[Federal Register Volume 63, Number 88 (Thursday, May 7, 1998)]
[Proposed Rules]
[Pages 25382-25386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2096]


      

[[Page 25381]]

_______________________________________________________________________

Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Part 1, et al.



Federal Acquisition Regulation; Review of FAR Representations; Proposed 
Rule

Federal Register / Vol. 63, No. 88 / Thursday, May 7, 1998 / Proposed 
Rules

[[Page 25382]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 4, 12, 14, 19, 26, 27, 32, 41, and 52

[FAR Case 96-013]
RIN 9000-AH97


Federal Acquisition Regulation; Review of FAR Representations

AGENCY: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to amend the Federal 
Acquisition Regulation (FAR) to remove or reduce certain requirements 
for representations and other statements from offerors and contractors. 
This regulatory action was not subject to Office of Management and 
Budget review under Executive Order 12866, dated September 30, 1993. 
This is not a major rule under 5 U.S.C. 804.

DATES: Comments should be submitted on or before July 6, 1998, to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVRS), 1800 F Street, 
NW, Room 4035, Washington, DC 20405.
    E-mail comments submitted over Internet should be addressed to: 
<a href="/cdn-cgi/l/email-protection#0a6c6b78696b796f24333c273a3b394a6d796b246d657c"><span class="__cf_email__" data-cfemail="88eee9faebe9fbeda6b1bea5b8b9bbc8effbe9a6efe7fe">[email protected]</span></a>.
    Please cite FAR case 96-013 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405, (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Paul Linfield, Procurement Analyst, at (202) 501-
1757. Please cite FAR case 96-013.

SUPPLEMENTARY INFORMATION:

A. Background

    This case was initiated in response to requests from industry to 
eliminate representations required by the FAR that place an unnecessary 
burden on offerors or contractors. This case proposes to--
    1. Delete the clause at 52.214-17, Affiliated bidders.
    2. Reduce the information collection requirements associated with 
the clauses at 52.204-5, Women-Owned Business; 52.212-3, Offeror 
Representations and Certifications--Commercial Items; 52.214-21, 
Descriptive Literature; and 52.241-1, Electric Service Territory 
Compliance Representation; and
    3. Reduce the level of affirmation or substitute a contract 
requirement in the clauses at 52.216-2, Economic Price Adjustment--
Standard Supplies; 52.216-3, Economic Price Adjustment--Semistandard 
Supplies; 52.222-43, Fair Labor Standards Act and Service Contracts 
Act--Price Adjustment (Multiple Year and Option Contracts); 52.222-44, 
Fair Labor Standards Act and Service Contract Act--Price Adjustment; 
52.225-10, Duty-Free Entry; 52.226-1, Utilization of Indian 
Organizations and Indian-Owned Economic Enterprises; 52.227-15, 
Representation of Limited Rights Data and Restricted Computer Software; 
52.228-8, Liability and Insurance--Leased Motor Vehicles; 52.228-9, 
Cargo Insurance; 52.229-3, Federal, State and Local Taxes; and 52.232-
12, Advance Payments.

B. Regulatory Flexibility Act

    This proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. While it is 
expected to reduce the administrative burden associated with 
representation requirements, it does not significantly alter the type 
of information to be provided to the Government under the amended 
provisions and clauses. An Initial Regulatory Flexibility Analysis has, 
therefore, not been performed. Comments from small entities concerning 
the affected FAR subpart will be considered in accordance with 5 U.S.C. 
610 of the Act. Such comments must be submitted separately and should 
cite 5 U.S.C. 601, et seq. (FAR case 96-013), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. 3501, et seq.) is deemed to 
apply because this proposed rule contains information collection 
requirements that will result in the reduction of approximately 119,150 
hours as stated and approved under the following Office of Management 
and Budget (OMB) Control Numbers:
    9000-0018, Certification of Independent Price Determination and 
Parent Company and Identifying Data (Deletion of 52.214-17, Affiliated 
Bidders.) Public reporting burden for this collection of information is 
estimated to average 0.1 hours per response, including the time for 
reviewing instruction, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    The annual reporting burden is estimated as follows:

