Federal Register / Vol. 77, No. 52 / Friday, March 16, 2012 / Proposed Rules 15681 

have a legend, a distance scale and 

correctly labeled latitude and longitude 

lines. The map must be clear and 

legible. The map must accurately show 

the cell sites (transmitting antenna 

locations), the service area boundaries 

of additional and modified cell sites, the 

entire CGSA, extensions of the 

composite service area beyond the 

CGSA (see § 22.911), and the relevant 

portions of the CMA boundary. 

(3) Exhibit III—Antenna Information. 

In addition, upon request by an 

applicant, licensee, or the FCC, a 

cellular applicant or licensee of whom 

the request is made shall furnish the 

antenna type, model, the name of the 

antenna manufacturer, antenna gain in 

the maximum lobe, the beam width of 

the maximum lobe of the antenna, a 

polar plot of the horizontal gain pattern 

of the antenna, antenna height to tip 

above ground level, the height of the 

center of radiation of the antenna above 

the average terrain, the height of the 

antenna center of radiation above the 

average elevation of the terrain along 

each of the 8 cardinal radials, the 

maximum effective radiated power, and 

the electric field polarization of the 

wave emitted by the antenna when 

installed as proposed to the requesting 

party within ten (10) days of receiving 

written notification. 

(4) through (10) [Reserved]. 

(11) Additional information. The FCC 

may request information not specified 

in paragraphs (a)(1) through (3) of this 

section as necessary to process an 

application. 

(b) Existing systems: major and minor 

modifications. Licensees making major 

modifications pursuant to § 1.929(a) and 

(b) of this chapter, and licensees making 

minor modifications pursuant to 

§ 1.929(k) of this chapter, must file FCC 

Form 601 and comply with the 

requirements of paragraph (a) of this 

section. 

(c) [Reserved]. 

§ 22.960 [Removed] 

20. Remove § 22.960. 

21. Add § 22.961 to read as follows: 

§ 22.961 Cellular licenses subject to 

competitive bidding. 

The following mutually exclusive 

initial applications for cellular licensed 

area authorizations are subject to 

competitive bidding, and unless 

otherwise provided by this subpart, the 

general competitive bidding procedures 

set forth in part 1, subpart Q of this 

chapter will apply: 

(a) Mutually exclusive initial 

applications for cellular site-based 

authorizations; and 

(b) Mutually exclusive initial 

applications for Cellular Overlay 

Authorizations. 

§§ 22.962 through 22.967 [Removed and 

Reserved] 

22. Remove and Reserve §§ 22.962 

through 22.967. 

§ 22.969 [Removed] 

24. Remove § 22.969. 

25. Add § 22.983 to read as follows: 

§ 22.983 Field strength limit. 

The predicted or measured median 

field strength at any location on or 

beyond the boundary of any Cellular 

Licensed Area must not exceed 40 

dBmV/m, unless the adjacent cellular 

service licensee(s) on the same Channel 

Block agree(s) to a different field 

strength. This value applies to both the 

initially authorized areas and to 

partitioned areas. 

26. Add § 22.985 to read as follows: 

§ 22.985 Geographic area licensing via 

auctions. 

The licensing procedures in this 

section do not apply to any CMA Block 

in the GMSA (see § 22.950). 

(a) Determination of licensing status 

of CMA Blocks. The FCC will determine 

whether each CMA Block is 

Substantially Licensed. A CMA Block 

will be deemed Substantially Licensed 

if, as of a cut-off date established by the 

FCC, either: 

(1) At least 95 percent of the total land 

area in the CMA Block is already 

licensed as CGSA; or 

(2) The CMA Block contains no 

contiguous parcel of Unserved Area that 

is larger than 130 square kilometers (50 

square miles). 

(b) Stage I Auction. Any auction to 

resolve mutually exclusive applications 

filed with respect to CMA Blocks that 

are included in Stage I for the 

assignment of Cellular Overlay 

Authorizations shall be conducted 

pursuant to the procedures set forth in 

part 1, subpart Q of this chapter. Any 

eligible entity may bid in the Stage I 

auction. A CMA Block is eligible to be 

included in the Stage I auction if either: 

(1) The CMA Block is determined by 

the FCC to be Substantially Licensed; or, 

(2) The CMA Block has cellular 

service that has been authorized solely 

under interim operating authority (i.e., 

for which no license has ever been 

issued). 

(c) Stage II Auction. Any auction to 

resolve mutually exclusive applications 

filed with respect to CMA Blocks that 

are included in Stage II for the 

assignment of Cellular Overlay 

Authorizations in such Blocks shall be 

conducted pursuant to the procedures 

set forth in part 1, subpart Q of this 

chapter. Any eligible entity may bid in 

the Stage II auction. 

27. Add § 22.986 to read as follows: 

§ 22.986. Designated Entities. 

(a) Eligibility for small business 

provisions in the Cellular 

Radiotelephone Service. (1) A very 

small business is an entity that, together 

with its controlling interests and 

affiliates, has average annual gross 

revenues not exceeding $3 million for 

the preceding three years. 

(2) A small business is an entity that, 

together with its controlling interests 

and affiliates, has average annual gross 

revenues not exceeding $15 million for 

the preceding three years. 

(3) An entrepreneur is an entity that, 

together with its controlling interests 

and affiliates, has average annual gross 

revenues not exceeding $40 million for 

the preceding three years. 

(b) Bidding credits in the Cellular 

Radiotelephone Service. A winning 

bidder that qualifies as a very small 

business, as defined in this section, or 

a consortium of very small businesses 

may use the bidding credit specified in 

§ 1.2110(f)(2)(i) of this chapter. A 

winning bidder that qualifies as a small 

business, as defined in this section, or 

a consortium of small businesses may 

use the bidding credit specified in 

§ 1.2110(f)(2)(ii) of this chapter. A 

winning bidder that qualifies as an 

entrepreneur, as defined in this section, 

or a consortium of entrepreneurs may 

use the bidding credit specified in 

§ 1.2110(f)(2)(iii) of this chapter. 

[FR Doc. 2012–5689 Filed 3–15–12; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

48 CFR Parts 2401, 2402, 2403, 2404, 

2406, 2407, 2409, 2415, 2416, 2417, 

2419, 2426, 2427, 2428, 2432, 2437, 

2439, 2442, and 2452 

[Docket No FR–5571–P–01] 

RIN 2501–AD56 

Amendments to the HUD Acquisition 

Regulation (HUDAR) 

AGENCY: Office of the Chief Procurement 

Officer, HUD. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

amend the HUDAR to implement 

miscellaneous changes. These changes 

include, for example, such amendments 

as removing provisions that are now 

obsolete, refining provisions to approve 


tkelley on DSK3SPTVN1PROD with PROPOSALS
15682 Federal Register / Vol. 77, No. 52 / Friday, March 16, 2012 / Proposed Rules 

requests for deviation from the HUDAR, 

updating provisions that address the 

organizational structure of HUD, and 

adding provisions on contractor record 

retention. 

DATES: Comment Due Date: May 15, 

2012. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this proposed rule to the Regulations 

Division, Office of General Counsel, 

Department of Housing and Urban 

Development, 451 7th Street SW., Room 

10276, Washington, DC 20410–0500. 

Communications must refer to the above 

docket number and title. There are two 

methods for submitting public 

comments. All submissions must refer 

to the above docket number and title. 

1. Submission of Comments by Mail. 

Comments may be submitted by mail to 

the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

7th Street SW., Room 10276, 

Washington, DC 20410–0500. 

2. Electronic Submission of 

Comments. Interested persons may 

submit comments electronically through 

the Federal eRulemaking Portal at 

www.regulations.gov. HUD strongly 

encourages commenters to submit 

comments electronically. Electronic 

submission of comments allows the 

commenter maximum time to prepare 

and submit a comment, ensures timely 

receipt by HUD, and enables HUD to 

make them immediately available to the 

public. Comments submitted 

electronically through the 

www.regulations.gov Web site can be 

viewed by other commenters and 

interested members of the public. 

Commenters should follow the 

instructions provided on that site to 

submit comments electronically. 

Note: To receive consideration as public 

comments, comments must be submitted 

through one of the two methods specified 

above. Again, all submissions must refer to 

the docket number and title of the rule. 

No Facsimile Comments. Facsimile 

(Fax) comments are not acceptable. 

Public Inspection of Public 

Comments. All properly submitted 

comments and communications 

submitted to HUD will be available for 

public inspection and copying between 

8 a.m. and 5 p.m. weekdays at the above 

address. Due to security measures at the 

HUD Headquarters building, an advance 

appointment to review the public 

comments must be scheduled by calling 

the Regulations Division at 202–402– 

3055 (this is not a toll-free number). 

Individuals with speech or hearing 

impairments may access this number 

via TTY by calling the Federal 

Information Relay Service, toll-free, at 

800–877–8339. Copies of all comments 

submitted are available for inspection 

and downloading at 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Elie 

F. Stowe, Assistant Chief Procurement 

Officer for Policy, Oversight, and 

Systems, Office of the Chief 

Procurement Officer, Department of 

Housing and Urban Development, 451 

7th Street SW., Washington, DC 20410, 

telephone number 202–708–0294, fax 

number 202–708–8912 (these are not 

toll-free numbers). Persons with hearing 

or speech impairments may access that 

number via TTY by calling the toll-free 

Federal Relay Service at 800–877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The uniform regulation for the 

procurement of supplies and services by 

federal departments and agencies, the 

Federal Acquisition Regulation (FAR), 

was promulgated on September 19, 1983 

(48 FR 42102). The FAR is codified in 

title 48, chapter 1, of the Code of 

Federal Regulations. HUD promulgated 

its regulation to implement the FAR on 

March 1, 1984 (49 FR 7696). 

The HUDAR (title 48, chapter 24 of 

the Code of Federal Regulations) is 

prescribed under section 7(d) of the 

Department of HUD Act (42 U.S.C. 

3535(d)); section 205(c) of the Federal 

Property and Administrative Services 

Act of 1949 (40 U.S.C. 121(c)); and the 

general authorization in FAR 1.301. 

HUDAR was last revised by final rule 

published on January 13, 2006 (71 FR 

2432). 

II. This Proposed Rule 

This proposed rule would amend the 

HUDAR as follows: 

Sections 2401.403 (Individual 

deviations) and 2401.404 (Class 

deviations) are proposed to be revised to 

move procedural requirements on 

requesting deviations from the FAR. 

These requirements are proposed to be 

moved to a new 2401.471, entitled 

‘‘Requests for Deviations—FAR and 

HUDAR,’’ which would contain 

requirements for both FAR and HUDAR 

deviation requests. As proposed, 

2401.403 and 2401.404 would be 

revised to remove procedural guidance 

and merely state the designation of the 

Senior Procurement Executive (SPE) as 

the approving authority. 

A new 2401.470, ‘‘Deviations from the 

HUDAR,’’ is proposed to be added to 

state the SPE’s authority to approve 

deviations from the HUDAR. Previously, 

this authority was comingled with the 

SPE’s authority as the agency head’s 

designee to authorize FAR deviations in 

sections 2401.403 and 2401.404. 

In subpart 2401.6 (Career 

Development, Contracting Authority 

and Responsibilities), (b)(1) of 

2401.602–3 (Ratification of 

unauthorized commitments) is proposed 

to be revised to remove obsolete 

language concerning HUD’s former field 

contracting organizational structure. 

Paragraph (b)(3) is revised also to 

authorize the SPE to delegate approval 

of lower-dollar value ratifications down 

to Assistant Chief Procurement Officer 

level. Paragraph (c)(7), which provided 

guidance to HUD personnel on the 

internal processing of requests for 

ratifications, has been removed in its 

entirety. That guidance is now 

contained in internal acquisition policy 

directives. 

In part 2402, ‘‘Definitions of Words 

and Terms,’’ subpart 2402.1, 

‘‘Definitions,’’ 2402.101, ‘‘Definitions,’’ 

is proposed to be revised to add a 

definition of contracting activity, and 

change the definitions of the head of the 

contracting activity (HCA) and legal 

counsel to reflect the current 

Departmental organizational structure. 

The Office of the Chief Procurement 

Officer (OCPO) is now responsible for 

all HUD acquisition, and the Chief 

Procurement Officer (CPO) serves as the 

sole HCA. The revised HCA definition 

authorizes the CPO to delegate HCA 

authority down to, but not below, the 

level of the Assistant CPOs when the 

FAR and HUDAR permit such 

delegation. 

In part 2403, ‘‘Improper Business 

Practices and Personal Conflicts of 

Interest,’’ subpart 2403.4, ‘‘Contingent 

Fees,’’ 2403.405((b)) is proposed to be 

revised to remove language that is 

redundant to FAR 3.405. 

In part 2404, ‘‘Administrative 

Matters,’’ a new subpart 2404.7, entitled 

‘‘Contractor records retention,’’ is 

proposed to be added. Within this new 

subpart, 2404.7001, ‘‘Contract Clause,’’ 

is proposed to be added to prescribe the 

use of a new contract clause at 

2452.204–70, Preservation of, and 

Access to, Contract Records (Tangible 

and Electronically Stored Information 

(ESI) Formats). The clause would be 

added to ensure that contractors 

preserve information and provide it to 

HUD upon request for the purpose of 

discovery required by actual or 

anticipated litigation. 

In part 2406, ‘‘Competition 

Requirements,’’ subpart 2406.3, ‘‘Other 

than Full and Open Competition,’’ 

2406.302–2, ‘‘Unusual and compelling 

urgency,’’ is proposed to be added to 

authorize the HCA to act as the agency 

head with regard to making 


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determinations required by FAR 6.302– 

2(d)(1)(ii). 

Section 2406.304–70, ‘‘Approval of 

the justification—field procurements,’’ 

is removed in its entirety. As currently 

written, 2406.304–70 requires that 

justifications for other than full and 

open competition exceeding $1 million 

arising in OCPO’s field offices be 

approved by the Deputy Chief 

Procurement Officer. This requirement 

reflects a former organization of HUD’s 

contracting activities and is now 

obsolete. All HUD contracting personnel 

are now part of a single OCPO. 

Consequently, the processing 

requirements for justifications are the 

same for all OCPO offices. Furthermore, 

this lower approval threshold does not 

correspond to the approval thresholds 

set forth in FAR 6.304. 

In subpart 2406.5, ‘‘Competition 

Advocates,’’ 2406.501, ‘‘Requirement,’’ 

is proposed to be revised to remove the 

requirement for publication of a notice 

in the Federal Register when appointing 

a Competition Advocate. The section is 

also revised to clarify that the SPE is the 

head of the agency for the purposes of 

FAR 6.501. 

In part 2407, ‘‘Acquisition Planning,’’ 

subpart 2407.1, ‘‘Acquisition Plans,’’ 

2407.102, ‘‘Policy,’’ is proposed to be 

revised to remove an obsolete reference 

to the Department’s Advance 

Acquisition Planning System, which is 

no longer used. 

In part 2409, ‘‘Contractor 

Qualifications,’’ a new subpart 2409.4, 

‘‘Debarment, Suspension, and 

Ineligibility,’’ is proposed to be added, 

and the content currently under 

2409.7001, ‘‘HUD regulations on 

debarment, suspension, and 

ineligibility,’’ would be moved to this 

new subpart and redesignated. 

Additionally, 2409.405, ‘‘Effect of 

listing,’’ and 2409.407–1, ‘‘General,’’ 

would be added to delegate agency head 

authorities to the SPE. The content of 

current 2409.7001 is proposed to be 

moved to the new 2409.470 with the 

same title, to more accurately 

correspond to the FAR and would be 

revised to correct the Code of Federal 

Regulations citation. Current subpart 

2409.70 would be accordingly removed, 

as 2409.7001 was the only section in 

that subpart. 

In part 2415, ‘‘Contracting by 

Negotiation,’’ subpart 2415.2, 

‘‘Solicitation and Receipt of Proposals 

and Quotations,’’ the following changes 

would be made: new section 2415.203, 

‘‘Requests for proposals,’’ would 

authorize contracting officers to limit 

the size of technical and management 

portions of offers submitted in response 

to requests for proposals; section 

2415.204, ‘‘Contract format,’’ would be 

revised to delete the word ‘‘cognizant,’’ 

since HUD now has a single HCA; 

section 2415.209, ‘‘Solicitation 

provisions and contract clauses,’’ would 

be revised to prescribe the use of a new 

Alternate III to the solicitation provision 

at 2452.215–70, ‘‘Proposal content,’’ 

when the contracting officer determines 

that it is necessary to limit the size of 

the technical and management portion 

of offers submitted by offerors; and 

section 2415.209 would be revised to 

prescribe the use of a new provision at 

2452.215–71, ‘‘Relative Importance of 

Technical Evaluation Factors to Cost or 

Price,’’ in solicitations using the tradeoff 

selection method. The provision notifies 

offerors of the relative weight of the 

technical evaluation factors to cost or 

price when evaluating offers for contract 

award. The contracting officer selects 

the relative weighting to be used. 

In subpart 2415.3, ‘‘Source selection,’’ 

in 2415.303, ‘‘Responsibilities,’’ 

paragraph (a) would be revised to 

designate the SPE as the agency head for 

the purposes of designating source 

selection authorities other than the 

contracting officer as provided for at 

FAR 15.303(a). Paragraph (b) would be 

redesignated (b)(1) and revised to 

remove the specific number of 

participants to be used on a technical 

evaluation panel. The removal of a 

specific number of panelists would 

permit contracting officers and requiring 

activities to determine the appropriate 

number of evaluation panelists on a 

case-by-case basis. 

