Source: https://www.federalregister.gov/documents/2015/05/28/2015-12275/amendments-to-the-hud-acquisition-regulation-hudar
Timestamp: 2017-08-17 07:09:45
Document Index: 76709805

Matched Legal Cases: ['art 2406', 'art 2408', 'art 2409', 'art 2411', 'art 2415', 'art 2444', 'art 2411', 'ART 2444', 'art 2444', 'art 2406', 'art 2408', 'art 2408', 'art 2409', 'art 2409', 'art 2444', 'art 2452', 'art 2432', 'art 2452', 'art 2406', 'art 2408', 'art 2408', 'art 2409', 'art 2409', 'art 2411', 'art 2415', 'art 15', 'art 2432', 'art 2437', 'art 2444', 'art 2452', 'art 2452', 'art%2038']

A Proposed Rule by the Housing and Urban Development Department on 05/28/2015
80 FR 30416
30416-30430 (15 pages)
48 CFR 2444
Docket No. FR-5814-P-01
2501-AD73
HUD-2015-0050
FR–5814–P–01 Amendments to the HUD Acquisition Regulation (HUDAR)
48 CFR Part 2406
48 CFR Part 2408
48 CFR Part 2409
48 CFR Part 2411
48 CFR Part 2415
48 CFR Part 2444
Subpart 2411.4—Delivery or Performance Schedules
PART 2444—SUBCONTRACTING POLICIES AND PROCEDURES
Subpart 2444.2—Contract Clauses
https://www.federalregister.gov/d/2015-12275 https://www.federalregister.gov/d/2015-12275
This proposed rule would amend the HUDAR to implement miscellaneous changes necessary to update the HUDAR. These changes include a correction to the designation of Source Selection Authorities, limited delegation of Head of Contracting Activity authorities, incorporation of the HUDAR Matrix, addition of new clauses, certain administrative corrections, and incorporation of Alternates to various clauses to allow for electronic invoicing.
Public Inspection of Public Comments. All properly submitted comments and communications submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. Due to security measures at the HUD Headquarters building, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at 202-708-3055 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number Start Printed Page 30417via TTY by calling the Federal Relay Service, toll-free, at 800-877-8339. Copies of all comments submitted are available for inspection and downloading at www.regulations.gov.
Lisa D. Maguire, Assistant Chief Procurement Officer for Policy, Systems and Risk Management, Office of the Chief Procurement Officer, Department of Housing and Urban Development, 451 7th Street SW., Washington, DC 20410; telephone number 202-708-0294 (this is not a toll-free number) and fax number 202-708-8912. Persons with hearing or speech impairments may access Ms. Maguire's telephone number via TTY by calling the toll-free Federal Relay Service at 800-877-8339.
The HUDAR (title 48, chapter 24 of the Code of Federal Regulations) is prescribed under section 7(d) of the Department of HUD Act (42 U.S.C. 3535(d)); section 205(c) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 121(c)); and the general authorization in FAR 1.301. The HUDAR was last revised by final rule published on December 10, 2012 (77 FR 73524), and a subsequent correcting amendment published on August 15, 2013 (78 FR 49697).
This proposed rule would amend the HUDAR at 48 CFR chapter 24, as follows:
The rule proposes several administrative corrections, including: Revising section 2404.7001 to refer to the correct contract clause 2452.204-70, “Preservation of, and Access to, Contract Records (Tangible and Electronically Stored Information (ESI) Formats),” and removing the title and redesignating the clause that is codified at section 2432.705-70 as 2432.705-70(a).
In part 2406, the rule would add section 2406.303 which requires the use of HUD Form 24012 [1] for justifications for other than full and open competition, and section 2406.304(a)(3), which designates the HUD Deputy Chief Procurement Officer as the responsible official with the authority to approve, in writing, justifications for other than full and open procurements for proposed contracts over $12.5 million, but not exceeding $62.5 million.
In part 2408, this rule would add subpart 2408.4, “Federal Supply Schedules,” and, in that subpart, would add section 2408.405-6(c)(2), which requires the use of HUD form 24013 for justifications for limiting sources exceeding the simplified acquisition threshold when using the Federal Supply Schedules.[2] This rule would also add section 24(d)(3) which designates the HUD Deputy Chief Procurement Officer as the responsible official with the authority to approve, in writing, justifications for Limited Source considerations for proposed Federal Supply Schedule order or Blanket Purchase Agreement (BPA) with an estimated value exceeding $12.5 million, but not exceeding $62.5 million.
