Source: https://www.federalregister.gov/documents/2019/03/19/2019-04900/va-acquisition-regulation-construction-and-architect-engineer-contracts
Timestamp: 2019-05-23 10:47:25
Document Index: 374850162

Matched Legal Cases: ['art 836', 'arts 836', 'art 842', 'arts 846', 'art 825', 'art 825', 'ART 853', 'art 836', 'art 825', 'art 825', 'arts 801', 'art 825', 'art 825', 'art 825', 'art 836', 'art\n9', 'art\n30', 'art 836', 'art 842', 'art 842', 'art 846', 'art 852', 'art 853']

A Rule by the Veterans Affairs Department on 03/19/2019
9968-9976 (9 pages)
48 CFR 842
2900-AQ18
VA-2018-VACO-0022
AQ18-Proposed Rule-VA Acquisition Regulation: Construction and Architect-Engineer Contracts
AQ18(F) RIA - Final Version (1-7-19)VAAR Part 836
AQ18(P)ImpactAnalysis_VAAcquisitionRegulation...
48 CFR Parts 836 and 852
48 CFR Part 842
48 CFR Parts 846 and 853
Subpart 825.2 [Removed and Reserved]
Subpart 825.11 [Removed and Reserved]
Specifications and Drawings for Construction (Apr 2019)
Performance of Work by the Contractor (Apr 2019)
Contractor Production Report (Apr 2019)
Subcontracts and Work Coordination (Apr 2019)
Restriction on Submission and Use of Equal Products (Apr 2019)
Notice to Bidders—Additive or Deductive Bid Line Items (Apr 2019)
Government Construction Contract Administration (Apr 2019)
PART 853—FORMS
https://www.federalregister.gov/d/2019-04900 https://www.federalregister.gov/d/2019-04900
On September 7, 2018, VA published a Start Printed Page 9969proposed rule in the Federal Register (83 FR 45384) which announced VA's intent to amend regulations for VAAR Case RIN 2900-AQ18 (part 836). In particular, this final rule removes subpart 825.2, Buy American Act—Construction Materials, and the associated prescribed clauses under subpart 825.11, Solicitation Provisions and Contract Clauses, as it is duplicative of the FAR.
This final rule contains one provision constituting a collection of information at 48 CFR 836.606-71, Architect-engineer's proposal, concerning use of and prescription for VA Form 10-6298, Architect-Engineer Fee Proposal, which is revised with updated thresholds and FAR citations, as well as an updated form number. Under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), no new collection of information is associated with this provision as a part of this final rule. The information collection requirement for 836.606-71 is currently approved by OMB and has been assigned OMB control number 2900-0208. The burden of this information collection remains unchanged. However, this rule does amend this information collection requirement to Start Printed Page 9970renumber the form currently numbered and titled as VA Form 10-6298, Architect-Engineer Fee Proposal, to now read: VA Form 6298, Architect-Engineer Fee Proposal. Additionally, older dollar thresholds and FAR citations in the form are updated to current levels and correct citations. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), OMB has approved the reporting or recordkeeping provisions that are included in the text and form under 836.606-71 cited above against the assigned OMB control number. For the requested administrative amendments to the form, as required by the Paperwork Reduction Act of 1995 (at 44 U.S.C. 3507(d)), VA has submitted this information collection amendment to OMB for its review. Notice of OMB approval for this information collection will be published in a future Federal Register document. Other revisions to the associated OMB control number relating to other provisions of this rule are identified separately in this submittal.
This final rule does not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. The overall impact of the rule is of benefit to small businesses owned by Veterans or service-disabled Veterans as the VAAR is being updated to remove extraneous procedural information that applies only to VA's internal operating processes or procedures. VA estimates no cost impact to individual business will result from these rule updates. This rulemaking clarifies VA's policy regarding the contracting order of priority for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) as a result of VA's implementation of 38 U.S.C. 8127-8128 as a result of the U.S. Supreme Court's decision in Kingdomware Technologies, Inc. vs. the United States, July 25, 2018, only as it pertains to the application of the VA Rule of Two to contracts for construction and architect-engineer contracts in accordance with Public Law 109-461 as codified at 38 U.S.C. 8127-8128. It does not have an economic impact to individual businesses, and there are no increased or decreased costs to small business entities. On this Start Printed Page 9971basis, the final rule does not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. Therefore, under 5 U.S.C. 605(b), this regulatory action is exempt from the initial and final regulatory flexibility analysis requirements of sections 603 and 604.
