General Services Administration Acquisition Manual (Gsam)

APD 2800.12B GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (GSAM)

U.S. GENERAL SERVICES ADMINISTRATION (GSA) OFFICE OF ACQUISITION POLICY (OAP)

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

INTRODUCTION

The General Services Administration Acquisition Manual (GSAM) consolidates the General Services Administration (GSA) agency acquisition rules and guidance.

Distinguishing Regulatory Material

The GSAM incorporates the General Services Administration Acquisition Regulation (GSAR) as well as internal agency acquisition policy. GSAR material is shaded. The shading helps users to distinguish and identify those parts that are regulatory from those that apply internally to GSA.

The shaded parts are those subject to section 22 of the Office Federal Procurement Policy Act, as amended (41 U.S.C. 418b). GSA must publish these rules in the Federal Register and codify them in 48 CFR Chapter 5 in accordance with the Paperwork Reduction Act (44 U.S.C. 3051 et seq.) and the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The rules that require publication fall into two major categories:

(1) Those that affect GSA’s business partners (e.g., prospective offerors, contractors). (2) Those that apply to acquisition of leasehold interests in real property. The Federal Acquisition Regulation (FAR) does not apply to leasing actions. GSA establishes regulations for lease of real property under the authority of 40 U.S.C. 490 note.

Separating regulatory material from internal directives decreases the number of rules subject to publication in the Federal Register. It also provides greater flexibility and responsiveness because an internal directive is easier and quicker to update or change.

Addressed to the Contracting Officer

Both the GSAR and GSAM address the contracting officer, except where specifically indicated. “You” means the contracting officer.

Compliance with Internal Directives

Non-shaded material is nonregulatory, but occasionally includes requirements that are mandatory for GSA personnel. These requirements are necessary to ensure uniformity or for other reasons.

Consolidation of Acquisition Directives

To the extent practicable, acquisition directives have been integrated into one document to eliminate the burden of checking multiple sources for related acquisition guidance.

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ii CHANGE 61 OCTOBER 23, 2014

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL General Structure and Subparts

INTRODUCTION

SUBCHAPTER A—GENERAL

PART 501—GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION SYSTEM 501.1 Purpose, Authority, Issuance 501.4 Deviations from the FAR and GSAR 501.6 Career Development, Contracting Authority, and Responsibilities 501.7 Determinations and Findings Appendix 501A [Reserved] PART 502—DEFINITIONS OF WORDS AND TERMS 502.1 Definitions PART 503—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 503.1 Safeguards 503.2 Contractor Gratuities to Government Personnel 503.3 Reports of Suspected Antitrust Violations 503.4 Contingent Fees 503.5 Other Improper Business Practices 503.7 Voiding and Rescinding Contracts 503.8 Limitation on the Payment of Funds to Influence Federal Transactions 503.10 Contractor Code of Business Ethics and Conduct PART 504—ADMINISTRATIVE MATTERS 504.1 Contract Execution 504.2 Contract Distribution 504.4 Safeguarding Classified Information Within Industry 504.5 Electronic Commerce in Contracting 504.6 Contract Reporting 504.8 Government Contract Files 504.9 Taxpayer Identification Number Information 504.11 Central Contractor Registration 504.13 Personal Identity Verification of Contractor Personnel 504.70 [Reserved]

SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING

PART 505—PUBLICIZING CONTRACT ACTIONS 505.1 Dissemination of Information 505.2 Synopses of Proposed Contract Actions 505.3 Synopses of Contract Awards 505.4 Release of Information 505.5 Paid Advertisements

iii CHANGE 50 JUNE 15, 2011

STRUCTURE GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL PART 506—COMPETITION REQUIREMENTS 506.2 Full and Open Competition After Exclusion of Sources 506.3 Other than Full and Open Competition 506.5 Competition Advocates PART 507—ACQUISITION PLANNING 507.1 Acquisition Plans 507.5 Inherently Governmental Functions 507.70 Additional Requirements for Purchases in Support of National Security Systems involving Weapons Systems PART 508—REQUIRED SOURCES OF SUPPLIES AND SERVICES 508.6 Acquisition from Federal Prison Industries, Inc. 508.7 Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled 508.8 Acquisition of Printing and Related Supplies PART 509—CONTRACTOR QUALIFICATIONS 509.1 Responsible Prospective Contractors 509.3 First Article Testing and Approval 509.4 Debarment, Suspension, and Ineligibility 509.5 Organizational and Consultant Conflicts of Interest PART 510—MARKET RESEARCH