In part 2409, this rule would add subpart 2409.1, entitled “Responsible Prospective Contractors,” and, within that subpart, section 2409.105, “Procedures,” which includes information to be collected in determining financial responsibility.
This rule would also:
Revise section 2415.303(a) to HUDAR section 2415.303(a)(1) and, except for those acquisitions identified in HUDAR section 2415.303(a)(2), designate HUD Assistant Secretaries, or their equivalent, as the Source Selection Authorities for selections made using the tradeoff process and to allow Assistant Secretaries to delegate this function to other departmental officials;
Add section 2415.303(a)(2) to designate HUD's General Counsel as the Source Selection Authority, regardless of contract amount, in all Headquarters procurements for legal services, unless the General Counsel specifically designates another agency official to perform that function;
Clarify section 2415.305(a)(5) to apply to Best Value Tradeoff technical evaluations;
Add part 2444 and, within that part, section 2444.204 entitled “Subcontracting Policies and Procedures”; and
Codify a class deviation approved by HUD's Chief Procurement Officer dated April 10, 2013 to add Alternate 1 to clauses 2452.232-70 and 2452.232-71.
In part 2452, the proposed rule would:
Add clause 2452.232-74, entitled “Not to Exceed Limitation,” and, in part 2432, add a reference to that clause and requirements regarding its use at section 2432.705;
Revise clause 2452.237-77(c)(1)(A) to change “21 days per month” to “number of business days in the month”;
Add clause 2452.237-79, “Post-Award Conference,” and a reference to that clause and requirements regarding its use at section 2437.110(e)(5);
Add clause 2452.237-81, “Labor Categories, Unit Prices Per Hour and Payment,” and a reference to that clause and requirements regarding its use at section 2437.110(e)(6);
Add section 2452.244-70, “Consent to Subcontract,” and a reference to that clause and requirements regarding its use at section 2444.204; and
Incorporate a new HUDAR matrix under subpart 2452.3.
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531- 1538) (UMRA) establishes requirements for federal agencies to assess the effects of their regulatory actions on state, local, and tribal governments and the private sector. This rule does not impose any federal mandate on any state, local, or tribal government or the private sector within the meaning of UMRA.
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial Start Printed Page 30418number of small entities. This proposed rule makes technical changes to existing contracting procedures and does not make any major changes that would significantly impact businesses. Accordingly, the undersigned certifies that this rule will not have a significant economic impact on a substantial number of small entities.
For the reasons discussed in the preamble, and pursuant to the authority under 42 U.S.C. 3535(d), HUD proposes to amend 48 CFR chapter 24 as follows:
2. Revise section 2404.7001 to read as follows:
3. The authority citation for part 2406 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 41 U.S.C. 3301 et seq.; 42 U.S.C. 3535(d).
4. Add section 2406.303 to read as follows:
2406.303
Justifications for Other Than Full and Open Competition must be prepared and approved using the latest version of HUD Form 24012.
5. Add paragraph (a)(3) to section 2406.304 to read as follows:
2406.304
(a)(3) HUD's Chief Procurement Officer, as the Head of Contracting Activity, has delegated the authority to the Deputy Chief Procurement Officer to approve, in writing, justifications for other than full and open competition procurements for proposed contracts over $12.5 million, but not exceeding $62.5 million.
6. The authority citation for part 2408 is revised to read as follows:
7. Add subpart 2408.4 to read as follows:
2408.405-6
(d)(3) HUD's Chief Procurement Officer, as the Head of Contracting Activity, has delegated the authority to the Deputy Chief Procurement Officer to approve, in writing, justifications for Limited Source considerations for a proposed Federal Supply Schedule order or Blanket Purchase Agreement (BPA) with an estimated value Start Printed Page 30419exceeding $12.5 million, but not exceeding $62.5 million.
8. The authority citation for part 2409 continues to read as follows:
9. Add subpart 2409.1 to read as follows:
2409.105
(A) The contractor is on a list requiring pre-award clearance or other special clearance before award;
(B) The contractor is listed on the Consolidated List of Contractors Indebted to the Government, or is otherwise known to be indebted to the Government;
(C) The contractor may receive Government assets such as contract financing payments or Government property;
(D) The contractor is experiencing performance difficulties on other work; or
(E) The contractor is a new company or a new supplier of the item.
