Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules 1321 

1United States Postal Service Petition for 

Rulemaking on Periodic Reporting, December 27, 

2017 (Petition). 

2 Docket No. RM2008–4, Order No. 203, Notice of 

Final Rule Prescribing Form and Content of 

Periodic Reports, April 16, 2009. 

3 Id. at 4. The Postal Service also requests that the 

Quarter 4 Billing Determinants report be 

incorporated into the annual Billing Determinants 

report rather than submitted as a standalone filing. 

Id. The Postal Service states that eliminating the 

standalone filing would help the Postal Service 

more effectively allocate scarce time and resources. 

Id. 

4 Id. The Postal Service also requests updating 

Table 2 to reflect the name change of Standard Mail 

to USPS Marketing Mail. Id. Attachment 1 at 2. 

I. Introduction 

On December 27, 2017, the Postal 

Service filed a request for the 

Commission to consider revisions to the 

periodic reporting requirements 

codified in 39 CFR part 3050.1 The 

Commission initiates this rulemaking to 

seek comments and facilitate the 

Commission’s examination of these 

periodic reporting requirements. 

II. Background 

The Postal Accountability and 

Enhancement Act (PAEA) granted the 

Commission enhanced information 

gathering and reporting responsibilities. 

See 39 U.S.C. 3652(e)(1). The PAEA 

provides that the Commission shall 

prescribe the content and form of the 

public reports the Postal Service files 

with the Commission under section 

3652. In Docket No. RM2008–4, the 

Commission approved its current 

periodic reporting requirements.2

On December 27, 2017, the Postal 

Service filed a request for the 

Commission to consider revisions to the 

periodic reporting requirements. First, 

the Postal Service requests that the 

Commission adjust the deadlines for the 

quarterly Revenue, Pieces, and Weight 

(RPW) report; the Quarterly Statistics 

Report (QSR); the quarterly Billing 

Determinants report, and the monthly 

National Consolidated Trial Balance and 

the Revenue and Expense Summary 

(Trial Balance) report, to align the 

deadlines with other financial reporting 

deadlines. Petition at 1. The Postal 

Service states that revising the 

regulations so these deadlines align 

with other financial reporting deadlines 

will avoid potential restatements of the 

earlier filed reports once the data for the 

later filed reports are finalized. Id. at 3. 

Specifically, the Postal Service wants 

to move the deadline for the RPW and 

QSR reports so that the quarterly and 

year-end report deadlines are the same 

as the Form 10–Q and Form 10–K report 

due dates. Id. at 2–3. In addition, the 

Postal Service requests that the 

deadlines for the quarterly Billing 

Determinants reports be extended to 60 

days after the end of Quarters 1, 2, and 

3, and 90 days after the year-end for 

Quarter 4.3 The Postal Service also 

requests that the Commission revise the 

periodic reporting rules so that the Trial 

Balance reports and the Monthly 

Summary Financial reports have the 

same deadline. Id. at 5–6. 

Second, the Postal Service requests 

that the Commission modify the format 

of the Monthly Summary Financial 

Report to make the report more 

consistent with the Postal Service’s 

quarterly and annual financial reports. 

Id. at 1. The Postal Service states that 

the term ‘‘Operating Revenue’’ as it is 

used in Tables 1 and 2 of the Monthly 

Summary Financial Report does not 

correspond with its usage in its Form 

10–K statements. Id. at 7. The Postal 

Service requests revisions to Tables 1 

and 2 of the Monthly Summary 

Financial Report so that the items and 

amounts reported for total operating 

revenue reconcile on both tables and the 

breakdown for revenue more closely 

aligns with the format in its other 

financial reports.4

Third, the Postal Service requests that 

the Commission consider eliminating or 

modifying any reporting requirements 

that have become unnecessary or 

irrelevant since the current periodic 

reporting rules were first implemented 

in 2009. Petition at 1. The Postal Service 

requests that the Commission consider 

eliminating or modifying these 

requirements to avoid imposing 

‘‘unnecessary or unwarranted 

administrative effort and expense’’ on 

the Postal Service. Id. (citing 39 U.S.C. 

3652(e)(1)). 

III. Invitation To Comment 

Interested persons are invited to 

provide written comments to facilitate 

the Commission’s examination of the 

periodic reporting requirements. In 

addition to the specific revisions 

requested in the Postal Service’s 

petition, the Commission also invites 

comments on whether specific periodic 

reporting requirements should be 

eliminated or modified or whether 

updates or enhancements to the 

requirements should be made. 

Comments are due no later than 

March 7, 2018. Reply comments are due 

no later than April 6, 2018. All 

comments and suggestions received will 

be available for review on the 

Commission’s website, http://

www.prc.gov. 

Pursuant to 39 U.S.C. 505, Lauren A. 