VA has examined the economic, interagency, budgetary, legal, and policy implications of this regulatory action, and it has been determined not be a significant regulatory action under E.O. 12866 because it does not raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in this Executive Order. VA's impact analysis can be found as a supporting document at http://www.regulations.gov, usually within 48 hours after the rulemaking document is published. Additionally, a copy of the rulemaking and its impact analysis are available on VA's website at http://www.va.gov/​orpm by following the link for VA Regulations Published from FY 2004 Through Fiscal Year to Date. This final rule is considered an E.O. 13771 deregulatory action. Details on the estimated cost savings of this final rule can be found in the rule's economic analysis and in the PRA section below.
The Secretary of Veterans Affairs approved this document and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs. Robert L. Wilkie, Secretary, Department of Veterans Affairs, approved this document on January 8, 2019, for publication.
For the reasons set out in the preamble, VA amends 48 CFR, parts 801, 825, 836, 842, 846, 852, and 853 as follows:
2. In 801.106, under the table, columns titled “48 CFR part or section where identified and described” and “Current OMB control number”:
a. Remove the reference to 852.236-82 through 852.236-84 and 852.236-89 and the corresponding OMB Control Number 2900-0622.
b. Remove the reference to 852.236-91 and the corresponding OMB Control Number 2900-0623.
3. The authority citation for part 825 is revised to read as follows:
4. Subpart 825.2, consisting of sections 825.103 and 825.104, is removed and reserved.
5. Subpart 825.11, consisting of section 825.1102, is removed and reserved.
6. The authority citation for part 836 is revised to read as follows:
7. Section 836.202 is revised to read as follows:
8. Section 836.202-70 is added to read as follows:
836.202-70
Specifications—use of equal products.
Start Printed Page 9972 Start Amendment Part
9. Section is revised to read as follows:
10. Section 836.203-70 is added to read as follows:
836.203-70
Protection of the independent government estimate—sealed bid.
11. Section 836.204 is revised to read as follows:
12. Section 836.206 is removed.
13. Section 836.209 is removed.
836.213, 836.213-4, and 836.213-70
14. Sections 836.213, 836.213-4, and 836.213-70 are removed.
15. Section 836.500 is revised to read as follows:
16. Section 836.501 is revised to read as follows:
17. Section 836.513 is removed.
18. Section 836.521 is revised to read as follows:
Specifications and drawings for construction .
19. Section 836.570 is removed.
20. Section 836.571 is removed.
21. Section 836.572 is removed.
22. Section 836.573 is revised to read as follows:
Contractor production report.
23. Section 836.574 is revised to read as follows:
24. Section 836.575 is removed.
25. Section 836.576 is removed.
26. Section 836.577 is removed.
27. Section 836.579 is removed.
28. Section 836.580 is added to read as follows:
Notice to bidders—additive or deductive bid line items.
836.602, 836.602-1, 836.602-2, 836.602-4, and 836.602-5
29. Sections 836.602, 836.602-1, 836.602-2, 836.602-4, and 836.602-5 are removed.
End Amendment Part Start Printed Page 9973 Start Amendment Part
30. Section 836.603 is revised to read as follows:
31. Sections 836.606, 86.606-70, and 86.606-71 are revised to read as follows:
Architect-engineer firms' proposal.
836.606-72 and 836.606-73
32. Sections 836.606-72 and 836.606-73 are removed.
33. Subpart 836.70, consisting of sections 836.7000 and 836.7001, is added to read as follows:
836.7000
836.7001
Unique construction and architect-engineer services forms.
34. The authority citation for part 842 is amended to read as follows:
35. Subpart 842.2, consisting of section 842.271, is added to read as follows:
Contract clause for Government construction contract administration.
36. The authority citation for part 846 is revised to read as follows:
Start Printed Page 9974 Authority: 40 U.S.C. 121(c); 41 U.S.C. 1121; 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.
37. Section 846.312 is removed.
38. The authority citation for part 852 continues to read as follows:
39. Section 852.236-71 is revised to read as follows:
(a) The Contracting Officer's interpretation of the drawings and specifications will be final, subject to the Disputes clause.
(1) Check all drawings and specifications furnished immediately upon receipt;
(2) Compare all drawings and the specifications, and verify the figures before laying out the work;
(1) Drawings of greater detail shall govern over drawings of lesser detail unless specifically noted otherwise; and
(2) Figures and numerical quantities noted on drawings govern over scale measurements.
Title File Drawing No.