(A) Any of the conditions in paragraphs (1)(B) through (1)(E) of this subsection are applicable; or
(B) There is any other reason to question the contractor's ability to finance performance and completion of the contract.
(A) For the current fiscal year (interim);
(B) For the most recent fiscal year and, preferably, for the 2 preceding fiscal years. These should be certified by an independent public accountant or by an appropriate officer of the firm; and
(C) Forecasted for each fiscal year for the remainder of the period of contract performance.
(A) Material financial interests of the contractor;
(B) Material financial interests in the contractor;
(C) Material affiliations of owners, officers, members, directors, major stockholders; and
(D) The major stockholders if the contractor is not a widely-traded, publicly-held corporation.
(A) Planned for the current year;
(B) Paid during the past 2 years; and
(C) Deferred to future periods.
(A) Shows, by significant markets, existing contracts and outstanding offers, including those under negotiation; and
(B) Is reconcilable to indirect cost rate projections.
(A) Availability of cash to finance contract performance;
(B) Contractor's exposure to financial crisis from creditor's demands;
(C) Degree to which credit security provisions could conflict with Government title terms under contract financing;
(D) Clearly stated confirmations of credit with no unacceptable qualifications; and
(E) Unambiguous written agreement by a creditor if credit arrangements include deferred trade payments or creditor subordinations/repayment suspensions.
(A) Leases, deferred purchase arrangements, or patent or royalty arrangements;
(B) Insurance, when relevant to the contract;
(C) Contemplated capital expenditures, changes in equity, or contractor debt load;
(D) Pending claims either by or against the contractor;
(E) Contingent liabilities such as guarantees, litigation, environmental, or product liabilities;
(E) Validity of accounts receivable and actual value of inventory, as assets; and
(F) Status and aging of accounts payable.
(A) Inventory to annual sales;
(B) Inventory to current assets;
(C) Liquid assets to current assets;
(D) Liquid assets to current liabilities;
(E) Current assets to current liabilities; and
(F) Net worth to net debt.
10. The authority citation for part 2411 is revised to read as follows:
11. Remove section 2411.404.
12. The authority citation for part 2415 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 41 U.S.C. 3301-3306 and 3105; 42 U.S.C. 3535(d).
End Authority Start Printed Page 30420
13. Revise section 2415.209(a)(1) to read as follows:
14. In section 2415.303, redesignate paragraph (a) as (a)(1); revise the redesignated paragraph; and add section 2415.303(a)(2), all to read as follows:
(a)(1) Except as identified in HUDAR Section 2415.303(a)(2), HUD's Chief Procurement Officer, as the Senior Procurement Executive, designates Assistant Secretaries, or their equivalent, for requiring activities as the Source Selection Authorities for selections made using the tradeoff process. Assistant Secretaries may delegate this function to other departmental officials. This designation also applies to acquisitions not performed under the requirements of FAR Part 15, but utilizing tradeoff analysis.
(a)(2) HUD's Chief Procurement Officer, as the Senior Procurement Executive, designates HUD's Office of General Counsel (OGC) as the Source Selection Authority, regardless of contract amount, in all Headquarters procurements for legal services, unless (s)he specifically designates another agency official to perform that function. Any Headquarters office desiring to procure outside legal services for the Department shall obtain OGC approval before advertising or soliciting proposals for such services. OGC shall determine whether the services are necessary and the extent of OGC involvement in the procurement.
15. In section 2415.305, revise paragraph (a)(3) to read as follows:
19. The authority citation for part 2432 continues to read as follows:
16. Revise section 2432.705 to read as follows and remove section 2432.705-70:
17. The authority citation for part 2437 continues to read as follows:
18. Revise section 2437.110(e)(2); add paragraphs 2437.111(e)(5) and (e)(6); all to read as follows:
(2) The Contracting Officer shall insert the clause at 2452.237-73, “Conduct of Work and Technical Guidance,” in all solicitations and contracts for services.
(5) The contracting officer shall insert the clause at 2452.237-79, “Post Award Conference,” in all solicitations and contracts for services when the CO deems that a Post Award Conference is necessary.
