19468 Federal Register / Vol. 61, No. 85 / Wednesday, May 1, 1996 / Rules and Regulations

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

48 CFR Parts 2401, 2402, 2404, 2405,

2406, 2409, 2411, 2412, 2413, 2414,

2415, 2416, 2417, 2419, 2420, 2426,

2428, 2429, 2432, 2434, 2436, 2437,

2442, 2452 and 2453

[Docket No. FR–3887–F–02]

RIN No. 2535–AA23

Office of the Assistant Secretary for

Administration; HUD Acquisition

Regulation; Field Reorganization,

Streamlining, and Simplification

AGENCY: Office of the Assistant

Secretary for Administration, HUD.

ACTION: Final rule; technical

amendments.

SUMMARY: The purpose of this final rule

is to amend the HUD Acquisition

Regulation (HUDAR) to: implement the

Department’s Field reorganization,

particularly the establishment of the

Administrative Service Centers;

implement the Federal Acquisition

Streamlining Act of 1994 (FASA);

augment Departmental efforts to

streamline and simplify the

procurement process by removing

unnecessary restrictions; make technical

amendments to the interim rule; and,

correct obsolete references.

EFFECTIVE DATE: May 31, 1996.

FOR FURTHER INFORMATION CONTACT:

Edward L. Girovasi, Jr., Director, Policy

and Evaluation Division, Office of

Procurement and Contracts, Room 5262,

451 Seventh Street, SW., Washington,

DC 20410–3000 (voice (202) 708–0294,

TTY (202) 708–1112). (These are not

toll-free numbers.)

SUPPLEMENTARY INFORMATION:

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 by the Assistant Secretary for

Administration 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. 486(c)); the

Secretary’s delegation effective October

9, 1985 (50 FR 42097); and the general

authorization in FAR 1.301.

On September 5, 1995 (60 FR 46152),

the Department published an interim

rule to amend the HUDAR to update

existing coverage with respect to the

Department’s structure and

organizational responsibilities, to

implement the Federal Acquisition

Streamlining Act (FASA) (Pub. L. 103–

355, approved October 13, 1994), and to

streamline Departmental procurement

practices. This rule responds to public

comment on the interim rule, and issues

it as a final rule. This rule also removes

unnecessary restrictions and corrects

obsolete references.

Public Comments

During the public comment period,

one comment was received on the

interim rule.

The commenter expressed concern

regarding the language at

§ 2415.608(a)(2), which permits the

identification of proposals submitted in

a best value procurement as being either

‘‘acceptable’’, ‘‘unacceptable but capable

of being made acceptable’’, or

‘‘unacceptable.’’ The interim rule stated,

‘‘However, under solicitations where

mandatory requirements are established,

those proposals that do not meet the

mandatory requirements may be found

unacceptable without further review.’’

The commentor pointed out that this

practice seems to set up a dichotomy

between best value procurements and

those with mandatory requirements, as

though they are mutually exclusive. The

commentor stated that if a proposal fails

to meet a minimum requirement, it

could be rejected as ‘‘unacceptable’’

without further review, which

contradicted the ability to identify a

proposal as ‘‘unacceptable but capable

of being made acceptable.’’ The

commentor stated that presumably,

there will be many proposals that fail to

meet one or more mandatory

requirements in the initial round, but

which, through minor clarification or

even discussions, could easily be

corrected to meet any such requirement.

The commentor recommended that the

language in the last sentence of

§ 2415.608(a)(2) either be revised to be

consistent with the preceding coverage,

or deleted altogether.

HUD agrees with the commentor and

has deleted the last sentence of

§ 2415.608(a)(2) in the final rule. The

language as written in the interim rule

could, to some extent, limit the

Department’s ability to select the best

contractor. Potentially, the initial

proposal representing the best value

could be rejected as ‘‘unacceptable’’ for

failing to meet a mandatory requirement

of the solicitation, when the deficiency

could possibly be corrected through

minor clarification or discussions. Such

a proposal may represent an outstanding

offer in all other respects, but under the

interim rule, it would have been

rejected as ‘‘unacceptable’’. Requiring

the Department to reject as

‘‘unacceptable’’ any proposal that fails

to meet a solicitation’s mandatory

requirements appears to defeat the

purpose of a best value procurement.

Removal of the last sentence resolves

this problem. In addition,

§ 2415.608(a)(2) and (3) are merged and

redesignated as § 2415.608(a)(3) to

conform to a corresponding FAR

change.

