Source: https://www.federalregister.gov/documents/2010/12/17/2010-30528/department-of-the-treasury-acquisition-regulation
Timestamp: 2017-08-20 01:32:13
Document Index: 470283669

Matched Legal Cases: ['art 10', 'art 1019', 'art 1001', 'art 1001', 'art 1001', 'art 1002', 'art 1003', 'art 1004', 'art 1005', 'art 1009', 'art 1011', 'art 1016', 'art 1034', 'art 1036', 'art 1042']

A Proposed Rule by the Treasury Department on 12/17/2010
75 FR 78953
78953-78964 (12 pages)
2010-30528
List of Subjects in 48 CFR Part 10
Subpart 1019.7—The Small Business Subcontracting Program.
CONTRACTING OFFICER'S TECHNICAL REPRESENTATIVE (COTR) APPOINTMENT AND AUTHORITY (Date TBD)
CONTRACTOR PUBLICITY (Date TBD)
MENTOR REQUIREMENTS AND EVALUATION (Date TBD)
INSURANCE (Date TBD)
https://www.federalregister.gov/d/2010-30528 https://www.federalregister.gov/d/2010-30528
Comment due date: February 15, 2011.
Treasury invites comments on the topics addressed in this proposed rule. Comments may be submitted to Treasury by any of the following methods: by submitting electronic comments through the federal government e-rulemaking portal, http://www.regulations.gov, by e-mail to fernando.tonolete@do.treas.gov mailto:, by fax to (202) 622-2273, or by sending paper comments to Department of the Treasury, Office of the Procurement Executive, Attn: Fernando Tonolete, 1500 Pennsylvania Avenue, NW., Met. Square Room 6B517, Washington, DC 20220.
In general, Treasury will post all comments to www.regulations.gov without change, including any business or personal information provided, such as names, addresses, e-mail addresses, or telephone numbers. Treasury will also make such comments available for public inspection and copying in Treasury's Library, Room 1428, Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220, on official business days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect comments by telephoning (202) 622-0990. All comments, including attachments and other supporting materials received are part of the public record and subject to public disclosure. You should submit only information that you wish to make publicly available.
Fernando Tonolete, Procurement Analyst, Office of the Procurement Executive, at (202) 622-6416.
The Department of the Treasury is in the process of reviewing and updating all of its acquisition policies. As part of this policy review, the Office of the Procurement Executive (OPE) is updating and using as point of reference the Department of the Treasury Acquisition Regulation (DTAR) 2002 Edition, first published on June 14, 2002, and currently posted at: http://www.access.gpo.gov/​nara/​cfr/​. Only regulatory guidance is being published for public comment. Once adopted as a final rule, the DTAR will be maintained separately and combined with Department of the Treasury Acquisition Procedures (DTAP) for expediency of use by Treasury staff. The DTAR and combined DTAR/DTAP will be posted at: http://www.treasury.gov/​about/​organizational-structure/​offices/​Mgt/​Pages/​ProcurementPolicy-Regulations.aspx.
The following describes Treasury's proposed changes to 48 CFR Chapter 10:
Subpart 1001.3 AGENCY ACQUISITION REGULATIONS was added to restate the policy that the DTAR applies throughout the Department of the Treasury except for the US Mint, and that OPE is responsible for the DTAR's evaluation, review and issuance.
Subpart 1001.4 DEVIATIONS FROM THE FAR was added, stating that the Senior Procurement Executive (SPE) is authorized to approve individual contract and class deviations from the FAR and DTAR.
Subpart 1001.6 CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND RESPONSIBILITIES was added to link by reference and insert in this subpart DTAR 1052.201-70 on Contracting Officer's Technical Representative (COTR) appointment and authority, with the requirement that substantially the same clause be included in all solicitations and contracts.
Editorial and clarification changes were made to section 1001.104 to make it easier for contractors, offerors and Treasury contracting staff to read and use.
Sections 1001.301, 1001.304, 1001.403, 1001.404, 1002.70, 1052.201-70, and 1052.219-73 supplement the FAR by providing paragraph specific designations, delegations of authority within Treasury and/or changed names of offices due to reorganization.
Under Part 1002 DEFINITIONS OF WORDS AND PHRASES definitions were added for:
All Bureaus and their corresponding acronyms
Full definitions were likewise added for the following abbreviations:
Start Printed Page 78954
Part 1003 IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST was removed because its applicability is deemed closer to internal Treasury policy and procedure, as opposed to one having an impact on external contracting activity. It has been relocated to the companion Department of the Treasury Acquisition Procedures (DTAP).