40. Section 852.236-72 is revised to read as follows:
(a) In accordance with FAR 52.236-1, the contract work accomplished on the site by laborers, mechanics, and foreman/superintendent on the Contractor's payroll and under their direct supervision shall be used in establishing the percent of work to be performed by the Contractor. Cost of material and equipment installed by such labor may be included. The work by the Contractor's executive, administrative and clerical forces shall be excluded in establishing compliance with the requirements of this clause.
(b) The Contractor shall submit, simultaneously with the schedule of costs required by the Payments under Fixed-Price Construction Contracts clause of the contract, a statement designating the portions of contract work to be performed with the Contractor's own forces. The approved schedule of costs will be used in determining the value of a work activity/event, or portions thereof, of the work for the purpose of this article.
(c) Changes to established activity/event identifiers or responsibility codes for Contractor activities shall not be made without approval from the Contracting Officer.
(d) In the event the Contractor fails to comply with FAR 52.236-1, Performance of Work by the Contractor, the Contracting Officer will withhold retention in the amount of 15% of the value of any work activity/element being invoiced that was not authorized by the Contracting Officer to be performed by someone other than the prime Contractor's own workforce.
Alternate I (APR 2019). For requirements which include a Network Analysis System (NAS), substitute the following paragraph (b) for paragraph (b) of the basic clause:
(b) The Contractor shall submit, simultaneously with the cost per activity of the construction schedule required by Section 01310 or 01311, NETWORK ANALYSIS SYSTEM, a responsibility code for all activities of the network for which the Contractor's forces will perform the work. The cost of these activities will be used in determining the portions of the total contract work to be executed by the Contractor's forces for the purpose of this article.
41. Section 852.236-74 is removed and reserved.
42. Section 852.236-76 is removed and reserved.
43. Section 852.236-77 is removed and reserved.
44. Section 852.236-78 is removed and reserved.
45. Section 852.236-79 is revised to read as follows:
(a) The Contractor shall furnish to the resident engineer, for each workday, a consolidated report for the preceding workday. Reporting shall begin from date of mobilization until the date of final acceptance except for authorized holidays. VA Form 10101, Contractor Production Report, or a Contractor generated form containing the same type of information shall be signed, dated and submitted by the Contractor superintendent.
(b) Each report shall include and specifically identify at least one safety topic germane to the jobsite that day.
46. Section 852.236-80 is revised to read as follows:
(d) The Government reserves the right to refuse to permit employment on the work, or require dismissal from the work, of any subcontractor or subcontractor employee who, by reason of previous unsatisfactory work on Department of Veterans Affairs projects or for any other reason, is considered by the Contracting Officer to be incompetent, careless, or otherwise objectionable.
Alternate I (APR 2019). For new construction work with complex mechanical-electrical work, the Start Printed Page 9975following paragraph relating to work coordination may be substituted for paragraph (b) of the basic clause:
(b) The Contractor shall be responsible to the Government for acts and omissions of his/her own employees, and subcontractors and their employees. The Contractor shall also be responsible for coordination of the work of the trades, subcontractors, and material suppliers. The Contractor shall, in advance of the work, prepare coordination drawings showing the location of openings through slabs, the pipe sleeves and hanger inserts, as well as the location and elevation of utility lines, including, but not limited to, conveyor systems, pneumatic tubes, ducts, and conduits and pipes two inches and larger in diameter. These drawings, including plans, elevations, and sections as appropriate, shall clearly show the manner in which the utilities fit into the available space and relate to each other and to existing building elements. Drawings shall be of appropriate scale to satisfy the previously stated purposes, but not smaller than 3/8-inch scale. Drawings may be composite (with distinctive colors for the various trades) or may be separate but fully coordinated drawings (such as sepias or photographic paper reproducibles) of the same scale. Separate drawings shall depict identical building areas or sections and shall be capable of being overlaid in any combination. The submitted drawings for a given area of the project shall show the work of all trades that will be involved in that particular area. Six complete composite drawings or six complete sets of separate reproducible drawings shall be received by the Government not less than 20 days prior to the scheduled start of the work in the area illustrated by the drawings, for the purpose of showing the Contractor's planned methods of installation. The objectives of such drawings are to promote carefully planned work sequence and proper trade coordination, in order to assure the expeditious solutions of problems and the installation of lines and equipment as contemplated by the contract documents while avoiding or minimizing additional costs to the Contractor and to the Government. In the event the Contractor, in coordinating the various installations and in planning the method of installation, finds a conflict in location or elevation of any of the utilities with themselves, with structural items or with other construction items, he/she shall bring this conflict to the attention of the Contracting Officer immediately. In doing so, the Contractor shall explain the proposed method of solving the problem or shall request instructions as to how to proceed if adjustments beyond those of usual trades' coordination are necessary. Utilities installation work will not proceed in any area prior to the submission and completion of the Government review of the coordinated drawings for that area, nor in any area in which conflicts are disclosed by the coordination drawings, until the conflicts have been corrected to the satisfaction of the Contracting Officer. It is the responsibility of the Contractor to submit the required drawings in a timely manner consistent with the requirements to complete the work covered by this contract within the prescribed contract time.