PART 511—DESCRIBING AGENCY NEEDS 511.1 Selecting and Developing Requirements Documents 511.2 Using and Maintaining Requirements Documents 511.4 Delivery or Performance Schedules 511.6 Priorities and Allocations PART 512—ACQUISITION OF COMMERCIAL ITEMS 512.2 Special Requirements for the Acquisition of Commercial Items 512.3 Solicitation Provisions and Contract Clauses for the Acquisition of Commercial Items

SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES

PART 513—SIMPLIFIED ACQUISITION PROCEDURES 513.1 Procedures 513.3 Simplified Acquisition Methods 513.4 Fast Payment Procedure PART 514—SEALED BIDDING 514.2 Solicitation of Bids 514.3 Submission of Bids 514.4 Opening of Bids and Award of Contract

iv AMENDMENT 2012-02 MARCH 26, 2012

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL STRUCTURE PART 515—CONTRACTING BY NEGOTIATION 515.2 Solicitation and Receipt of Proposals and Information 515.3 Source Selection 515.4 Contract Pricing 515.5 Preaward, Award, and Postaward Notifications, Protests, and Mistakes 515.6 Unsolicited Proposals 515.70 Use of Bid Samples Appendix 515A Source Selection Procedures PART 516—TYPES OF CONTRACTS 516.2 Fixed Price Contracts 516.4 Incentive Contracts 516.5 Indefinite-Delivery Contracts 516.6 Time-and-Materials, Labor-Hour, and Letter Contracts PART 517—SPECIAL CONTRACTING METHODS 517.1 Multiyear Contracting 517.2 Options PART 518—[RESERVED]

SUBCHAPTER D—SOCIOECONOMIC PROGRAMS

PART 519—SMALL BUSINESS PROGRAMS 519.2 Policies 519.3 Determination of Small Business Status for Small Business Programs 519.4 Cooperation With the Small Business Administration 519.5 Set-asides for Small Business 519.6 Certificates of Competency and Determinations of Responsibility 519.7 The Small Business Subcontracting Program 519.8 Contracting With the Small Business Administration (The 8(a) Program) 519.10 [Reserved] 519.11 [Reserved] 519.12 Small Disadvantaged Business Participation Program 519.13 [Reserved] 519.14 [Reserved] 519.70 GSA Mentor-Protégé Program Appendix 519A Small Business Subcontracting Plan Outline (Model) Appendix 519B Subcontracting Plan Evaluation Checklist

v (Change 54) CHANGE 65 JUNE 24, 2015

STRUCTURE GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL PART 520—[RESERVED]

PART 521—[RESERVED]

PART 522—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS 522.1 Basic Labor Policies 522.3 Contract Work Hours and Safety Standards Act 522.4 Labor Standards for Contracts Involving Construction 522.6 Walsh-Healey Public Contracts Act 522.8 Equal Employment Opportunity 522.10 Service Contract Act of 1965, As Amended 522.13 Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans 522.14 Employment of Workers With Disabilities 522.15 Prohibition of Acquisition of Products Produced by Forced or Indentured Child Labor PART 523—ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE 523.1 Sustainable Acquisition Policy 523.3 Hazardous Material Identification and Material Safety Data 523.4 Use of Recovered Materials and Biobased Products Appendix 523A [Removed] Appendix 523B [Removed] Appendix 523C [Removed] Appendix 523D [Removed] PART 524—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION 524.1 Protection of Individual Privacy 524.2 Freedom of Information Act PART 525—FOREIGN ACQUISITION 525.1 Buy American Act—Supplies 525.2 Buy American Act—Construction Materials 525.10 Additional Foreign Acquisition Regulations PART 526—OTHER SOCIOECONOMIC PROGRAMS [RESERVED]

SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS

PART 527—PATENTS, DATA, AND COPYRIGHTS 527.4 Rights in Data and Copyrights PART 528—BONDS AND INSURANCE 528.1 Bonds and Other Financial Protections 528.2 Sureties and Other Security for Bonds 528.3 Insurance PART 529—TAXES 529.1 General 529.3 State and Local Taxes 529.4 Contract Clauses

vi AMENDMENT 2011–02 JUNE 15, 2011

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL STRUCTURE PART 530—COST ACCOUNTING STANDARDS ADMINISTRATION 530.2 Subpart 530.2 CAS Program Requirements PART 531—CONTRACT COST PRINCIPLES AND PROCEDURES 531.1 Applicability PART 532—CONTRACT FINANCING 532.1 Non-Commercial Item Purchase Financing 532.4 Advance Payments for Non-Commercial Items 532.5 Progress Payments Based on Costs 532.6 Contract Debts 532.7 Contract Funding 532.8 Assignment of Claims 532.9 Prompt Payment 532.11 Electronic Funds Transfer 532.70 Authorizing Payment by Government Charge Card 532.71 [Reserved] 532.72 Payments Under Contracts Subject to Audit PART 533—PROTESTS, DISPUTES, AND APPEALS 533.1 Protests 533.2 Disputes and Appeals

SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING

PART 534—MAJOR SYSTEM ACQUISITION 534.2 Earned Value Management Systems. PART 535—RESEARCH AND DEVELOPMENT CONTRACTING [RESERVED]

PART 536—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS 536.1 General 536.2 Special Aspects of Contracting for Construction 536.5 Contract Clauses 536.6 Architect-Engineer Services PART 537—SERVICE CONTRACTING 537.1 Service Contracts—General 537.2 Advisory and Assistance Services 537.6 Performance-based Acquisition PART 538—FEDERAL SUPPLY SCHEDULE CONTRACTING 538.2 Establishing and Administering Federal Supply Schedules 538.70 Cooperative Purchasing 538.71 Recovery Purchasing PART 539—ACQUISITION OF INFORMATION TECHNOLOGY 539.70 Additional Requirements for Purchases Not in Support of National Security Systems

vii AMENDMENT 2009–06 JUNE 29, 2009

STRUCTURE GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL PART 540—[RESERVED]

PART 541—ACQUISITION OF UTILITY SERVICES 541.1 General 541.2 Acquiring Utility Services 541.4 Administration 541.5 Solicitation Provisions and Contract Clauses

SUBCHAPTER G—CONTRACT MANAGEMENT

PART 542—CONTRACT ADMINISTRATION AND AUDIT SERVICES 542.1 Contract Audit Services 542.2 Contract Administration Services 542.3 Contract Administration Office Functions 542.11 Production Surveillance and Reporting 542.12 Novation and Change-of-Name Agreements 542.15 Contractor Performance Information 542.70 Audit of Contractor’s Records PART 543—CONTRACT MODIFICATIONS 543.1 General 543.2 Change Orders PART 544—SUBCONTRACTING POLICIES AND PROCEDURES [RESERVED]

PART 545—GOVERNMENT PROPERTY [RESERVED]

PART 546—QUALITY ASSURANCE 546.3 Contract Clauses 546.7 Warranties PART 547—[RESERVED]

PART 548—VALUE ENGINEERING 548.1 Policies and Procedures PART 549—TERMINATION OF CONTRACTS 549.1 General Principles 549.4 Termination for Default 549.5 [Reserved] PART 550—EXTRAORDINARY CONTRACTUAL ACTIONS

PART 551—USE OF GOVERNMENT SOURCES BY CONTRACTORS [RESERVED]

SUBCHAPTER H—CLAUSES AND FORMS

PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.1 Instructions for Using Provisions and Clauses 552.2 Text of Provisions and Clauses 552.3 Provision and Clause Matrixes

viii GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL STRUCTURE PART 553—FORMS 553.1 General 553.3 Illustrations of Forms

SUBCHAPTER I—SPECIAL CONTRACTING PROGRAMS

PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY 570.1 General 570.2 Simplified Lease Acquisition Procedures 570.3 Acquisition Procedures for Leasehold Interests in Real Property Over the Simplified Lease Acquisition Threshold 570.4 Special Aspects of Contracting for Continued Space Requirements 570.5 Special Aspects of Contracting for Lease Alterations 570.6 Contracting for Overtime Services and Utilities in Leases 570.7 Solicitation Provisions and Contract Clauses 570.8 Forms

ix STRUCTURE GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

x GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

SUBCHAPTER A—GENERAL This page intentionally left blank. CHANGE 61 OCTOBER 23, 2014