------------------------------------------------------------------------
                                              Preparation       Total   
 Respondents   Responses per   Total annual    hours per      response  
                 respondent     responses      responses    burden hours
------------------------------------------------------------------------
64,250.......            20      1,285,000            .01        12,850 
------------------------------------------------------------------------

    9000-0039, Descriptive Literature (Revision of 52.214-21, 
Descriptive Literature). Public reporting burden for this collection of 
information is estimated to average .157 hours per response, including 
the time for reviewing instruction, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information.
    The annual reporting burden is estimated as follows:

------------------------------------------------------------------------
                                              Preparation       Total   
 Respondents   Responses per   Total annual    hours per      response  
                 respondent     responses      responses    burden hours
------------------------------------------------------------------------
3............          2663           7989           .157         1.254 
------------------------------------------------------------------------

    (c) 9000-0136, Solicitation/Contract/Order for Commercial Items 
(Revision of 52.212-3, Offeror Representations and Certifications--
Commercial Items). Public reporting burden for this collection of 
information is estimated to average

[[Page 25383]]

.74 hr. per response, including the time for reviewing instruction, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information.
    The annual reporting burden is estimated as follows:

------------------------------------------------------------------------
                                              Preparation       Total   
 Respondents   Responses per   Total annual    hours per      response  
                 respondent     responses      responses    burden hours
------------------------------------------------------------------------
500,000......            20     10,000,000            .74     7,394,050 
------------------------------------------------------------------------

    (d) 9000-0126, Electric Service Territory Compliance Representation 
(Revision of 52.241-1, Electric Service Territory Representations. 
Reduction from 500 hours to approximately 230 hours. A notice for 
public comment was published in the Federal Register at 63 FR 2218, 
January 14, 1998.
    (e) Although OMB Clearance Number 9000-0145, use of Data Universal 
Numbering System (DUNS) as Primary Contractor Identification (FAR Case 
95-307), ostensibly covers FAR clause 52.204-5, Women-Owned Business, 
the estimated burdens for that clearance appear to be based on the 
information collection requirements associated with use of the DUNS 
number. Therefore, although revisions to 52.204-5 will significantly 
reduce the number of responses required, we do not estimate any impact 
on the hours approved under 9000-0145.
    Accordingly, a request for review of a revised information 
collection requirement concerning the OMB clearance numbers noted above 
were submitted to the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

D. Request for Comments Regarding Paperwork Burden

    Members of the public are invited to comment on the recordkeeping 
and information collection requirements and estimates set forth above. 
Please send comments to: Office of Information and Regulatory Affairs, 
Office of Management and Budget, Attention: Mr. Peter N. Weiss, FAR 
Desk Officer, New Executive Office Building, Room 10102, 725 17th 
Street, NW. Washington, DC 20503.
    Also send a copy of any comments to the FAR Secretariat at the 
address shown under ADDRESSES. Please cite the corresponding OMB 
Clearance Number in all correspondence related to the estimate.

List of Subjects in 48 CFR Parts 1, 4, 12, 14, 19, 26, 27, 32, 41, 
and 52

    Government procurement.

    Dated: May 1, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, it is proposed that 48 CFR Parts 1, 4, 12, 14, 19, 26, 
27, 32, 41, and 52 be amended as set forth below:
    1. The authority citation for 48 CFR Parts 1, 4, 12, 14, 19, 26, 
27, 32, 41, and 52 continues to read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

    2. Section 1.106 is amended in the table following the introductory 
paragraph by removing the FAR segment ``52.214-17'' and its 
corresponding OMB Control Number ``9000-0018''; and by adding, in 
numerical order, the following entries:


1.106  OMB Approval under the Paperwork Reduction Act.

------------------------------------------------------------------------
                                                             OMB control
                        FAR segment                              No.    
------------------------------------------------------------------------
52.212-3...................................................    9000-0136
                                                                        
                  *        *        *        *        *                 
52.241-1...................................................    9000-0126
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