Part 1004 ADMINISTRATIVE MATTERS was removed because the requirement concerning contract employees meeting the investigative requirements of the Treasury Security Manual to access classified information is no longer within the DTAR's purview.
Part 1005 PUBLICIZING CONTRACT ACTIONS was removed because the OFPP and SBA pilot program on Acquisition of Services from Small Business has lapsed and has not been extended.
Part 1009 CONTRACTOR QUALIFICATIONS was added to link and insert in this subpart DTAR 1052.210.70 on Contractor Publicity, with the requirement that substantially the same clause be included in all solicitations and contracts.
31 U.S.C. 333(a) prohibits the use of Treasury names, abbreviations, or symbols, in connection with, or as a part of, any advertisement, solicitation, business activity, or product, in a manner that may imply endorsement by Treasury. Substantially the same clause at DTAR 1052.210-70 on Contractor Publicity must be inserted in all solicitations and contracts.
Part 1011 DESCRIBING AGENCY NEEDS was removed because the stipulation that BCPOs can act on behalf of the Head of the Agency in requiring offerors to make the required demonstrations of market acceptance is outdated and/or no longer applies.
Part 1016 TYPES OF CONTRACTS was added to specify that Bureaus must appoint a Task and Delivery Ombudsman to review complaints from contractors, and in the absence of such a designation, the Bureau Competition Advocate will serve in that capacity.
Editorial and clarification changes were made to sections 1019.202-70-4, 1019.202-70-5, 1019.202-70-8, 1019.202-70-9, 1019.202-70-10, 1019.202-70-11, 1019.202-70-12,1019.202-70-14, 1019.202-70-16, 1019.811-3 to make it easier for contractors, offerors and Treasury contracting staff to read and use. Furthermore, these provisions, except for 1019.811-3, are being consolidated into a single new section 1019.202-70.
In subdivision 1019.202-70(d), the reference limiting the program to prime contractors is being changed to “contractors.”
In subdivision 1019.202-70(e), the title limiting the program to prime contractors is being changed to apply to any “contractor.” In addition, this subdivision authorizes incentives in negotiated contract actions. Incentives of up to 5% may apply to non-price factors and, if used, must be included in the solicitation indicating that this adjustment may occur. SBA regulations allow for the development of incentives as a tool for increasing the number of participating mentoring firms.
Subdivision 1019.202-70(h) is being revised to comply with the FAR by adding two additional firm types qualifying as protégés—owned or controlled by a veteran or a qualified 8(a) concern.
Subsection 1019.705-4, paragraph (a)(1) is being removed, since Treasury Directive P 76-01B no longer applies.
Subsection 1028.307-1 requires contractors to submit plans for buying group insurance to the Contracting Officer; and the internal procedure to obtain advice from Legal Counsel was removed.
As of January 6, 2007, the General Services Board of Contract Appeals (GSBCA) was replaced by the Civilian Board of Contract Appeals (CBCA) as the authorized representative of the Secretary of the Treasury for appeals involving contract disputes. Section 1033.201 is being revised to reflect this change.
Part 1034 MAJOR SYSTEM ACQUISITION was added to incorporate the concept of Earned Value Management (EVM). This part consists of multiple pages of detailed text with a full explanation of the core EVM concept which encompasses the following subject areas:
ANSI/EIA Standard-748 criteria
Relevant Solicitation Provisions and Contract Clauses
Sections 1034.001, 1034.004, 1034.201, 1034.202, 1034.203 1052.234-2, 1052.234-3, 1052.234-4, 1052.234-70, 1052.234-71, and 1052.234-72 contain EVM requirements to include informational text, provisions and clauses to be inserted in solicitations and awards with development, modernization or enhancement (DME) efforts. Projects with DME must be managed using an Earned Value Management System (EVMS) that is compliant with the American National Standards Institute/Engineering Industrial Alliance (ANSI/EIA) Standard 748 (current version). Treasury has established two types of EVM reporting: “Full” EVM reporting—32 ANSI/EIA criteria, and “Core” EVM Reporting—10 ANSI criteria that are a subset of ANSI/EIA 748, which apply to dollar thresholds described in Section 1034.201.
Part 1036 CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS was added to provide authorization for bureaus to utilize either or both of the short processes described at FAR 36.602-5 for selecting firms for Construction and Architect-Engineer Services contracts that are not expected to exceed the simplified acquisition threshold.
Subsection 1036.602-5, Treasury authorizes the option of using either short selection process for AE contracts not exceeding the simplified acquisition threshold.
Part 1042 CONTRACT ADMINISTRATION AND AUDIT SERVICES was added to provide text references to contract administration and audit procedures codified in FAR 42.1503 under the authority of 41 U.S.C. 418b.