47. Section 852.236-84 is removed and reserved.
852.236-85
48. Section 852.236-85 is removed and reserved.
49. Section 852.236-86 is removed and reserved.
852.236-87
50. Section 852.236-87 is removed and reserved.
51. Section 852.236-89 is removed and reserved.
52. Section 852.236-90 is revised to read as follows:
852.236-90
Restriction on Submission and Use of Equal Products.
As prescribed in 836.202-70, insert the following clause in solicitations and contracts when it is determined that only one product will meet the Government's minimum needs and the submission of “equal” products is not permitted:
(a) This clause applies to the following items: [Contracting Officer fill-in]
(b) Notwithstanding the “Material and Workmanship” clause of this contract, FAR 52.236-5(a), nor any other clause or provision, only brand name products for the items listed above will be authorized for use on this contract.
53. Section 852.236-91 is removed and reserved.
54. Section 852.236-92 is added as follows:
852.236-92
As prescribed in 836.580, insert the following provision:
(a) Additive or deductive line items in the bid schedule shall be evaluated to determine the low offeror and the items to be awarded. The evaluation shall be made as follows—
(2) The low bid shall be the Bidder that—
(ii) Offers the lowest aggregate amount for the first or base line item, plus or minus (in the order stated in the list of priorities in the bid schedule) those additive or deductive line items that provide the most features within the funds determined available.
(3) All bids shall be evaluated on the basis of the same additive or deductive line items.
(ii) Add that next item if an award may be made that includes that line item and is within the available funds.
(c) Example: “The amount available is $100,000. Offeror A's base bid and four additives (in the order stated in the list of priorities in the bid schedule) are $85,000, $10,000, $8,000, $6,000, and $4,000. Offeror B's base bid and four additives are $80,000, $16,000, $9,000, $7,000, and $4,000. Offeror A is the low offeror. The aggregate amount of offeror A's bid for purposes of award would be $99,000, which includes a base bid plus the first and fourth additives. The second and third additives were skipped because each of them would cause the aggregate bid to exceed $100,000.”
55. Section 852.242-70 is added as follows:
852.242-70
Government Construction Contract Administration.
As prescribed in 842.271, insert the following clause. This is a fill-in clause.
(a) Contract administration functions set forth in FAR 42.302 are hereby delegated to:
[Insert name and office address of Contracting Officer]
(b) The work will be under the direction of a Department of Veterans Affairs Contracting Officer, who may designate another VA employee to act as resident engineer at the construction site.
(c) Except as provided below, the resident engineer's directions will not conflict with or change contract requirements. Within the limits of any specific authority delegated by the Contracting Officer, the resident engineer may, by written direction, make changes in the work. The Contractor shall be advised of the extent of such authority prior to execution of any work under the contract.
(d) The Contracting Officer identified in paragraph (a) may further delegate the responsibilities below to the following warranted personnel on site:
[Insert name and office address of individual with limited authority]
(1) Conduct post-award orientation conferences.
(2) Issue administrative changes, correcting errors or omissions in typing, Contractor address, facility or activity code, remittance address, computations which do not require additional contract funds, and other such changes (see FAR 43.101).
(3) For actions not to exceed $ [insert dollar amount] negotiate and execute supplemental agreements incorporating Contractor proposals resulting from change orders issued under the Changes clause.
(4) Negotiate and execute supplemental agreements changing contract delivery schedules where the time extension does not exceed [insert number] calendar days.
56. The authority citation for part 853 is amended to read as follows:
57. Section 853.107 is revised to read as follows:
VA forms may be obtained online at https://www.va.gov/​vaforms/​ or upon request from any VA contracting office.
58. Sections 853.236 and 853.236-70 are revised to read as follows:
853.236-70
VA Form 6298, Architect-Engineer Fee Proposal.
59. Sections 836.236-71 and 853.236-72 are added to read as follows:
853.236-71
VA Form 2138, Order for Supplies or Services (Including Task Orders for Construction or A-E Services).
853.236-72
VA Form 10101, Contractor Production Report.
[FR Doc. 2019-04900 Filed 3-18-19; 8:45 am]