D’Agostino is appointed to serve as an 

officer of the Commission (Public 

Representative) to represent the 

interests of the general public in the 

above-captioned docket. 

IV. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

No. RM2018–2 to consider revisions to 

the periodic reporting requirements. 

2. Comments are due no later than 

March 7, 2018. Reply comments are due 

no later than April 6, 2018. 

3. Pursuant to 39 U.S.C. 505, the 

Commission appoints Lauren A. 

D’Agostino to serve as an officer of the 

Commission (Public Representative) to 

represent the interests of the general 

public in this docket. 

4. The Secretary shall arrange for 

publication of this notice in the Federal 

Register. 

By the Commission. 

Stacy L. Ruble, 

Secretary. 

[FR Doc. 2018–00320 Filed 1–10–18; 8:45 am] 

BILLING CODE 7710–FW–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

48 CFR Parts 812, 813, and 852 

RIN 2900–AP58 

Revise and Streamline VA Acquisition 

Regulation To Adhere to Federal 

Acquisition Regulation Principles 

(VAAR Case 2014–V005—Parts 812, 

813) 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is proposing to amend and 

update its VA Acquisition Regulation 

(VAAR) in phased increments to revise 

or remove any policy superseded by 

changes in the Federal Acquisition 

Regulation (FAR), to remove procedural 

guidance internal to VA into the VAAM, 

and to incorporate any new agency 

specific regulations or policies. These 

changes seek to streamline and align the 

VAAR with the FAR and remove 

outdated and duplicative requirements 

and reduce burden on contractors. The 

VAAM incorporates portions of the 

removed VAAR as well as other internal 

agency acquisition policy. VA will 

rewrite certain parts of the VAAR and 

VAAM, and as VAAR parts are 

rewritten, will publish them in the 

Federal Register. To minimize the 

number of rules published, VA will 

combine related topics. 

DATES: Comments must be received on 

or before March 12, 2018 to be 

considered in the formulation of the 

final rule. 


sradovich on DSK3GMQ082PROD with PROPOSALS
1322 Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules 

ADDRESSES: Written comments may be 

submitted through 

www.Regulations.gov; by mail or handdelivery to Director, Regulation Policy 

and Management (00REG), Department 

of Veterans Affairs, 810 Vermont 

Avenue NW, Room 1063B, Washington, 

DC 20420; or by fax to (202) 273–9026. 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AP58—Revise and Streamline VA 

Acquisition Regulation to Adhere to 

Federal Acquisition Regulation 

Principles (VAAR Case 2014–V005— 

Parts 812, 813).’’ Copies of comments 

received will be available for public 

inspection in the Office of Regulation 

Policy and Management, Room 1063B, 

between the hours of 8:00 a.m. and 4:30 

p.m., Monday through Friday (except 

holidays). Please call (202) 461–4902 for 

an appointment. This is not a toll-free 

number. In addition, during the 

comment period, comments may be 

viewed online through the Federal 

Docket Management System (FDMS) at 

www.Regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Ricky Clark, Senior Procurement 

Analyst, Procurement Policy and 

Warrant Management Services, 003A2A, 

425 I Street NW, Washington DC 20001, 

(202) 632–5276. This is not a toll-free 

telephone number. 

SUPPLEMENTARY INFORMATION: 

Background 

This action is being taken under the 

authority of the Office of Federal 

Procurement Policy (OFPP) Act which 

provides the authority for an agency 

head to issue agency acquisition 

regulations that implement or 

supplement the FAR. This authority 

ensures that Government procurements 

are handled fairly and consistently, that 

the Government receives overall best 

value, and that the Government and 

contractors both operate under a known 

set of rules. 

The proposed rule would update the 

VAAR to current FAR titles, 

requirements, and definitions; it would 

correct inconsistencies and removes 

redundancies and duplicate material 

already covered by the FAR; it would 

also delete outdated material or 

information and appropriately renumber 

VAAR text, clauses, and provisions 

where required to comport with FAR 

format, numbering and arrangement. All 

amendments, revisions, and removals 

have been reviewed and concurred with 

by an Integrated Product Team of 

agency stakeholders. 

The VAAR uses the regulatory 

structure and arrangement of the FAR 

and headings and subject areas are 

broken up consistent with the FAR 

content. The VAAR is divided into 

subchapters, parts (each of which covers 

a separate aspect of acquisition), 

subparts, sections, and subsections. 

The Office of Federal Procurement 

Policy Act, as codified in 41 U.S.C. 

1707, provides the authority for the 

Federal Acquisition Regulation and for 

the issuance of agency acquisition 

regulations consistent with the FAR. 

