Source: https://www.federalregister.gov/documents/2002/07/30/02-18966/va-acquisition-regulation-construction-and-architect-engineer-contracts
Timestamp: 2018-07-21 18:04:17
Document Index: 20251715

Matched Legal Cases: ['art 836', '§\u2009836', '§\u2009836', '§\u2009836', '§\u2009832', '§\u2009836', 'art\n3', 'art 825', 'art 825', 'art 825', 'art 832', 'art 832', 'art\n15', 'art 836', 'art 846', 'art 846', 'art 852']

A Rule by the Veterans Affairs Department on 07/30/2002
67 FR 49257
49257-49263 (7 pages)
02-18966
Alternate I (Jul 2002)
WARRANTY FOR CONSTRUCTION—GUARANTEE PERIOD SERVICES (JUL 2002)
PAYMENTS UNDER FIXED-PRICE CONSTRUCTION CONTRACTS (JUL 2002)
WORKER'S COMPENSATION (JUL 2002)
BUY AMERICAN ACT (JUL 2002)
Alternate II (JUL 2002)
SPECIAL WARRANTIES (JUL 2002)
https://www.federalregister.gov/d/02-18966 https://www.federalregister.gov/d/02-18966
This document amends the Department of Veterans Affairs Acquisition Regulation (VAAR). This document updates position titles, makes minor grammatical corrections and revisions, revises and updates section numbers and titles, relocates material to correspond to the Federal Acquisition Regulation (FAR), and delegates authority. In addition, the document updates regulations and adds coverage regarding the authority of the National Cemetery Administration to award architect-engineer contracts. Also, it replaces a general prescription directing the use of all VAAR clauses relating to construction contracts with specific prescriptions for each clause, removes obsolete or duplicative material, updates the VAAR regarding the requirement for certificates of current cost or pricing data, and provides agency procedures regarding disclosure of the Government cost estimate on construction contracts. This document also removes a “guaranty” clause from the VAAR and provides agency procedures for VA contracting officers to use the FAR “warranty” clause for construction contracts exceeding the micro-purchase threshold in order to protect the best interests of the Government. In addition, this document revises provisions regarding the acceptance of foreign construction materials to correspond to changes made in the FAR and to comply with the Trade Agreements Act and the North American Free Trade Agreement.
Don Kaliher, Acquisition Program Management Team (0495A), Office of Acquisition and Materiel Management, Department of Veterans Affairs, 810 Vermont Ave., NW, Washington, DC 20420, telephone (202) 273-8819.
On September 27, 2001, we published in the Federal Register (66 FR 49331) a proposed rule to amend the Department of Veterans Affairs Acquisition Regulation to make changes to part 836, Construction and Architect-Engineer Contracts, and related parts. Comments were solicited concerning the proposed rule for 60 days, ending November 26, 2001. We did not receive any comments.
Based on the rationale set forth in the proposed rule, we are adopting the provision of the proposed rule as a final rule with nonsubstantive changes discussed below.
The proposed rule included collections of information regarding clauses and provisions for use in both commercial and non-commercial item, service, and construction solicitations and contracts. The Office of Management and Budget (OMB) has approved the information collections under OMB Control Numbers 2900-0622 and 2900-0623.
The intent of the proposed rule was to update the VAAR to match the FAR regarding the requirement for submission of certificates of current cost or pricing data, but the proposed rule referenced an incorrect dollar threshold of $500,000. The FAR threshold for submission of certificates of current cost or pricing data has been revised to $550,000 and will be adjusted in the future to account for inflation. Therefore, to match the FAR, § 836.578(b) has been revised to clarify when cost or pricing data is required and § 836.578(c) has been revised to reference the FAR threshold for submission of cost of pricing data rather than a specific dollar amount and for clarity. In addition, the FAR requires the approval of the head of the contracting activity prior to requiring submission of cost or pricing data for pricing actions below this threshold, so a reference to this approval requirement has been added to § 836.578(c).
The intent of the proposed rule was to update the VAAR to correspond to the FAR regarding the acceptance of foreign construction materials and to comply with the Trade Agreements Act (TAA) and the North American Free Trade Agreement (NAFTA). The proposed rule designated Alternate I to the clause at 852.236-89 for use when NAFTA applied to a solicitation. This was incorrect. Under the current dollar thresholds in the FAR, Alternate I should reference the TAA rather than NAFTA, since the dollar threshold for application of the TAA is less than the dollar threshold for the application of NAFTA. Therefore, Alternate I has been revised to apply to the TAA to correspond with the FAR.