Additional Changes

The following changes are also made

by this rule:

HUDAR 2401.102 through 2401.105

are redesignated as 2401.103 through

2401.106, respectively, to conform to

corresponding FAR structure recently

published as FAC 90–29, effective July

3, 1995. The heading titles and

regulation text are unchanged.

HUDAR 2409.508 through 2409.508–

2 are redesignated as 2409.507 through

2409.507–2, respectively, to conform to

the corresponding FAR structure. The

regulation text is unchanged.

HUDAR part 2412, Contract delivery

performance, is redesignated as part

2411 and retitled to conform to the

revised corresponding FAR structure

published as FAC 90–32, effective

October 1, 1995.

HUDAR 2412.1, Delivery or

performance schedules, is redesignated

as § 2411.4 to conform to the revised

FAR structure published as FAC 90–32,

effective October 1, 1995. The regulation

text is unchanged.

HUDAR 2412.104, Contract clause, is

redesignated as § 2411.404 to conform to

the revised FAR structure published as

FAC 90–32, effective October 1, 1995.

The text is revised to simplify the

prescriptive language.

HUDAR 2413.106–2 is revised to

reflect the changed procurement method

name.

HUDAR 2413.505–1 is revised to

authorize the use of Form HUD–2542,

Purchase Order and Payment

Authorization, for any purchase using

simplified acquisition procedures

charged to the FHA Fund, and to

remove information that is internal in

nature.

HUDAR 2414.406, Mistakes in bids, is

redesignated as § 2414.407 to conform to

the FAR structure revision published as

FAC 90–29, effective July 3, 1995.

HUDAR 2414.406–3, Other mistakes

disclosed before award, is redesignated

as § 2414.407–3 to conform to the FAR

structure revision published as FAC 90–
Federal Register / Vol. 61, No. 85 / Wednesday, May 1, 1996 / Rules and Regulations 19469

29, effective July 3, 1995. The regulation

text is unchanged.

HUDAR 2414.406–4, Mistakes after

award, is redesignated as § 2414.407–4

to conform to the FAR structure revision

published as FAC 90–29, effective July

3, 1995. The regulation text is revised to

clarify that the concurrence of counsel

should be obtained at headquarters or

the field, depending on the location of

the contracting activity.

The heading HUDAR 2414.408,

Award, is added to conform to the FAR

structure revision published as FAC 90–

29, effective July 3, 1995.

HUDAR 2414.407–70, Award when

only one bid is received, is redesignated

as § 2414.408–70 to conform to the

revised FAR structure published in FAC

90–29, effective July 3, 1995. The

regulation text is unchanged.

HUDAR 2415.407, Solicitation

provisions, contains numerous revisions

to remove unnecessary restrictions,

simplify the prescriptive language, tailor

proposal content to the specific

solicitation, and reduce paperwork

burdens placed on offerors. The

revisions will give contracting officers

more latitude when requesting other

than certified cost or pricing data in

accordance with FAR 15.804–5(a)(2),

and will clarify distinctions in

procedures when using the ‘‘lowestpriced technically acceptable proposal’’

or ‘‘best value’’ approach to source

selection.

HUDAR 2415.413–1, Alternate I, is

amended to eliminate unnecessarily

restrictive requirements regarding the

evaluation of proposals. This revision

will allow the Department the flexibility

to have proposal evaluations performed

by the most competent technical and

management sources available.

HUDAR 2415.413–2, Alternate II, is

added to establish a procedure

consistent with the FAR for instances

when it is necessary for external parties

to evaluate proposals to meet the

Department’s evaluation needs.

In HUDAR 2415.605, Evaluation

factors, paragraphs (c) and (e) are

renumbered to conform to the revised

FAR structure published as FAC 90–31,

effective October 1, 1995.

HUDAR 2415.1004, Protests against

award, is renumbered to conform to the

revised FAR structure published as FAC

90–31, effective October 1, 1995. The

text of the regulation is unchanged.

HUDAR 2416.504, Indefinite-quantity

contracts, is renumbered to § 2416.506,

and the title is revised to Solicitation

provisions and contract clauses, to

conform to recent FAR changes

published in the Federal Register

September 26, 1995 as FAC 90–33,

effective October 1, 1995. Paragraph (e)

is redesignated as a new section,

§ 2416.506–70, Unpriced delivery/task

orders, to more accurately reflect the

text. The text of the regulation is

unchanged.

HUDAR subpart 2417.2, Options, and

§ 2417.204(e), Contracts, are added in

accordance with FAR 17.204(e) to give

the Department more flexibility for the

acquisition of supplies or services and

to establish the Senior Procurement

Executive as the approving official for

solicitations and contracts where the

total of the basic and option periods

exceed 5 years.