When Federal agencies acquire 

supplies and services using 

appropriated funds, the purchase is 

governed by the FAR, set forth at Title 

48 Code of Federal Regulations (CFR), 

chapter 1, parts 1 through 53, and the 

agency regulations that implement and 

supplement the FAR. The VAAR is set 

forth at Title 48 CFR, chapter 8, parts 

801 to 873. 

VA is proposing to revise the VAAR 

to add new policy or regulatory 

requirements and to remove any 

guidance that is applicable only to VA’s 

internal operating processes or 

procedures. Codified acquisition 

regulations may be amended and 

revised only through rulemaking. 

Discussion and Analysis 

The VA proposes to make the 

following changes to the VAAR in this 

phase of its revision and streamlining 

initiative. For procedural guidance cited 

below that is proposed to be deleted 

from the VAAR, each section cited for 

removal has been considered for 

inclusion in VA’s internal agency 

operating procedures in accordance 

with FAR 1.301(a)(2). Similarly, 

delegations of authority that are 

removed from the VAAR will be 

included in the VA Acquisition Manual 

(VAAM) as internal agency guidance. 

VAAR Part 812—Acquisition of 

Commercial Items 

In VAAR part 812, we propose to 

replace the 38 U.S.C. 501 citation with 

41 U.S.C. 1702 which addresses the 

acquisition planning and management 

responsibilities of VA’s Chief 

Acquisition Officer, and add the citation 

for 38 U.S.C. 8127–8128 which 

addresses small business concerns 

owned and controlled by Veterans. 

In subpart 812.1, Acquisition of 

Commercial Items—General, we 

propose to delete 812.102, 

Applicability, as unnecessary 

duplication of language in the FAR. 

We propose to add 812.102–70, 

Applicability of Veterans preferences, to 

state that the preferences in subpart 

819.70 apply to part 812. 

We propose to revise 812.301, 

Solicitation provisions and contract 

clauses for the acquisition of 

commercial items, to delete the existing 

text and replace paragraph (f) with new 

text prescribing insertion into 

solicitations and contracts for 

commercial acquisitions the provision 

852.212–70, Provisions Applicable to 

VA Acquisition of Commercial Items, 

and the clause 852.212–71, Contract 

Terms and Conditions Applicable to VA 

Acquisition of Commercial Items, which 

will list all VAAR provisions and 

clauses from other parts that are 

available for use in commercial 

acquisitions. We propose to allow a 

contracting officer to indicate with a 

checkmark the specific provisions and 

clauses that apply to the acquisition. We 

propose to add a new provision 

852.212–72, Gray Market Items, to 

require vendors of medical equipment 

to be an Original Equipment 

Manufacturer (OEM), authorized dealer, 

authorized distributor or authorized 

reseller of such equipment. 

We propose to revise the list of 

provisions and clauses and to 

incorporate them into the new provision 

and clause being prescribed. The 

following provisions and clauses are not 

included in revised section 812.301(f) 

and further action on them will be 

addressed in future proposed rules— 

852.203–71, Display of Department of 

Veterans Affairs Hotline Poster. 

852.207–70, Report of Employment 

Under Commercial Activities. 

852.211–71, Special Notice. 

852.211–72, Technical Industry 

Standards. 

852.211–73, Brand Name or Equal. 

852.211–74, Liquidated Damages. 

852.211–75, Product Specifications. 

852.214–70, Caution to Bidders—Bid 

Envelopes. 

852.216–70, Estimated Quantities. 

We propose to add the following 

provisions and clauses to those 

available for use in commercial 

acquisitions based on their potential 

applicability for commercial item 

purchases— 

852.215–70, Service-Disabled 

Veteran-Owned and Veteran-Owned 

Small Business Evaluation Factors. 

852.215–71, Evaluation Factor 

Commitments. 

852.219–9, VA Small Business 

Subcontracting Plan Minimum 

Requirements. 

852.219–10, VA Notice of Total 

Service-Disabled Veteran-Owned Small 

Business Set-Aside. 

852.219–11, VA Notice of Total 

Veteran-Owned Small Business SetAside. 

852.222–70, Contract Work Hours and 

Safety Standards Act—Nursing Home 

Care Contract Supplement. 

852.232–72, Electronic Submission of 

Payment Requests. 


sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules 1323 

852.246–73, Noncompliance with 

Packaging, Packing, and/or Marking 

Requirements. 

852.247–70, Determining 

Transportation Costs for Bid Evaluation. 

We propose to remove 812.302, 

Tailoring of provisions and clauses for 

the acquisition of commercial items, in 

its entirety since it deals with internal 

procedures for obtaining a waiver to 

allow tailoring of provisions and clauses 

to be inconsistent with customary 

commercial practice. 

VAAR Part 813—Simplified 

Acquisition Procedures 

In VAAR part 813, we propose to add 

the citation for 41 U.S.C. 1702 which 

addresses the acquisition planning and 

management responsibilities of VA’s 

Chief Acquisition Officer. 