Section 2415.304, ‘‘Evaluation factors 

and significant subfactors,’’ would be 

revised to remove paragraph (d)(2), 

which contains a requirement for 

numerical scoring of technical proposals 

when selecting awardees for negotiated 

contracts. HUD’s policy is to not use 

numerical scoring. Therefore, this 

requirement is no longer applicable. A 

new paragraph (c)(3)(i) would be added 

to require the evaluation of small 

business participation in acquisitions 

using the tradeoff source selection 

process. 

In 2415.305, ‘‘Proposal evaluation,’’ 

paragraph (a)(3) would be revised to 

change the reference from 

‘‘predetermined cut-off scores’’ to 

‘‘predetermined threshold levels of 

technical acceptability,’’ in accordance 

with the revision to section 2415.304. 

A new 2415.370, ‘‘Solicitation 

provision,’’ would be added to prescribe 

the use of a new solicitation provision 

at 2452.215–72, ‘‘Evaluation of Small 

Business Participation.’’ This provision 

would be required for contracts that use 

the FAR clause at 52.219–9, ‘‘Small 

Business Subcontracting Plan.’’ 

In part 2416, ‘‘Types of Contracts,’’ a 

new subpart 2416.3, ‘‘CostReimbursement Contracts,’’ would be 

added. Under this new subpart, section 

2416.307, ‘‘Contract clauses,’’ would be 

added to prescribe the use of two new 

contract clauses: 2452.216–79, 

‘‘Estimated Cost (No Fee),’’ to be 

included in all cost-reimbursement (no 

fee) type solicitations and contracts; and 

2452.216–80, ‘‘Estimated Cost and 

Fixed-Fee,’’ to be included in all costplus-fixed fee type solicitations and 

contracts. The clauses provide standard 

contract language regarding total 

estimated cost, fee, and level of funding 

if the contract is funded incrementally. 

In subpart 2416.5, ‘‘Indefinitedelivery contracts,’’ 2416.505, 

‘‘Ordering,’’ would be revised to remove 

language redundant to FAR 16.505 and 

to reflect the change in OCPO 

organization under which there is now 

one contracting activity and therefore, 

one ombudsman. Paragraph (b)(5) 

would be redesignated as (b)(6) to 

correspond with that of FAR 

16.505(b)(6). 

In 2416.506–70, ‘‘Solicitation 

provisions and contract clauses,’’ 

paragraph (b) would be revised to 

remove the reference to definitequantity contracts, to permit the 

tailoring of the clause as needed for 

specific contracts, and to remove the 

prescription for an alternate to the 

clause. In part 2417, ‘‘Special 

Contracting Methods,’’ under subpart 

2417.2, ‘‘Options,’’ 2417.204(e), would 

be revised to: under the authority of 

FAR 17.204(e), establish the SPE as the 

approving official for contracts 

proposed to exceed 5 years; define the 

contract period of indefinite-delivery 

contracts as the ordering period for the 

purposes of requiring prior approval; 

prohibit the use of SPE approval 

retroactively to extend contract periods; 

and clarify that SPE approval is not 

required for options properly exercised 

pursuant to FAR clause 52.217–8, 

‘‘Option to Extend Services.’’ 

In part 2419, ‘‘Small Business 

Programs,’’ under subpart 2419.2, 

‘‘Policies,’’ 2419.201 would be revised 

to correct the designation of the 

paragraphs to match paragraph 

designations in the parallel section in 

FAR 19.201. The following additional 

substantive revisions are proposed: 

remove the reference to HUD 

Headquarters in paragraph (d); in the 

same paragraph, reference FAR 

19.201(d); and clarify that the Director 

of the Office of Small and 

Disadvantaged Business Utilization 

appoints small business specialists. 

Previously, this section required the 

HCAs to appoint such specialists. 


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15684 Federal Register / Vol. 77, No. 52 / Friday, March 16, 2012 / Proposed Rules 

In subpart 2419.5, ‘‘Set-Asides for 

Small Business,’’ 2419.503, ‘‘Setting 

aside a class of acquisitions,’’ is 

proposed to be removed. This section 

requires that all contracts for 

construction services that support the 

Real Estate Owned program of the 

Federal Housing Administration (FHA) 

be set aside for small business. This 

requirement exceeds the FAR’s 

requirements. Normal compliance with 

FAR part 19 should result in the 

maximum practicable use of small 

business set-asides. 

In subpart 2419.7, ‘‘The Small 

Business Subcontracting Program,’’ in 

2419.708, ‘‘Solicitation Provisions and 

Contract Clauses,’’ a new paragraph (b) 

would be added to prescribe the use of 

a new clause at 2452–219–73, 

‘‘Incorporation of Subcontracting Plan,’’ 

in contracts when a subcontracting plan 

is required. Paragraph (b) would also 

prescribe the use of a new provision at 

2452.219–74, ‘‘Small Business 

Subcontracting Goals,’’ for solicitations 

that are required to include the FAR 

clauses at 52.219–8, ‘‘Utilization of 

Small Business Concerns’’ and at 

52.219–9, ‘‘Small Business 

Subcontracting Plan.’’ The provision 

provides offerors with HUD’s small 

business subcontracting goals. 

Paragraph (d), currently the only 

paragraph in the section, would be 

revised to correct the applicable dollar 

threshold, by replacing the current 

dollar figure with a cross-reference, and 

to clarify that the provision is required 

when the use of the FAR clause at 

52.219–9 is required. 

Subpart 2419.8, ‘‘Small Business 

Administration Section (8)(a) Program,’’ 

would be revised to implement the 

terms of HUD’s current partnership 

agreement with the SBA, under which 

the SBA has delegated to HUD’s SPE its 

authority under section 8(a)(1)(A) of the 

Small Business Act (5 U.S.C. 637(a)) to 

enter into 8(a) prime contracts, as well 

as its authority under 8(a)(1)(B) of the 

Small Business Act to award the 

performance of those contracts to 

eligible 8(a) Program participants. The 

revised subpart 2419.8 implements the 

specific terms and guidance contained 

in the agreement. Note that SBA 

provided HUD with the specific 

verbiage for use in implementing the 

agreement in HUD’s FAR supplement. 

In subpart 2419.8, the following new 

sections would be added: 

Section 2419.803, ‘‘Selecting 

acquisitions for the 8(a) Program,’’ 

would be added to include an new 

subsection 2419.803–70, which would 

provide direction on the use of 

simplified acquisitions (as defined at 

FAR 2.101) under the Partnership 

Agreement. 

Section 2419.804 would be added to 

include three new subsections as 

follows: 

Subsection 2419.804–2, ‘‘Agency 

offering,’’ would be added to require 

that for 8(a) contracts to be awarded 

under the Partnership Agreement, 

HUD’s agency offering letters to the 8(a) 

firms identify that the offering is in 

accordance with the Partnership 

Agreement. Subsection 2419.804–3, 

‘‘SBA acceptance,’’ would be added to 

include a new subsection 2419.804–370, 

‘‘SBA acceptance under partnership 

agreements for acquisitions exceeding 

the simplified acquisition threshold,’’ to 

provide the procedures for SBA’s 

acceptance of HUD offerings for 8(a) 

contracts that exceed the simplified 

acquisition threshold. 

Section 2419.805, ‘‘Competitive 8(a),’’ 

would be added to include a new 

subsection 2419.805–2, ‘‘Procedures,’’ 

which would provide the procedures for 

notifying the SBA of selected offerors 

for award under competitive 8(a) 

contracts awarded under the 

Partnership Agreement and for the 

SBA’s verification of the awardees’ 

eligibility under the 8(a) Program. 

Section 2419.806, ‘‘Pricing the 8(a) 

contract,’’ would be added to require 

HUD contracting officers to obtain 

certified cost or pricing data directly 

from the 8(a) contractor when required 

by FAR subpart 15.4 when awarding 

contracts under the Partnership 

Agreement. 

Section 2419.808, ‘‘Contract 

negotiation,’’ would be added to provide 

a new subsection 2419.808–1, ‘‘Sole 

source,’’ which would make the 8(a) 

contractor responsible for negotiating a 

contract with HUD within the time 

frame established by the HUD 

contracting officer. Subsection 

2419.808–1 would also permit HUD, 

after notification to and approval by the 

SBA, to proceed with the acquisition 

from other sources if an 8(a) contractor 

does not negotiate within the 

established time frame and if HUD 

cannot allow additional time. 

Furthermore, if the acquisition is 

conducted under the Partnership 

Agreement, HUD would be delegated 

the authority to negotiate directly with 

the 8(a) participant; however, if 

requested by the 8(a) participant, the 

SBA might participate in such 

negotiations. 

Section 2419.811, ‘‘Preparing the 

contracts,’’ would be added to include 

the following: 

A new subsection 2419.811–1, ‘‘Sole 

source,’’ would be added to provide 

procedures for the preparation of sole 

source 8(a) contract awards made under 

the Partnership Agreement. 

A new subsection 2419.811–2, 

‘‘Competitive,’’ would be added to state 

that the contract preparation procedures 

for sole source 8(a) contracts shall be 

used for competitive 8(a) contracts 

awarded under the Partnership 

Agreement. 

A new subsection 2419.811–3, 

‘‘Contract clauses,’’ would be added to 

prescribe HUDAR clauses to be used in 

place of certain FAR clauses for 8(a) 

contracts awarded under the 

Partnership Agreement. 

Section 2419.812, ‘‘Contract 

administration,’’ would be added to 

state that 8(a) contractors whose 

contracts are awarded under the 

Partnership Agreement are required to 

notify both the HUD contracting officer 

and the SBA whenever the ownership of 

the 8(a) firm is transferred. 

In part 2426, ‘‘Other Socioeconomic 

Programs,’’ 2426.7001, ‘‘Policy,’’ and 

7002, ‘‘Responsibility,’’ are proposed to 

be removed. The content of these 

sections is essentially redundant to FAR 

19.201 and HUDAR 2419.201. 

Accordingly, subpart 2426 is removed 

and reserved. 

In part 2427, ‘‘Patents, Data, and 

Copyrights,’’ the title of 2427.305–2 is 

proposed to be revised to 

‘‘Administration by the Government’’ to 

correspond to the title of FAR 27.305– 

2. 

A new 2427.470, ‘‘Contract clause,’’ is 

proposed to be added to prescribe the 

use of new clause 2452.227–70, 

‘‘Government Information,’’ in 

solicitations and contracts when the 

Federal Government will provide 

information to the contractor or the 

contractor will obtain information on 

behalf of the Federal Government to 

perform work required under the 

contract. In order to accommodate this 

new section, subpart 2427.4 would be 

added, as authorized by FAR, and by 48 

CFR subpart 27.4, ‘‘Rights in Data and 

Copyrights.’’ 

In part 2428, ‘‘Bonds and Insurance,’’ 

the title of 2428.106 is proposed to be 

revised to ‘‘Administration,’’ to 

correspond to the title of FAR 28.106. 

In part 2432, ‘‘Contract Financing,’’ 

new 2432.006, ‘‘Reduction or 

suspension of contract payments upon 

finding of fraud,’’ 2432.006–1, 

‘‘General,’’ and 2432.006–2, 

‘‘Definitions,’’ are proposed to be added 

to delegate certain agency head 

authorities to the SPE with regard to 

reducing or suspending contract 

payments in cases of fraud. The SPE is 

designated as the ‘‘remedy coordination 

official,’’ and may delegate the 

responsibilities of the remedy 


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coordination official to appropriate 

personnel within the OCPO. 

A new 2432.007 would be added to 

designate the SPE as the agency head for 

the purpose of establishing contract 

financing payment periods of shorter 

than 30 days. 

A new subpart 2432.7, ‘‘Contract 

Funding,’’ is added to provide authority 

for, and limitations on the use of, 

incrementally funded fixed-price 

contracts. New 2432.702, ‘‘Policy,’’ 

2432.703–1, ‘‘General,’’ 2432.704, 

‘‘Limitation of cost or funds,’’ and 

2432.705, ‘‘Contract clauses,’’ would be 

added to subpart 2432.7. The use of 

incrementally funded fixed-price 

contracts is necessitated by recurring 

budget and funding uncertainties. 

However, the new subpart will limit the 

use of this method of contract funding 

to contracts for severable services not 

exceeding one year in length that are 

incrementally funded, using funds 

available as of the date that the funds 

are obligated or that funds are available 

from multiple fiscal years and Congress 

has otherwise authorized incremental 

funding. Accordingly, a new clause at 

2452.232–72, Limitation of 

Government’s obligation,’’ also would 

be added. 

In subpart 2432.9, ‘‘Prompt Payment,’’ 

2432.903, ‘‘Policy,’’ would be revised to 

correct the reference to FAR 32.903(a). 

Also, 2432.906 would be revised to 

specifically designate the head of the 

contracting activity as the agency head 

for the purposes of making the 

determination required by FAR 32.906 

to make invoice payments earlier than 7 

days prior to the due dates specified in 

the contract. 

In section 2432.908, ‘‘Contract 

clauses,’’ a new paragraph (c) would be 

added, following FAR 32.908(c), to 

prescribe the use of a new clause in 

2452.232–73, ‘‘Constructive Acceptance 

Period,’’ in solicitations and contracts 

when the contracting officer has 

determined that an acceptance period 

longer than the 7 days provided for in 

FAR 52.232–25, ‘‘Prompt Payment,’’ is 

needed. 

In part 2437, ‘‘Service Contracting,’’ 

under subpart 2437.1, ‘‘Service 

Contracts—General,’’ in 2437.110, 

‘‘Solicitation provisions and contract 

clauses,’’ paragraph (d) is removed from 

this section and redesignated as 

2401.106–70, ‘‘Contract clause.’’ 

Paragraphs (a), (c), and (e) are 

redesignated (e)(1), (e)(2), and (e)(3), 

respectively, to better correspond to 

FAR 37.110(e). Redesignated paragraph 

(e)(3) would be revised to include the 

version of this paragraph that had been 

authorized via deviation and to clarify 

that the access requirements of 

2452.237–75, ‘‘Access to HUD 

facilities,’’ apply to contractors who 

require regular access to HUD facilities 

versus infrequent visitors to HUD 

facilities. 

In part 2439, ‘‘Acquisition of 

Information Technology,’’ 2439.107, 

‘‘Contract clauses,’’ paragraph (a) is 

proposed to be revised to include the 

version of this paragraph that had been 

authorized via deviation. The deviation 

was issued to implement requirements 

of Homeland Security Presidential 

Directive (HSPD) 12 regarding personal 

identity verification and access to 

information systems. 

The title of part 2442 is proposed to 

be revised to read, ‘‘Contract 

Administration and Audit Services,’’ to 

correspond to the title of part 42 of the 

FAR. In part 2442, a new subpart 

2442.3, ‘‘Contract Administration Office 

Functions,’’ would be added following 

FAR subpart 42.3. A new 2442.302–70, 

‘‘Contract clause,’’ would be added to 

this subpart to prescribe the use of a 

new standard clause at 2452.242–72, 

‘‘Post-award Orientation Conference,’’ 

in solicitations and contracts when the 

contractor will be required to attend a 

post-award orientation conference. 

In part 2452, ‘‘Solicitation Provisions 

and Contract Clauses,’’ under subpart 

2452.2, ‘‘Texts of Provisions and 

Clauses,’’ 2452.204–70, ‘‘Preservation 

of, and access to, contract records 

(tangible and electronically stored 

information (ESI) formats),’’ would be 

added to provide a standard contract 

clause that requires contractors to 

preserve, and upon the request of the 

contracting officer, provide to HUD any 

information generated or maintained 

under the contract that is related to 

matters concerning actual or anticipated 

litigation to which HUD is a party in 

accordance with the amendments to the 

Federal Rules of Civil Procedure 

concerning the discovery of 

electronically stored information. 

Section 2452.215–70, ‘‘Proposal 

content,’’ would be amended to add a 

new Alternate III when the contracting 

officer determines that it is necessary to 

limit the size of the technical and 

management portion of offers submitted 

under requests for proposals using the 

tradeoff source selection method. The 

contracting officer must insert the page 

limit in the provision’s alternate. 

A new solicitation provision, 

2452.215–71, ‘‘Relative Importance of 

Technical Evaluation Factors to Cost or 

Price,’’ would be added to provide a 

standard provision for use in 

solicitations using the tradeoff source 

selection method. The provision notifies 

offerors of the relative weight of the 

technical evaluation factors to cost or 

price when evaluating offers for contract 

award. The contracting officer selects 

the relative weighting to be used. 

A new solicitation provision in 

2452.215–72, ‘‘Evaluation of Small 

Business Participation,’’ would be 

added to provide factors for use in 

evaluating proposed small business 

participation in offers for contracts 

requiring the use of FAR 52.219–9, 

Small Business Subcontracting Plan, to 

be awarded using the tradeoff source 

selection process. 

Section 2452.216–76, ‘‘Minimum and 

Maximum Quantities or Amounts for 

Order,’’ would be revised to remove the 

reference to definite-quantity contracts, 

since the use of minimum and 

maximum quantities does not apply to 

those contracts and the tables, which 

had permitted inserting multiple 

minimums and maximums (e.g., for 

separate option periods), and remove 

the alternate. Instead, a single minimum 

and maximum would be inserted. In 

accordance with FAR 16.502, definitequantity contracts provide for delivery 

of a definite quantity of specific 

supplies or services for a fixed period, 

with deliveries or performance to be 

scheduled by the Government at 

designated locations upon order. The 

Government orders the entire quantity 

established in the contract. Therefore, 

the use of minimum and maximum 

quantities is not applicable to definitequantity contracts. 

A new clause at 2452.216–79, 

‘‘Estimated Cost (No Fee),’’ would be 

added to set forth the total estimated 

cost in cost-reimbursement type 

contracts that do not provide for any fee. 