PART 501—GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION SYSTEM Sec. Subpart 501.1—Purpose, Authority, Issuance Subpart 501.6—Career Development, 501.101 Purpose. Contracting Authority, and Responsibilities 501.103 Authority. 501.601 General. 501.104 Applicability. 501.602 Contracting officers. 501.105 Issuance. 501.602-2 Responsibilities. 501.105-1 Publication and code arrangement. 501.602-3 Ratification of unauthorized commitments. 501.105-2 Arrangement of regulations. 501.603 Selection, appointment, and termination of 501.105-3 Copies. appointment for contracting officers. 501.106 OMB Approval under the Paperwork 501.603-1 General. Reduction Act. 501.603-2 Selection. 501.170 General Services Administration 501.603-3 Appointment. Acquisition Management System. 501.603-4 Termination. 501.171 Other GSA publications. 501.603-70 Fulfillment of required FAC-C training. 501.171-1 GSA orders and handbooks. 501.604 Contracting Officer's Representative (COR). 501.171-2 Acquisition letters. Subpart 501.7—Determinations and Findings Subpart 501.4—Deviations from the FAR and 501.707 Signatory authority. GSAR Appendix 501A—[Reserved] 501.402 Policy. 501.403 Individual deviations. 501.404 Class deviations. 501.404-70 Contract action. 501.404-71 Deviations to the nonregulatory GSAM.

501-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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501-ii (Amendment 2005–01) CHANGE 65 JUNE 24, 2015

PART 501—GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION SYSTEM 501.106

PART 501—GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION SYSTEM

Subpart 501.1—Purpose, Authority, 501.105-2 Arrangement of regulations. Issuance (a) The GSAR numbers and captions policies and procedures to correspond to how they appear in the FAR, e.g., 1.104 in the FAR is 501.104 in the GSAR. 501.101 Purpose. (b) GSAR rules not implementing the FAR have numbers (a) The General Services Acquisition Regulation (GSAR) beginning with 70, e.g., part 570, subsection 515.209-70. contains agency acquisition policies and practices, contract (c) The GSAR may have gaps in its numbering scheme clauses, solicitation provisions, and forms that control the because a FAR rule may not require GSAR implementation. relationship between GSA and contractors and prospective contractors. (b) The GSAR addresses rules directly to you, the contract- 501.105-3 Copies. ing officer, unless otherwise indicated. The GSAR in CFR form may be purchased from: Superin- tendent of Documents, Government Printing Office, Wash- ington, DC 20402. 501.103 Authority. GSA’s Senior Procurement Executive issues the GSAR under the authority of the Federal Property and Administra- 501.106 OMB Approval under the Paperwork Reduction tive Services Act of 1949, as amended. Act.

501.104 Applicability. OMB GSAR OMB (a) General. The GSAR applies to contracts for supplies or GSAR Reference Control No. Reference Control No. services, including construction. 509.105-1(a) 3090-0007 552.219-75 3090-0286 (b) Acquisition of leasehold interests in real property. 511.204(b) 3090-0246 552.219-76 3090-0286 Part 570 establishes rules for the acquisition of leasehold 514.201-1 3090-0163 552.223-70 3090-0205 interests in real property. Other provisions of 552.232-72 3090-0080 48 CFR Chapter 5 (GSAR) do not apply to leases of real prop- 516.203-4(a)(1) 3090-0243 552.237-71 3090-0006 erty unless specifically cross-referenced in Part 570. 516.506 3090-0248 552.238-70 3090-0250 (c) Relationship to statute. Some GSAR rules implement 519.708(b) 3090-0252 552.238-72 3090-0262 and interpret laws and other authorities affecting procure- 519.70 3090-0286 552.238-74 3090-0121 ment. A GSAR rule specifically directed by statute has the 3090-0250 force and effect of law. 522.406-6 1215-0149 552.238-81 3090-0302 (d) GSAR/FAR Relationship. The GSAR may deviate from 523.370 3090-0205 552.239-71 3090-0294 the Federal Acquisition Regulation (FAR) if authorized. If the 532.111(c) 3090-0080 552.242-70 3090-0027 GSAR does not implement the FAR, the FAR alone governs. 532.905-70 9000-0102 552.246-70 3090-0027 532.905-71 3090-0080 552.246-71 3090-0027 501.105 Issuance. 537.110(a) 3090-0197 GSA-72-A 3090-0121 537.110(b) 3090-0006 GSA-527 3090-0007 501.105-1 Publication and code arrangement. 538.273(a)(1) 3090-0250 GSA-618D 1215-0149 The GSAR is published in the following sources: 538.273(a)(3) 3090-0262 GSA-1142 3090-0080 (a) Daily issue of the Federal Register. 538.273(b)(1) 3090-0121 GSA-1364 3090-0086 (b) Annual Code of Federal Regulations (CFR), as 542.1107 3090-0027 GSA-1678 3090-0027 Chapter 5 of Title 48. 546.302-70 3090-0027 GSA-2419 9000-0102 (c) GSA Acquisition Manual distributed within GSA. 546.302-71 3090-0027 570.802(c) 3090-0086 (d) GSA Home Page at http://www.gsa.gov. Click on either 552.211-77 3090-0246 570.802(d) 3090-0086 “Government Agencies” or on “Business and Industry,” then click on “Acquisition.” 552.216-70 3090-0243 552.216-72 3090-0248 552.216-73 3090-0248 552.219-72 3090-0252