(6) The contracting officer shall insert the clause at 2452.237-81, “Labor Categories, Unit Prices Per Hour and Payment,” in all indefinite quantity and requirements solicitations and contracts when level of effort task orders will be issued.
19. Add part 2444 and heading to read as follows:
2444.204
(a) Insert HUDAR clause 2452.244-70 Consent to Subcontract, in contracts and task orders with an estimated value exceeding $10,000,000.
29. The authority citation for part 2452 continues to read as follows:
20. Remove section 2452.211-70 including Alternate I.
21. Revise section 2452.215-70 to read as follows:
PROPOSAL CONTENT ([Insert month and year of publication of final rule],)Start Printed Page 30421
(b) The number of proposals required are an original and [insert number] copies of Part I, and [insert number] copies of Part II.
(c) Part I—Technical Proposal
(1) The offeror shall submit the information required in Instructions to Offerors designated under Part I—Technical Proposal.
(d) Part II—Business Proposal
Alternate I ([Insert month and year of publication of final rule])
Alternate II ([Insert month and year of publication of final rule])
(1) Offerors shall limit submissions of Parts I and II of their initial proposals to the page limitations identified in the Instructions to Offerors. Offerors are cautioned that if any Part of their proposal exceeds the stipulated limits for that Part, the Government will evaluate only the information contained in the pages up through the permitted number. Pages beyond that limit will not be evaluated.
22. Revise section 2452.232-70 to read as follows:
As prescribed in 2432.908(c)(2), insert the following clause in all fixed-price solicitations and contracts:
PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED-PRICE) ([Insert month and year of publication of final rule])
(1) The Contractor shall submit invoices as follows: Original to the payment office and one copy each to the Contracting Officer and a copy to the Government Technical Representative (GTR) identified in the contract. To constitute a proper invoice, the invoice must include all items required by the FAR clause at 52.232-25, “Prompt Payment.”
Alternate I ([Insert month and year of publication of final rule]). Delete paragraph (b)(1) of HUDAR Clause 2452.232-70 Payment Schedule and Invoice Submission (Fixed-price) and replace with the following Alternate, when requiring invoices to be submitted electronically via email, in fixed price contracts other than performance-based contracts under which performance-based payments will be used:
The contractor shall submit invoices electronically via email to the email addresses shown on the contract award document (e.g., block 12 of the Standard Form (SF) 26, block 25 of the SF-33, or block 18a of the SF-1449) and carbon copy the Contracting Officer and the Government Technical Representative (GTR). To constitute a proper invoice, the invoice must include all items required by the FAR clause at 52.232-25, “Prompt Payment.” The contractor shall clearly include in the Subject line of the email: INVOICE INCLUDED; CONTRACT/ORDER #: _____, INVOICE NUMBER _____ and Contract Line Item Number(s) ____.
23. Revise section 2452.232-71 to read as follows:
Voucher submission (cost-reimbursement, time-and-materials, and labor-hour).
VOUCHER SUBMISSION (COST-REIMBURSEMENT, TIME-AND-MATERIALS, AND LABOR HOUR) ([Insert month and year of publication of final rule])
(1) The contractor shall submit, _____ [Contracting Officer insert billing period, e.g., monthly], an original Start Printed Page 30422and two copies of each voucher. In addition to the items required by the clause at FAR 52.232-25, “Prompt Payment,” the voucher shall show the elements of cost for the billing period and the cumulative costs to date. The Contractor shall submit all vouchers, except for the final voucher, as follows: Original to the payment office and one copy each to the Contracting Officer and the Government Technical Representative (GTR) identified in the contract. The contractor shall submit all copies of the final voucher to the Contracting Officer.
(2) For cost reimbursement, time-and-materials and labor-hour contracts, the Contractor shall aggregate vouchered costs by the individual task for which the costs were incurred and clearly identify the task or job.