Also, we revised § 832.111 for purposes of clarity and §§ 836.209, 836.602-2, 836.602-4, and 836.603 to update titles and/or for purposes of clarity.
This document contains provisions constituting a collection of information that have been approved by the Office of Management and Budget (OMB) under OMB Control Numbers 2900-0622 and 2900-0623.
The Secretary hereby certifies that this rule would not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612. The changes are small-business neutral and will not have a significant economic impact on a substantial number of small businesses. Therefore, pursuant to 5 U.S.C. 605(b), this rule is exempt from the initial and final regulatory flexibility analysis requirements of sections 603 and 604.
Approved: May 1, 2002.
End Amendment Part Start Printed Page 49258 Start Amendment Part
3. In section 801.301-70, paragraph (b) introductory text is added; paragraph (b)(1) is revised; and the table in paragraph (c) is amended by removing “852.236-81”, and adding in its place “852.236-82”, and by adding in numerical order the following section and OMB control numbers to read as follows:
(b) Contractors will not be requested to maintain systems of records unless prescribed in FAR or VAAR.
(1) A deviation to this prohibition may be processed in accordance with 801.403 in order to allow the contracting officer to require contractor reporting or recordkeeping beyond that prescribed in the FAR and VAAR. The request for deviation will clearly specify what information or recordkeeping will be required and why it is required. The request will be signed by the head of the contracting activity.
852.236-89 2900-0622
852.236-91 2900-0623
4. The authority citation for part 825 continues to read as follows:
5. Subpart 825.9 is amended by:
6. Subpart 825.11 and section 825.1102 are added to read as follows:
(a) The Buy American Act (41 U.S.C. 10a-d), except as modified by the Trade Agreements Act (TAA) and the North American Free Trade Agreement (NAFTA)), requires that only domestic construction material shall be used in the performance of contracts for construction. To clarify VA's position on foreign material, the contracting officer shall insert the clause at 852.236-89, Buy American Act, in solicitations and contracts for construction that contain the FAR clause at 52.225-9, Buy American Act'Balance of Payments Program'Construction Materials.
(b) For solicitations and contracts for construction that include the FAR clause at 52.225-11, Buy American Act'Balance of Payment Program'Construction Materials Under Trade Agreements, with its Alternate I (i.e., subject only to the TAA), insert the clause at 852.236-89, Buy American Act, with its Alternate I.
(c) For solicitations and contracts that include the FAR clause at 52.225-11 without its Alternate I (i.e., subject to both the TAA and NAFTA), insert the clause at 852.236-89, Buy American Act, with its Alternate II.
7. The authority citation for part 832 continues to read as follows:
8. Subpart 832.1, consisting of section 832.111, is added to read as follows:
(a) In solicitations and contracts for construction that include the FAR clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, but that do not contain a section entitled “Network Analysis System (NAS),” the contracting officer shall insert the clause at 852.236-82, Payments under fixed-price construction contracts (without NAS). When the solicitations or contracts include guarantee period services, the contracting officer shall use the clause with its Alternate I.
(b) In solicitations and contracts for construction that include the FAR clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, and that also contain a section entitled “Network Analysis System (NAS),” the contracting officer shall insert the clause at 852.236-83, Payments under fixed-price construction contracts (including NAS). When the solicitations or contracts include guarantee period services, the contracting officer shall use the clause with its Alternate I.
10. Section 836.202 is amended by:
B. In paragraph (c), adding a comma immediately after “FAR 52.236-5”; removing “the clause” and adding, in its place, “the contracting officer shall include the clause'; and removing “shall be included”.
11. Section 836.203 is added to read as follows:
12. Section 836.208 is removed.
13. Section 836.209 is revised to read as follows:
When it is considered necessary or advantageous to award a contract for construction of a design-bid-build project, as defined at FAR 36.102, to the firm or person that designed the project, prior approval will be requested from the facility director or manager or, for National Cemetery Administration contracts, the Director, Office of Construction Management, for contracts involving nonrecurring maintenance (NRM) funds or from the Chief Facilities Management Officer, Office of Facilities Management, for contracts involving construction funds. Complete justification will be furnished in the request. This section does not apply to design-build contracts, as defined at FAR 36.102.