501-1 501.170 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 501.170 General Services Administration Acquisition (d) The issuing official must coordinate each acquisition Management System. letter with appropriate offices including Acquisition Policy, (a) Description. The General Services Administration Counsel, and the Inspector General. Any proposed policy or Acquisition Management System consists of the General Ser- procedure that affects the operation of the small business pro- vices Administration Acquisition Regulation (GSAR) and gram, must be coordinated with the Office of Small Business agency and Service non-regulatory acquisition guidance doc- Utilization (E). uments. (e) The issuing activity must identify each acquisition let- (b) Format. For users’ convenience, the General Services ter with an assigned number. The number should begin with Administration Acquisition Manual (GSAM) contains the the issuing office correspondence symbol, followed by the GSAR and nonregulatory agency acquisition guidance. The last two digits of the calendar year when issued, then num- GSAM adheres to GSAR numbering and drafting conven- bered consecutively beginning with 1. For example, FC-97-5 tions. GSAR material is shaded. Non-shaded material is would be the fifth acquisition letter issued by FSS in fiscal non-regulatory. The shading distinguishes regulatory material year 1997). from material that applies internally to GSA. (f) The body of an acquisition letter should contain the fol- (c) Agency policy. Although GSAM requirements are not lowing paragraphs, as appropriate: all regulatory, occasionally the requirements are mandatory (1) Purpose. for GSA personnel. The mandatory requirements reflect (2) Background. agency policy which must be followed to ensure uniformity or (3) Effective date. for other reasons. (4) Termination date. (d) Applicability. The GSAM applies to contracts for sup- (5) Cancellation. plies or services, including construction. (6) Applicability (offices to which the acquisition letter (e) Acquisition of leasehold interests in real property. applies) Part 570 establishes requirements for the acquisition of lease- (7) Reference to regulations (FAR or GSAR), hand- hold interests in real property. Other provisions of the GSAM books, or orders. do not apply to leases of real property unless specifically (8) Instructions/procedures. cross-referenced in Part 570. (g) The issuing office is responsible for distributing its (f) Availability. The GSAM is available on the GSA Home acquisition letters to affected contracting activities and the Page at http://www.gsa.gov. Click on either “Government Office of Acquisition Policy. In addition copies should be dis- Agencies” or on “Business and Industry,” then click on tributed to: “Acquisition.” You may also link to the GSAM on Insite at (1) For acquisition letters issued by the Office of Acqui- http://insite.gsa.private. Click on “Business Hot Links,” then sition Policy or a Central Office Service: on “Acquisition.” (i) Associate General Counsel. (ii) The Administrative Policy and Information 501.171 Other GSA publications. Management Division (CAI). (2) For acquisition letters issued by a Region: 501.171-1 GSA orders and handbooks. (i) Regional Counsel. (a) Heads of contracting activities (HCA’s) may issue (ii) The regional clearance office as defined in the internal agency guidance, as described in FAR 1.301(a)(2), in handbook, Writing GSA Internal Directives the form of a GSA order or handbook. (OAD P 1832.3B). (b) GSA orders and handbooks must not unnecessarily (iii) Central office contracting activities, if appropri- repeat, paraphrase, or otherwise restate the FAR, GSAR, or ate. GSAM. (h) If an acquisition letter is distributed only electronically, (c) The handbook, Writing GSA Internal Directives then the issuing office may issue a notice to affected contract- (OAD P 1832.3B), prescribes policies and procedures for ing activities, the Office of Acquisition Policy, and Associate issuing GSA orders and handbooks. General Counsel or Region Counsel in lieu of distributing paper copies. The notice must identify the subject, number, 501.171-2 Acquisition letters. and location of the letter. (a) Acquisition letters provide interim policies and proce- (i) Each issuing office must report on acquisition letters dures pending incorporation in GSA orders or handbooks. issued and canceled on a quarterly basis to the Office of (b) Acquisition letters expire one year after issuance, Acquisition Policy. The Office of Acquisition Policy will unless the letter indicates an earlier expiration date. issue a consolidated index of all acquisition letters issued or (c) The Senior Procurement Executive and HCAs, or des- cancelled. ignees, may issue acquisition letters.