HUDAR part 2419, Small business

and small disadvantaged business

concerns, is retitled to conform to the

revised FAR structure published as FAC

90–32, effective October 1, 1995.

HUDAR 2419.201, General policy,

contains numerous revisions to include

reference to women-owned small

businesses to conform to corresponding

revisions in the FAR published as FAC

90–32, effective October 1, 1995.

HUDAR subpart 2419.7,

Subcontracting with small businesses

and small disadvantaged business

concerns, is retitled to conform to the

revised FAR structure published as FAC

90–32, effective October 1, 1995. The

regulation text is unchanged.

HUDAR subpart 2419.9, Contracting

opportunities for women-owned small

businesses, is removed in its entirety to

conform to corresponding FAR changes

published as FAC 90–32, effective

October 1, 1995.

HUDAR part 2420, Labor surplus area

concerns, is removed in its entirety and

reserved to conform to the revised FAR

structure published as FAC 90–32,

effective October 1, 1995.

HUDAR 2434.001, Definition, is

removed in its entirety. The threshold

for major system acquisitions is

addressed in internal directives.

In HUDAR 2437.110, Solicitation

provisions and contract clauses,

paragraph (f) is revised by removing the

last sentence to simplify the prescriptive

language. The forms identified in the

clause prescription are specified in the

clause and do not also need to be in the

prescription.

To remove unnecessary restrictions

and reduce burdens on contractor and

HUD personnel, the dollar threshold for

requiring HUD Form 441.1, ‘‘Project

Management System Baseline Plan’’,

contained in HUDAR 2442.1106,

Reporting requirements, is increased

from $100,000 to $500,000. In addition,

the text is revised to allow the use of the

prescribed forms for contracts under

$500,000, when determined necessary

by the Contracting Officer.

Accordingly, the prescription at

HUDAR 2442.1107, Contract clause, is

revised to reflect the increased dollar

threshold of $500,000.

HUDAR 2452.212–70, Contract

period, is renumbered to conform to the

revised FAR structure published as FAC

90–32, effective October 1, 1995. The

text of the regulation is corrected to cite

the renumbered HUDAR reference and

revised to simplify the prescriptive

language.

HUDAR 2452.215–70, Proposal

content and outline, is revised to

eliminate unnecessary restrictions and

simplify the basic provision concerning

proposal content. A new Alternate I is

added for procurements using the

lowest-priced technically acceptable

approach to source selection. A new

Alternate II is added for situations

where the proposed contract requires

work on, or access to, sensitive

automated systems.

HUDAR 2452.219–70, Small business

and small disadvantaged business

subcontracting plan, is retitled and the

text is revised to include women-owned

small businesses to conform to recent

FAR changes published as FAC 90–32,

effective October 1, 1995, to eliminate

repetition and clarify the content of

Alternate I.

HUDAR 2452.237–75, Clearance of

personnel, paragraph (a), is amended to

revise the forms to be submitted in the

event contractor personnel will be

working on-site in any HUD office. The

forms originally specified have changed

and this amendment merely revises the

paragraph to reflect the correct forms.

Paragraphs (b) and (c) of the section

remain unchanged.

The prescriptive language at HUDAR

2452.242–71, Project management

system, is revised to correspond to the

clause prescription at HUDAR

2442.1107. The text of the clause

remains unchanged.

Other Matters

Paperwork Reduction Act

The information collection

requirements contained in this rule have

been approved by the Office of

Management and Budget in accordance

with the Paperwork Reduction Act of

1995 (44 U.S.C. 3501–3520), and

assigned OMB control number 2535–

0091. 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 valid

control number.

Environmental Impact

In accordance with 40 CFR 1508.4 of

the regulations of the Council on
19470 Federal Register / Vol. 61, No. 85 / Wednesday, May 1, 1996 / Rules and Regulations

Environmental Quality and 24 CFR

50.20(k) of the HUD regulations, the

policies and procedures contained in

this rule relate only to the performance

of accounting, auditing and fiscal

functions and, therefore, are

categorically excluded from the

requirements of the National

Environmental Policy Act.

Regulatory Flexibility Act

The Secretary, in accordance with the

Regulatory Flexibility Act (5 U.S.C.

605(b)) has reviewed and approved this

rule, and in so doing certifies that this

rule will not have a significant

economic impact on a substantial

number of small entities. This rule

merely makes amendments to the

Department’s acquisition regulations

that simplify HUD’s procurement

process, revise internal HUD component

references, and implement FAR

revisions without adding additional

requirements.