We propose to add 813.003–70, 

Policy, which would explain that the 

Veterans First Contracting Program has 

broad applicability in contracts using 

Simplified Acquisition Procedures, and 

813.102, Source list, to require that 

contracting officers use the Vendor 

Information Pages (VIP) database to 

verify Service-Disabled Veteran-Owned 

Small Business and Veteran-Owned 

Small Business status. 

We propose to remove 813.106, 

Soliciting competition, evaluation of 

quotations or offers, award and 

documentation, since paragraph (a) 

addresses internal procedures and 

paragraph (b) contains material that is 

adequately addressed in FAR. We will 

retain the title since 813.106–70 is being 

added. 

We propose to remove 813.106–3, 

Award and documentation, since it is 

material adequately addressed in FAR. 

We propose to remove 813.106–70, 

Oral purchase orders, because the FAR 

contains no authority to issue oral 

purchase orders. 

We propose to add 813.106–70, 

Soliciting competition, evaluation of 

quotations or offers, award and 

documentation—the Veterans First 

Contracting Program, which emphasizes 

that contracting officers can use other 

than competitive procedures under 

specified circumstances when awarding 

to Service-Disabled Veteran-Owned 

Businesses (SDVOSBs) or VeteranOwned Small Businesses (VOSBs). 

We propose to revise 813.202, 

Purchase guidelines, to renumber it as 

813.203 to correspond to the FAR 

coverage; to delete the words ‘‘open 

market’’ as unnecessary; and to spell out 

Service-Disabled Veteran-Owned Small 

Businesses and Veteran-Owned Small 

Businesses the first times the acronyms 

are used. 

We propose to remove 813.302, 

Purchase orders and 813.302–5, Clauses, 

because they incorrectly prescribe a 

clause in part 837. 

We propose to add 813.305–70, VA’s 

imprest funds and third party drafts 

policy, to state that the Governmentwide commercial purchase card and/or 

convenience checks shall be used in 

lieu of imprest funds and third party 

drafts. 

We propose to remove 813.307, 

Forms, and include it in VA’s internal 

procedural guidance. 

VAAR Part 852—Solicitation 

Provisions and Contract Clauses 

In VAAR part 852, we propose to 

replace the 38 U.S.C. 501 citation with 

41 U.S.C. 1702 which addresses the 

acquisition planning and management 

responsibilities of VA’s Chief 

Acquisition Officer. 

In subpart 852.2, we propose to add 

the provision 852.212–70, Provisions 

Applicable to VA Acquisition of 

Commercial Items, to permit the 

contracting officer to check those that 

will be applicable to the individual 

commercial buy. 

In subpart 852.2, we propose to add 

the provision 852.212–71, Contract 

Terms and Conditions Applicable to VA 

Acquisition of Commercial Items, to 

permit the contracting officer to check 

those that will be applicable to the 

individual commercial buy. 

In subpart 852.2, we propose to add 

the provision 852.212–72, Gray Market 

Items, to ensure that new medical 

equipment for VA Medical Centers is 

purchased from authorized distributors 

and that all software licensing, warranty 

and service associated with the 

equipment/system shall be in 

accordance with the Original Equipment 

Manufacturer’s terms and conditions. 

Effect of Rulemaking 

Title 48, Federal Acquisition 

Regulations System, Chapter 8, 

Department of Veterans Affairs, of the 

Code of Federal Regulations, as 

proposed to be revised by this 

rulemaking, would represent VA’s 

implementation of its legal authority 

and publication of the Department of 

Veterans Affairs Acquisition Regulation 

(VAAR) for the cited applicable parts. 

Other than future amendments to this 

rule or governing statutes for the cited 

applicable parts, or as otherwise 

authorized by approved deviations or 

waivers in accordance with Federal 

Acquisition Regulation (FAR) subpart 

1.4, Deviations from the FAR, and as 

implemented by VAAR subpart 801.4, 

Deviations from the FAR or VAAR, no 

contrary guidance or procedures would 

be authorized. All existing or 

subsequent VA guidance would be read 

to conform with the rulemaking if 

possible or, if not possible, such 

guidance would be superseded by this 

rulemaking as pertains to the cited 

applicable VAAR parts. 

Executive Orders 12866, 13563 and 

13771 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. E.O. 12866, Regulatory 

Planning and Review, defines 

‘‘significant regulatory action’’ to mean 

any regulatory action that is likely to 

result in a rule that may: ‘‘(1) Have an 

annual effect on the economy of $100 

million or more or adversely affect in a 

material way the economy, a sector of 

the economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities; (2) Create 

a serious inconsistency or otherwise 

interfere with an action taken or 

planned by another agency; (3) 

Materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) Raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in this Executive 

order.’’ 