The clause would also provide the level 

of funding if the contract is 

incrementally funded. 

A new clause at 2452.216–80, 

‘‘Estimated Cost and Fixed-Fee,’’ would 

be added to set forth the total estimated 

cost and fixed-fee in cost-plus-fixed fee 

type contracts. The clause would also 

provide the level of funding and the 

pro-rated amount of fixed-fee if the 

contract is incrementally funded. 

New 2452.219–71, ‘‘Notification of 

Competition Limited to Eligible 8(a) 

Concerns—Alternate III to FAR 52.219– 

18,’’ and 2452.219–72, ‘‘Section 8(a) 

direct awards (deviation),’’ would be 

added to include clauses to implement 

HUD’s Partnership Agreement with the 

SBA under which the SBA delegated to 

HUD’s SPE its authority under 

paragraph 8(a)(1)(A) of the Small 

Business Act (5 U.S.C. 637(a)) to enter 

into 8(a) contracts, and its authority 

under 8(a)(1)(B) of the Small Business 

Act to award the performance of those 

contracts to eligible 8(a) Program 

participants. Section 8(a) of the Small 


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Business Act (15 U.S.C. 637(a)) 

established a program that authorizes 

the SBA to enter into all types of 

contracts with other federal agencies 

and let subcontracts for performing 

those contracts go to firms eligible for 

participation in the 8(a) Program. The 

SBA’s subcontractors are referred to as 

‘‘8(a) contractors.’’ 

A new 2452.219–73, ‘‘Incorporation of 

Subcontracting Plan,’’ would add a 

standard clause for use when 

incorporating an approved 

subcontracting plan into a contract by 

reference, to conform to HUD practice. 

A new 2452.219–74, ‘‘Small Business 

Subcontracting Goals,’’ is proposed. 

This section would add a provision for 

use in solicitations for contracts that are 

required to include the FAR clauses at 

52.219–8, ‘‘Utilization of Small Business 

Concerns,’’ and at 52.219–9, ‘‘Small 

Business Subcontracting Plan.’’ The 

provision provides offerors with the 

HUD’s small business subcontracting 

goals. 

A new 2452.227–70, ‘‘Government 

Information,’’ would add a clause to 

provide direction to contractors on the 

maintenance and protection of Federal 

Government information provided to, or 

obtained by, them for the purpose of 

performing the contract. Such direction 

is intended to ensure the protection and 

retrieval of Government information, 

when needed. 

Sections 2452.232–70, ‘‘Payment 

Schedule and Invoice Submission 

(Fixed-Price),’’ and 2452.232–71, 

‘‘Voucher Submission (CostReimbursement),’’ are proposed to be 

revised to require contractors to submit 

copies of all invoices and vouchers to 

the contracting officer. As currently 

written, the two clauses provide 

contracting officers with the option of 

requiring contractors to provide them 

with copies of invoices and vouchers for 

payment. The revisions will better 

ensure that contracting offices and files 

contain a complete invoicing history. In 

addition, to better ensure that the 

contract closeout process is properly 

and promptly initiated, 2452.232–70 

and 2452.232–71 are revised to require 

the contracting officer’s certification of 

the final invoice or completion voucher 

before final payment may be made. 

Section 2452.232–71 would also be 

revised to require its use in time-andmaterials and labor-hour contracts and 

to require contractors to aggregate 

vouchered costs under such contracts by 

individual tasks or jobs. A new 

2452.232–72, ‘‘Limitation of Federal 

Government’s obligation,’’ would add a 

clause to limit the Federal Government’s 

obligation under incrementally funded 

fixed-price contracts (see new subpart 

2432.7). In such cases, the clause: Sets 

forth the authority and obligations of the 

Government and contractor regarding 

work under the incrementally funded 

line items of the contract; requires the 

contractor to notify the Government, 

within a period specified by the 

contracting officer, when work under 

such line items has incurred 85 percent 

of the funds allotted to them; provides 

for termination of such line items if not 

fully funded; provides for an equitable 

adjustment in the contract price and/or 

performance schedule if the contractor 

incurs additional costs or is delayed in 

the performance of the work solely by 

reason of the failure of the Government 

to allot additional funds in amounts 

sufficient for timely performance of the 

incrementally funded line items; and 

permits the Government to allot 

additional funds for the performance of 

the incrementally funded line items at 

any time prior to termination. 

A new 2452.232–73, ‘‘Constructive 

acceptance period,’’ would add a clause 

to provide for an acceptance period 

longer than the 7 days provided for in 

FAR 52.232–25, ‘‘Prompt Payment,’’ 

when the contracting officer determines 

that a longer period is necessary. 

Section 2452.237–72, ‘‘Coordination 

of data collection activities,’’ would be 

redesignated as 2452.201–70. The clause 

and its prescription are more 

appropriately located in HUDAR 

subpart 2401.1. 

In 2452.237–73, ‘‘Conduct of work 

and technical guidance,’’ the 

introductory sentence would be revised 

to correct the prescription citation and 

to remove the name of the Government 

Technical Representative (GTR) from 

the clause. The contracting officer will 

provide the name and contact 

information for the GTR to the 

contractor separately. 

Section 2452.237–75, ‘‘Clearance of 

contractor personnel,’’ would be revised 

to formally incorporate the version of 

the clause entitled, ‘‘Access to HUD 

Facilities,’’ which had been authorized 

via deviation, into the HUDAR. The 

clause has been revised to implement 

the personal identity verification and 

other requirements of Homeland 

Security Presidential Directive (HSPD) 

12, as described in the clause. 

Section 2452.237–77, ‘‘Observance of 

Legal Holidays and Administrative 

Leave,’’ is revised to correct the 

prescription citation and revise the 

clause title to read, ‘‘Temporary Closure 

of HUD Facilities,’’ which more 

accurately reflects its contents and 

purpose; namely, providing direction to 

contractors regarding their access to 

HUD facilities during temporary 

closures of the facilities (e.g., for 

holidays). 

Section 2452.239–70, ‘‘Background 

investigations for sensitive automated 

systems/applications,’’ would be revised 

to formally incorporate the version of 

the clause entitled ‘‘Access to HUD 

Systems,’’ which had been authorized 

via deviation, in the HUDAR. The 

clause implements the personal identity 

verification and other requirements of 

Homeland Security Presidential 

Directive (HSPD) 12, as described in the 

clause. Also, definitions are added in a 

new paragraph (a). 

III. Findings and Certifications 

Paperwork Reduction Act Statement 

The information collection 

requirements contained in this proposed 

rule are currently approved by the 

Office of Management and Budget 

(OMB) in accordance with the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520) and assigned OMB 

control number 2535–0091. The 

information collection requirements for 

the HUDAR are currently approved by 

OMB under control number 2535–0091. 

In accordance with the Paperwork 

Reduction Act, an agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information, unless the collection 

displays a currently valid OMB control 

number. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (2 U.S.C. 1531– 

1538) (UMRA) establishes requirements 

for federal agencies to assess the effects 

of their regulatory actions on state, 

local, and tribal governments and the 

private sector. This rule does not 

impose any federal mandate on any 

state, local, or tribal government or the 

private sector within the meaning of 

UMRA. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.) generally requires 

an agency to conduct a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements, unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. This proposed 

rule makes technical changes to existing 

contracting procedures and does not 

make any major changes that would 

significantly impact businesses. 

Accordingly, the undersigned certifies 

that this rule will not have a significant 

economic impact on a substantial 

number of small entities. 


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Notwithstanding HUD’s determination 

that this rule will not have a significant 

economic impact on a substantial 

number of small entities, HUD 

specifically invites comments regarding 

less burdensome alternatives to this rule 

that will meet HUD’s objectives as 

described in this preamble. 

Environmental Impact 

This proposed rule does not direct, 

provide for assistance or loan and 

mortgage insurance for, or otherwise 

govern or regulate real property 

acquisition, disposition, leasing, 

rehabilitation, alteration, demolition, or 

new construction, or establish, revise, or 

provide for standards for construction or 

construction materials, manufactured 

housing, or occupancy. Accordingly, 

under 24 CFR 50.19(c)(1), this proposed 

rule is categorically excluded from 

environmental review under the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321). 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits an agency from 

publishing any rule that has federalism 

implications if the rule imposes 

substantial direct compliance costs on 

state and local governments and is not 

required by statute, or the rule preempts 

state law, unless the agency meets the 

consultation and funding requirements 

of section 6 of the Executive Order. This 

proposed rule would not have 

federalism implications and would not 

impose substantial direct compliance 

costs on state and local governments or 

preempt state law within the meaning of 

the Executive Order. 

List of Subjects 

48 CFR Part 2401 

Government procurement, Reporting 

and recordkeeping requirements. 

48 CFR Part 2402 

Government procurement. 

48 CFR Part 2403 

Conflict of interests, Government 

procurement. 

48 CFR Part 2404 

Government procurement. 

48 CFR Parts 2406–2409 

Government procurement. 

48 CFR Parts 2415–2417 

Government procurement. 

48 CFR Part 2419 

Government procurement, Small 

business. 

48 CFR Part 2426 

Colleges and universities, 

Government procurement, Minority 

businesses. 

48 CFR Part 2427 

Government procurement, Inventions 

and patents. 

48 CFR Part 2428 

Government procurement, Surety 

bonds. 

48 CFR Part 2432 

Government procurement. 

48 CFR Part 2437 

Government procurement. 

48 CFR Part 2439 

Computer technology, Government 

procurement. 

48 CFR Part 2442 

Government procurement. 

48 CFR Part 2452 

Government procurement. 

For the reasons discussed in the 

preamble, HUD proposes to amend 48 

CFR chapter 24 as follows: 

PART 2401—FEDERAL ACQUISITION 

REGULATION SYSTEM 

1. The authority citation for part 2401 

continues to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

Subpart 2401.1—Purpose, Authority, 

Issuance 

2. Add 2401.106–70 to read as 

follows: 

2401.106–70 Contract clause. 

The contracting officer shall insert the 

clause at 2452.201–70, Coordination of 

Data Collection Activities, in 

solicitations and contracts where the 

Contractor is required to collect 

information from ten or more public 

respondents. 

Subpart 2401.4—Deviations From the 

FAR 

3. Revise 2401.403 to read as follows: 

2401.403 Individual deviations. 

The Senior Procurement Executive is 

the agency head’s designee for the 

purposes of FAR 1.403. 

4. Revise 2401.404 to read as follows: 

2401.404 Class deviations. 

(a) The Senior Procurement Executive 

is the agency head’s designee for the 

purposes of FAR 1.404(a). 

5. Add 2401.470 to read as follows: 

2401.470 Deviations from the HUDAR. 

The Senior Procurement Executive is 

authorized to approve deviations from 

the HUDAR. 

6. Add 2401.471 to read as follows: 

2401.471 Requests for deviations—FAR 

and HUDAR. 

(a) Requests for deviations from the 

FAR or HUDAR shall be submitted in 

writing to the Chief Procurement 

Officer. 

(b) Each request for authorization of a 

deviation from the FAR or HUDAR 

shall: 

(1) Identify the deviation as 

individual or class; 

(2) Identify the FAR or the HUDAR 

requirement from which a deviation is 

sought; 

(3) Fully describe the deviation, its 

intended effect, and the circumstances 

in which it will be used; 

(4) Explain why a deviation is 

required and include pertinent 

background and supporting information; 

(5) State whether the deviation has 

been requested previously and if so, the 

circumstances and result of the previous 

request; and 

(6) Identify the contractor(s) and the 

contract(s) (including dollar values) that 

would be affected. 

(c) At his or her discretion, the Chief 

Procurement Officer will consider 

requests for deviations on an expedited 

basis and, in urgent situations, may 

authorize deviations via telephone or 

electronic mail. Such authorizations 

will be confirmed in writing. 

(d) The contracting officer shall 

include a copy of each authorized 

deviation in the contract file(s) to which 

it pertains. 

Subpart 2401.6—Career Development, 

Contracting Authority and 

Responsibilities 

7. In 2401.602–3: 

a. Revise paragraphs (b)(1) and (3); 

and 

b. Remove paragraph (c)(7). 

The revision reads as follows: 

2401.602–3 Ratification of unauthorized 

commitments. 

(b)(1) Requests for ratification of 

unauthorized commitments shall be 

submitted in writing through the 

contracting officer to the ratification 

approval officials identified in 

paragraph (b)(3) of this section. The 

Assistant Secretary or equivalent official 

for the office that created the 

unauthorized commitment shall sign the 

request for ratification. 

* * * * * 

(3) In accordance with FAR 1.602– 

3(b)(3), the Senior Procurement 


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Executive may delegate the authority to 

approve ratifications of individual 

unauthorized commitments down to, 

but not below, the level of an Assistant 

Chief Procurement Officer. 

* * * * * 

PART 2402—DEFINITIONS OF WORDS 

AND TERMS 

8. The authority citation for part 2402 

continues to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

Subpart 2402.1—Definitions 

9. In 2402.101, add in alphabetical 

order a definition of ‘‘Contracting 

Activity,’’ and revise the definitions of 

‘‘Head of the Contracting Activity’’ and 

‘‘Legal Counsel’’ to read as follows: 

2402.101 Definitions. 

* * * * * 

Contracting activity means the Office 

of the Chief Procurement Officer. 

* * * * * 

Head of the contracting activity (HCA) 

means the Chief Procurement Officer. 

As permitted by the FAR and the HUD 

Acquisition Regulation, the Chief 

Procurement Officer, acting within his 

or her authority as the Senior 

Procurement Executive, may delegate 

HCA authority for specific actions or 

classes of actions down to, but not 

below, the level of the Assistant Chief 

Procurement Officers. Delegated HCA 

authority may not be further 

redelegated. 

Legal counsel means HUD’s Office of 

General Counsel and its field-based 

components. 

* * * * * 

PART 2403—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST 

10. The authority citation for part 

2403 continues to read as follows: 

Authority: 42 U.S.C. 3535(d). 

Subpart 2403.4—Contingent Fees 

11. Revise 2403.405(b) to read as 

follows: 

2403.405 Misrepresentations or violations 

of the covenant against contingent fees. 

* * * * * 

(b) When there is specific evidence or 

other reasonable basis to suspect one or 

more of the violations in paragraph (a) 

of this section, the HCA shall review the 

facts and, if appropriate, take or direct 

one or more of the actions set forth at 

FAR 3.405(b). The HCA shall refer 

suspected fraudulent or criminal 

matters to HUD’s Office of the Inspector 

General for possible referral to the 

Department of Justice. 

PART 2404—ADMINISTRATIVE 

MATTERS 

12. The authority citation for part 

2404 continues to read as follows: 

Authority: 42 U.S.C. 3535(d). 

13. Add subpart 2404.7 to read as 

follows: 

Subpart 2404.7—Contractor Records 

Retention 

Sec. 

2404.7001 Contract clause 

2404.7001 Contract clause. 

The contracting officer shall insert the 

clause at 2452.204–72, Preservation of, 

and Access to, Contract Records 

(Tangible and Electronically Stored 

Information (ESI) Formats), in all 

solicitations and contracts exceeding the 

simplified acquisition threshold. The 

contracting officer shall use the basic 

clause with its Alternate I in costreimbursement type contracts. The 

contracting officer shall use the basic 

clause with its Alternate II in labor-hour 

and time-and-materials contracts. 

PART 2406—COMPETITION 

REQUIREMENTS 

14. The authority citation for part 

2406 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 253; 

42 U.S.C. 3535(d). 

Subpart 2406.3—Other Than Full and 

Open Competition 

15. Add 2406.302–2 to read as 

follows: 

2406.302–2 Unusual and compelling 

urgency. 

(d)(1)(ii) The HCA is the agency 

head’s designee for the purposes of FAR 

6.302–2(d)(1)(ii). 

2406.304–70 [Removed] 

16. Remove 2406.304–70. 

Subpart 2406.5—Competition 

Advocates 

17. Revise 2406.501 to read as 

follows: 

2406.501 Requirement. 

The Senior Procurement Executive is 

the head of the agency for the purposes 

of FAR 6.501 and designates the 

Departmental competition advocate. 

PART 2407—ACQUISITION PLANNING 

18. The authority citation for part 

2404 continues to read as follows: 

Authority: 42 U.S.C. 3535(d). 

Subpart 2407.1—Acquisition Plans 

19. Revise 2407.102 to read as 

follows: 

2407.102 Policy. 

The Senior Procurement Executive is 

responsible for establishing and 

maintaining internal procedures that 

meet the criteria contained in FAR 

subpart 7.1 for acquisition planning and 

acquisition plan content. 

PART 2409—CONTRACTOR 

QUALIFICATIONS 

20. The authority citation for part 

2409 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

21. Add subpart 2409.4 to read as 

follows: 

Subpart 2409.4—Debarment, 

Suspension, and Ineligibility 

Sec. 

2409.405 Effect of listing. 

2409.407–1 General. 

2409.470 HUD regulations on debarment, 

suspension, and ineligibility. 

2409.405 Effect of listing. 

(3) The Senior Procurement Executive 

is the agency head’s designee under 

FAR 9.405(d)(3). 

2409.407–1 General. 

(d) The Senior Procurement Executive 

is the agency head’s designee under 

FAR 9.407–1(d). 

2409.470 HUD regulations on debarment, 

suspension, and ineligibility. 

HUD’s policies and procedures 

concerning debarment and suspension 

are contained in 2 CFR part 2424. 

Subpart 2409.5—Organizational and 

Consultant Conflicts of Interest 

22. Add 2409.503 to read as follows: 

2409.503 Waiver. 

The Senior Procurement executive is 

the agency head’s designee under FAR 

9.503. 