PART 4--ADMINISTRATIVE MATTERS

    3. Section 4.603 is amended by revising paragraph (b) to read as 
follows:


4.603  Solicitation provisions.

* * * * *
    (b) The contracting officer shall insert the provision at 52.204-5, 
Women-Owned Business (Other Than Small Business), in all solicitations 
that are not set aside for small business concerns and that exceed the 
simplified acquisition threshold, when the contract is to be performed 
inside the United States, its territories or possessions, Puerto Rico, 
the Trust Territory of the Pacific Islands, or the District of 
Columbia.
* * * * *

PART 12--ACQUISITION OF COMMERCIAL ITEMS

    4. Section 12.503 is amended by revising paragraph (b)(5) to read 
as follows:


12.503  Applicability of certain laws to Executive agency contracts for 
the acquisition of commercial items.

* * * * *
    (b) * * *
    (5) 49 U.S.C. 40118, Requirement for a clause under the Fly 
American provisions (see 47.405).
* * * * *

PART 14--SEALED BIDDING


14.201-6  [Amended]

    5. Section 14.201-6 is amended by removing and reserving paragraph 
(k).


14.405  [Amended]

    6. Section 14.405 is amended in paragraph (d)(2) by inserting the 
word ``and'' at the end; by removing paragraph (e) and redesignating 
paragraph (f) as (e).

PART 19--SMALL BUSINESS PROGRAMS

    7. Section 19.703 is amended by revising the last sentence of 
paragraph (b) to read as follows:


19.703  Eligibility requirements for participating in the program.

* * * * *
    (b) * * * Protests challenging a subcontractor's representation of 
its status as a women-owned small business concern shall be filed in 
accordance with Small Business Administration procedures.
* * * * *

PART 26--OTHER SOCIOECONOMIC PROGRAMS


26.103  [Amended]

    8. Section 26.103 is amended in paragraphs (a), (b), and (e) by 
removing ``self-certification'' and inserting ``representation''.

PART 27--PATENTS, DATA, AND COPYRIGHTS

    9. Section 27.404 is amended by revising the first and second 
sentences

[[Page 25384]]

of paragraphs (d)(2) and of (e)(3) to read as follows:


27.404  Basic rights in data clause.

    (d) * * *
    (2) As an aid in determining whether the clause at 52.227-14 should 
be used with its Alternate II, the provision at 52.227-15, Statement of 
Limited Rights Data and Restricted Computer Software, may be included 
in any solicitation containing the clause at 52.227-14, Rights in 
Data--General. This provision requests that an offeror state in 
response to a solicitation, to the extent feasible, whether limited 
rights data are likely to be used in meeting the data delivery 
requirements set forth in the solicitation. * * *
* * * * *
    (e) * * *
    (3) As an aid in determining whether the clause should be used with 
its Alternate III, the provision at 52.227-15, Statement of Limited 
Rights Data and Restricted Computer Software, may be included in any 
solicitation containing the clause at 52.227-14, Rights in Data--
General. This provision requests that an offeror state, in response to 
a solicitation, to the extent feasible, whether restricted computer 
software is likely to be sued in meeting the data delivery requirements 
set forth in the solicitation. * * *
* * * * *
    10. Section 27.409 is amended by revising the first sentence of 
paragraph (g) to read as follows:


27.409  Solicitation provisions and contract clauses.

* * * * *
    (g) In accordance with 27.404(d)(2), if the contracting officer 
desires to have an offeror state in response to a solicitation, to the 
extent feasible, whether limited rights data or restricted computer 
software are likely to be sued in meeting the data delivery 
requirements set forth in the solicitation, the contracting officer 
shall insert the provision at 52.227-15, Statement of Limited Rights 
Data and Restricted Computer Software, in any solicitation containing 
the clause at 52.227-14, Rights in Data--General. * * *
* * * * *

PART 32--CONTRACT FINANCING

    11. Section 32.805 is amended by revising the introductory text of 
paragraph (a)(1), and paragraphs (a)(2) and (a)(3) to read as follows:


32.805  Procedure.

    (a) Assigments. (1) Assignments by corporations shall be--
* * * * *
    (2) Assignments by a partnership may be signed by one partner, if 
the assignment is accompanied by adequate evidence that the signer is a 
general partner of the partnership and is authorized to execute 
assignments on behalf on the partnership.
    (3) Assignments by an individual must be signed by that individual 
and the signature acknowledged before a notary public or other person 
authorized to administer oaths.
* * * * *

PART 41--ACQUISITION OF UTILITY SERVICES

    12. Section 41.201 is amended by revising the last two sentences of 
paragraph (e) to read as follows:


41.201  Policy.

* * * * *
    (e) * * * Proposals from alternative electric suppliers must 
provide a representation that service can be provided in a manner 
consistent with section 8093 of Public Law 100-202 (see 41.201(d)).

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    13. Section 52.204-5 is revised to read as follows:


52.204-5  Women-Owned Business (Other Than Small Business).

    As prescribed in 4.603(b), insert the following provision:

Women-Owned Business (Other Than Small Business) (Date)

    (a) Definition. women-owned business concern, as used in this 
provision, means a concern which is at least 51 percent owned by one 
or more women; or in the case of any publicly owned business, at 
least 51 percent of the stock of which is owned by one or more 
women; and whose management and daily business operations are 
controlled by one or more women.
    (b) Representation. [Complete only if the offeror is a women-
owned business concern and has not represented itself as a small 
business concern in paragraph (b)(1) of FAR 52.219-1, Small Business 
Program Representations, of this solicitation.] The offeror 
represents that it is a women-owned business concern.

(End of provision)

    14. Section 52.212-3 is amended by revising the date of the 
provision, and paragraphs (c)(2), (c)(3), and (c)(4) to read as 
follows:


52.212-3  Offeror Representations and Certifications--Commercial Items.

* * * * *

Offeror Representations and Certifications--Commercial Items (Date)

* * * * *
    (c) * * *
    (2) Small disadvantaged business concern. [Complete only if the 
offeror represented itself as a small business concern in paragraph 
(c)(1) of this provision.] The offeror represents that it is, is not 
a small disadvantaged business concern.
    (3) Women-owned small business concern. [Complete only if the 
offeror represented itself as a small business concern in paragraph 
(c)(1) of this provision.] The offeror represents that it is, is not 
a women-owned small business concern.
* * * * *
    (4) Women-owned business concern (other than small business 
concern). [Complete only if the offeror is a women-owned business 
concern and did not represent itself as a small business concern in 
paragraph (c)(1) of this provision.] The offeror represents that it 
is a women-owned business concern.
* * * * *


52.214-17  [Reserved]

    15. Section 52.214-17 is removed and reserved.
    16. Section 52.214-21 is amended by revising the introductory text 
of the provision; and by revising the date, introductory text, and 
paragraph (d) of Alternate I to read as follows:


52.214-21  Descriptive Literature.

    As prescribed in 14.201-6(p)(1), insert the following provision:
* * * * *
    Alternate I (DATE). As prescribed in 14.201-6(p)(2), add the 
following paragraphs (d) and (e) to the basic provision.
    (d) The Contracting Officer may waive the requirement for 
furnishing descriptive literature if the bidder has supplied a 
product the same as that required by this solicitation under a prior 
contract. A bidder that requests a waiver of this requirement shall 
provide the following information.

Prior contract number

Date of prior contract-------------------------------------------------

Contract line item number of product supplied ________

Name and address of Government activity to which delivery was made
----------------------------------------------------------------------

Date of final delivery of product supplied
----------------------------------------------------------------------
* * * * *
    17. Section 52.216-2 is amended by revising the clause date and the 
first sentence of paragraph (a) to read as follows:


52.216-2  Economic Price Adjustment--Standard Supplies.

* * * * *

Economic Price Adjustment--Standard Supplies (Date)

    (a) The Contractor states that the unit price in the Schedule 
for ________ [offeror insert

[[Page 25385]]

Schedule line item number] is not in excess of the Contractor's 
applicable established price in effect on the contract date for like 
quantities of the same item. * * *
* * * * *
    18. Section 52.216-3 is amended by revising the clause date and 
paragraph (a) to read as follows:


52.216-3  Economic Price Adjustment--Semistandard Supplies.