14. Section 836.211 is removed.
End Amendment Part Start Printed Page 49259 Start Amendment Part
15. Section 836.213-4 is added to read as follows:
16. Section 836.371 is amended by:
17. Subpart 836.3 is removed.
18. Section 836.501 is added to read as follows:
19. Section 836.521 is added to read as follows:
20. Sections 836.570 through 836.579 are added to read as follows:
(b) When negotiated changes exceed $500,000, paragraph (a) of the clause at 852.236-88 will apply. Because paragraph (a) does not provide ceiling rates for indirect expenses, the contractor must supply cost breakdowns and other supporting data on its rates for indirect expenses as part of its price proposal. The contracting officer must negotiate the rates for indirect expenses with the contractor and may request an audit in accordance with FAR 15.404-2. When the negotiated change will be $500,000 or less, paragraph (b) of the clause at 852.236-88 will apply.
(c) As provided in FAR 15.403-4, proposals exceeding the cost or pricing data threshold shall be accompanied by certificates of current cost or pricing data. The contracting officer, if authorized by the head of the contracting activity, may require the submission of cost or pricing data for proposals valued at less than the cost or pricing data threshold specified in FAR 15.403-4(a)(1) and may require that the data be certified in accordance with FAR 15.403-4(a)(2).
21. Section 836.602-1, paragraph (c) is amended by removing “project, and” and adding, in its place, “project and their”.
22. Section 836.602-2 is amended by:
A. In paragraph (a), removing “board will be chaired by the Director of the Architect-Engineer Evaluation Staff, or the Area Project Manager (or Deputy Area Project Manager) will be designated to act when” and adding, in its place, “board for the Office of Facilities Management will be chaired by the Director, A/E Evaluation and Program Support Service. The Project Director or Project Manager will be Start Printed Page 49260designated to act as Chair when” removing “appropriate Area” and adding, in its place, “appropriate” and by adding a comma immediately after “board's members.”
(c) The evaluation board for National Cemetery Administration (NCA) contracts will be appointed by the Director, Office of Construction Management, and will consist of no less than three members, one of whom will serve as the board's Chair, and one of whom will be an NCA senior level contracting officer.
23. Section 836.602-4 is amended by removing “Central Office contracts) and” and adding, in its place, “Central Office contracts), the Director, Office of Construction Management (for National Cemetery Administration contracts), and”.
24. Section 836.602-5 is revised to read as follows:
25. Section 836.603 is added to read as follows:
The Chief Facilities Management Officer, Office of Facilities Management, for Central Office; the Director, Office of Construction Management, for National Cemetery Administration acquisitions; and the Chief, Engineering Service, for field facilities, are responsible for collecting Standard Forms 254 and 255 and for maintaining a data file on architect-engineer qualifications.
26. Section 836.606 heading is added immediately preceding 836.606-70, to read as follows:
27. Section 836.606-73, paragraph (a)(3)(iii) is amended by adding a “comma” immediately after “samples”.
28. The authority citation for part 846 continues to read as follows:
29. Section 846.302-70 is amended by removing “852.210-72(a)” and adding, in its place, “852.211-72(a)”, and by removing “852.210-72(b)” and adding, in its place, “852.211-72(b)”.
30. Section 846.312 is added to read as follows:
31. Subpart 846.7, consisting of sections 846.710, 846.710-70, and 846.710-71, is added to read as follows:
The contracting office shall insert the clause at 852.246-2, Warranty for construction'guarantee period services, in solicitations and contracts for construction that include the FAR clause at 52.246-21, Warranty for Construction, and also include guarantee period services.
32. The authority citation for part 852 continues to read as follows:
33. Section 852.236-70 is amended by:
34. Section 852.236-71 is amended by:
C. In paragraph (d) of the clause, removing the comma immediately after “work”.
35. Section 852.236-72 is amended by:
(b) The contractor shall submit, simultaneously with the schedule of costs Start Printed Page 49261required by the Payments Under Fixed-Price Construction Contracts clause of the contract, a statement designating the branch or branches of contract work to be performed with his/her forces. The approved schedule of costs will be used in determining the value of a branch or branches, or portions thereof, of the work for the purpose of this article.