Editorial and clarification changes were made to sections 1052.201.570 1052.219-72, and 1052.219-73 to make it easier for contractors, offerors and Treasury contracting staff to read and use.
Section 1052.210-70 CONTRACTOR PUBLICITY was added to address the need for the Contracting Officer's explicit written consent prior to a contractor using equipment or services provided under the contract for news releases or commercial advertising.
Clause 1052.219-75, MENTOR REQUIREMENTS AND EVALUATION is being added to evaluate mentor protégé accomplishments or withdrawal under the agreements; provide notification requirements for withdrawing from program; and provide a notice of the availability of a bonus incentive not to exceed 5% of the relative importance of non-price factors.
Clauses 1052.234-2, 1052.234-3, 1052.234-4, 1052.234.70, 1052.234-71 and 1052.234-72 collectively refer to the EVM concept and were added to explain various stages of the Earned Value Management system.Start Printed Page 78955
This proposed rule is not a significant regulatory action under Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993.
The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., applies to this proposed rule. It is hereby certified that the changes included in this rule will not have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act
The revisions are not considered substantive; revisions only update and reorganize existing coverage. Further, the revisions to the Mentor-Protégé program, although having some economic impact on participating small entities, are not expected to affect a substantial number of small entities. The program is designed for mentoring firms to provide developmental assistance to protégés in the areas of management, personnel, organization, technical capability, financial strength, and training/certifications. As a result, the approximately 44 participating small entities may experience short-term gains including an increase in the areas of revenue, number of contract awards, personnel, technical capabilities, and business relationships. Long-term, program participation should provide increased access to prime or subcontractor opportunities at the Treasury. Subsequently, this program serves to improve the Department of the Treasury's small business goal attainment. The U.S. Department of the Treasury invites comments from small businesses to examine the impact proposed on such entities.
Accordingly, the Department of the Treasury proposes to revise 48 CFR Chapter 10 in its entirety, to read as follows:
Department of the Treasury Acquisition Regulation (DTAR) System
OMB has assigned the following control numbers that must appear on Start Printed Page 78956the upper right corner of the face page of each solicitation, contract, modification, and order: OMB Control No. 1505-0081 (Offeror submissions), OMB Control No. 1505-0080 (Contractor submissions), OMB Control No. 1505-0107 (Protests). OMB regulations and OMB's approval and assignment of control numbers are conditioned upon Treasury bureaus not requiring more than three copies (including the original) of any document of information. OMB has granted a waiver to permit the Department to require up to eight copies of proposal packages, including proprietary data, for solicitations, provided that contractors who submit only an original and two copies will not be placed at a disadvantage.
Treasury's Mentor-Protégé Program.
Responsibilities of the Contracting Officer Under the Subcontracting Assistant Program.Start Printed Page 78957
(i) Evaluating the quality of a proposed subcontracting plan under FAR 19.705-4; and
(2) Except small disadvantaged businesses and qualified HUBZone small business firms, a protégé firm may self-certify to a mentor firm that it meets the requirements set forth in paragraph (h)(1) of this section. Mentors may rely in good faith on written representations by potential protégés that they meet the specified eligibility requirements. In paragraph (h)(1)(i) of this section, small disadvantaged business, or qualified HUBZone small business status eligibility and documentation requirements are determined according to FAR 19.304 and 19.1303, respectively.
(1) Names and addresses of mentor and protégé firms and a point of contact Start Printed Page 78958within both firms who will oversee the agreement;
(5) A description of the type of developmental program that will be provided by the mentor firm to the protégé firm, to include a description of the potential subcontract work, and a schedule for providing assistance and criteria for evaluation of the protégés' developmental success;
Start Printed Page 78959
Core Earned Value Management is a process for ensuring that the contractor's self-validated earned value management system is capable of producing earned value management data and meets, at a minimum, the following core ANSI/EIA Standard-748 criteria:
(6) Financial and human resource requirements to manage the acquisition processes through the investment lifecycle;Start Printed Page 78960
(a) An Earned Value Management System (EVMS) is required for major acquisitions for development/modernization/enhancement (DME) in accordance with OMB Circular A-11. This includes prototypes and tests to select the most cost effective alternative during the Planning Phase, the work during the Acquisition Phase, and any developmental, modification or upgrade work done during the Operational/Steady State Phase. EVMS is to be applied to contractor efforts regardless of contract type. The Contracting Officer shall procure the Contractor-developed component(s) of major project(s) that have been vetted through the Treasury governance process and the acquisition has been identified by the program manager as requiring the Contractor's use of an EVMS. In addition to major acquisitions for development, the Department of the Treasury may also require the Contractor's use of an EVMS for other acquisitions. The following thresholds apply to DME costs at the Contract Line Item Number (CLIN) level for performance-based acquisitions and to DME costs at the acquisition level (Contract, Task Order, or IAG) for non-performance-based contracts:
> $50 M Between $20M and $50 M Full Full 32 32 CFA 1 Acceptance Contractor Self-Validation Yes Yes CFA Surveillance unless another interested party alternative is requested by the Bureau and approved by the Treasury CIO.