501-2 (Change 60) PART 501—GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION SYSTEM 501.601

Subpart 501.4—Deviations from the FAR (b) If GSA delegates authority to another agency and and GSAR requires compliance with the GSAR as a condition of the delegation, the HCA in the agency receiving the delegation may approve class deviations from the GSAR unless the agency 501.402 Policy. head receiving the delegation designates another official. Uniformity is a goal of GSA’s Acquisition Regulation Sys- (c) Send a copy of each deviation to GSA’s SPE (V). tem. Despite this desire for uniformity, a contracting activity (d) A request for class deviations must be supported by may take any of the following actions: statements that fully describe the need for and the nature of the (a) Develop and test new procedures and techniques. deviation. (b) Adopt alternate procedures in the public interest for (e) Class deviations from the GSAR: unique programmatic or managerial requirements. (1) Expire in 12 months if not extended. (c) Deviate from a regulatory provision implementing a (2) May be rescinded earlier by GSA’s SPE or by offi- statutory requirement provided the deviation does not violate cials designated under paragraph (a) of this section without the underlying statute. Deviations must not be used to defeat prejudice to any action taken previously. the FAR and GSAR approval requirements. 501.404-70 Contract action. Contract action. A contract action, for the purpose of 501.403 Individual deviations. determining whether an individual or class deviation is appro- (a) An individual deviation affects only one contract priate, has the same meaning as that used for reporting con- action. tract actions to Federal Procurement Data System–Next (1) The Head of the Contracting Activity (HCA) must Generation (FPDS-NG). A contract action includes, but is not approve an individual deviation to the FAR. The authority to limited to, any of the following: grant an individual deviation may not be re-delegated. A copy (a) Initial letter contract. of the deviation must be provided to GSA’s Senior Procure- (b) Definitive contract superseding letter contract. ment Executive (SPE). (c) New definitive contract. (2) An individual deviation to the GSAR must be (d) Purchase order/BPA calls using simplified acquisition approved by the HCA. The authority to grant an individual procedures. deviation may be re-delegated to the Contracting Director. (e) Orders under single award indefinite delivery con- (b) If GSA delegates authority to another agency and tracts. requires compliance with the GSAR as a condition of the del- (f) Orders under BOA. egation, the Contracting Director in the agency receiving the (g) Order/modification under Federal schedule contract. delegation may approve individual deviations from the GSAR (h) Modification. unless the agency head receiving the delegation designates (i) Termination for Default. another official. (j) Termination for Convenience. (c) Send a copy of each deviation to GSA’s SPE (V). (k) Order under multiple award contract. (l) Initial load of Federal schedule contract. 501.404 Class deviations. 501.404-71 Deviations to the nonregulatory GSAM. (a) A class deviation affects more than one contract action. Handle individual and class deviations to the nonregula- A deviation for any solicitation that will result in multiple tory (unshaded) part of the GSAM as stated in 501.403 and awards or any solicitation under the multiple award Federal 501.404. Supply Schedule program is considered to be a class deviation. Each award under such a solicitation is considered an Subpart 501.6—Career Development, individual contract action. Contracting Authority, and Responsibilities (1) A class deviation to the FAR must be forwarded by the cognizant HCA to GSA's SPE for approval. Prior to 501.601 General. approving a class deviation to the FAR, the SPE will consult (a) Definitions. with the Chairman of the Civilian Agency Acquisition Coun- “Acquisition Career Manager (ACM)” means the GSA cil (CAAC) in accordance with FAR 1.404(a)(1). Agency official located in the Office of Acquisition Policy, (2) A class deviation to the GSAR must be forwarded responsible for issuing and establishing GSA acquisition by the cognizant HCA to GSA’s SPE for approval. workforce certification policy, implementation procedures, (3) When an HCA knows that a proposed class devia- internal controls and conducting periodic reviews. The ACM tion will be required on a permanent basis, the HCA should represents GSA on the Interagency Acquisition Career Man- propose or recommend an appropriate FAR and/or GSAR agement Committee to ensure that workforce development revision. policies and opportunities meet the needs of the acquisition workforce.

