance Requirements (DATE) 

(a) The contractor shall procure and 

thereafter maintain the following 

insurance: 

(1) Ship contractor’s legal liability 

insurance to insure the risks described 

in paragraph (b) of clause 1352.271–79. 

This insurance shall be for 

$1,000,000.00. 

(2) Comprehensive general liability 

insurance and automobile insurance to 

insure the risks described in paragraph 

(c) of clause 1352.271–79. This 

insurance shall be for $1,000,000.00 on 

account of any one accident or 

occurrence with respect to each vessel, 

boat, and/or barge upon which work is 

performed. The contractor shall cause 

the Government to be named as an 

additional insured under any and all 

liability insurance policies. 

(3) Full coverage in accordance with 

the State Worker’s Compensation law; 

and 

(4) Full coverage in accordance with 

the United States Longshoremen’s and 

Harbor Worker’s Act. 

(b) As evidence that it has obtained 

the insurance specified in paragraph (a) 

of this clause, the contractor shall 

furnish the Contracting Officer with a 

certificate or certificates executed by an 

agent of the insurer authorized to 

execute such certificates. Such 

certificates shall be furnished prior to 

commencement of the work. Each 

certificate shall state that (name of 

insurer) has insured (name of 

contractor) awarded contract number 

llll 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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BILLING CODE 3510–03–C 

PART 1353—FORMS 

Subpart 1353.1—General 

Sec. 

1353.100 Scope of subpart. 

1353.107 Obtaining forms. 

Subpart 1353.2—Prescription of Forms 

1353.200 Scope of subpart. 

1353.206 Competition requirements. 

Subpart 1353.3—Illustration of Forms 

353.300 Scope of subpart. 

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

1.304. 

Subpart 1353.1—General 

1353.100 Scope of subpart. 

This subpart prescribes DOC forms 

that are supplemental to those provided 

in FAR Part 53. 

1353.107 Obtaining forms. 

The DOC forms may be obtained from 

any DOC contracting office. 

Subpart 1353.2—Prescription of Forms 

1353.200 Scope of subpart. 

This subpart prescribes or references 

DOC forms for use in acquisitions. 

Consistent with FAR 53.200, this 

subpart is arranged by subject matter, in 

the same order as and keyed to the parts 

of the CAR in which the form usage 

requirements are addressed. 

1353.206 Competition requirements. 

As prescribed in 48 CFR 1306.303–70, 

use Form CD–492, Justification for 

Other Than Full and Open Competition, 

to support the requirements under FAR 

Subpart 6.3 (see Appendix A: Forms). 

1353.219 Small business programs. 

Use Form CD–570, Small Business 

Set-Aside Review, to fulfill and 

document the requirements under FAR 

19.5 (see Appendix A: Forms). 

Subpart 1353.3—Illustration of Forms 

1353.300 Scope of subpart. 

DOC Forms will not be illustrated in 

this CAR. Persons wishing to obtain 

copies of DOC forms prescribed in the 

CAR may do so in accordance with 

1353.107. 

Subchapter I—Department Supplemental 

Regulations 

PART 1370—UNIVERSAL 

SOLICITATION PROVISIONS AND 

CONTRACT CLAUSES 

Subpart 1370.1—Provisions and Clauses 

Sec. 

1370.101 Period of performance. 

1370.102 Pre-bid/pre-proposal conference 

and site visit. 

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

1.304. 

Subpart 1370.1—Provisions and 

Clauses 

1370.101 Period of performance. 

Insert the clause 1352.270–70, Period 

of Performance, in all solicitations and 

contracts where a period of performance 

will be specified. 

1370.102 Pre-bid/pre-proposal conference 

and site visit. 

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

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

provision is optional for construction 

and may be modified as necessary. The 

contracting officer shall include or 

delete the paragraph regarding site 

visits. 

PART 1371—ACQUISITIONS 

INVOLVING SHIP CONSTRUCTION 

AND SHIP REPAIR 

Subpart 1371.1—Provisions and Clauses 

Sec. 

1371.101 Inspection and manner of doing 

work. 

1371.102 Method of payment and 

invoicing instructions for ship repair. 

1371.103 Additional item requirements 

(AIR)—growth work. 

1371.104 Schedule of work. 

1371.105 Foreseeable cost factors 

pertaining to different shipyard 

locations. 

1371.106 Delivery and shifting of the 

vessel. 

1371.107 Performance. 

1371.108 Delays. 

1371.109 Minimization of delay due to 

government furnished property. 

1371.110 Liability and insurance. 

1371.111 Title. 

1371.112 Discharge of liens. 

1371.113 Department of Labor 

occupational safety and health standards 

for ship repairing. 

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. 

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. 

1371.112 Discharge of liens. 

Insert clause 1352.271–81, Discharge 

of Liens, in all solicitations and 

contracts for ship construction and ship 

repair. 


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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. E9–22206 Filed 10–9–09; 8:45 am] 

BILLING CODE 3510–03–P 


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