Executive Order 12612, Federalism

The General Counsel, as the

Designated Official under Section 6(a) of

Executive Order 12612, Federalism, has

determined that the policies contained

in this rule will not have substantial

direct effects on States or their political

subdivisions, or the relationship

between the Federal government and

the States, or on the distribution of

power and responsibilities among the

various levels of government. The rule

makes technical revisions and

corrections to the agency’s regulations.

As a result, the rule is not subject to

review under the Order.

Executive Order 12606, The Family

The General Counsel, as the

Designated Official under Executive

Order 12606, The Family, has

determined that this rule will not have

potential for significant impact on

family formation, maintenance, and

general well-being, and, thus, is not

subject to review under the Order. The

rule involves Departmental procurement

procedures only.

List of Subjects in 48 CFR Parts 2401,

2402, 2404, 2405, 2406, 2409, 2411,

2412, 2413, 2414, 2415, 2416, 2417,

2419, 2420, 2426, 2428, 2429, 2432,

2434, 2436, 2437, 2442, 2452 and 2453

Government procurement, HUD

acquisition regulations.

Accordingly, title 48, Chapter 24, of

the Code of Federal Regulations is

amended by adopting as final the

interim rule published on September 5,

1995 (60 FR 46152), with the following

changes:

PART 2401—FEDERAL ACQUISITION

REGULATIONS SYSTEM

1. The authority citation for part 2401

continues to read as follows:

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

3535(d).

2401.105 [Redesignated]

2. Section 2401.105 is redesignated as

2401.106.

2401.104–2 [Redesignated]

3. Section 2401.104–2 is redesignated

as 2401.105–2.

2401.104 [Redesignated]

4. Section 2401.104 is redesignated as

2401.105.

2401.103 [Redesignated]

5. Section 2401.103 is redesignated as

2401.104.

2401.102 [Redesignated]

6. Section 2401.102 is redesignated as

2401.103.

PART 2409—CONTRACTOR

QUALIFICATIONS

7. The authority citation for part 2409

continues to read as follows:

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

3535(d).

2409.508 [Redesignated]

8. Section 2409.508 is redesignated as

2409.507.

2409.508–1 [Redesignated]

9. Section 2409.508–1 is redesignated

as 2409.507–1.

2409.508–2 [Redesignated]

10. Section 2409.508–2 is

redesignated as 2409.507–2.

PART 2412—CONTRACT DELIVERY

OR PERFORMANCE

11. The authority citation for part

2412 is revised to read as follows:

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

3535(d).

Part 2412 [Redesignated]

12. Part 2412 is redesignated as Part

2411 and the heading is revised to read

as follows:

PART 2411—DESCRIBING AGENCY

NEEDS

2411.1 [Redesignated]

13. Newly designated subpart 2411.1

is redesignated as 2411.4.

2411.104 [Redesignated]

14. Newly designated 2411.104 is

redesignated as 2411.404 and revised to

read as follows:

2411.404 Contract clause.

(a) The Contracting Officer may insert

the clause at 48 CFR 2452.211–70,

Contract Period, in all solicitations and

contracts.

PART 2413—SIMPLIFIED ACQUISITION

PROCEDURES

15. The authority citation for part

2413 continues to read as follows:

Authority: 40 U.S.C. 486(c); 41 U.S.C. 253;

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

16. Section 2413.106–2 is revised to

read as follows:

2413.106–2 Data to support purchases.

(d) Contracting officers may use Form

HUD–24007, Purchase/Delivery Order

Data File, to record all relevant data

pertaining to a purchase using

simplified acquisition procedures,

including recording written and oral

quotations received and documenting

orders against GSA contracts.

17. Section 2413.505–1 is revised to

read as follows:

2413.505–1 Optional Form (OF) 347, order

for supplies and services, and Optional

Form 348, order for supplies and services

schedule-continuation.

(b) For purchases charged to the FHA

Fund using simplified acquisition

procedures, contracting officers may use

Form HUD–2542, Purchase Order and

Payment Authorization.

PART 2414—SEALED BIDDING

18. The authority citation for part

2414 continues to read as follows:

Authority: 40 U.S.C. 486(c); 41 U.S.C. 253;

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

2414.406 [Redesignated]

19. Section 2414.406 is redesignated

as 2414.407.

2414.406–3 [Redesignated]

20. Section 2414.406–3 is

redesignated as 2414.407–3.

2414.406–4 [Redesignated]

21. Section 2414.406–4 is

redesignated as 2414.407–4, and revised

to read as follows:

2414.407–4 Mistakes after award.