(Change 62) 501-3 CHANGE 62 JANUARY 13, 2014

501.602 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL “Bureau Certification Manager (BCM)”, means the (iv) Contracting Officer’s Representatives (CORs). GSA agency official, appointed by the respective HCA, who (v) Any acquisition-related position identified by serves as a liaison between the contracting activity and the the Chief Acquisition Officer (CAO), the Senior Procurement ACM, and ensures consistency in the federal certification and Executive (SPE), the HCA, or equivalent. GSA warrant programs. The BCM provides guidance to the (2) Individuals are responsible for maintaining records acquisition workforce on application preparation for the fed- supporting certification or satisfaction of warrant require- eral certification programs and contracting officer warrants. ments for quality assurance purposes The BCM reviews and makes a recommendation on any Fed- (3) Supervisors must ensure acquisition workforce eral Acquisition Certification package submitted electroni- members are registered in FAITAS and verify the accuracy of cally in the Federal Acquisition Institute Training Application data entered. System (FAITAS) or warrant packages prior to submission to (d) Federal Acquisition Certification (FAC) program. the Contracting Officer Warrant Board. This includes those The FAC program is a government-wide, competency-based applicants seeking to be certified under fulfillment or equiv- certification program for the acquisition workforce. The FAC alencies. program applies to contract specialists, program and project “Contracting Officer Warrant Board (COWB)” means a managers, and contracting officers’ representatives. The group of senior-level acquisition employees within a contract- Office of Federal Procurement Policy established the training, ing activity who receive, evaluate, and process requests for education and experience requirements for the FAC program selection and nomination of contracting officers at the basic, across all civilian agencies to align with the Department of simplified acquisition, intermediate, and senior levels. Defense Acquisition Workforce Improvement Act (DAWIA). “Contracting Officer Warrant Program (COWP)” The competencies, training, education and experience establishes the criteria for the appointment and termination requirements may be found at www.fai.gov. of GSA contracting officers. This ensures that GSA follows a (e) Maintaining FAC and contracting officer warrants. standardized process for qualifying and appointing individu- All FAC-certified members of the GSA acquisition workforce als as contracting officers based on the organization's needs and those appointed as contracting officers are required to for contracting authority. earn Continuous Learning Points (CLPs) every two years (b) Heads of Contracting Activities (HCAs) as defined in from the date of issuance of the certification and/or warrant. GSAM 502.101 are contracting officers by virtue of their The requirements for CLP achievement can be found under position. Other contracting officers are appointed under the Career Management tab of GSA’s Acquisition Portal FAR 1.603 and GSA’s contracting officer warrant program (https://insite.gsa.gov/portal/category/534186). All CLPs (See 501.603). The Administrator of GSA delegated Head of must be in support of the competencies associated with the Contracting Activity (HCA) authority to the Senior Procure- certification. ment Executive (SPE). The SPE is authorized to re-delegate (1) Failure to complete the required CLPs and obtain an the HCA authority and contracting authority to the Commis- approved Continuous Learning Achievement Request prior to sioners and Deputy Commissioners of the Federal Acquisi- the ending date of the continuous learning period will result tion Service (FAS) and the Public Buildings Service (PBS), in the expiration of the FAC certification. and to the Chief Administrative Services Officer (CASO). (i) Expired certifications may be reinstated when These officials serve within the limits of their delegated evidence of accumulation of sufficient CLPs demonstrated. authority. (ii) Expired certifications may result in the suspen- (i) The SPE must be consulted prior to any re-dele- sion or termination of COR delegations and Program/Project gation of HCA authority. Manager assignments. (ii) Any delegation of HCA authority must be in (2) Failure to complete the required CLPS and obtain writing with a copy forwarded to the SPE. an approved Continuous Learning Achievement Request (c) FA ITAS . The Clinger-Cohen Act (Public Law 104-106 prior to the ending date of the continuous learning period for §4307) mandated federal agencies to have a database contain- a contracting officer warrant will result in the suspension or ing education, experience, training and other data about their termination of the warrant. acquisition workforce. FAITAS is the official system of record for the federal civilian agency acquisition workforce 501.602 Contracting officers. (www.fai.gov) and is maintained by the Federal Acquisition Institute (FAI). 501.602-2 Responsibilities. (1) The following members of GSA’s acquisition work- (a) Fund sufficiency. A requisition or purchase request force and their supervisors must be registered in FAITAS: signed by an authorized individual is evidence that sufficient (i) All positions in the GS-1102 contracting series. money for the purchase is available in the fund cited. (ii) All contracting officers, regardless of series, (b) GSA revolving funds. A requisition for indefinite deliv- with the authority to obligate funds. ery, indefinite quantity contracts requiring a guaranteed min- (iii) Program and project managers.