* * * * *

Economic Price Adjustment--Semistandard Supplies (Date)

    (a) The contractor states that the supplies identified as line 
items ________ [offeror insert Schedule line item number] in the 
Schedule are, except for modifications required by the contract 
specifications, supplies for which it has an established price. The 
term ``established price'' means a price that (1) is an established 
catalog or market price for a commercial item sold in substantial 
quantities to the general public, and (2) is the net price after 
applying any standard trade discounts offered by the Contractor. The 
Contractor further states that, as of the date of this contract, any 
difference between the unit prices in the contract for these line 
items and the Contractor's established prices for like quantities of 
the nearest commercial equivalents are due to compliance with 
contract specifications and with any contract requirements for 
preservation, packaging, and packing beyond standard commercial 
practice.
* * * * *
    19. Section 52.219-1 is amended by revising the provision date, and 
the introductory text of paragraph (d)(2) to read as follows:


52.219-1  Small Business Program Representations.

* * * * *

Small Business Program Representations (Date)

* * * * *
    (d) * * *
    (2) Under 15 U.S.C. 645(d), any person who misrepresents a 
firm's status as a small, small disadvantaged, or women-owned small 
business concern in order to obtain a contract to be awarded under 
the preference programs established pursuant to section 8(a), 8(d), 
9, or 15 of the Small Business Act or any other provision of Federal 
law that specifically references section 8(d) for a definition of 
program eligibility, shall--
* * * * *


52.219-21  [Amended]

    20. Section 52.219-21 is amended by revising the provision date to 
read ``(Date)''; and by removing the statement ``Offeror represents as 
follows:'', which follows the first parenthetical.


52.222-43  [Amended]

    21. Section 52.222-43 is amended by revising the date of the clause 
to ``read ``(Date)''; and in paragraph (b) by removing ``warrants'' and 
inserting ``states''.


52.222-44  [Amended]

    22. Section 52.222-44 is amended by revising the date of the clause 
to read ``(Date)''; and in paragraph (b) by removing ``warrants'' and 
inserting ``states''.
    23. Section 52.225-10 is amended by revising the introductory 
paragraph, the date of the clause, and paragraph (d); in paragraphs 
(g), (h), and (i), by removing ``agrees to'' and inserting ``shall''. 
The revised text reads as follows:


52.225-10  Duty-Free Entry.

    As prescribed in 25.605, insert the following clause. When used in 
contracts of $100,000 or less, paragraphs (b)(1) and (i)(2) shall be 
modified to reduce the dollar figure.
* * * * *

Duty-Free Entry (Date)

* * * * *
    (d) The Contractor shall--
    (1) Claim duty-free entry only for supplies that are intended to 
be delivered to the Government or incorporated into the end items to 
be delivered under this contract; and
    (2) Pay duty to the extent that these supplies, or any portion 
of them, are diverted to non-Governmental use, other than as scrap 
or salvage or as a result of a competitive sale authorized by the 
Contracting Officer.
* * * * *
    24. Section 52.226-1 is amended by revising the clause date and the 
first two sentences of paragraph (c)(1) to read as follows:


52.226-1  Utilization of Indian Organizations and Indian-Owned Economic 
Enterprises.

* * * * *

Utilization of Indian Organizations and Indian-Owned Economic 
Enterprises (Date)

* * * * *
    (c) * * *
    (c) The Contracting Officer and the Contractor, acting in good 
faith, may rely on the representation of an Indian organization or 
Indian-owned economic enterprise as to its eligibility, unless an 
interested party challenges its status or the Contracting Officer 
has independent reason to question that status. In the event of a 
challenge to the representation of a subscontractor, the Contracting 
Officer shall refer the matter to the U.S. Department of the 
Interior, Bureau of Indian Affairs (BIA), Attn: Chief, Division of 
Contracting and Grants Administration, 1849 C Street, NW., MS-334A-
SIB, Washington, DC 20245. * * *
* * * * *
    25. Section 52.227-15 is revised to read as follows:


52.227-15  Statement of Limited Rights Data and Restricted Computer 
Software.