(d) For determinations under FAR

14.407–4(b) (1) and (2), the Head of the

Contracting Activity will obtain the

concurrence of legal counsel before

notification to the Contractor. The

Contracting Officer shall be notified

promptly of action to be taken.

22. A new section, ‘‘2414.408

Award,’’ is added immediately

following redesignated 2414.407–4, to

read as follows:
Federal Register / Vol. 61, No. 85 / Wednesday, May 1, 1996 / Rules and Regulations 19471

2414.408 Award.

2414.407–70 [Redesignated]

23. Section 2414.407–70 is

redesignated as 2414.408–70.

PART 2415—CONTRACTING BY

NEGOTIATION

24. The authority citation for part

2415 continues to read as follows:

Authority: 40 U.S.C. 486(c); 41 U.S.C. 253;

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

25. Section 2415.407 is revised to read

as follows:

2415.407 Solicitation provisions.

(a) The Contracting Officer shall insert

a provision substantially the same as the

provision at 48 CFR 2452.215–70,

Proposal Content, in all solicitations for

negotiated procurements using the best

value approach selection method

expected to exceed the simplified

acquisition limit. The Contracting

officer shall adapt paragraph (c) of the

provision (i.e., include, delete, and

provide additional detail to

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 proposal method,

the provision shall be used with its

Alternate I. If the proposed contract

requires work on, or access to, sensitive

automated systems as required by the

clause at 48 CFR 2452.237–76, the

provision shall be used with its

Alternate II.

26. Section 2415.413–1 is revised to

read as follows:

2415.413–1 Alternate I.

It is HUD’s policy to have proposals

evaluated by the most competent

technical and management sources

available. The Department’s preferred

procedure for evaluation of proposals is

not to disclose the proposals outside the

Government for evaluation purposes. If

external parties will not be used to

evaluate proposals, the procedures in

FAR 15.413–1 Alternate I, shall be used.

27. A new section 2415.413–2 is

added to read as follows:

2415.413–2 Alternate II.

When it is necessary to disclose

proposals outside the Government to

meet the Department’s evaluation needs,

the procedures in FAR 15.413–2

Alternate II, shall be used.

(f)(1) The HCA is authorized to make

decisions regarding the release of

proposals outside the Government.

(2) The written agreement shall be

obtained prior to releasing proposals to

the evaluator.

(3) The HCA shall make the written

determination, which shall be retained

permanently in the official contract file.

2415.605 [Amended]

28. In section 2415.605, paragraph (c)

is redesignated (d)(1) and paragraph (e)

is redesignated as paragraph (d)(2).

29. In section 2415.608, paragraph (a)

is revised to read as follows:

2415.608 Proposal evaluation.

(a) After receipt of proposals, the

Contracting Officer will forward copies

of the technical portion of each proposal

to the TEP Chairperson or his or her

designee. The cost/price portion of each

proposal shall be retained by the

Contracting Officer pending initial

technical evaluation by the TEP.

(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 either 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 best value

approach, predetermined cut-off scores

designed to determine a threshold level

of acceptability of proposals shall not be

employed. A technical evaluation

report, which complies with FAR

15.608(a)(3), shall be prepared and

signed by the technical evaluator(s),

furnished to the contracting officer, and

maintained as a permanent record in the

official procurement file.

* * * * *

2415.1004 [Redesignated]

30. Section 2415.1004 is redesignated

as 2415.1005.

PART 2416—TYPES OF CONTRACTS

31. The authority citation for part

2416 continues to read as follows:

Authority: 40 U.S.C. 486(c); 41 U.S.C. 253;

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

2416.504 [Redesignated]

32. Section 2416.504 is redesignated

as 2416.506 and the heading is revised

to read as follows:

2416.506 Solicitation provisions and

contract clauses.

33. In the newly redesignated section

2416.506, paragraph (e) is redesignated

as section 2416.506–70 and the heading

is added to read as follows:

2416.506–70 Unpriced delivery/task

orders.

(e) * * *

PART 2417—SPECIAL CONTRACTING

METHODS

34. The authority citation for part

2417 is revised to read as follows:

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

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

35. A new subpart 2417.2 is added to

read as follows:

Subpart 2417.2—Options

36. A new section 2417.204 is added

to read as follows:

2417.204 Contracts.

(e) The Senior Procurement Executive

shall approve any solicitation or

contract which exceeds the five (5) year

maximum for acquisitions of supplies or

services.

PART 2419—SMALL BUSINESS

PROGRAMS

37. The heading of part 2419 is

revised to read as set forth above.

38. The authority citation for part

2419 continues to read as follows:

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

3535(d).