Subpart 2409.70—[Amended] 

23. Remove subpart 2409.70. 

PART 2415—CONTRACTING BY 

NEGOTIATION 

24. The authority citation for part 

2415 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 253; 

42 U.S.C. 3535(d). 


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Subpart 2415.2—Solicitation and 

Receipt of Proposals and Quotations 

25. Revise the heading for subpart 

2415.2 to read as set forth above. 

26. Add 2415.203 to read as follows: 

2415.203 Requests for proposals. 

(a)(3) The contracting officer may 

limit the size of the technical and 

management portion of offers submitted 

in response to a request for proposals 

when the contracting officer determines 

that it is in the Government’s best 

interest to do so. 

27. Revise 2415.204 to read as 

follows: 

2415.204 Contract format. 

(e) The HCA shall be responsible for 

making exemptions pursuant to FAR 

15.204(e). 

28. Revise 2415.209 to read as 

follows: 

2415.209 Solicitation provisions and 

contract clauses. 

(a)(1) The Contracting Officer shall 

insert a provision substantially the same 

as the provision at 2452.215–70, 

Proposal Content, in all solicitations for 

negotiated procurements using the 

tradeoff selection process (see FAR 

15.101–1) expected to exceed the 

simplified acquisition limit. The 

Contracting Officer shall adapt 

paragraph (c) of the provision (i.e., 

include, delete, revise, or further 

supplement subparagraphs) to address 

the particular requirements of the 

immediate solicitation. The provision 

may be used in simplified acquisitions 

when it is necessary to obtain technical 

and management information in making 

the award selection. When award 

selection will be made through the 

lowest-priced technically acceptable 

source selection process, the provision 

shall be used with its Alternate I. If the 

proposed contract requires work on, or 

access to, HUD systems or applications 

(see the clause at 2452.239–70), the 

provision shall be used with its 

Alternate II. When the contracting 

officer has determined that it is 

necessary to limit the size of the 

technical and management portion of 

offers submitted by offerors, the 

provision shall be used with its 

Alternate III. The contracting officer 

shall clearly identify in the provision 

any contents of the technical and 

management portion of offers that are 

excluded from the size limitation (e.g., 

proposed contractor staff resumes). 

(2) The contracting officer shall insert 

the provision at 2452.215–71, Relative 

Importance of Technical Evaluation 

Factors to Cost or Price, in solicitations 

for contracts to be awarded using the 

tradeoff selection process (see FAR 

15.101–1) expected to exceed the 

simplified acquisition limit. 

Subpart 2415.3—Source Selection 

29. Revise 2415.303 to read as 

follows: 

2415.303 Responsibilities. 

(a) The Senior Procurement Executive 

is the agency head for the purposes of 

FAR 15.303(a). 

(b)(1) The technical evaluation 

requirements related to source selection 

shall be performed by a Technical 

Evaluation Panel (TEP). The TEP may 

consist of any number of members as 

appropriate to the acquisition, with one 

member serving as the chairperson. As 

needed, the TEP may include advisors 

and committees to focus on specific 

technical areas or concerns. The TEP is 

responsible for fully documenting the 

evaluation of all proposals as 

appropriate to the source selection 

approach in use and for making the 

source selection recommendation to the 

source selection authority. 

30. Revise 2415.304 to read as 

follows: 

2415.304 Evaluation factors and 

significant subfactors. 

(c)(3)(i) The extent of participation of 

small businesses in performance of the 

contract, whether as a joint venture, 

teaming arrangement, or subcontractor, 

shall be addressed in the source 

selection for contracts to be awarded 

using the tradeoff source selection 

process (see FAR 15.101–1) that require 

the use of the clause at FAR 52.219–9, 

Small Business Subcontracting Plan. 

(d) The solicitation shall state the 

basis for the source selection decision as 

either the ‘‘lowest price technically 

acceptable’’ (LPTA) process or the 

‘‘tradeoff’’ process (as defined at FAR 

subpart 15.1). 

31. Revise 2415.305(a)(3) to read as 

follows: 

2415.305 Proposal evaluation. 

(a) * * * 

(3) Technical evaluation. The TEP 

shall rate each proposal based on the 

evaluation factors specified in the 

solicitation. The TEP shall identify each 

proposal as being acceptable, 

unacceptable but capable of being made 

acceptable, or unacceptable. A proposal 

shall be considered unacceptable if it is 

so clearly deficient that it cannot be 

corrected through written or oral 

discussions. Under the tradeoff process, 

predetermined threshold levels of 

technical acceptability for proposals 

shall not be employed. A technical 

evaluation report, which complies with 

FAR 15.305(a)(3), shall be prepared and 

signed by the technical evaluators, 

furnished to the contracting officer, and 

maintained as a permanent record in the 

official procurement file. 

32. Add 2415.370 to read as follows: 

2415.370 Solicitation provision. 

The contracting officer shall insert the 

provision at 2452.215–72, Evaluation of 

Small Business Participation, in 

solicitations for contracts that require 

the use of the FAR clause in 52.219–9, 

‘‘Small Business Subcontracting Plan,’’ 

that will be awarded using the tradeoff 

source selection process (see FAR 

15.101–1). 

PART 2416—TYPES OF CONTRACTS 

33. The authority citation for part 

2416 is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 253; 

42 U.S.C. 3535(d). 

34. Add subpart 2416.3 to read as 

follows: 

Subpart 2416.3—Cost-Reimbursement 

Contracts 

Sec. 

2416.307 Contract clauses. 

2416.307 Contract clauses. 

(a) The contracting officer shall insert 

the clause at 2452.216–79, Estimated 

Cost (No Fee), in all cost-reimbursement 

(no fee) type solicitations and contracts. 

(b) The contracting officer shall insert 

the clause at 2452.216–80, Estimated 

Cost and Fixed-Fee, in all cost-plusfixed fee type solicitations and 

contracts. 

Subpart 2416.5—Indefinite-Delivery 

Contracts 

35. Revise 2416.505 to read as 

follows: 

2416.505 Ordering. 

(a) The contracting officer shall be the 

ordering official for all task orders 

except as provided for herein. The 

contracting officer may designate an 

ordering official when orders are to be 

placed on a firm fixed-price basis, the 

prices of the specific services or 

supplies to be provided under the order 

are set forth in the contract, and there 

is no negotiation of order terms. The 

contracting officer shall not designate 

ordering officials: 

(1) For contracts for services where 

prices are not tied to delivery of a 

completed service; 

(2) For any contracts where discounts 

need to be negotiated; or 

(3) In any other circumstances where 

adjustment of contract price or any 

other terms and conditions is necessary. 


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(b)(6) The Departmental competition 

advocate also serves as the 

Departmental task and delivery order 

ombudsman in accordance with FAR 

16.505(b)(6). In addition to the duties 

set forth at FAR 16.505(b)(6), the 

ombudsman shall recommend any 

corrective action regarding affording fair 

opportunity to contractors to compete 

for orders to the responsible contracting 

officer. 

36. In 2416.506–70, revise paragraph 

(b) to read as follows: 

2416.506–70 Solicitation provisions and 

contract clauses. 

* * * * * 

(b) Minimum and maximum 

quantities or amounts for order. The 

contracting officer shall insert a clause 

substantially the same as 2452.216–76, 

Minimum and Maximum Quantities or 

Amounts for Order, in all indefinitequantity and requirements solicitations 

and contracts. When the clause is used 

for requirements solicitations and 

contracts, the contracting officer may 

either delete paragraph (a) or insert 

‘‘none’’ for the minimum quantity or 

amount. 

* * * * * 

PART 2417—SPECIAL CONTRACTING 

METHODS 

37. The authority citation for part 

2417 continues to read as follows: 

Authority: 31 U.S.C. 1535; 40 U.S.C. 

121(c); 42 U.S.C. 3535(d). 

Subpart 2417.2—Options 

38. Revise section 2417.204 to read as 

follows: 

2417.204 Contracts. 

(e)(1) The Senior Procurement 

Executive (SPE) is authorized to 

approve contract periods for other than 

information technology contracts that 

exceed the 5-year limit set forth at FAR 

17.204(e) that are not otherwise limited 

by statute (e.g., the Service Contract 

Act). Except as provided for in 

paragraphs (e)(2) and (4) herein, the SPE 

shall approve any contract period that 

will exceed 5 years, including all option 

periods, prior to the award of the basic 

contract. 

(2) With regard to HUD indefinitedelivery contracts, the ‘‘contract period’’ 

requiring the SPE’s prior approval in 

paragraph (e)(1) shall mean the ordering 

period of a contract. Unless otherwise 

specified within the contract, the 5-year 

limit shall not apply to the period that 

any task or delivery order issued within 

the contract’s ordering period extends 

beyond the final end date of the 

contract’s ordering period, regardless of 

whether the performance period of the 

order causes the total period of the 

contract to exceed 5 years. The issuance 

of any such task or delivery order does 

not require the SPE’s approval. Task or 

delivery orders with end dates 

extending beyond the ordering period of 

the contract may not exceed the final 

delivery date that the contracting officer 

has stated in the applicable indefinitedelivery FAR clause included in the 

contract (i.e., 52.216–20, ‘‘Definite 

Quantity,’’ paragraph (d); 52.216–21, 

‘‘Requirements,’’ paragraph (f); or 

52.216–22, ‘‘Indefinite Quantity,’’ 

paragraph (d)). 

(3) The SPE’s authority described in 

paragraphs (e)(1) and (2) shall not be 

used as the basis to retroactively 

increase or extend the period of any 

existing contract. 

(4) The SPE is not required to approve 

any option properly exercised pursuant 

to the FAR clause at 52.217–8, ‘‘Option 

to Extend Services,’’ that extends the 

contract period beyond 5 years; 

provided that the total length of all 

options exercised pursuant to FAR 

clause 52.217–8 may not exceed 6 

months; and provided that exercise of 

any such options shall be in accordance 

with FAR 37.111. Any proposed 

extension of a contract beyond the 6- 

month maximum permitted by FAR 

52.217–8 shall be considered a new 

requirement and shall be subject to the 

competition requirements of FAR part 6. 

PART 2419—SMALL BUSINESS 

PROGRAMS 

39. The authority citation for part 

2419 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

Subpart 2419.2—Policies 

40. In 2419.201, redesignate 

paragraphs (c) and (d) as paragraphs (d) 

and (e), respectively, and revise newly 

designated paragraph (e)(1), to read as 

follows: 

2419.201 General policy. 

(d) The Director of HUD’s Office of 

Small and Disadvantaged Business 

Utilization (OSDBU) is responsible for 

the administration of the HUD small 

business program and for performing all 

functions and duties prescribed in FAR 

19.201(d). This includes Departmentwide responsibility for developing, 

implementing, executing, and managing 

these programs; providing advice on 

these programs; and representing HUD 

before other government agencies on 

matters primarily affecting small, small 

disadvantaged, and women-owned 

small business; HUBZone small 

business; veteran-owned small business; 

and service-disabled veteran-owned 

small business concerns. 

(e) The Director of OSDBU shall 

designate small business specialists who 

shall advise and assist HUD’s 

contracting activity and small business 

concerns as described in paragraph (d) 

on all matters related to small business 

participation in HUD acquisitions. 

Small business specialists shall perform 

the following functions: 

(1) Maintain a program designed to 

locate capable small-business sources as 

referenced in 2419.201(d) for current 

and future procurements; 

* * * * * 

Subpart 2419.5—Set-Asides for Small 

Business 

2419.503 [Removed and Reserved] 

41. Remove and reserve 2419.503. 

Subpart 2419.7—The Small Business 

Subcontracting Program 

42. Revise 2419.708 to read as 

follows: 

2419.708 Solicitation provisions and 

contract clauses. 

(b) The contracting officer shall insert 

clause at 2452–219–73, Incorporation of 

Subcontracting Plan, in solicitations and 

contracts when a subcontracting plan is 

required. The contracting officer shall 

insert the provision at 2452.219–74, 

Small Business Subcontracting Goals, in 

solicitations for contracts that are 

required to include the FAR clauses at 

52.219–8, ‘‘Utilization of Small Business 

Concerns,’’ and 52.219–9, ‘‘Small 

Business Subcontracting Plan.’’ 

(d) The contracting officer shall insert 

the provision at 2452.219–70, Small 

Business Subcontracting Plan 

Compliance, in solicitations for 

contracts that are expected to exceed the 

dollar thresholds set forth at FAR 19.702 

and are required to include the clause 

at FAR 52.219–9, Small Business 

Subcontracting Plan. 

Subpart 2419.8—Contracting With the 

Small Business Administration (the 

8(a) Program) 

43. Revise 2419.800 to read as 

follows: 

2419.800 General. 

(f) By Partnership Agreement between 

the SBA and HUD, the SBA delegated to 

HUD’s Senior Procurement Executive its 

authority under paragraph 8(a)(1)(A) of 

the Small Business Act (5 U.S.C. 637(a)) 

to enter into 8(a) prime contracts, and 

its authority under 8(a)(1)(B) of the 

Small Business Act to award the 

performance of those contracts to 


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eligible 8(a) Program participants. 

Under the Partnership Agreement, a 

contract may be awarded directly to an 

8(a) firm on either a sole-source or 

competitive basis. The SBA reserves the 

right to withdraw the delegation issued 

as a result of the Partnership Agreement; 

however, any such withdrawal shall 

have no effect on contracts already 

awarded under the Partnership 

Agreement. 

44. Add 2419.803 to read as follows: 

2419.803 Selecting acquisitions for the 

8(a) Program. 

45. Add 2419.803–70 to read as 

follows: 

2419.803–70 Procedures for simplified 

acquisitions under the partnership 

agreement. 

(a) HUD contracting officers may use 

the procedures of FAR part 13 and 

HUDAR part 2413 to make purchases 

not exceeding the simplified acquisition 

threshold from 8(a) Participants. The 

following apply to such acquisitions: 

(1) Neither offering letters to, nor 

acceptance letters from the SBA are 

required. 

(2) The contracting officer will use the 

Central Contractor Registration (CCR) 

database on the Internet (http:// 

www.ccr.gov) to establish that the 

selected 8(a) firm is a current program 

participant. 

(b) Once an 8(a) contractor has been 

identified, the contracting officer will 

establish the price with the selected 8(a) 

contractor. 

(c) For acquisitions requiring an 

award document (e.g., purchase order), 

the contracting officer will: 

(1) Prepare and issue an award 

document in accordance with the 

applicable provisions of FAR part 13 

and HUDAR part 2413. The applicable 

clauses prescribed in 2419.811–3 shall 

be included in the award document. 

The contracting officer will issue the 

award document directly to the 8(a) 

firm; and 

(2) Forward to the SBA District Office 

serving the 8(a) firm a copy of the award 

document within 5 days after the award 

is issued. 

46. Add 2419.804 to read as follows: 

2419.804 Evaluation, offering, and 

acceptance. 

47. Add 2419.804–2 to read as 

follows: 

2419.804–2 Agency offering. 

(d) When applicable, the notification 

must identify that the offering is in 

accordance with the Partnership 

Agreement identified in 2419.800. 

48. Add 2419.804–3 to read as 

follows: 

2419.804–3 SBA acceptance. 

49. Add 2419.804–370 to read as 

follows: 

2419.804–370 SBA acceptance under 

partnership agreements for acquisitions 

exceeding the simplified acquisition 

threshold. 

(a) The following procedures apply to 

the acceptance of requirements covered 

by the Partnership Agreement for 

acquisitions that exceed the simplified 

acquisition threshold. 

(1) The SBA’s decision whether to 

accept the requirement will be 

transmitted to HUD in writing within 5 

working days of receipt of the offer. 

(2) The SBA may request, and HUD 

may grant, an extension beyond the 5- 

day limit. 

(3) SBA’s acceptance letters should be 

faxed or emailed to HUD. 

(4) If HUD has not received an 

acceptance or rejection of the offering 

from SBA within 5 days of SBA’s 

receipt of the offering letter, the 

contracting officer may assume that the 

requirement has been accepted and 

proceed with the acquisition. 

(b) The contents of SBA’s acceptance 

letter shall be limited to the eligibility 

of the recommended 8(a) contractor. 

50. Add 2419.805 to read as follows: 

2419.805 Competitive 8(a). 

51. Add 2419.805–2 to read as 

follows: 

2419.805–2 Procedures. 

(b)(3) For requirements exceeding the 

simplified acquisition threshold that are 

processed under the Partnership 

Agreement cited in 2419.800, the 

contracting officer shall submit the 

name, address, and telephone number of 

the low bidder (sealed bid requirements) 

or the apparent successful offeror 

(negotiated acquisitions) to the SBA 

Business Opportunity Specialist at the 

field office servicing the identified 8(a) 

firm. The SBA will determine the 

eligibility of the firm(s) and advise the 

contracting officer within 2 working 

days of the receipt of the request. If the 

firm is determined to be ineligible, the 

contracting officer will submit 

information on the next low offeror or 

next apparent successful offeror (as 

applicable) to the cognizant SBA field 

office. 

52. Add 2419.806 to read as follows: 

2419.806 Pricing the 8(a) contract. 

(a) For contracts awarded under the 

Partnership Agreement cited in 

2419.800, when required by FAR 

subpart 15.4, the contracting officer 

shall obtain certified cost or pricing data 

directly from the 8(a) contractor. 

53. Add 2419.808 to read as follows: 

2419.808 Contract negotiation. 

54. Add 2419.808–1 to read as 

follows: 

2419.808–1 Sole source. 