VA has examined the economic, 

interagency, budgetary, legal, and policy 

implications of this regulatory action, 

and it has been determined to be a 

significant regulatory action under E.O. 

12866, because it raises novel legal or 

policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in this Executive 

Order. VA’s impact analysis can be 

found as a supporting document at 

http://www.regulations.gov, usually 

within 48 hours after the rulemaking 

document is published. Additionally, a 

copy of the rulemaking and its impact 

analysis are available on VA’s website at 

http://www.va.gov/orpm by following 

the link for VA Regulations Published 

from FY 2004 Through Fiscal Year to 

Date. This proposed rule is not expected 

to be subject to the requirements of E.O. 

13771 because this proposed rule is 


sradovich on DSK3GMQ082PROD with PROPOSALS
1324 Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules 

expected to result in no more than de 

minimis costs. 

Paperwork Reduction Act 

Although this action contains 

provisions constituting collections of 

information at 48 CFR 813, under the 

provisions of the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3501–3521), no 

new or proposed revised collections of 

information are associated with this 

proposed rule. The information 

collection requirements for 48 CFR 813 

are currently approved by the Office of 

Management and Budget (OMB) and 

have been assigned OMB control 

number 2900–0393. 

Regulatory Flexibility Act 

This proposed rule would not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act, 5 U.S.C. 601–612. This 

proposed rule would generally be small 

business neutral. The overall impact of 

the proposed rule would be of benefit to 

small businesses owned by Veterans or 

service-disabled Veterans as the VAAR 

is being updated to remove extraneous 

procedural information that applies 

only to VA’s internal operating 

procedures. VA estimates no cost 

impact to individual business would 

result from these rule updates. On this 

basis, the adoption of this proposed rule 

would not have a significant economic 

impact on a substantial number of small 

entities as they are defined in the 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612. Therefore, under 5 U.S.C. 605(b), 

this regulatory action is exempt from the 

initial and final regulatory flexibility 

analysis requirements of sections 603 

and 604. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

Governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This proposed rule would 

have no such effect on State, local, and 

tribal Governments or on the private 

sector. 

List of Subjects 

48 CFR Part 812 and 813 

Government procurement. 

48 CFR Part 852 

Government procurement, Reporting 

and recordkeeping requirements. 

Signing Authority 

The Secretary of Veterans Affairs, or 

designee, approved this document and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. Gina 

S. Farrisee, Deputy Chief of Staff, 

Department of Veterans Affairs 

approved this document on April 21, 

2017, for publication. 

Dated: January 3, 2018. 

Michael Shores, 

Director, Regulation Policy & Management, 

Office of the Secretary, Department of 

Veterans Affairs. 

For the reasons set out in the 

preamble, VA proposes to amend 48 

CFR parts 812, 813, and 852 as follows: 

PART 812—ACQUISITION OF 

COMMERCIAL ITEMS 

■ 1. The authority citation for part 812 

is revised to read as follows: 

Authority: 38 U.S.C. 8127–8128; 40 U.S.C. 

121(c); 41 U.S.C. 1702 and 48 CFR 1.301– 

1.304. 

Subpart 812.1—Acquisition of 

Commercial Items—General 

■ 2. Section 812.102 is removed. 

■ 3. Section 812.102–70 is added to 

subpart 812.1 to read as follows: 

812.102–70 Applicability of veterans 

preferences. 

Based on the authority under 38 

U.S.C. 8127 and 8128, the Veterans First 

Contracting Program in subpart 819.70 

applies to VA contracts under this part, 

and the provisions and clauses 

prescribed reflect agency unique 

statutes applicable to the acquisition of 

commercial items. 

Subpart 812.3—Solicitation Provisions 

and Contract Clauses for the 

Acquisition of Commercial Items 

■ 4. In § 812.301: 

■ a. Remove paragraphs (a)–(e). 

■ b. Revise paragraph (f) to read as 

follows: 

812.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items. 

(f)(1) Contracting officers shall insert 

the provision 852.212–70, Provisions 

Applicable to VA Acquisition of 

Commercial Items, in all solicitations 

for commercial acquisitions and check 

only those provisions that apply to the 

individual solicitation. 

(2) Contracting officers shall insert the 

clause 852.212–71, Contract Terms and 

Conditions Applicable to VA 

Acquisition of Commercial Items, in all 

solicitations and contracts for 

commercial acquisitions and check only 

those clauses that apply to the 

individual contract. 

(3) Contracting officers shall insert the 

clause 852.212–72, Gray Market Items, 

in all solicitations and contracts for 

commercial acquisitions of new medical 

equipment for VA Medical Centers and 

that include FAR provisions 52.212–1, 

Instruction to Offerors—Commercial 

Items, and 52.212–2, Evaluation— 

Commercial Items. 