39. Section 2419.201(c), (d)(1) through

(7) and (d)(9) are revised to read as

follows:

2419.201 General policy.

(c) The Director, Office of Small and

Disadvantaged Business Utilization

(OSDBU), Headquarters, is responsible

for the administration of HUD’s small

business programs. This includes

Department-wide 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

businesses.

(d) Each head of a contracting activity

shall designate a small business

specialist who shall perform the

following functions:

(1) Maintain a program designed to

locate capable small business sources as

referenced in 48 CFR 2419.201(c) for

current and future procurements;

(2) Coordinate inquiries and requests

for advice from such businesses on

procurement matters;

(3) Review proposed requirements for

supplies and services, ensure that all

such business concerns will be afforded

an equitable opportunity to compete,

and, as appropriate, initiate
19472 Federal Register / Vol. 61, No. 85 / Wednesday, May 1, 1996 / Rules and Regulations

recommendation for small business or

Section 8a set-asides (under the Small

Business Act);

(4) Take action to ensure the

availability of adequate specifications

and drawings, when necessary, to obtain

participation by such businesses in a

procurement;

(5) Review proposed procurements for

possible breakout of items suitable for

procurement from such businesses;

(6) Advise such businesses with

respect to the financial assistance

available under existing laws and

regulations and assist such businesses

in applying for financial assistance;

(7) Ensure that adequate records are

maintained and accurate reports are

prepared concerning such businesses

participation in the procurement

program;

* * * * *

(9) Act as liaison between the

Contracting Officer and the appropriate

SBA office in connection with setasides, certificates of competency, size

classification, and any other matter in

which the small business program may

be involved.

40. The heading of subpart 2419.7 is

revised to read as follows:

Subpart 2419.7—Subcontracting With

Small Business, Small Disadvantaged

Business and Women-Owned Small

Business Concerns

Subpart 2419.9 [Removed]

41. Subpart 2419.9 is removed.

Subpart 2419.901 [Removed]

42. Section 2419.901 is removed.

PART 2420—LABOR SURPLUS AREA

CONCERNS

43. The authority citation for part

2420 is revised to read as follows:

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

PART 2420 [REMOVED AND

RESERVED]

44. Part 2420, consisting of subpart

2420.1 and § 2420.102, is removed and

reserved.

PART 2434—MAJOR SYSTEM

ACQUISITIONS

45. The authority citation for part

2434 is revised to read as follows:

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

3535(d).

2434.001 [Removed]

46. Section 2434.001 is removed.

PART 2437—SERVICE CONTRACTING

47. The authority citation for part

2437 continues to read as follows:

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

3535(d).

48. In § 2437.110, paragraph (f) is

revised to read as follows:

2437.110 Solicitation provisions and

contract clauses.

* * * * *

(f) The Contracting Officer shall insert

the clause at 48 CFR 2452.237–75,

Clearance of Personnel, in all

solicitations and contracts where

contractor personnel will be working

on-site in any HUD office.

* * * * *

PART 2442—PRODUCTION

SURVEILLANCE AND REPORTING

49. The authority citation for part

2442 is revised to read as follows:

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

3535(d).

50. Section 2442.1106 is revised to

read as follows:

2442.1106 Reporting requirements.

(a) All contracts for professional or

technical services exceeding $500,000

shall use HUD Form 441.1, ‘‘Project

Management System Baseline Plan,’’ to

outline how the Contractor proposes to

carry out the contract work and HUD

Form 661.1, ‘‘Project Management

System Progress Report,’’ to monitor

quantitative progress against the

baseline plan. Each of these forms shall

be accompanied by a narrative

description. The Contracting Officer

may waive the requirement to use these

forms if he or she believes the Statement

of Work or contractor’s technical

proposal are sufficiently specific or

another acceptable means for project

management is substituted. Contracts

awarded under the Acquired Property

Program are exempt from use of this

reporting requirement. The prescribed

forms may be used for contracts under

$500,000, when determined necessary

by the Contracting Officer.

51. Section 2442.1107 is revised to

read as follows:

2442.1107 Contract clause.

The Contracting Officer shall insert

the clause at 48 CFR 2452.242–71,

Project Management System, in

solicitations and contracts for

professional or technical services

exceeding $500,000, unless the

Contracting Officer determines that the

Statement of Work or technical proposal

is sufficiently specific, or another

acceptable method for project

management is substituted. Use of this

clause in contracts below the stated

threshold is at the discretion of the

Contracting Officer.