(a) If the acquisition is conducted 

under the Partnership Agreement cited 

in 2419.800, the 8(a) contractor is 

responsible for negotiating with HUD 

within the time frame established by the 

contracting officer. If the 8(a) contractor 

does not negotiate within the 

established time frame, and HUD cannot 

allow additional time, HUD, after 

notification and approval by SBA, may 

proceed with the acquisition from other 

sources. 

(b) If the acquisition is conducted 

under the Partnership Agreement cited 

in 2419.800, HUD is delegated the 

authority to negotiate directly with the 

8(a) participant; however, if requested 

by the 8(a) participant, the SBA may 

participate in negotiations. 

55. Add 2419.811 to read as follows: 

2419.811 Preparing the contracts. 

56. Add 2419.811–1 to read as 

follows: 

2419.811–1 Sole source. 

(e) If the award is to be made under 

the Partnership Agreement cited in 

2419.800, the contracting officer shall 

prepare the instrument to be awarded to 

the 8(a) firm in accordance with the 

normal HUD procedures for non-8(a) 

contracts, except for the following: 

(1) The award form shall cite 41 

U.S.C. 253(c)(5) and 15 U.S.C. 637(a) as 

the authority for use of other than full 

and open competition. 

(2) The contracting officer shall 

include appropriate contract clauses, as 

necessary, to reflect that the acquisition 

is an 8(a) contract awarded under the 

authority of the Partnership Agreement 

cited in 2419.800. 

(3) The contracting officer shall 

include SBA’s requirement number on 

the contract unless the acquisition does 

not exceed the simplified acquisition 

threshold. 

(4) A single award document shall be 

used between HUD and the 8(a) 

contractor. As such, no signature on the 

part of the SBA is required; a single 

signature by the HUD contracting officer 

shall suffice. The 8(a) contractor’s 

signature shall be placed on the award 

document as the prime contractor. The 

8(a) contractor’s name and address shall 

be placed in the ‘‘awarded to’’ or 

‘‘contractor name’’ block on the 

appropriate forms. 

57. Add 2419.811–2 to read as 

follows: 


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2419.811–2 Competitive. 

(a) If the award is to be made under 

the Partnership Agreement cited in 

2419.800, competitive contracts for 8(a) 

firms shall be prepared in accordance 

with the same standards as 8(a) solesource contracts as set forth in 

2419.811–1. 

(b) If the acquisition is conducted 

under the Partnership Agreement cited 

in 2419.800, the process for obtaining 

signatures shall be as specified in 

2419.811–1(e). 

58. Add 2419.811–3 to read as 

follows: 

2419.811–3 Contract clauses. 

(d)(3) The contracting officer shall use 

the clause at FAR 52.219–18, 

‘‘Notification of Competition Limited to 

Eligible 8(a) Concerns,’’ with the clause 

at 2452.219–71, ‘‘Notification of 

Competition Limited to Eligible 8(a) 

Concerns—Alternate III to FAR 52.219– 

18,’’ for competitive 8(a) acquisitions 

processed under the Partnership 

Agreement cited in 2419.800. 

(f) In contracts and purchase orders 

awarded under the Partnership 

Agreement cited at 2419.800, the 

contracting officer shall substitute the 

clause at 2452.219–72, Section 8(a) 

Direct Award, for the clauses at FAR 

52.219–11, ‘‘Special 8(a) Contract 

Conditions;’’ FAR 52.219–12, ‘‘Special 

8(a) Subcontract Conditions;’’ and FAR 

52.219–17, ‘‘Section 8(a) Award.’’ 

59. Add 2419.812 to read as follows: 

2419.812 Contract administration. 

(e) Awards under the Partnership 

Agreement cited in 2419.800 are subject 

to 15 U.S.C. 637(a)(21). These contracts 

contain the clause at 2452.219–71, 

Section 8(a) Direct Award (Deviation), 

which requires the 8(a) contractor to 

notify the SBA and the HUD contracting 

officer when ownership of the firm is 

being transferred. 

PART 2426—OTHER 

SOCIOECONOMIC PROGRAMS 

60. The authority citation for part 

2426 is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

Subpart 2426.70—Minority Business 

Enterprises 

2426.7001 [Removed and Reserved] 

61. Remove and reserve 2426.7001. 

2426.7002 [Removed and Reserved] 

62. Remove and reserve 2426.7002. 

PART 2427—PATENTS, DATA, AND 

COPYRIGHTS 

63. The authority citation for part 

2427 is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

Subpart 2427.3—Patent Rights Under 

Government Contracts 

64. Revise the section heading of 

2427.305–2 to read as follows: 

2427.305–2 Administration by the 

Government. 

* * * * * 

65. Add subpart 2427.4 to read as 

follows: 

Subpart 2427.4—Rights in Data and 

Copyrights 

Sec. 

2427.470 Contract clause. 

2427.470 Contract clause. 

The contracting officer shall insert the 

clause 2452.227–70, Government 

Information, in all solicitations and 

contracts when the Government will 

provide information to the contractor, 

and/or when the contractor will obtain 

information on the Government’s behalf 

to perform work required under the 

contract. The contracting officer shall 

describe all information to be provided 

to the contractor in paragraph (d)(1) of 

the clause. 

PART 2428—BONDS AND INSURANCE 

66. The authority citation for part 

2428 is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

Subpart 2428.1—Bonds 

67. Revise the section heading of 

section 2428.106 to read as follows: 

2428.106 Administration. 

* * * * * 

PART 2432—CONTRACT FINANCING 

68. The authority citation for part 

2432 is revised to read as follows: 

Authority: 31 U.S.C. 3901–3905; 40 U.S.C. 

121(c); 42 U.S.C. 3535(d). 

69. Add 2432.006 to read as follows: 

2432.006 Reduction or suspension of 

contract payments upon finding of fraud. 

70. Add 2432.006–1 to read as 

follows: 

2432.006–1 General. 

The Senior Procurement Executive is 

the agency head for the purposes of FAR 

32.006–1. In accordance with FAR 

32.006–1(c), the Senior Procurement 

Executive may delegate the remedy 

coordination official duties to personnel 

in the Office of the Chief Procurement 

Officer at or above the Level IV of the 

Executive Service. 

71. Add 2432.006–2 to read as 

follows: 

2432.006–2 Definitions. 

‘‘Remedy coordination official’’ 

means the Senior Procurement 

Executive. 

72. Add 2432.006–3 to read as 

follows: 

2432.006–3 Responsibilities. 

(b) HUD personnel shall report 

immediately in writing when a 

contractor’s request for advance, partial, 

or progress payments is suspected to be 

fraudulent. The report shall be made to 

the contracting officer and the remedy 

coordination official. The report shall 

describe the events, acts, and conditions 

that indicate the apparent or suspected 

violation and include all pertinent 

documents. The remedy coordination 

official will consult with, and refer 

cases to, the Office of the Inspector 

General for investigation, as 

appropriate. If appropriate, the Office of 

the Inspector General will provide a 

report to the Senior Procurement 

Executive. 

73. Add 2432.006–4 to read as 

follows: 

2432.006–4 Procedures. 

The Senior Procurement Executive is 

the agency head for the purposes of FAR 

32.006–4. 

74. Add 2432.007 to read as follows: 

2432.007 Contract financing payments. 

(a) The Senior Procurement Executive 

is the agency head for the purposes of 

FAR 32.007(a). 

Subpart 2432.7—Contract Funding 

75. Add 2432.703–1 to read as 

follows: 

2432.703–1 General. 

(b)(1) Except as described herein, a 

fixed-price contract may be funded 

incrementally only if— 

(i) Sufficient funds are not available to 

the Department at the time of contract 

award or exercise of option to fully fund 

the contract or option; 

(ii) The contract (excluding any 

options) or any exercised option— 

(A) Is for severable services; 

(B) Does not exceed one year in 

length; and 

(C) Is incrementally funded using 

funds available (unexpired) as of the 

date the funds are obligated; or 


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(iii) The contract uses funds available 

from multiple (2 or more) fiscal years 

and Congress has otherwise authorized 

incremental funding. 

(2) An incrementally funded fixedprice contract shall be fully funded as 

soon as funds are available. 

76. Add 2432.704 to read as follows: 

2432.704 Limitation of cost or funds. 

77. Add 2432.704–70 to read as 

follows: 

2432.704–70 Incrementally funded fixedprice contracts. 

(a) Upon receipt of the contractor’s 

notice under paragraph (c) of the clause 

at 2452.232–72, Limitation of 

Government’s Obligation, the 

contracting officer shall promptly 

provide written notice to the contractor 

that the Government is— 

(1) Allotting additional funds for 

continued performance and increasing 

the Government’s limitation of 

obligation in a specified amount; 

(2) Terminating the affected contract 

line items (CLINs) or contract, as 

applicable; or 

(3) Considering whether to allot 

additional funds; and 

(i) The contractor is required by the 

contract terms to stop work when the 

Government’s limitation of obligation is 

reached; and 

(ii) Any costs expended beyond the 

Government’s limitation of obligation 

are at the contractor’s risk. 

(b) Upon learning that the contract 

will receive no further funds, the 

contracting officer shall promptly give 

the contractor written notice of the 

Government’s decision and terminate 

the affected CLINs or contract, as 

applicable, for the convenience of the 

Government. 

(c) The contracting officer shall 

ensure that, in accordance with 

paragraph (b) of the clause at 2452.232– 

72, ‘‘Limitation of Government’s 

obligation,’’ sufficient funds are allotted 

to the contract to cover the total amount 

payable to the contractor in the event of 

termination for the convenience of the 

Government. 

78. Add 2432.705 to read as follows: 

2432.705 Contract clauses. 

79. Add 2432.705–70 to read as 

follows: 

2432.705–70 Clause for limitation of 

Government’s obligation. 

The contracting officer shall insert the 

clause at 2452.232–72, ‘‘Limitation of 

Government’s Obligation,’’ in 

solicitations and resultant incrementally 

funded fixed-price contracts as 

authorized by 2432.703–1. The 

contracting officer shall insert the 

information required in the table in 

paragraph (b) and the notification 

period in paragraph (c) of the clause. 

Subpart 2432.9—Prompt Payment 

80. Revise 2432.903 to read as 

follows: 

2432.903 Policy. 

(a) The Senior Procurement Executive 

is the agency head’s designee for the 

purposes of FAR 32.903(a). 

81. Revise 2432.906 to read as 

follows: 

2432.906 Making payments. 

(a) General. The authority to make the 

determination prescribed in FAR 

32.906(a) is delegated to the HCA. 

Before making this determination, the 

HCA shall consult with the appropriate 

payment office to ensure that 

procedures are in place to permit timely 

payment. 

82. In 2432.908, revise paragraphs 

(c)(1) and (2) to read as follows: 

2432.908 Contract clauses. 

(c) * * * 

(1) The contracting officer shall insert 

the clause at 2452.232–73, Constructive 

Acceptance Period, in solicitations and 

contracts when the contracting officer 

has determined that an acceptance 

period longer than the 7 days provided 

for in the FAR clause at 52.232–25, 

‘‘Prompt Payment,’’ is needed. 

(2) The contracting officer shall insert 

a clause substantially the same as 

provided at 2452.232–71, Voucher 

Submission, in all cost-reimbursement, 

time-and-materials, and labor-hour type 

solicitations and contracts. The 

contracting officer shall insert the 

billing frequency period agreed upon 

with the contractor (see also the FAR 

clause at 52.216–7, ‘‘Allowable Cost and 

Payment’’). 

* * * * * 

PART 2437—SERVICE CONTRACTING 

83. The authority citation for part 

2437 is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

Subpart 2437.1—Service Contracts— 

General 

84. Revise 2437.110 to read as 

follows: 

2437.110 Solicitation provisions and 

contract clauses. 

(e)(1) The Contracting Officer shall 

insert the clause at 2452.237–70, Key 

Personnel, in solicitations and contracts 

when it is necessary for contract 

performance to identify Contractor Key 

personnel. 

(2) The Contracting Officer shall 

insert the clause at 2452.237–73, 

Conduct of Work and Technical 

Guidance, in all solicitations contracts 

for services other than commercial 

services awarded pursuant to FAR part 

12. 

(3) The contracting officer shall insert 

the clause at 2452.237–75, Access to 

HUD Facilities, in all solicitations and 

contracts when contractor employees, 

including subcontractors and 

consultants, will be required to 

regularly work in or have access to any 

HUD facilities (as distinct from 

nongovernment employee visitors to 

government facilities). 

(4) The Contracting Officer shall 

insert the clause at 2452.237–77, 

Temporary Closure of HUD Facilities, in 

all solicitations and contracts where 

contractor personnel will be working 

on-site in any HUD office. 

PART 2439—ACQUISITION OF 

INFORMATION TECHNOLOGY 

85. The authority citation for part 

2439 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

Subpart 2439.1—General 

86. Revise 2439.107(a) to read as 

follows: 

2439.107 Contract clauses. 

(a) The contracting officer shall insert 

the clause at 2452.239–70, Access to 

HUD Systems, in solicitations and 

contracts when the contract will require 

contractor employees, including 

subcontractors and consultants, to have 

access to any HUD information 

system(s) as defined in the clause. 

* * * * * 

PART 2442—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

87. The authority citation for part 

2442 is revised to read as follows: 

Authority: 40 U.S.C. 486(c); 121(c); 42 

U.S.C. 3535(d). 

88. The heading for part 2442 is 

revised to read as set forth above. 

89. Add subpart 2442.3 to read as 

follows: 

Subpart 2442.3—Contract 

Administration Office Functions 

Sec. 

2442.302–70 Contract clause. 


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2442.302–70 Contract clause. 

The contracting officer shall include 

clause 2452.242–72, Post-award 

Orientation Conference, in solicitations 

and contracts when the contractor will 

be required to attend a post-award 

orientation conference. The contracting 

officer shall indicate whether the 

contractor must attend the conference in 

person or via electronic communication. 

PART 2452—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

90. The authority citation for part 

2452 is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 42 U.S.C. 

3535(d). 

91. Add 2452.204–70 to read as 

follows: 

2452.204–70 Preservation of, and access 

to, contract records (tangible and 

electronically stored information (ESI) 

formats). 

As prescribed in 2404.7001, insert the 

following clause: 

PRESERVATION OF, AND ACCESS TO, 

CONTRACT RECORDS (TANGIBLE AND 

ELECTRONICALLY STORED 

INFORMATION (ESI) FORMATS) (* * *) 

(a) For the purposes of this clause— 

‘‘Contract records’’ means information 

created or maintained by the contractor in 

the performance of the contract. Contract 

records include documents required to be 

retained in accordance with FAR 4.703 and 

other information generated or maintained by 

the contractor that is pertinent to the contract 

and its performance including, but not 

limited to: email and attachments, formal and 

informal correspondence, calendars, notes, 

reports, memoranda, spreadsheets, tables, 

telephone logs, forms, survey, books, papers, 

photographs, drawings, machine-readable 

materials, and data. Contract records may be 

maintained as electronically stored 

information or as tangible materials. Contract 

records may exist in either final or any 

interim version (e.g., drafts that have been 

circulated for official purposes and contain 

unique information, such as notes, edits, 

comments, or highlighting). Contract records 

may be located or stored on the contractor’s 

premises or at off-site locations. 

‘‘Electronically stored information (ESI)’’ 

means any contract records that are stored 

on, or generated by, an electronic device, or 

contained in electronically accessible media, 

either owned by the contractor, 

subcontractor(s), or employees of the 

contractor or subcontractor(s) regardless of 

the physical location of the device or media 

(e.g., offsite servers or data storage). 

‘‘ESI devices and media’’ include, but are 

not be limited to: 

(i) Computers (mainframe, desktop, and 

laptop); 

(ii) Network servers, including shared and 

personal drives; 

(iii) Individual email accounts of the 

contractor’s principals, officers, and 

employees, including all folders contained in 

each email account such as ‘‘inbox,’’ 

‘‘outbox,’’ ‘‘drafts,’’ ‘‘sent,’’ ‘‘trash,’’ 

‘‘archive,’’ and any other folders; 

(iv) Personal data assistants (PDAs); 

(v) External data storage devices including 

portable devices (e.g., flash drive); and 

(vi) Data storage media (magnetic, e.g., 

tape; optical, e.g., compact disc, microfilm, 

etc.). 

‘‘Tangible materials’’ means contract 

records that exist in a physical (i.e., nonelectronic) state. 

(b) If during the period of performance of 

this contract, HUD becomes, or anticipates 

becoming, a party to any litigation 

concerning matters related to records 

maintained or generated by the Contractor in 

the performance of this contract, the 

Contracting Officer may provide the 

contractor with a written (either hardcopy or 

email) preservation hold notice and 

certification of compliance with the 

preservation hold notice. Upon receipt of the 

hold notice, the Contractor shall immediately 

take the following actions— 

(1) Discontinue any alteration, overwriting, 

deletion, or destruction of all tangible 

materials and ESI. 

(2) Preserve tangible materials and ESI. The 

contractor shall preserve ESI in its ‘‘native’’ 

form to preserve metadata (i.e., creation and 

modification history of a document). 

(3) Identify all individuals who possess or 

may possess tangible materials and ESI 

related to this matter, including contractor 

employees, subcontractors, and subcontractor 

employees. The contractor shall provide the 

names of all such individuals via email to the 

HUD official indicated in the notice. 

(4) Document in writing the contractor’s 

efforts to preserve tangible materials and ESI. 

It may be useful to maintain a log 

documenting preservation efforts. 