(d) In the event the contractor fails or refuses to meet the requirement of the FAR clause at 52.236-1, it is expressly agreed that the contract price will be reduced by 15 percent of the value of that portion of the percentage requirement that is accomplished by others. For the purpose of this clause, it is agreed that 15 percent is an acceptable estimate of the contractor's overhead and profit, or mark-up, on that portion of the work which the contractor fails or refuses to perform, with his/her own forces, in accordance with the FAR clause at 52.236-1.
For requirements which include Network Analysis System (NAS), substitute the following paragraphs (b) and (c) for paragraphs (b) and (c) of the basic clause:
36. Section 852.236-74 is amended by:
(Redesignated as 852.246-2)
37. Section 852.236-75 is redesignated as 852.246-2, and is revised to read as follows:
38. In section 852.236-76, introductory text is added to read as follows:
39. Section 852.236-77 is amended by:
40. In section 852.236-78, paragraph (c) is amended by removing “may by written direction make” and adding, in its place “may, by written direction, make”; and a section introductory text is added to read as follows:
41. In section 852.236-79, section introductory text is added to read as follows:
42. Section 852.236-80 is amended by:
For new construction work with complex mechanical-electrical work, the following paragraph relating to work coordination may be substituted for paragraph (b) of the basic clause:
43. Section 852.236-81 is amended by:
44. In section 852.236-82, the introductory text and paragraphs (b)(2) and (b)(3) are revised; the “Supplement I (JAN 1988)” clause is removed and an Alternate I clause is inserted in its place to read as follows:
(3) The sum of the subbranches, as applied to each branch, shall equal the total cost of Start Printed Page 49262such branch. The total cost of all branches shall equal the contract price.
If the specifications include guarantee period services, the contracting officer shall include the following paragraphs as additions to paragraph (b) of the basic clause:
(ii) The cost of the guarantee period service shall be prorated on an annual basis and paid in equal monthly payments by VA during the period of guarantee. In the event the installer does not perform satisfactorily during this period, all payments may be withheld, and the contracting officer shall inform the contractor of the unsatisfactory performance, allowing the contractor 10 days to correct deficiencies and comply with the contract. The guarantee period service is subject to those provisions as set forth in the Payments and Default clauses.
45. Section 852.236-83 is amended by:
46. In section 852.236-84, the introductory text is revised to read as follows:
47. In section 852.236-85, introductory text is added to read as follows:
48. Section 852.236-86 is revised to read as follows:
49. Section 852.236-88 is amended by:
F. Removing from newly designated paragraph (a)(1) “to be submitted” and adding, in its place, “to be submitted as expeditiously as possible but”.
P. Removing from newly designated paragraph (b)(3) the comma immediately following the phrase “the contract”, and the comma immediately following the phrase “calendar days'.
Q. Removing from newly designated paragraph (b)(9) “Workmen's” and adding, in its place, “Worker's”.
End Amendment Part Start Printed Page 49263
50. Section 852.236-89 is revised to read as follows:
As prescribed in 825.1102(b), substitute the following paragraphs for paragraphs (a) and (b) of the basic clause:
(b) The restrictions contained in this clause 852.236-89 are waived for Trade Agreements Act (TAA) designated country construction material, as defined in FAR 52.225-11. Notwithstanding a bidder's right to offer identifiable foreign construction material in its bid pursuant to FAR 52.225-11, VA does not anticipate accepting an offer that includes foreign construction material, other than TAA designated country construction material.
As prescribed in 825.1102(c), substitute the following paragraphs for paragraphs (a) and (b) of the basic clause:
(b) The restrictions contained in this clause 852.236-89 are waived for Trade Agreements Act (TAA) designated country construction material and North American Free Trade Agreement (NAFTA) country construction material, as defined in FAR 52.225-11. Notwithstanding a bidder's right to offer identifiable foreign construction material in its bid pursuant to FAR 52.225-11, VA does not anticipate accepting an offer that includes foreign construction material, other than TAA designated country construction material or NAFTA country construction material.
51. Section 852.236-91 is amended by:
D. In paragraph (b), adding a comma immediately following the phrase “is permitted”.
52. Section 852.246-1 is added to read as follows:
[FR Doc. 02-18966 Filed 7-29-02; 8:45 am]