PART 2452—SOLICITATION

PROVISIONS AND CONTRACT

CLAUSES

52. The authority citation for part

2452 continues to read as follows:

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

3535(d).

2452.212–70 [Redesignated]

53. Section 2452.212–70 is

redesignated as § 2452.211–70 and the

introductory text is revised to read as

follows:

2452.211–70 Contract period.

As prescribed in 2411.404(a), insert

the following clause in all solicitations

and contracts:

* * * * *

54. Section 2452.215–70 is revised to

read as follows:

2452.215–70 Proposal content.

As prescribed in 2415.407(a), insert a

provision substantially the same as the

following:

Proposal Content (Oct 1995)

(a) Proposals shall be submitted in two

parts as described in paragraphs (b) and (c)

below. Each of the parts must be complete in

itself so that evaluation of each part may be

conducted independently, and so that the

technical and management part may be

evaluated strictly on its own merit. Proposals

shall be submitted in the format, if any,

prescribed elsewhere in this solicitation.

Proposals shall be enclosed in sealed

packaging and addressed to the office

specified in the solicitation. The offeror’s

name and address, the solicitation number

and the date and time specified in the

solicitation for proposal submission must

appear in writing on the outside of the

package.

(b) Proposals shall be submitted in original

and [insert number] copies of Part I and

[insert number] copies of Part II.

(c) Part I—Technical and Management.

(1) Prior experience. The offeror shall

provide evidence of the offeror’s (i.e., firm’s

or organization’s) prior and current

experience in performing the work and/or

providing the deliverables required by the

solicitation.

(2) Past Performance. The offeror shall

provide evidence of the offeror’s past

performance in accomplishing work—

including meeting delivery dates and

schedules—the same as, or substantially

similar to, that required by the solicitation.

The offeror shall provide references as

follows [Contracting Officer insert specific

instruction for reference check information

required].

(3) Personnel qualifications. The offeror

shall provide the names, position

descriptions and information to support the

qualifications—including relevant

experience, specialized training and

education—of all proposed key personnel

(see the clause entitled ‘‘Key Personnel’’ in

this solicitation for further definition). The
Federal Register / Vol. 61, No. 85 / Wednesday, May 1, 1996 / Rules and Regulations 19473

term ‘‘personnel’’ shall include any proposed

consultants and subcontractor employees

who will perform duties of key personnel.

(4) Management Capability. The offeror

shall provide evidence of his/her

organization’s ability to manage the work

required under the proposed contract. The

offeror shall describe how the work will be

organized, the proposed staffing and the

responsibilities and existing commitments of

proposed staff.

(5) Technical Capability. The offeror shall

provide a detailed description of how he/she

proposes to conduct the work required under

the proposed contract.

(6) Mandatory Minimum Requirements.

The offeror shall provide evidence, including

copies of documents, as appropriate of

[contracting officer insert description of

requirement(s), e.g., licenses, minimum

experience, etc., or delete this paragraph if

not applicable].

(d) Part II—Business Proposal.

(1) The Offeror shall complete the

Representations and Certifications provided

in Section K of this solicitation and include

them in this Part II.

(2) The offeror shall provide information to

support the offeror’s proposed costs or prices

as prescribed elsewhere in this Section L.

(End of Provision)

Alternate I (Oct 1995)

Substitute paragraph (c) with the

following:

(c) Part I—Technical and Management

Information.

(1) Prior experience. The offeror shall

provide evidence that the offeror’s (i.e., firm’s

or organization’s) prior experience meets the

following minimum standards: [contracting

officer insert specific experience

requirements].

(2) Past Performance. The offeror shall

provide evidence of the offeror’s past

performance as follows: [contracting officer

insert specific performance requirements].

The offeror shall provide references as

follows [contracting Officer insert specific

instruction for reference check information

required].

(3) Personnel qualifications. The offeror

shall provide the names, position

descriptions and evidence that proposed key

personnel (see the clause entitled ‘‘Key

Personnel’’ elsewhere in this solicitation for

definition) meet the minimum qualifications

described below. The term ‘‘personnel’’

includes any proposed consultants and

subcontractor employees who will perform

duties of key personnel. The minimum

qualifications are: [contracting officer insert

descriptions]

(4) Management Capability. The offeror

shall provide evidence of his/her

organization’s ability to manage the work

required under the proposed contract. The

offeror shall describe how the work will be

organized, the proposed staffing and the

responsibilities and existing commitments of

proposed staff.

(End of provision)

Alternate II (Oct 1995)

Add the following subparagraph,

numbered sequentially, to paragraph (c):

The offeror shall describe in detail how the

offeror will maintain the security of

automated systems as required by clause

2452.237–76 in Section I of this solicitation.