812.302 [Removed] 

■ 5. Section 812.302 is removed. 

* * * * * 

PART 813—SIMPLIFIED ACQUISITION 

PROCEDURES 

■ 6. The authority citation for part 813 

is revised to read as follows: 

Authority: 38 U.S.C. 8127–8128; 40 U.S.C. 

121(c); 41 U.S.C. 1702 and 48 CFR 1.301– 

1.304. 

813.003–70 [Added] 

■ 7. Section 813.003–70 is added to read 

as follows: 

813.003–70 Policy. 

(a) The Veterans First Contracting 

Program in subpart 819.70 applies to VA 

contracts (see FAR 2.101, Definitions) 

under this part and has precedence over 

other small business programs 

referenced in FAR part 19. 

(b) Notwithstanding FAR 13.003(b)(2), 

the contracting officer shall make an 

award utilizing the priorities for 

veteran-owned small businesses as 

implemented within the VA hierarchy 

of small business program preferences, 

the Veterans First Contracting Program 

in subpart 819.70. Specifically, the 

contracting officer shall consider 

preferences for verified service-disabled 

veteran-owned small businesses 

(SDVOSBs) first, then preferences for 

verified veteran-owned small businesses 

(VOSBs). These priorities will be 

followed by preferences for other small 

businesses in accordance with FAR 

19.203, and 819.7004. 

(c) When using competitive 

procedures, the preference for 

restricting competition to verified 

SDVOSBs or VOSBs is mandatory 

whenever market research provides a 

reasonable expectation of receiving two 

or more offers/quotes from eligible, 

capable and verified SDVOSBs or 

VOSBs at fair and reasonable prices that 

offer best value to the Government. 

(1) Pursuant to 38 U.S.C. 8127, 

contracts under this part shall be setaside for SDVOSBs or VOSBs, when 

supported by market research. 


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Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules 1325 

Contracting officers shall use the 

applicable set-aside clause prescribed at 

819.7009. 

(2) Pursuant to 38 U.S.C. 8128 and to 

the extent that market research does not 

support an SDVOSB or VOSB set-aside, 

the contracting officer shall include 

evaluation factors as prescribed at 

815.304 and the evaluation criteria 

clause prescribed at 815.304–71(a). 

(d) The SDVOSB and VOSB eligibility 

requirements in part 819.7003 apply, 

including verification of the SDVOSB 

and VOSB status of an offeror or 

awardee at the time of submission of 

offer/quote and prior to award. The 

offeror must also represent that it meets 

the small business size standard for the 

assigned North American Industry 

Classification Code System (NAICS) 

code and other small business 

requirements in FAR part 19 (e.g. 

subcontracting limitations and nonmanufacturer rule). 

Subpart 813.1—Procedures 

813.102 [Added] 

■ 8. Section 813.102 is added to subpart 

813.1 to read as follows: 

813.102 Source list. 

Pursuant to 819.7003, contracting 

officers shall use the Vendor 

Information Pages (VIP) database to 

verify SDVOSB/VOSB status. 

813.106 [Amended] 

■ 9. In § 813.106 remove paragraphs (a) 

and (b) and to retain the section 

heading. 

■ 10. Section 813.106–3 is removed. 

■ 11. Section 813.106–70 is revised to 

read as follows: 

813.106–70 Soliciting competition, 

evaluation of quotations or offers, award 

and documentation—the Veterans First 

Contracting Program. 

(a) General. When using competitive 

procedures under this part, the 

contracting officer shall use the 

Veterans First Contracting Program in 

subpart 819.70 and the guidance set 

forth in 813.003–70. 

(b) Pursuant to 38 U.S.C 8127(b), 

contracting officers may use other than 

competitive procedures to enter into a 

contract with a verified SDVOSB or 

VOSB for procurements under the 

simplified acquisition threshold. 

(c) For procurements above the 

simplified acquisition threshold, 

pursuant to 38 U.S.C. 8127(c), 

contracting officers may also award a 

contract under this part to a firm 

verified under the Veterans First 

Contracting Program at subpart 819.70, 

using procedures other than competitive 

procedures if— 

(1) Such concern is determined to be 

a responsible source with respect to 

performance of such contract 

opportunity; 

(2) The anticipated award price of the 

contract (including options) will exceed 

the simplified acquisition threshold, but 

will not exceed $5,000,000; and 

(3) In the estimation of the contracting 

officer, the contract award can be made 

at a fair and reasonable price that offers 

overall best value to the government. 

Subpart 813.2—Actions at or Below the 

Micro-Purchase Threshold 

813.202 [Removed] 

■ 12. Section 813.202 is removed. 