Alternate I ([Insert month and year of publication of final rule]). Delete paragraph (a)(1) of HUDAR clause 2452.232-71, Voucher Submission (Cost-Reimbursement, Time-and-Materials, and Labor-Hour).) and replace with the following Alternate, when requiring invoices to be submitted electronically via email, in all cost-reimbursement, time-and-materials, and labor-hour type solicitations and contracts:
The contractor shall submit invoices electronically via email to the email addresses shown on the contract award document (e.g., block 12 of the Standard Form (SF) 26, block 25 of the SF-33, or block 18a of the SF-1449) and carbon copy the Contracting Officer and the Government Technical Representative. To constitute a proper invoice, the invoice must include all items required by the FAR clause at 52.232-25, “Prompt Payment.” The contractor shall clearly include in the Subject line of the email: INVOICE INCLUDED; CONTRACT/ORDER #: _____, INVOICE NUMBER _____ and Contract Line Item Number(s) _____. In addition to the items required by the clause at FAR 52.232-25, Prompt Payment, the voucher shall show the elements of cost for the billing period and the cumulative costs to date. The contractor shall also submit supporting documentation such as time cards to verify the hours/costs vouchered.
24. Add section 2452.232-74 to read as follows:
2452.232-74
Not to exceed limitation.
NOT TO EXCEED LIMITATION ([Insert month and year of publication of final rule])
(a) The total estimated funds needed for the performance of this contract are not yet obligated. The total obligation of funds available at this time for performance of work or deliveries is [FILLIN#1#Insert Amount]. The Government shall not order, nor shall the contractor be required to accept orders for, or perform work or make deliveries that exceed the stated funding limit.
(b) The Government may unilaterally increase the amount obligated through contract modification(s) until the full contract value has been obligated.
25. Revise section 2452.237-73 to read as follows:
CONDUCT OF WORK AND TECHNICAL GUIDANCE ([Insert month and year of publication of final rule])
26. Revise paragraph 2452.237-77(c)(1)(A) to read as follows:
Temporary closure of HUD facilities. ([Insert month and year of publication of final rule])
27. Add section 2452.242-79 to read as follows:
2452.237-79
POST AWARD CONFERENCE ([Insert month and year of publication of final rule])
The Contractor shall be required to attend a post-award conference on DATE _____ to be held at ADDRESS _____, unless other arrangements are made. All Contractors must have a valid ID for security clearance into the building.
28. Add section 2452.237-81 to read as follows:
2452.237-81
Labor categories, unit prices per hour and payment.
LABOR CATEGORIES, UNIT PRICES PER HOUR AND PAYMENT ([Insert month and year of publication of final rule])
29. Revise section 2452.239-70 to read as follows:
ACCESS TO HUD SYSTEMS ([Insert month and year of publication of final rule])
(3) Affected contractor employees who have had a federal background investigation without a subsequent break in federal employment or federal contract service exceeding 2 years may be exempt from the investigation requirements of this clause subject to verification of the previous Start Printed Page 30424investigation. For each such employee, the contractor shall submit the following information in lieu of the forms and information listed in paragraph (d)(1) of this clause: Employee's full name, Social Security number, and place and date of birth.
(vii) OMB Memorandum M-05-24, Implementing Guidance for HSPD-12. The HUD Handbooks are available online at: http://www.hud.gov/​offices/​adm/​hudclips/​ or from the GTR.Start Printed Page 30425
(2) The contractor shall develop and maintain a compliance matrix that lists each requirement set forth in paragraphs, (b), (c), (d), (e), (f), (g), (h), (i)(1), and (m) of this clause with specific actions taken, and/or procedures implemented, to satisfy each requirement. The contractor shall identify an accountable person for each requirement, the date upon which actions/procedures were initiated/completed, and certify that information contained in this compliance matrix is correct. The contractor shall ensure that information in this compliance matrix is complete, accurate, and up-to-date at all times for the duration of this contract. Upon request, the contractor shall provide copies of the current matrix to the contracting officer and/or government technical representative.
30. Add section 2452.244-70 to read as follows:
2452.244-70
Consent to subcontract.
CONSENT TO SUBCONTRACT ([Insert month and year of publication of final rule])
(a) Due to the substantive nature of subcontracting that may be necessary during performance of this contract, the Contracting Officer has determined that a consent for individual subcontracts is required to adequately protect the Government. Consent is required for—
31. Add subpart 2452.3 to read as follows:
32. Add section 2452.3 to read as follows:
HUDAR Matrix.
1. See http://portal.hud.gov/​hudportal/​documents/​huddoc?​id=​24012.pdf.
2. See http://www.acquisition.gov/​far/​html/​Subpart%2038_​1.html#wp1075980.
[FR Doc. 2015-12275 Filed 5-27-15; 8:45 am]