(End of provision)

55. Section 2452.219–70 is amended

by revising the section heading, the

intrductory text, the clause heading,

paragraphs (b) through (d), and

Alternate I to read as follows:

2452.219–70 Small, Small Disadvantaged,

and Women-Owned Small Business

Subcontracting Plan.

As prescribed in 2419.708, insert the

following provision:

Small, Small Disadvantaged and WomenOwned Small Business Subcontracting Plan

(Oct 1995)

* * * * *

(b) Consistent with the national interest, it

is HUD policy that small business, womenowned small business and small business

concerns that are owned and controlled by

socially and economically disadvantaged

individuals shall have the maximum

practicable opportunity to participate in the

performance of HUD work at the prime and

subcontract level. Therefore, any contract

awarded as a result of this solicitation shall

fully comply with the intent of this policy,

and the successful offeror shall agree to

pursue an effective and comprehensive small

business, small disadvantaged business and

women-owned small business subcontracting

program in compliance with the clause

entitled ‘‘Utilization of Small, Small

Disadvantaged and Women-Owned Small

Business Concerns.’’

(c) Prior compliance with subcontracting

plans shall be considered in determining the

responsibility of an offeror (see FAR 9.104–

3). Therefore, offerors having previous

contracts with subcontracting plans shall

provide the following information: agency

name; agency point of contact; contract

number; total contract value; a synopsis of

the work required under the contract; the

role(s) of the subcontractor(s) involved; and,

the applicable goals and actual performance

(dollars and percentages) for subcontracting

with small, small disadvantaged and womenowned small business concerns. This

information shall be provided for the three

most recently (within the last three years)

completed contracts with such

subcontracting plans.

(d) The contract expected to result from

this solicitation will contain the clause at

FAR 52.219–9, ‘‘Small, Small Disadvantaged

and Women-Owned Small Business

Subcontracting Plan.’’ In accordance with

that clause, the offeror shall submit the

complete subcontracting plan with the

response to this solicitation. The content of

the final plan is subject to negotiation.

Failure to submit a complete subcontracting

plan and negotiate its content in good faith

shall make the offeror ineligible for the

contract award.

(End of provision)

Alternate I (Dec 1992)

This alternate is required for all sealed bid

solicitations exceeding $500,000 ($1,000,000

for construction) that are not set aside for

small business. In such cases, insert the

following paragraph (d) for that in the basic

clause:

(d) The contract expected to result from

this solicitation will contain the clause at

FAR 52.219–9, ‘‘Small, Small Disadvantaged

and Women-Owned Small Business

Subcontracting Plan (Alternate I).’’ The

offeror submitting the apparent low bid,

upon request by the Contracting Officer, shall

submit a subcontracting plan, where

applicable, which addresses separately

subcontracting with small, small

disadvantaged business and women-owned

small business concerns, and which shall be

included in and made a part of the resultant

contract. The Contracting Officer will review

the adequacy of the subcontracting plan as

part of the responsibility determination (FAR

Subpart 9.1). Failure to submit an adequate

subcontracting plan where applicable shall

make the bidder ineligible for the contract

award.

(End of provision)

56. In § 2452.237–75, the clause

heading and paragraph (a) are revised to

read as follows:

2452.237–75 Clearance of personnel.

* * * * *

Clearance of Personnel (June 1995)

(a) The contractor shall submit to the

Contracting Officer within five days after

contract award, two (2) completed Forms

FD–258, ‘‘Fingerprint Chart’’, one original

and one copy of the SF 85P, ‘‘Questionnaire

for Public Trust Positions’’, and one original

and one copy of the OF 306, ‘‘Declaration for

Federal Employment’’, for the contractor and

all employees who have access to the

building in performance of the contract work.

These forms must be submitted for all

replacement employees prior to entrance on

duty. Necessary forms will be furnished by

HUD. If the Contracting Officer receives an

unsuitable report on any employee after

processing these forms or if the Contracting

Officer finds a prospective employee to be

unsuitable or unfit for his/her duties, the

contractor shall be advised immediately that

such employee cannot continue to work or be

assigned to work under the contract.

* * * * *

57. In § 2452.242–71, the introductory

text is revised to read as follows:

2452.242–71 Project management system.

As prescribed in 2442.1107, insert the

following clause:

* * * * *

Dated: April 19, 1996.

Marilynn A. Davis,

Assistant Secretary for Administration.

[FR Doc. 96–10446 Filed 4–30–96; 8:45 am]

BILLING CODE 4210–01–P