(5) Complete the certification of 

compliance with the preservation hold notice 

upon receipt and return it to the identified 

contact person; and 

(6) Upon the request of the Contracting 

Officer, provide the Contracting Officer or 

other HUD official designated by the 

Contracting Officer with any of the 

information described in this clause. The 

contractor shall immediately confirm receipt 

of such request. The contractor shall describe 

in detail any records that the contractor 

knows or believes to be unavailable and 

provide a detailed explanation of why they 

are unavailable, and if known, their location. 

(c)(1) If any request for records pursuant to 

paragraph (b)(6) of this clause causes an 

increase in the estimated cost or price or the 

time required for performance of any part of 

the work under this contract, or otherwise 

affects any other terms and conditions of this 

contract, the Contracting Officer shall make 

an equitable adjustment in the contract price, 

the delivery schedule, or both, and shall 

modify the contract. 

(2) The Contractor must assert its right to 

an adjustment under this clause within 

ll[Contracting Officer insert period; 30 

days if no other period inserted] from the 

date of receipt of the Contracting Officer’s 

request made pursuant to paragraph (b)(6) of 

this clause. However, if the Contracting 

Officer decides that the facts justify it, the 

Contracting Officer may receive and act upon 

a request submitted before final payment of 

the contract. 

(3) Failure to agree to any adjustment shall 

be a dispute under the ‘‘Disputes’’ clause of 

this contract. However, nothing in this clause 

shall excuse the contractor from providing 

the records requested by the Contracting 

Officer. 

(e) The Contractor shall include this clause 

in all subcontracts. 

(End of clause) 

Alternate I (* * *). For costreimbursement type contracts, 

substitute the following paragraph (c)(1) 

for paragraph (c)(1) of the basic clause: 

(c)(1) If any request for records pursuant to 

paragraph (b)(6) of this clause causes an 

increase in the estimated cost or price or the 

time required for performance of any part of 

the work under this contract, or otherwise 

affects any other terms and conditions of this 

contract, the Contracting Officer shall make 

an equitable adjustment in any one of the 

following and modify the contract 

accordingly— 

(i) Estimated cost; 

(ii) Delivery or completion schedule, or 

both; 

(ii) Amount of any fixed fee; or 

(iii) Other affected terms. 

Alternate II (* * *). For labor-hour or 

time-and-materials type contracts, 

substitute the following paragraph (c)(1) 

for paragraph (c)(1) of the basic clause: 

(c)(1) If any request for records pursuant to 

paragraph (b)(6) of this clause causes an 

increase in the estimated cost or price or the 

time required for performance of any part of 

the work under this contract, or otherwise 

affects any other terms and conditions of this 

contract, the Contracting Officer shall make 

an equitable adjustment in any one or more 

of the following and will modify the contract 

accordingly: 

(i) Ceiling price; 

(ii) Hourly rates; 

(iii) Delivery schedule; or 

(iv) Other affected terms. 

92. In 2452.215–70, add Alternate III 

immediately following Alternate II, to 

read as follows: 

2452.215–70 Proposal content. 

* * * * * 

Alternate III (* * *). As prescribed in 

2415.209(a), add the following 

paragraph (e) when the size of Part I, 

Technical and Management, offers will 

be limited: 

(e) Size limit of Part I, Technical and 

Management. 

(1) Offerors shall limit Part I, 

Technical and Management, of their 

initial offers to llll [Contracting 

Officer insert number] pages, except for 

the information specifically exempted 

in paragraph (3). Offerors are cautioned 

that if Part I of their offers exceeds this 

limit, the Government will evaluate 


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only the information contained in the 

pages up through the permitted number. 

Pages beyond that limit will not be 

evaluated. 

(2) A page shall consist of one side of 

a single sheet of 81⁄2′′ x 11′′ paper, single 

spaced, using not smaller than 12 point 

type font, and having margins at the top, 

bottom, and sides of the page of no less 

than one inch in width. 

(3) The following information is 

exempt from the limitation set forth in 

paragraph (1): [Contracting Officer list 

exemptions or enter ‘‘None’’]. 

(4) Offerors are encouraged to use 

recycled paper and to use both sides of 

the paper (see the FAR clause at 52.204– 

4). 

93. Add 2452.215–71 to read as 

follows: 

2452.215–71 Relative importance of 

technical evaluation factors to cost or price. 

As prescribed in 2415.209(a)(2), insert 

the following provision: 

RELATIVE IMPORTANCE OF TECHNICAL 

EVALUATION FACTORS TO COST OR 

PRICE (* * *) 

For the purposes of evaluating offers and 

the selection of the contractor or contractors 

under this solicitation, the relative merit of 

the offeror’s technical proposal as evaluated 

in accordance with the technical evaluation 

factors listed herein shall be considered 

[Contracting Officer insert one of the 

following: ‘‘significantly more important 

than,’’ ‘‘approximately equal to,’’ or 

‘‘significantly less important than’’] cost or 

price. While the proposed cost or price will 

not be assigned a specific weight, it shall be 

considered a significant criterion in the 

overall evaluation of proposals. 

94. Add 2452.215–72 to read as 

follows: 

2452.215–72 Evaluation of small business 

participation. 

As prescribed in 2415.370, insert the 

following provision: 

EVALUATION OF SMALL BUSINESS 

PARTICIPATION (* * *) 

(a) In addition to the technical and 

management evaluation factors set forth in 

this solicitation, the Government will 

evaluate the extent to which all offerors 

identify and commit to using small 

businesses in the performance of the 

contract, whether through joint ventures or 

teaming arrangements, or as subcontractors. 

The evaluation shall consider the following: 

(1) The extent to which small businesses 

are specifically identified in proposals; 

(2) The extent of commitment to use small 

businesses (for example, enforceable 

commitments will be weighted more heavily 

than non-enforceable ones); 

(3) The complexity and variety of the work 

small businesses are to perform; 

(4) The realism of the proposal; 

(5) Past performance of the offerors (other 

than small businesses) in complying with 

requirements of the clauses at FAR 52.219– 

8, Utilization of Small Business Concerns, 

and 52.219–9, Small Business Subcontracting 

Plan; and 

(6) The extent of participation of small 

businesses in terms of the total value of the 

contract. 

(b) Offerors that are required to submit a 

subcontracting plan pursuant to the clause at 

FAR 52.219–9 shall include the small 

businesses proposed as subcontractors for 

evaluation under this provision in their 

subcontracting plan. 

(End of Provision) 

95. Revise 2452.216–76 to read as 

follows: 

2452.216–76 Minimum and maximum 

quantities or amounts for order. 

As prescribed in 2416.506–70(b), 

insert the following clause: 

MINIMUM AND MAXIMUM QUANTITIES 

OR AMOUNTS FOR ORDER (* * *) 

(a) The minimum quantity or amount to be 

ordered under this contract shall not be less 

than [contracting officer insert quantity or 

amount]. 

(b) The maximum quantity or amount to be 

ordered under this contract shall not exceed 

[contracting officer insert quantity or 

amount]. 

(End of clause) 

96. Add 2452.216–79 to read as 

follows: 

2452.216–79 Estimated cost (no fee). 

As prescribed in 2416.307(b), insert 

the following clause: 

ESTIMATED COST (NO FEE) (* * *) 

(a) It is estimated that the total 

reimbursable cost to the Government for full 

performance of this contract will be 

$llllll [Contracting Officer insert 

amount]. 

(b) If this contract is incrementally funded, 

the following shall apply: 

(1) Total funds currently available for 

payment and allotted to this contract are 

$llllll [Contracting Officer insert 

amount] (see also the clause at FAR 52.232– 

22, ‘‘Limitation of Funds’’ herein). 

(2) If and when the contract is fully 

funded, as specified in paragraph (a) of this 

clause, the clause at FAR 52.232–20, 

Limitation of Cost, herein, shall become 

applicable. 

(3) The Contracting Officer may allot 

additional funds to the contract up to the 

total specified in paragraph (a) of this clause 

without the concurrence of the contractor. 

(End of clause) 

97. Add 2452.216–80 to read as 

follows: 

2452.216–80 Estimated cost and fixed-fee. 

As prescribed in 2416.307(b), insert 

the following clause: 

ESTIMATED COST AND FIXED–FEE (* * *) 

(a) It is estimated that the total cost to the 

Government for full performance of this 

contract will be $llllll [Contracting 

Officer insert amount], of which 

$llllll [Contracting Officer insert 

amount] represents the estimated 

reimbursable costs, and $llllll 

[Contracting Officer insert amount] 

represents the fixed fee. 

(b) If this contract is incrementally funded, 

the following shall apply: 

(1) Total funds currently available for 

payment and allotted to this contract are 

$llllll [Contracting Officer insert 

amount], of which llllll [Contracting 

Officer insert amount] represents the 

limitation for reimbursable costs and 

$llllll [Contracting Officer insert 

amount] represents the prorated amount of 

the fixed fee (see also the clause at FAR 

52.232–22, ‘‘Limitation of Funds’’ herein). 

(2) If and when the contract is fully 

funded, as specified in paragraph (a) of this 

clause, the clause at FAR 52.232–20, 

‘‘Limitation of Cost,’’ herein, shall become 

applicable. 

(3) The Contracting Officer may allot 

additional funds to the contract up to the 

total specified in paragraph (a) of this clause 

without the concurrence of the contractor. 

(End of clause) 

98. Add 2452.219–71 to read as 

follows: 

2452.219–71 Notification of competition 

limited to eligible 8(a) concerns—Alternate 

III to FAR 52.219–18. 

As prescribed in 2419.811–3(d)(3), 

insert the following clause: 

NOTIFICATION OF COMPETITION 

LIMITED TO ELIGIBLE 8(a) CONCERNS— 

ALTERNATE III TO FAR 5219–18 (* * *) 

The following paragraph (c) replaces 

paragraph (c) of the clause at FAR 52.219–18, 

Notification of Competition Limited to 

Eligible 8(a) Concerns: 

(c) Any award resulting from this 

solicitation will be made directly by the HUD 

Contracting Officer to the successful 8(a) 

offeror selected through the evaluation 

criteria set forth in this solicitation. 

99. Add 2452.219–72 to read as 

follows: 

2452.219–72 Section 8(a) direct awards 

(Deviation). 

As prescribed in 2419.811–3(f), insert 

the following clause: 

SECTION 8(A) DIRECT AWARD (* * *) 

(a) This contract is issued as a direct award 

between the Department of Housing and 

Urban Development (HUD) and the 8(a) 

Contractor pursuant to a Partnership 

Agreement (Agreement) between the Small 

Business Administration (SBA) and HUD. 

The SBA retains responsibility for 8(a) 

certification, 8(a) eligibility determinations 

and related issues, and providing counseling 

and assistance to the 8(a) contractor under 

the 8(a) program. The cognizant SBA district 

office is: 

[To be completed by Contracting Officer at 

time of award]. 

(b) SBA is the prime contractor and 

llllll [insert name of 8(a) contactor] 

is the subcontractor under this contract. 


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Under the terms of the Agreement, HUD 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 HUD 

Contracting Officer shall give advance notice 

to the SBA before issuing a final notice 

terminating performance, either in whole or 

in part, under the contract. The HUD 

Contracting Officer shall also coordinate with 

SBA prior to processing any novation 

agreement. HUD may assign contract 

administration functions to a contract 

administration office. 

(c) llllllll [insert name of 8(a) 

contractor] agrees: 

(1) To notify the HUD Contracting Officer, 

simultaneously with its notification to SBA 

(as required by SBA’s 8(a) regulations), when 

the owner or owners upon whom 8(a) 

eligibility is based, plan to relinquish 

ownership or control of the concern. 

Consistent with 15 U.S.C. 637(a)(21), transfer 

of ownership or control shall result in 

termination of the contract for convenience, 

unless SBA waives the requirement for 

termination prior to the actual relinquishing 

of ownership or control. 

(2) To adhere to the requirements of FAR 

52.219–14, ‘‘Limitations on Subcontracting.’’ 

(End of Clause) 

100. Add 2452.219–73 to read as 

follows: 

2452.219–73 Incorporation of 

subcontracting plan. 

As prescribed in 2419.708(b), insert 

the following clause: 

INCOPORATION OF SUBCONTRACTING 

PLAN (* * *) 

The Contractor’s approved subcontracting 

plan, dated llllll [Contracting Officer 

insert date] is hereby incorporated by 

reference and made a part of this contract. 

(End of clause) 

101. Add 2452.219–74 to read as 

follows: 

2452.219–74 Small business 

subcontracting goals. 

As prescribed in 2419.708(b), insert 

the following provision: 

SMALL BUSINESS SUBCONTRACTING 

GOALS (* * *) 

(a) This provision does not apply to 

offerors that are small businesses. 

(b) The offeror’s attention is directed to the 

FAR clause at 52.219–9, ‘‘Small Business 

Subcontracting Plan,’’ herein. HUD will 

evaluate proposed subcontracting plans using 

the Departmental small business 

subcontracting goals set forth in paragraph 

(c). Offerors that are unable to propose 

subcontracting that meets HUD’s established 

goals must provide the rationale for their 

proposed level of subcontracting. 

(c) HUD’s subcontracting goals are as 

follows: 

(i) Small Business —ll% [Contracting 

Officer insert HUD small business 

subcontracting goal percentage] 

(ii) The total Small Business goal shown in 

paragraph (i) contains the following 

subordinate goals [Contracting Officer insert 

percentages]: 

(A) Small Disadvantaged Business—ll% 

(B) Women-Owned Small Business—ll 

% 

(C) Service-Disabled Veteran-Owned Small 

Business—ll% 

(D) HUBZone Small Business—ll% 

(End of Provision) 

102. Add 2452.227–70 to read as 

follows: 

2452.227–70 Government information. 

As prescribed in 2427.470, use the 

following clause: 

GOVERNMENT INFORMATION (* * *) 

(a) Definitions. As used in this clause, 

‘‘Government information’’ includes— 

‘‘Contractor-acquired information,’’ which 

means information acquired or otherwise 

collected by the Contractor on behalf of the 

Government in the context of the Contractor’s 

duties under the contract. 

‘‘Government-furnished information 

(GFI),’’ which means information in the 

possession of, or directly acquired by, the 

Government and subsequently furnished to 

the Contractor for performance of a contract. 

GFI also includes contractor-acquired 

information if the contractor-acquired 

information is a deliverable under the 

contract and is for continued use under the 

contract. Otherwise, GFI does not include 

information that is created by the Contractor 

and delivered to the Government in 

accordance with the requirements of the 

work statement or specifications of the 

contract. The type, quantity, quality, and 

delivery requirements of such deliverable 

information are set forth elsewhere in the 

contract schedule. 

(b) Information Management and 

Information Security. 

(1) The Contractor shall manage, account 

for, and secure all Government information 

provided or acquired by the contractor. The 

Contractor shall be responsible for all 

Government information provided to its 

subcontractors. The Contractor agrees to 

include a requirement in each subcontract 

under this contract that flows down the 

protection from disclosure requirements. 

(2) The Contractor’s responsibility for 

Government information extends from the 

initial provision or acquisition and receipt of 

information, through stewardship, custody, 

and use until returned to, or otherwise 

disposed of, as directed by the Contracting 

Officer. This requirement applies to all 

Government information under the 

Contractor’s accountability, stewardship, 

possession or control, including its 

subcontractors. 

(c) Use of Government information. (1) The 

Contractor shall not use any information 

provided or acquired under this contract for 

any purpose other than in the performance of 

this contract. 

(2) The Contractor shall not modify or alter 

the Government information, unless 

authorized in writing, in advance, by the 

Contracting Officer. 

(d) Government-furnished information. (1) 

The Government shall deliver to the 

Contractor the information described 

below— 

Description 

Date to be Provided 

[Contracting Officer insert] 

(2) The delivery and/or performance dates 

specified in this contract are based upon the 

expectation that the Government-furnished 

information will be suitable for contract 

performance and will be delivered to the 

Contractor by the dates stated in paragraph 

(d)(1) of this clause. 

(i) The Government does not warrant the 

validity or accuracy of the Governmentfurnished information unless otherwise 

noted. 

(ii) In the event that information received 

by the Contractor is not in a condition 

suitable for its intended use, the Contractor 

shall immediately notify the Contracting 

Officer in writing. Upon receipt of the 

Contractor’s notification, the Contracting 

Officer shall advise the Contractor on a 

course of action to remedy the problem. 

(iii) If either the failure of the Government 

to provide information to the Contractor by 

the dates shown in this clause or the 

remedial action taken under this clause to 

correct defective information causes an 

increase or decrease in the Contractor’s cost 

of, or the time required for, the performance 

of any part of the work under this contract, 

the Contracting Officer shall consider an 

equitable adjustment to the contract. The 

Contractor shall provide to the Contracting 

Officer its written statement describing the 

general nature and amount of the equitable 

adjustment proposal within 30 days after the 

remedial action described in paragraph (ii) 

herein is completed, or within 30 days after 

the date upon which the Government failed 

to provide information, unless the 

Contracting Officer extends this period. 

(3)(i) The Contracting Officer may, by 

written notice, at any time— 

(A) Increase or decrease the amount of 

Government-furnished information under 

this contract; 

(B) Substitute other Government-furnished 

information for the information previously 

furnished, to be furnished, or to be acquired 

by the Contractor for the Government under 

this contract; or 

(C) Withdraw authority to use the 

information. 

(ii) Upon completion of any action(s) under 

paragraph (d)(3)(i) of this clause, and the 

Contractor’s timely written request, the 

Contracting Officer shall consider an 

equitable adjustment to the contract. 

(e) Rights in information. Government 

information is the property of the U.S. 

Government unless otherwise specifically 

identified. The specific rights in any other 

information acquired or created by the 

Contractor under this contract shall be as 

expressed in the ‘‘Rights in Data’’ clause 

contained in this contract. 