■ 13. Section 813.203 is added to 

subpart 813.2 to read as follows: 

813.203 Purchase guidelines. 

Micro-purchases shall be equitably 

distributed among all qualified ServiceDisabled Veteran-Owned Small 

Businesses (SDVOSBs) or VeteranOwned Small Businesses (VOSBs), 

respectively, to the maximum extent 

practicable. 

Subpart 813.3—Simplified Acquisition 

Methods 

813.302 [Removed] 

■ 14. Section 813.302 is removed. 

813.302–5 [Removed] 

■ 15. Section 813.302–5 is removed. 

■ 16. Section 813.305–70 is added to 

subpart 813.3 to read as follows: 

813.305–70 VA’s imprest funds and third 

party drafts policy. 

VA’s Government-wide commercial 

purchase card and/or convenience 

checks shall be used in lieu of imprest 

funds and third party drafts. 

813.307 [Removed] 

■ 17. Section 813.307 is removed. 

PART 852—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 18. The authority citation for part 852 

is revised to read as follows: 

Authority: 38 U.S.C. 8127–8128, and 8151– 

8153; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3), 

and 1702; and 48 CFR 1.301–1.304. 

Subpart 852.2—Texts of Provisions 

and Clauses 

■ 19. Section 852.212–70 is added to 

subpart 852.2 to read as follows: 

852.212–70 Provisions applicable to VA 

acquisition of commercial items. 

As prescribed in 812.301(f)(1), insert 

the following provision: 

Provisions Applicable to VA Acquisition of 

Commercial Items (Date) 

The Contractor agrees to comply with any 

provision that is incorporated herein by 

reference or full text to implement agency 

policy applicable to acquisition of 

commercial items or components. The 

following provisions that have been checked 

by the contracting officer are incorporated by 

reference or in full text; text requiring fill-ins 

is shown under the provision’s title: 

ll8 852.209–70, Organizational Conflicts of 

Interest. 

ll8 852.214–71, Restrictions on Alternate 

Item(s). 

ll8 852.214–72, Alternate Item(s). 

Bids on lll[Contracting officer will 

insert an alternate item that is considered 

acceptable.] will be given equal 

consideration along with bids on lll

[Contracting officer will insert the required 

item and item number.] and any such bids 

received may be accepted if to the advantage 

of the Government. Tie bids will be decided 

in favor of lll. [Contracting officer will 

insert the required item and item number.] 

(End of provision) 

ll8 852.214–73, Alternate Packaging and 

Packing. 

ll8 852.214–74, Bid Samples. 

ll8 852.215–70, Service-Disabled VeteranOwned and Veteran-Owned Small 

Business Evaluation Factors. 

ll8 852.233–70, Protest Content/Alternative 

Dispute Resolution. 

ll8 852.233–71, Alternate Protest 

Procedure. 

ll8 852.247–70, Determining Transportation 

Costs for Bid Evaluation. 

For the purpose of evaluating bids and for 

no other purpose, the delivered price per unit 

will be determined by adding the nationwide 

average transportation charge to the f.o.b. 

origin bid prices. The nationwide average 

transportation charge will be determined by 

applying the following formula: Multiply the 

guaranteed shipping weight by the freight, 

parcel post, or express rate, whichever is 

proper, to each destination shown below and 

then multiply the resulting transportation 

charges by the anticipated demand factor 

shown for each destination. Total the 

resulting weighted transportation charges for 

all destinations and divide the total by 20 to 

give the nationwide average transportation 

charge. 

Anticipated Demand 

Area destination Factor 

Oakland, California ..................... 3 

Dallas, Texas .............................. 2 

Omaha, Nebraska ...................... 3 

Fort Wayne, Indiana ................... 4 

Atlanta, Georgia .......................... 3 

New York, New York .................. 5 

Total of Factors ....................... 20 

(End of provision) 

ll8 852.270–1, Representatives of 

Contracting Officers. 

ll8 852.273–70, Late Offers. 


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1326 Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules 

ll8 852.273–71, Alternative 

Negotiation Techniques. 

ll8 852.273–72, Alternative 

Evaluation. 

ll8 852.273–73, Evaluation—HealthCare Resources. 

ll8 852.273–74, Award Without 

Exchanges. 

■ 20. Section 852.212–71 is added to 

read as follows: 

852.212–71 Contract terms and conditions 

applicable to VA acquisition of commercial 

items. 