    As prescribed in 27.409(b), insert the following provision:

Statement of Limited Rights Data and Restricted Computer Software 
(Date)

    (a) This solicitation sets forth the work to be performed if a 
contract award results, and the Government's known delivery 
requirements for data (as defined in FAR 27.401). Any resulting 
contract may also provide the Government the option to order 
additional data under the Additional data Requirements clause at 
52.227-16 of the FAR, if included in the contract. Any data 
delivered under the resulting contract will be subject to the Rights 
in Data-General clause at 52.227-14 that is to be included in this 
contract. Under the latter clause, a contractor may withhold from 
delivery data that qualify as limited rights data or restricted 
computer software, and deliver form, fit, and function data in lieu 
thereof. The latter clause also may be used with its alternates II 
and/or III to obtain delivery of limited rights data or restricted 
computer software, marked with limited rights or restricted rights 
notices, as appropriate. In addition, use of alternate V with this 
latter clause provides the Government the right to inspect such data 
at the Contractor's facility.
    (b) As an aid in determining the Governments's need to include 
Alternate II or Alternate III in the clause at 52.227-14, Rights in 
Data--General, the offeror shall complete paragraph (c) of this 
provision to either state that none of the data qualify as limited 
rights data or restricted computer software, or identify, to the 
extent feasible, which of the data qualifies as limited rights data 
or restricted computer software. Any identification of limited 
rights data or restricted computer software in the offeror's 
response is not determinative of the status of such data should a 
contract be awarded to the offeror.
    (c) The offeror has reviewed the requirements for the delivery 
of data or software and states [offeror check appropriate block]--
    None of the data proposed for fulfilling such requirements 
qualifies as limited rights data or restricted computer software.
    Data proposed for fulfilling such requirements qualify as 
limited rights data or restricted computer software and are 
identified as follows:

-----------------------------------------------------------------------
-----------------------------------------------------------------------
----------------------------------------------------------------------

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

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

    Note: ``Limited rights data'' and ``Restricted computer 
software'' are defined in the contract clauses entitled ``Rights in 
Data-General''.

    26. Section 52.228-8 is amended by revising the introductory 
paragraph, the data and paragraph (e) of the clause to read as follows:


52.228-8  Liability and Insurance--Leased Motor Vehicles.

    As prescribed in 28.312, insert the following clause:

Liability and Insurance-Leased Motor Vehicles (Date)

* * * * *

[[Page 25386]]

    (e) The contract price shall not include any cost for insurance 
or contingency to cover losses, damage, injury, or death for which 
the Government is responsible under paragraph (a) of this clause.

(End of clause)

    27. Section 52.228-9 is revised to read as follows:


52.227-9  Cargo Insurance

    As prescribed in 28.313(a), insert the following clause:

Cargo Insurance (Date)

    (a) The Contractor, at the Contractor's expense, shall provide 
and maintain, during the continuance of this contract, cargo 
insurance of $________ per vehicle to cover the value of property on 
each vehicle and of $________ to cover the total value of the 
property in the shipment.
    (b) All insurance shall be written on companies acceptable to 
________ [insert name of contracting agency], and policies shall 
include such terms and conditions as required by ________ [insert 
name of contracting agency] before commencing operations under this 
contract.
    (c) Each cargo insurance policy shall include the following 
statement:
    ``It is a condition of this policy that the Company shall 
furnish--
    (1) Written notice to ________ [insert name and address of 
contracting agency], 30 days in advance of the effective date of any 
reduction in, or cancellation of, this policy; and
    (2) Evidence of any renewal policy to the address specified in 
paragraph (a) of this statement, not less than 15 days prior to the 
expiration of any current policy on file with ________ [insert name 
of contracting agency]. ''

(End of clause)


52.229-3  [Amended]

    28. Section 52.229-3 is amended by revising the date of the clause 
to read ``(DATE)''; and in paragraph (c) by removing ``warrants'' and 
inserting ``states''
    29. Section 52.232-12 is amended--
    (a) By revising the introductory text, the date, paragraph (j) and 
the introductory text of paragraph (o) of the clause;
    (b) In paragraph (o)(8) by removing ``representations and'';
    (c) By revising the date of Alternate V; and
    (d) The date, paragraph (g), the introductory text of paragraph 
(l), and paragraph (l)(8) of the clause following Alternate V.
    The revised text reads as follows:


52.232-12  Advance Payments.