(f) Government access to information. The 

Government shall have the right to access 

any Government information maintained by 

the contractor and any subcontractors. The 

Contractor shall provide the Contracting 

Officer, and other duly authorized 


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Government representatives, with access to 

all Government information, including access 

to the Contractor’s facilities, as necessary, 

promptly upon written notification by the 

Contracting Officer. Such notification may be 

by electronic mail. 

(g) Contractor liability for Government 

information. (1) Unless otherwise provided 

for in the contract, the Contractor shall not 

be liable for loss, theft, damage, or 

destruction to the Government information 

furnished or acquired under this contract, 

except when the loss, theft, damage, or 

destruction is the result of the Contractor’s 

failure to properly manage, account for, and 

safeguard the information in accordance with 

this clause. 

(2) In the event of any loss, theft, damage, 

or destruction of Government information, 

the Contractor shall immediately take all 

reasonable actions necessary to protect the 

Government information from further loss, 

theft, damage, or destruction. 

(3) The Contractor shall do nothing to 

prejudice the Government’s rights to recover 

against third parties for any loss, theft, 

damage, or destruction of Government 

information. 

(h) Information alteration and disposal. 

Except as otherwise provided for in this 

contract, the Contractor shall not alter, 

destroy, or otherwise dispose of any 

Government information unless expressly 

directed by the Contracting Officer to do so. 

(i) Return of Government information to 

the Government. (1) The Government may 

require the Contractor to return Government 

Information to the Government at any time. 

Upon demand by the Contracting Officer or 

his/her representative, the Contractor shall 

return all Government information to the 

Government as directed by the Contracting 

Officer or other individual designated by the 

Contracting Officer. 

(2) The Contractor’s failure to return all 

information as directed, including directions 

regarding the time frames for delivery back 

to the Government and directions prescribing 

the form in which the data must be returned, 

shall be considered a breach of contract, and 

the Government shall have the right to 

physically remove the Government 

information from the Contractor, including 

removal of such information from the 

Contractor’s physical premises and from any 

electronic media (e.g., Contractor’s computer 

systems). 

(3) When required to return Government 

information to the Government, the 

Contractor shall do so at no cost to the 

Government. The Government shall not be 

responsible for the cost of data format 

conversion and the cost of delivery, if any. 

(4) The Contractor shall ensure that all 

Government information provided to 

subcontractors is returned to the 

Government. 

(j) Equitable adjustment. Equitable 

adjustments under this clause shall be made 

in accordance with the procedures of the 

Changes clause. However, the Government 

shall not be liable for breach of contract for 

the following: 

(1) Any delay in delivery of Governmentfurnished information. 

(2) Delivery of Government-furnished 

information in a condition not suitable for its 

intended use. 

(3) An increase, decrease, or substitution of 

Government-furnished information. 

(4) Failure to correct or replace 

Government information for which the 

Government is responsible. 

Alternate I. When the contracting officer 

determines that the failure to return 

Government information as provided for in 

paragraph (i) shall result in a monetary 

damage to the Government, the contracting 

officer shall include the following 

subparagraph (i)(5). The contracting officer 

shall consult the requiring activity to 

determine an amount or percentage that 

accurately reflects the damages to the 

Government. 

(5) In the event of Contractor delay in 

returning the Government Information to the 

Government, for each calendar day late, the 

Contracting Officer has the discretion to 

deduct ll[Contracting Officer insert dollar 

amount or percentage] from the total value of 

the contract, and/or withhold payment from 

the Contractor 

(k) Subcontracts. The Contractor shall 

ensure that all subcontracts under which 

Government information is provided to a 

subcontractor include the basic terms and 

conditions set forth in paragraphs (a), (b), (c), 

(f), and (h) of this clause in each subcontract. 

Subcontracts shall clearly describe the 

Government information provided to the 

subcontractor. The Contractor shall be 

responsible for all Government information 

provided to subcontractors. 

(End of clause) 

103. Revise 2452.232 to read as 

follows: 

2452.232–70 Payment schedule and 

invoice submission (Fixed-price). 

As prescribed in 2432.908(c)(1), insert 

the following clause in all fixed-price 

solicitations and contracts: 

PAYMENT SCHEDULE AND INVOICE 

SUBMISSION (FIXED-PRICE) (* * *) 

(a) Payment Schedule. Payment of the 

contract price (see Section B of the contract) 

will be made upon completion and 

acceptance of all work unless a partial 

payment schedule is included below 

[Contracting Officer insert schedule 

information]: 

Partial 

payment 

number 

Applicable 

contract 

deliverable 

Delivery 

date 

Payment 

amount 

1. 

2. 

3. 

[Continue as necessary] 

(b) Submission of Invoices. (1) The 

Contractor shall submit invoices as follows: 

original to the payment office and one copy 

each to the Contracting Officer and a copy to 

the Government Technical Representative 

(GTR) identified in the contract. To 

constitute a proper invoice, the invoice must 

include all items required by the FAR clause 

at 52.232–25, ‘‘Prompt Payment.’’ 

(2) To assist the government in making 

timely payments, the contractor is also 

requested to include on each invoice the 

appropriation number shown on the contract 

award document (e.g., block 14 of the 

Standard Form (SF) 26, block 21 of the SF– 

33, or block 25 of the SF–1449). The 

contractor is also requested to clearly 

indicate on the mailing envelope that an 

invoice is enclosed. 

(c) Contractor Remittance Information. The 

contractor shall provide the payment office 

with all information required by other 

payment clauses or other supplemental 

information (e.g., contracts for commercial 

services) contained in this contract. 

(d) Final Invoice Payment. The final 

invoice shall not be paid prior to certification 

by the Contracting Officer that all work has 

been completed and accepted. 

(End of clause) 

104. Revise 2452.232–71 to read as 

follows: 

2452.232–71 Voucher submission. 

As prescribed in 2432.908(c)(2), insert 

the following clause in all costreimbursement, time-and-materials, and 

labor-hour solicitations and contracts: 

VOUCHER SUBMISSION (* * *) 

(a) Voucher Submission. (1) The contractor 

shall submit, llllll [Contracting 

Officer insert billing period, e.g., monthly], an 

original and two copies of each voucher. In 

addition to the items required by the clause 

at FAR 52.232–25, Prompt Payment, the 

voucher shall show the elements of cost for 

the billing period and the cumulative costs 

to date. The Contractor shall submit all 

vouchers, except for the final voucher, as 

follows: original to the payment office and 

one copy each to the Contracting Officer and 

the Government Technical Representative 

(GTR) identified in the contract. The 

contractor shall submit all copies of the final 

voucher to the Contracting Officer. 

(2) To assist the government in making 

timely payments, the contractor is requested 

to include on each voucher the applicable 

appropriation number(s) shown on the award 

or subsequent modification document (e.g., 

block 14 of the Standard Form (SF) 26, or 

block 21 of the SF–33). The contractor is also 

requested to clearly indicate on the mailing 

envelope that a payment voucher is enclosed. 

(b) Contractor Remittance Information. (1) 

The Contractor shall provide the payment 

office with all information required by other 

payment clauses contained in this contract. 

(2) For time-and-materials and labor-hour 

contracts, the Contractor shall aggregate 

vouchered costs by the individual task for 

which the costs were incurred and clearly 

identify the task or job. 

(c) Final Payment. The final payment shall 

not be made until the Contracting Officer has 

certified that the contractor has complied 

with all terms of the contract. 

(End of clause) 

105. Add section 2452.232–72 to read 

as follows: 


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2452.232–72 Limitation of Government’s 

obligation. 

As prescribed in 2432.705–70, use the 

following clause: 

LIMITATION OF GOVERNMENT’S 

OBLIGATION (* * *) 

(a) Funds are not available for full funding 

of all contract line items under this contract. 

The incrementally funded line items and 

their anticipated funding schedule are as 

follows: 

Contract line item number Total price Amount of current funding Anticipated date(s) of 

future funding 

The contracting officer will revise this 

table as funds are allotted to the contract. 

(b) For the incrementally funded line 

item(s) in paragraph (a) of this clause, the 

Contractor agrees to perform up to the point 

at which the total amount payable by the 

Government, including reimbursement in the 

event of termination of those item(s) for the 

Government’s convenience, approximates the 

total amount currently allotted to the contract 

for these contract line items. The Contractor 

is not authorized to continue work on the 

incrementally funded line item(s) beyond 

that point. The Government will in no event 

be obligated to reimburse the Contractor in 

excess of the amount allotted to the contract 

for the incrementally funded line item(s) 

regardless of anything to the contrary in the 

clause entitled ‘‘Termination for 

Convenience of the Government.’’ As used in 

this clause, the total amount payable by the 

Government in the event of termination for 

convenience of applicable line item(s) 

includes costs, profit, and estimated 

termination settlement costs for those line 

item(s). 

(c) Notwithstanding the dates specified in 

the allotment schedule in paragraph (a) of 

this clause, the Contractor will notify the 

Contracting Officer in writing at least l [90 

days unless the Contracting Officer inserts a 

different number] days prior to the date 

when, in the Contractor’s best judgment, the 

work will reach the point at which the total 

amount payable by the Government, 

including any cost for termination for 

convenience, will approximate 85 percent of 

the total amount then allotted to the contract 

for performance of the applicable line 

item(s). This notification will state: The 

estimated date when that point will be 

reached; and an estimate of the amount of 

additional funding, if any, needed to 

continue performance of the applicable line 

items up to the next scheduled date for 

allotment of funds identified in paragraph (a) 

of this clause (or to another mutually agreedupon date). The notification will also advise 

the Contracting Officer of the estimated 

amount of additional funds that will be 

required for the timely performance of the 

line item(s) funded pursuant to this clause, 

for a subsequent period as may be specified 

in the allotment schedule in paragraph (a) of 

this clause or otherwise agreed to by the 

parties. If after such notification additional 

funds are not allotted by the date identified 

in the Contractor’s notification, or by an 

agreed-upon date, the Contracting Officer 

will terminate any line item(s) for which 

additional funds have not been allotted, 

pursuant to the clause of this contract 

entitled ‘‘Termination for Convenience of the 

Government.’’ 

(d) When additional funds are allotted for 

continued performance of the incrementally 

funded line item(s), the parties will agree to 

the period of contract performance covered 

by the funds. The provisions of paragraphs 

(b) through (d) of this clause will apply in 

like manner to the additional allotted funds 

and agreed-upon date(s), and the contract 

will be modified accordingly. 

(e) If the Contractor incurs additional costs 

or is delayed in the performance of the work 

under this contract solely by reason of the 

failure of the Government to allot additional 

funds in amounts sufficient for timely 

performance of the incrementally funded line 

item(s), and then additional funds are 

allotted, an equitable adjustment will be 

made in the line item price(s) or in the time 

of delivery, or both. Failure to agree to any 

such equitable adjustment hereunder shall be 

considered a dispute subject to the 

‘‘Disputes’’ clause in this contract. 

(f) The Government may allot additional 

funds for the performance of the 

incrementally-funded line item(s) at any time 

prior to termination. 

(g) The termination provisions of this 

clause do not limit the rights of the 

Government under the clause entitled 

‘‘Default.’’ The provisions of this clause are 

limited to the work and allotment of funds 

for the incrementally funded line item(s) and 

will no longer apply once the contract is fully 

funded except with regard to the rights or 

obligations of the parties concerning 

equitable adjustments negotiated under 

paragraphs (d) and (e) of this clause. 

(h) Nothing in this clause affects the right 

of the Government to terminate this contract 

pursuant to the clause of this contract 

entitled ‘‘Termination for Convenience of the 

Government.’’ 

(i) Nothing in this clause shall be 

construed as authorization of voluntary 

services whose acceptance is otherwise 

prohibited under 31 U.S.C. 1342. 

(End of clause) 

106. Add 2452.232–73 to read as 

follows: 

2452.232–73 Constructive acceptance 

period. 

As prescribed in 2432.908, insert the 

following clause: 

CONSTRUCTIVE ACCEPTANCE PERIOD 

(* * *) 

As authorized by FAR 32.908(c)(1), the 

constructive acceptance period in paragraph 

(a)(5)(i) of the clause at FAR 52.232–25, 

‘‘Prompt Payment,’’ under this contract is 

ll [Contracting Officer insert number] 

calendar days. 

(End of clause) 

107. In 2452.237–70, revise the 

introductory text to read as follows: 

2452.237–70 Key personnel. 

As prescribed in 2437.110(e)(1), insert 

the following clause in solicitations and 

contracts when it is necessary for 

contract performance to identify the 

contractor’s key personnel: 

* * * * * 

2452.237–72 [redesignated] 

108. Redesignate 2452.237–72 as 

2452.201–70, and revise the 

introductory text to read as follows: 

2452.201–70 Coordination of Data 

Collection Activities. 

As prescribed in 2401.106–70, insert 

the following clause in solicitations and 

contracts where the contractor is 

required to collect identical information 

from ten or more public respondents: 

* * * * * 

109. In 2452.237–73, revise the 

introductory text and paragraph (a) to 

read as follows: 

2452.237–73 Conduct of work and 

technical guidance. 

As prescribed in 2437.110(e)(2), insert 

the following clause in all contracts for 

services: 


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CONDUCT OF WORK AND TECHNICAL 

GUIDANCE (* * *) 

(a) The Contracting Officer will provide the 

contractor with the name and contact 

information of the Government Technical 

Representative (GTR) assigned to this 

contract. The GTR will serve as the 

contractor’s liaison with the Contracting 

Officer with regard to the conduct of work. 

The Contracting Officer will notify the 

contractor in writing of any change to the 

current GTR’s status or the designation of a 

successor GTR. 

* * * * * 

110. Revise 2452.237–75 to read as 

follows: 

2452.237–75 Access to HUD facilities. 

As prescribed in 2437.110(e)(3), insert 

the following clause in solicitations and 

contracts: 

ACCESS TO HUD FACILITIES (* * *) 

(a) Definitions. As used in this clause— 

‘‘Access’’ means physical entry into and, to 

the extent authorized, mobility within a 

Government facility. 

‘‘Contractor employee’’ means an employee 

of the prime contractor or of any 

subcontractor, affiliate, partner, joint venture, 

or team members with which the contractor 

is associated. It also includes consultants 

engaged by any of those entities. 

‘‘Facility’’ and ‘‘Government facility’’ mean 

buildings, including areas within buildings 

that are owned, leased, shared, occupied, or 

otherwise controlled by the Federal 

Government. 

‘‘NACI’’ means National Agency Check 

with Inquiries, the minimum background 

investigation prescribed by the U.S. Office of 

Personnel Management. 

‘‘PIV Card’’ means the Personal Identity 

Verification (PIV) Card, the Federal 

Government-issued identification credential 

(identification badge). 

(b) General. The performance of this 

contract requires contractor employees to 

have access to HUD facilities. All such 

employees who do not already possess a 

current PIV Card acceptable to HUD shall be 

required to provide personal background 

information, undergo a background 

investigation (NACI or other OPM-required 

or approved investigation), including an FBI 

National Criminal History Fingerprint Check, 

and obtain a PIV Card prior to being 

permitted access to any such facility in 

performance of this contract. HUD may 

accept a PIV Card issued by another Federal 

Government agency but shall not be required 

to do so. No contractor employee will be 

permitted access to a HUD facility without a 

proper PIV Card. 

(c) Background information. (1) For each 

contractor employee subject to the 

requirements of this clause and not in 

possession of a current PIV Card acceptable 

to HUD, the contractor shall submit the 

following properly completed forms: 

Standard Form (SF) 85, ‘‘Questionnaire for 

Non-sensitive Positions,’’ FD 258 

(Fingerprint Chart), and a partial Optional 

Form (OF) 306 (Items 1, 2, 6, 8–13, 16, and 

17). The SF–85 and OF–306 are available 

from the OPM Web site, http://www.opm.gov. 

The GTR will provide all other forms that are 

not obtainable via the Internet. 

(2) The contractor shall deliver the forms 

and information required in subparagraph 

(c)(1) to the GTR. 

(3) The information provided in 

accordance with paragraph (c)(1) will be used 

to perform a background investigation to 

determine the suitability of the contractor 

employees to have access to Government 

facilities. After completion of the 

investigation, the GTR will notify the 

contractor in writing when any contractor 

employee is determined to be unsuitable for 

access to a Government facility. The 

contractor shall immediately remove such 

employee(s) from work on this contract that 

requires physical presence in a Government 

facility. 

(4) Affected contractor employees who 

have had a federal background investigation 

without a subsequent break in federal 

employment or federal contract service 

exceeding 2 years may be exempt from the 

investigation requirements of this clause 

subject to verification of the previous 

investigation. For each such employee, the 

contractor shall submit the following 

information in lieu of the forms and 

information listed in subparagraph (c)(1): 

employee’s full name, Social Security 

Number, and place and date of birth. 

(d) PIV Cards. (1) HUD will issue a PIV 

Card to each contractor employee who is to 

be given access to HUD facilities and who 

does not already possess a PIV Card 

acceptable to HUD (see paragraph (b)). HUD 

will not issue the PIV Card until the 

contractor employee has successfully cleared 

the FBI National Criminal History 

Fingerprint Check and HUD has initiated the 

background investigation for the contractor 

employee. Initiation is defined to mean that 

all background information required in 

paragraph (c)(1) has been delivered to HUD. 

The employee may not be given access prior 

to those two events. HUD may issue a PIV 

Card and grant access pending the 

completion of the background investigation. 

HUD will revoke the PIV Card and the 

employee’s access if the background 

investigation process (including adjudication 

of investigation results) for the employee has 

not been completed within 6 months after the 

issuance of the PIV Card. 