As prescribed in 812.301(f)(2), insert 

the following clause: 

Contract Terms and Conditions Applicable 

to VA Acquisition of Commercial Items 

(Date) 

(a) The Contractor agrees to comply with 

any clause that is incorporated herein by 

reference to implement agency policy 

applicable to acquisition of commercial items 

or components. The following clauses that 

have been checked by the contracting officer 

are incorporated by reference; text requiring 

fill-ins is shown under the clause’s title: 

ll8 852.203–70, Commercial Advertising. 

ll8 852.215–70, Service-Disabled VeteranOwned and Veteran-Owned Small 

Business Evaluation Factors. 

ll8 852.215–71, Evaluation Factor 

Commitments. 

ll8 852.219–9, VA Small Business 

Subcontracting Plan Minimum 

Requirements. 

ll8 852.219–10, VA Notice of Total ServiceDisabled Veteran-Owned Small Business 

Set-Aside. 

ll8 852.219–11, VA Notice of Total VeteranOwned Small Business Set-Aside. 

ll8 852.222–70, Contract Work Hours and 

Safety Standards Act—Nursing Home 

Care Contract Supplement. 

ll8 852.229–70, Sales and Use Taxes. 

ll8 852.232–72, Electronic Submission of 

Payment Requests. 

ll8 852.237–7, Indemnification and Medical 

Liability Insurance. 

ll8 852.237–70, Contractor Responsibilities. 

The contractor shall obtain all necessary 

licenses and/or permits required to perform 

this work. He/she shall take all reasonable 

precautions necessary to protect persons and 

property from injury or damage during the 

performance of this contract. He/she shall be 

responsible for any injury to himself/herself, 

his/her employees, as well as for any damage 

to personal or public property that occurs 

during the performance of this contract that 

is caused by his/her employees fault or 

negligence, and shall maintain personal 

liability and property damage insurance 

having coverage for a limit as required by the 

laws of the State of ll[Insert name of 

State]. Further, it is agreed that any 

negligence of the Government, its officers, 

agents, servants and employees, shall not be 

the responsibility of the contractor hereunder 

with the regard to any claims, loss, damage, 

injury, and liability resulting therefrom. 

(End of clause) 

ll8 852.246–70, Guarantee. 

The contractor guarantees the equipment 

against defective material, workmanship and 

performance for a period of ll[Normally, 

insert one year. If industry policy covers a 

shorter or longer period, i.e., 90 days or for 

the life of the equipment, insert such period.], 

said guarantee to run from date of acceptance 

of the equipment by the Government. The 

contractor agrees to furnish, without cost to 

the Government, replacement of all parts and 

material that are found to be defective during 

the guarantee period. Replacement of 

material and parts will be furnished to the 

Government at the point of installation, if 

installation is within the continental United 

States, or f.o.b. the continental U.S. port to 

be designated by the contracting officer if 

installation is outside of the continental 

United States. Cost of installation of 

replacement material and parts shall be borne 

by the contractor. [The above clause will be 

modified to conform to standards of the 

industry involved.] 

(End of clause) 

ll8 852.246–71, Inspection. 

ll8 852.246–72, Frozen Processed Foods. 

ll8 852.246–73, Noncompliance with 

Packaging, Packing, and/or Marking 

Requirements. 

ll8 852.270–2, Bread and Bakery Products— 

Quantities. 

ll8 852.270–3, Purchase of Shellfish. 

ll8 852.271–72, Time Spent by Counselee 

in Counseling Process. 

ll8 852.271–73, Use and Publication of 

Counseling Results. 

ll8 852.271–74, Inspection. 

ll8 852.271–75, Extension of Contract 

Period. 

(b) All requests for quotations, 

solicitations, and contracts for commercial 

item services to be provided to beneficiaries 

must include the following clause at 

ll8 852.271–70, Nondiscrimination in 

Services Provided to Beneficiaries. 

(End of clause) 

■ 21. Section 852.212–72 is added to 

subpart 852.2 to read as follows: 

852.212–72 Gray Market Items. 

As prescribed in 812.301(f)(3), insert 

the following provision in solicitations 

and contracts for new medical 

equipment for VA Medical Centers and 

that include FAR provisions 52.212–1, 

Instruction to Offerors—Commercial 

Items, and 52.212–2, Evaluation— 

Commercial Items: 

Gray Market Items (Date) 

(a) Gray market items are Original 

Equipment Manufacturers’ (OEM) goods sold 

through unauthorized channels in direct 

competition with authorized distributors. 

This procurement is for new OEM medical 

equipment only for VA Medical Centers. No 

remanufactures or gray market items will be 

acceptable. 

(b) Vendor shall be an OEM, authorized 

dealer, authorized distributor or authorized 

reseller for the proposed equipment/system, 

verified by an authorization letter or other 

documents from the OEM, such that the 

OEM’s warranty and service are provided 

and maintained by the OEM. All software 

licensing, warranty and service associated 

with the equipment/system shall be in 

accordance with the OEM terms and 

conditions. 

(End of clause) 

[FR Doc. 2018–00169 Filed 1–10–18; 8:45 am] 

BILLING CODE 8320–01–P 


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