< $20M Core 10 Contractor Self-Validation Independent Baseline Validation IBR (Core) Treasury/Bureau Surveillance.*
* In accordance with Bureau Annual Surveillance Strategy.
For the purpose of this Subpart, CLIN may be interpreted as a single Contract Line Item Number, Contract Line Item Number with Sub-CLINs, or Multiple Contract Line Item Numbers included in a single DME effort. Do not break down any DME effort below the aggregation of the requirement to avoid use of the actual threshold prescriptions.
(4) Whether a Full Integrated Baseline Review (IBR) will be completed within 90 days when the acquisition DME value is $20 Million or more, or a Core Integrated Baseline Review when the acquisition DME value is less than $20 Million.
(c) Solicitations and Awards. Unless a waiver has been granted (See Paragraph (e), below), all solicitations and awards for major investments with DME valued at $20 Million or more require EVMS from the Contractor and its Subcontractor as follows:
(1) FAR Clause 52.234-4, Earned Value Management System; and, as appropriate, 1052.234-4, Earned Value Management System Alternate I (See 1034.203 below), must contain a requirement that the Contractor and its subcontractors have:
(2) Provide for the completion of an IBR, or, as appropriate, for subcontracts with DME less than $20 million, an IBR (Core) that meets the Government standard, and r provide periodic reporting of the EVM data.
(3) All EVM determinations as set forth in paragraphs 3(c)(i)(A) and (B), above, shall be documented in the pre-award and contract files, as appropriate.
(2) Limited duration of work to be performed;Start Printed Page 78961
(c) Both the IBR and the IBR (Core) are joint assessments by the offeror or Contractor, and the Government, of the—
(2) The Contracting Officer shall insert the FAR provision at FAR 52.234-3, Notice of Earned Value Management System—Post-Award IBR, with 1052.234-3, Notice of Earned Value System—Post-Award Alternate I in solicitations and awards that require the contractor to use and Earned Value Management System (EVMS) and for which the Government requires an IBR after award.
End Authority Start Printed Page 78962
(a) The COTR is __________[insert name, address and telephone number].
(b) A mentor or protégé must notify the OSDBU and the contracting officer, in writing, at least 30 calendar days in advance of the effective date of the firm's withdrawal from the Program. A mentor firm must notify the OSDBU and the contracting officer upon Start Printed Page 78963receipt of a protégé's notice of withdrawal from the Program.
As prescribed in 1028.310-70 and 1028.311-2, insert a clause substantially as follows: The contracting officer may specify additional kinds (e.g., aircraft public and passenger liability, vessel liability) or increased amounts of insurance.
Notice of Earned Value Management System—Pre-Award IBR—Alternate I (Date TBD).
Notice of Earned Value Management System—Post-Award IBR-Alternate I (Date TBD)
Earned Value Management System Alternate I (Date TBD)
Notice of Earned Value Management System—Pre-Award IBR (Core) (Date TBD)
(i) Describe the EVMS the offeror intends to use in performance of the contracts; Distinguish between the offeror's existing management system and modifications proposed to meet the guidelines;
(ii) Describe the management system and its application in terms of the EVMS guidelines;
(iii) Describe the proposed procedures for administration of the guidelines, as applied to subcontracts; and
(iv) Provide documentation describing the process and results of any third-party or self-evaluation of the system's compliance with the EVMS guidelines.
Notice of Earned Value Management System—Post-Award IBR (Core) (Date TBD)
(c) Offerors shall identify the major subcontractors, or major subcontracted effort if major subcontracts have not been selected subject to the guidelines. The prime Contractor and the Government shall agree to subcontractors selected for application of the EVMS requirements.Start Printed Page 78964
Core Earned Value Management System (Date TBD)
(b) If, at the time of award, the Contractor's EVMShas not been determined by the CFA as complying with EVMS guidelines or the Contractor does not have an existing cost/schedule control system that is compliant with the guidelines in paragraph (a), the Contractor shall—
(d) The contracting officer may require an IBR upon the
[FR Doc. 2010-30528 Filed 12-16-10; 8:45 am]