(2) PIV Cards shall identify individuals as 

contractor employees. Contractor employees 

shall display their PIV Cards on their persons 

at all times while working in a HUD facility, 

and shall present cards for inspection upon 

request by HUD officials or HUD security 

personnel. 

(3) The contractor shall be responsible for 

all PIV Cards issued to the contractor’s 

employees and shall immediately notify the 

GTR if any PIV Card(s) cannot be accounted 

for. The contractor shall promptly return PIV 

Cards to HUD as required by the FAR clause 

at 2.204–9. The contractor shall notify the 

GTR immediately whenever any contractor 

employee no longer has a need for his/her 

HUD-issued PIV Card (e.g., employee 

terminates employment with the contractor, 

employee’s duties no longer require access to 

HUD facilities). The GTR will instruct the 

contractor as to how to return the PIV Card. 

Upon expiration of this contract, the GTR 

will instruct the contractor as to how to 

return all HUD-issued PIV Cards not 

previously returned. Unless otherwise 

directed by the Contracting Officer, the 

contractor shall not return PIV Cards to any 

person other than the GTR. 

(e) Control of access. HUD shall have, and 

exercise, complete control over granting, 

denying, withholding, and terminating access 

of contractor employees to HUD facilities. 

The GTR will notify the contractor 

immediately when HUD has determined that 

an employee is unsuitable or unfit to be 

permitted access to a HUD facility. The 

contractor shall immediately notify such 

employee that he/she no longer has access to 

any HUD facility, remove the employee from 

any such facility that he/she may be in, and 

provide a suitable replacement in accordance 

with the requirements of this clause. 

(f) Access to HUD information systems. If 

this contract requires contractor employees to 

have access to HUD information system(s), 

application(s), or information contained in 

such systems, the contractor shall comply 

with all requirements of HUDAR clause 

2452.239–70, Access to HUD Systems, 

including providing for each affected 

employee any additional background 

investigation forms prescribed in that clause. 

(g) Subcontracts. The contractor shall 

incorporate this clause in all subcontracts 

where the requirements specified in 

paragraph (b) of this section are applicable to 

performance of the subcontract. 

(End of clause) 

111. In 2452.237–77, revise the 

section heading and introductory text to 

read as follows: 

2452.237–77 Temporary closure of HUD 

facilities. 

As prescribed in 2437.110(e)(4), insert 

the following clause: 

TEMPORARY CLOSURE OF HUD 

FACILITIES (* * *) 

* * * * * 

112. Revise 2452.239–70 to read as 

follows: 

2452.239–70 Access to HUD systems. 

As prescribed in 2439.107(a), insert 

the following clause: 

ACCESS TO HUD SYSTEMS (* * *) 

(a) Definitions: As used in this clause— 

‘‘Access’’ means the ability to obtain, view, 

read, modify, delete, and/or otherwise make 

use of information resources. 

‘‘Application’’ means the use of 

information resources (information and 

information technology) to satisfy a specific 

set of user requirements (see OMB Circular 

A–130). 

‘‘Contractor employee’’ means an employee 

of the prime contractor or of any 

subcontractor, affiliate, partner, joint venture, 

or team members with which the contractor 

is associated. It also includes consultants 

engaged by any of those entities. 

‘‘Mission-critical system’’ means an 

information technology or 


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telecommunications system used or operated 

by HUD or by a HUD contractor, or 

organization on behalf of HUD, that processes 

any information, the loss, misuse, disclosure, 

or unauthorized access to, or modification of 

which would have a debilitating impact on 

the mission of the agency. 

‘‘NACI’’ means a National Agency Check 

with Inquiries, the minimum background 

investigation prescribed by OPM. 

‘‘PIV Card’’ means the Personal Identity 

Verification (PIV) Card, the Federal 

Government-issued identification credential 

(i.e., identification badge). 

‘‘Sensitive information’’ means any 

information of which the loss, misuse, or 

unauthorized access to, or modification of, 

could adversely affect the national interest, 

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. 

‘‘System’’ means an interconnected set of 

information resources under the same direct 

management control, which shares common 

functionality. A system normally includes 

hardware, software, information, data, 

applications, communications, and people 

(see OMB Circular A–130). System includes 

any system owned by HUD or owned and 

operated on HUD’s behalf by another party. 

(b) General. (1) The performance of this 

contract requires contractor employees to 

have access to a HUD system or systems. All 

such employees who do not already possess 

a current PIV Card acceptable to HUD shall 

be required to provide personal background 

information, undergo a background 

investigation (NACI or other OPM-required 

or approved investigation), including an FBI 

National Criminal History Fingerprint Check, 

and obtain a PIV Card prior to being 

permitted access to any such system in 

performance of this contract. HUD may 

accept a PIV Card issued by another Federal 

Government agency but shall not be required 

to do so. No contractor employee will be 

permitted access to any HUD system without 

a PIV Card. 

(2) All contractor employees who require 

access to mission-critical systems or sensitive 

information contained within a HUD system 

or application(s) are required to have a more 

extensive background investigation. The 

investigation shall be commensurate with the 

risk and security controls involved in 

managing, using, or operating the system or 

applications(s). 

(c) Citizenship-related requirements. Each 

affected contractor employee as described in 

paragraph (b) shall be: 

(1) A United States (U.S.) citizen; or, 

(2) A national of the United States (see 8 

U.S.C. 1408); or, 

(3) An alien lawfully admitted into, and 

lawfully permitted to be employed in the 

United States, provided that for any such 

individual, the Government is able to obtain 

sufficient background information to 

complete the investigation as required by this 

clause. Failure on the part of the contractor 

to provide sufficient information to perform 

a required investigation or the inability of the 

Government to verify information provided 

for affected contractor employees will result 

in denial of their access. 

(d) Background investigation process: (1) 

The Government Technical Representative 

(GTR) shall notify the contractor of those 

contractor employee positions requiring 

background investigations. 

(i) For each contractor employee requiring 

access to HUD information systems, the 

contractor shall submit the following 

properly completed forms: Standard Form 

(SF) 85, ‘‘Questionnaire for Non-Sensitive 

Positions,’’ FD 258 (Fingerprint Chart), and a 

partial Optional Form (OF) 306 (Items 1, 2, 

6, 8–13, 16, and 17). 

(ii) For each contractor employee requiring 

access to mission-critical systems and/or 

sensitive information contained within a 

HUD system and/or application(s), the 

contractor shall submit the following 

properly completed forms: SF–85P, 

‘‘Questionnaire for Public Trust Positions;’’ 

FD 258; and a Fair Credit Reporting Act form 

(authorization for the credit-check portion of 

the investigation). Contractor employees 

shall not complete the Medical Release 

behind the SF–85P. 

(iii) The SF–85, 85P, and OF–306 are 

available from OPM’s Web site, http:// 

www.opm.gov. The GTR will provide all 

other forms that are not obtainable via the 

Internet. 

(2) The contractor shall deliver the forms 

and information required in subparagraph 

(d)(1) to the GTR. 

(3) Affected contractor employees who 

have had a federal background investigation 

without a subsequent break in federal 

employment or federal contract service 

exceeding 2 years may be exempt from the 

investigation requirements of this clause 

subject to verification of the previous 

investigation. For each such employee, the 

contractor shall submit the following 

information in lieu of the forms and 

information listed in subparagraph (d)(1): 

employee’s full name, Social Security 

number, and place and date of birth. 

(4) The investigation process shall consist 

of a range of personal background inquiries 

and contacts (written and personal) and 

verification of the information provided on 

the investigative forms described in 

paragraph (d)(1). 

(5) Upon completion of the investigation 

process, the GTR will notify the contractor if 

any contractor employee is determined to be 

unsuitable to have access to the system(s), 

application(s), or information. Such an 

employee may not be given access to those 

resources. If any such employee has already 

been given access pending the results of the 

background investigation, the contractor 

shall ensure that the employee’s access is 

revoked immediately upon receipt of the 

GTR’s notification. 

(6) Failure of the GTR to notify the 

contractor (see paragraph (d)(1)) of any 

employee who should be subject to the 

requirements of this clause and is known, or 

should reasonably be known, by the 

contractor to be subject to the requirements 

of this clause, shall not excuse the contractor 

from making such employee(s) known to the 

GTR. Any such employee who is identified 

and is working under the contract, without 

having had the appropriate background 

investigation or furnished the required forms 

for the investigation, shall cease to perform 

such work immediately and shall not be 

given access to the system(s)/application(s) 

described in paragraph (b) until the 

contractor has provided the investigative 

forms required in paragraph (d)(1) for the 

employee to the GTR. 

(7) The contractor shall notify the GTR in 

writing whenever a contractor employee for 

whom a background investigation package 

was required and submitted to HUD, or for 

whom a background investigation was 

completed, terminates employment with the 

contractor or otherwise is no longer 

performing work under this contract that 

requires access to the system(s), 

application(s), or information. The contractor 

shall provide a copy of the written notice to 

the Contracting Officer. 

(e) PIV Cards. (1) HUD will issue a PIV 

Card to each contractor employee who is to 

be given access to HUD systems and does not 

already possess a PIV Card acceptable to 

HUD (see paragraph (b)). HUD will not issue 

the PIV Card until the contractor employee 

has successfully cleared an FBI National 

Criminal History Fingerprint Check, and 

HUD has initiated the background 

investigation for the contractor employee. 

Initiation is defined to mean that all 

background information required in 

paragraph (d)(1) has been delivered to HUD. 

The employee may not be given access prior 

to those two events. HUD may issue a PIV 

Card and grant access pending the 

completion of the background investigation. 

HUD will revoke the PIV Card and the 

employee’s access if the background 

investigation process (including adjudication 

of investigation results) for the employee has 

not been completed within 6 months after the 

issuance of the PIV Card. 

(2) PIV Cards shall identify individuals as 

contractor employees. Contractor employees 

shall display their PIV Cards on their persons 

at all times while working in a HUD facility, 

and shall present cards for inspection upon 

request by HUD officials or HUD security 

personnel. 

(3) The contractor shall be responsible for 

all PIV Cards issued to the contractor’s 

employees and shall immediately notify the 

GTR if any PIV Card(s) cannot be accounted 

for. The contractor shall promptly return PIV 

Cards to HUD as required by the FAR clause 

at 52.204–9. The contractor shall notify the 

GTR immediately whenever any contractor 

employee no longer has a need for his/her 

HUD-issued PIV Card (e.g., the employee 

terminates employment with the contractor, 

the employee’s duties no longer require 

access to HUD systems). The GTR will 

instruct the contractor as to how to return the 

PIV Card. Upon expiration of this contract, 

the GTR will instruct the contractor as to 

how to return all HUD-issued PIV Cards not 

previously returned. Unless otherwise 

directed by the Contracting Officer, the 

contractor shall not return PIV Cards to any 

person other than the GTR. 

(f) Control of access. HUD shall have and 

exercise full and complete control over 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 77, No. 52 / Friday, March 16, 2012 / Proposed Rules 15701 

granting, denying, withholding, and 

terminating access of contractor employees to 

HUD systems. The GTR will notify the 

contractor immediately when HUD has 

determined that an employee is unsuitable or 

unfit to be permitted access to a HUD system. 

The contractor shall immediately notify such 

employee that he/she no longer has access to 

any HUD system, physically retrieve the 

employee’s PIV Card from the employee, and 

provide a suitable replacement employee in 

accordance with the requirements of this 

clause. 

(g) Incident response notification. An 

incident is defined as an event, either 

accidental or deliberate, that results in 

unauthorized access, loss, disclosure, 

modification, or destruction of information 

technology systems, applications, or data. 

The contractor shall immediately notify the 

GTR and the Contracting Officer of any 

known or suspected incident, or any 

unauthorized disclosure of the information 

contained in the system(s) to which the 

contractor has access. 

(h) Nondisclosure of information. (1) 

Neither the contractor nor any of its 

employees shall divulge or release data or 

information developed or obtained during 

performance of this contract, except to 

authorized government personnel with an 

established need to know, or upon written 

approval of the Contracting Officer. 

Information contained in all source 

documents and other media provided by 

HUD is the sole property of HUD. 

(2) The contractor shall require that all 

employees who may have access to the 

system(s)/applications(s) identified in 

paragraph (b) sign a pledge of nondisclosure 

of information. The employees shall sign 

these pledges before they are permitted to 

perform work under this contract. The 

contractor shall maintain the signed pledges 

for a period of 3 years after final payment 

under this contract. The contractor shall 

provide a copy of these pledges to the GTR. 

(i) Security procedures. (1) The Contractor 

shall comply with applicable federal and 

HUD statutes, regulations, policies, and 

procedures governing the security of the 

system(s) to which the contractor’s 

employees have access including, but not 

limited to: 

(i) The Federal Information Security 

Management Act (FISMA) of 2002; 

(ii) OMB Circular A–130, Management of 

Federal Information Resources, Appendix III, 

Security of Federal Automated Information 

Resources; 

(iii) HUD Handbook 2400.25, Information 

Technology Security Policy; 

(iv) HUD Handbook 732.3, Personnel 

Security/Suitability; 

(v) Federal Information Processing 

Standards 201 (FIPS 201), Sections 2.1 and 

2.2; 

(vi) Homeland Security Presidential 

Directive 12 (HSPD–12); and 

(vii) OMB Memorandum M–05–24, 

Implementing Guidance for HSPD–12. 

The HUD Handbooks are available online 

at: http://www.hud.gov/offices/adm/ 

hudclips/ or from the GTR. 

(2) The contractor shall develop and 

maintain a compliance matrix that lists each 

requirement set forth in paragraphs, (b), (c), 

(d), (e), (f), (g), (h), (i)(1), and (m) of this 

clause with specific actions taken, and/or 

procedures implemented, to satisfy each 

requirement. The contractor shall identify an 

accountable person for each requirement, the 

date upon which actions/procedures were 

initiated/completed, and certify that 

information contained in this compliance 

matrix is correct. The contractor shall ensure 

that information in this compliance matrix is 

complete, accurate, and up-to-date at all 

times for the duration of this contract. Upon 

request, the contractor shall provide copies of 

the current matrix to HUD. 

(3) The Contractor shall ensure that its 

employees, in performance of the contract, 

receive annual training (or once if the 

contract is for less than one year) in HUD 

information technology security policies, 

procedures, computer ethics, and best 

practices in accordance with HUD Handbook 

2400.25. 

(j) Access to contractor’s systems. The 

Contractor shall afford HUD, including the 

Office of Inspector General, access to the 

Contractor’s facilities, installations, 

operations, documentation (including the 

compliance matrix required under paragraph 

(i)(2)), databases, and personnel used in 

performance of the contract. Access shall be 

provided to the extent required to carry out, 

but not limited to, any information security 

program activities, investigation, and audit to 

safeguard against threats and hazards to the 

integrity, availability, and confidentiality of 

HUD data and systems, or to the function of 

information systems operated on behalf of 

HUD, and to preserve evidence of computer 

crime. 

(k) Contractor compliance with this clause. 

Failure on the part of the contractor to 

comply with the terms of this clause may 

result in termination of this contract for 

default. 

(l) Physical access to Federal Government 

facilities. The contractor and any 

subcontractor(s) shall also comply with the 

requirements of HUDAR clause 2452.237 75 

when the contractor’s or subcontractor’s 

employees will perform any work under this 

contract on site in a HUD or other Federal 

Government facility. 

(m) Subcontracts. The contractor shall 

incorporate this clause in all subcontracts 

where the requirements specified in 

paragraph (b) of this section are applicable to 

performance of the subcontract. 

(End of clause) 

Dated: February 10, 2012. 

Jemine A. Bryon, 

Chief Procurement Officer. 

[FR Doc. 2012–6165 Filed 3–15–12; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Parts 600 and 635 

[Docket No. 080603729–8750–01] 

RIN 0648–AW83 

Highly Migratory Species; 2006 

Consolidated Highly Migratory Species 

Fishery Management Plan; 

Amendment 4 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Proposed rule; request for 

comments. 

SUMMARY: This fishery management plan 

(FMP) amendment addresses Atlantic 

highly migratory species (HMS) fishery 

management measures in the U.S. 

Caribbean Region. There are substantial 

differences between some segments of 

the HMS fisheries in the Caribbean 

Region and the HMS fisheries that occur 

off the mainland of the United States, 

including: Limited fishing permit and 

dealer permit possession; smaller 

vessels; limited availability of 

processing and cold storage facilities; 

shorter trips; limited profit margins; and 

high local consumption of catches. 

These differences can sometimes create 

an awkward fit between current Federal 

HMS fishery regulations applicable to 

the whole Atlantic HMS fishery and the 

traditional operation of Caribbean 

fisheries, which has led to fewer 

Caribbean Region fishermen and vessels 

obtaining required permits and 

reporting data needed for effective 

fisheries management. NMFS is 

proposing management measures that 

would amend the HMS fishery 

management regulations for the U.S. 

Caribbean Region to better correspond 

with the traditional operation of the 

fishing fleet in the region and to provide 

NMFS with an improved capability to 

monitor and sustainably manage those 

fisheries. With this amendment, NMFS 

proposes to create an HMS Caribbean 

Small Boat Commercial Permit (CSBP) 

allowing fishing for and sales of bigeye, 

albacore, yellowfin, and skipjack 

(BAYS) tunas, Atlantic swordfish, and 

Atlantic sharks within local Caribbean 

markets. The proposed CSBP 

management measures include specific 

authorized species and retention limits, 

modification of reporting requirements, 

authorization of specific gears, vessel 

size restrictions, and consideration of 

mandatory workshop training. 


tkelley on DSK3SPTVN1PROD with PROPOSALS