    As prescribed in 32.412(a), insert the following clause:

Advance Payments (Date)

* * * * *
    (j) Insurance. The Contractor shall maintain with responsible 
insurance carriers (1) insurance on plant and equipment against fire 
and other hazards, to the extent that similar properties are usually 
insured by others operating plants and properties of similar 
character in the same general locality; (2) adequate insurance 
against liability on account of damage to persons or property; and 
(3) adequate insurance under all applicable workers' compensation 
laws. Until work under this contract has been completed and all 
advance payment made under the contract have been liquidated, the 
Contractor shall maintain this insurance; maintain adequate 
insurance on any materials, parts, assemblies, subassemblies, 
supplies, equipment, and other property acquired for or allocable to 
this contract and subject to the Government lien under paragraph (i) 
of this clause; and furnish any evidence with respect to its 
insurance that the administering office may require.
* * * * *
    (o) Warranties. The Contractor warrants the following:
* * * * *
    Alternate V (Date). * * *
* * * * *

Advance Payment Without Special Bank Account (Date)

* * * * *
    (g) Insurance. The Contractor shall maintain with responsible 
insurance carriers (1) insurance on plant and equipment against fire 
and other hazards, to the extent that similar properties are usually 
insured by others operating plants and properties of similar 
character in the same general locality; (2) adequate insurance 
against liability on account of damage to persons or property; and 
(3) adequate insurance under all applicable workers' compensation 
laws. Until work under this contract has been completed and all 
advance payments made under the contract have been liquidated, the 
Contractor shall maintain this insurance; maintain adequate 
insurance on any materials, parts, assemblies, subassemblies, 
supplies, equipment, and other property acquired for or allocable to 
this contract and subject to the Government lien under paragraph (f) 
of this clause; and furnish any evidence with respect to its 
insurance that the administering office may require.
* * * * *
    (1) Warranties. The Contractor warrants the following:
* * * * *
    (8) These warranties shall be continuing and shall be considered 
to have been repeated by the submission of each invoice for advance 
payments.
* * * * *
    30. Section 52.241-1 is revised to read as follows:


52.241-1  Electric Service Territory Compliance Representation.

    As prescribed in 41.501(b), insert a provision substantially the 
same as the following:

Electric Service Territory Compliance Representation (Date)

    (a) Section 8093 of Public Law 100-200 generally requires 
purchases of electricity by any department, agency, or 
instrumentality of the United States to be consistent with State law 
governing the provision of electric utility service, including State 
utility commission rulings and electric utility franchises or 
service territories established pursuant to State statute, State 
regulation, or State-approved territorial agreements.
    (b) By signing this offer, the offeror represents that this 
offer to sell electricity is consistent with Section 8093 of Public 
Law 100-202.
    (c) Upon request of the Contracting Officer, the offeror shall 
submit support legal and factual rationale for this representation.

(End of provision)

    31. Section 52.247-63 is amended by revising the date and paragraph 
(c) of the clause to read as follows:


52.247-63  Preference for U.S.-Flag Air Carriers.

* * * * *

Preference for U.S.-Flag Air Carriers (Date)

    * * * * *
    (c) In performing work under this contract, the Contractor shall 
use U.S.-flag air carriers for international air transportation of 
personnel (and their personal effects) or property to the extent 
that service by those carriers is available.
* * * * *
[FR Doc. 98-2096 Filed 5-6-98; 8:45 am]
BILLING CODE 6820-EP-M


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