501-4 PART 501—GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION SYSTEM 501.602-3 imum quantity must specify enough funds to pay for the unauthorized commitment was made and identifying the indi- guaranteed minimum. vidual who made it. For example, an exceptional circum- (c) GSA funds, other than revolving funds. stance may occur when the person who made the (1) The requisitioning activity must certify that addi- unauthorized commitment is no longer available to attest to tional funds are available before contract or purchase order the circumstances. award if the purchase exceeds the dollar amount on the requi- (e) Processing a ratification. (1)The contracting officer sition by 10 percent or $50, whichever is greater. must process the request for ratification. Prepare a summary (2) If a requisition is not used, e.g., lease of real prop- statement of facts addressing the limitations in erty, the contracting officer must ensure funds are available before awarding the contract. FAR 1.602-3(c) and recommend whether or not the procure- (d) Other Federal agencies’ funds. A GSA buying activity ment should be ratified. Include a recommendation for other must not exceed a fund limitation on a customer agency’s pur- disposition if you advise against ratification. chase request unless authorized by supply support agree- (2) Submit to the HCA all the following: ments. If a purchase request indicates insufficient funds to (i) Request for ratification,. cover all costs, the customer agency must provide additional (ii) The contracting officer’s statement of facts and funds. Regardless of which Central Office or Regional buying recommendation(s). activity will make the acquisition, the office initially receiv- (iii) Concurrence of assigned legal counsel (except ing the requirement requests the additional funds. when the contracting officer recommends payment based on quantum merit or quantum valebant). 501.602-3 Ratification of unauthorized commitments. (iv) If applicable, recommendation for payment on a (a) Authority to ratify. Under FAR 1.602-3, the contracting quantum merit or quantum valebant basis (see 501.602-3(f)). officer may ratify unauthorized contractual commitments if (v) Recommendation for corrective action to pre- the HCA approves the ratification action. An HCA may not vent recurrence. redelegate approval authority. (f) Payment based on quantum merit or quantum valebant. (b) Criminal investigation. Generally, the Government is (1) If ratification is not permissible due to legal impro- not bound by commitments made by persons with no con- prieties, the contracting officer may recommend that payment tracting authority. Unauthorized commitments may violate be made under either: laws or regulations. They constitute serious employee mis- (i) Services rendered on a quantum merit basis (the conduct and may warrant disciplinary action. If unauthorized reasonable value of work or labor). commitments involve any type of misconduct that might be (ii) Goods furnished on a quantum valebant basis punishable as a criminal offense, either the contracting officer (the reasonable value of goods sold and delivered). or the employee’s supervisor must report the matter immedi- (2) To base payment on either of these conditions, there ately to the Office of the Inspector General with a request for must be a showing that the Government has received a benefit a complete investigation. (See FAR 1.602-3(d)). (c) Documentation required for ratification. The individ- (3) The contracting officer must obtain the approval of ual who made the unauthorized commitment gives the con- assigned counsel before making any payment on a quantum tracting director all records and documents about the merit or quantum valebant basis. commitment and a complete written statement of facts, (g) HCA action. The HCA either: including all the following: (1) Approves the ratification request in writing and (1) Why normal acquisition procedures were not fol- sends the approval to the contracting officer for issuance of lowed. the necessary contractual documents. (2) Why the contractor was selected. (2) Forwards a recommendation for payment on a (3) Other sources considered. quantum merit or quantum valebant basis to assigned counsel (4) Description of work or products. for approval. (5) Estimated or agreed-upon contract price. (3) Returns an unjustified request or recommendation (6) Appropriation citation. with a written explanation why the request or recommenda- (7) Status of contract performance. tion is denied. (d) Documentation waivers. Under exceptional circum- (h) Files. The HCA maintains a separate file containing a stances, a contracting director may waive the requirement that copy of each request to ratify an unauthorized contractual the individual who made the unauthorized commitment must commitment and the response. The HCA must make this file initiate and document the request for ratification. In such a available for review by the Senior Procurement Executive and case, the individual who does initiate the request for ratifica- the Inspector General. tion must provide a written determination stating that an

(Change 62) 501-5 501.603 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 501.603 Selection, appointment, and termination of and there is demonstrated proof that the CLP requirement was appointment for contracting officers. maintained. (3) FAC-C Waivers. The SPE may waive the require- 501.603-1 General. ment for obtaining FAC-C certifications prior to appointment (a) Definitions. as a contracting officer. Waivers will only be considered in “Contracting experience” means personal and substan- compelling and well documented circumstances. This author- tial involvement in purchasing, renting, leasing, or otherwise ity is non-delegable. FAC-C waivers are not transferable to obtaining goods or services from federal and nonfederal other agencies. sources and includes any of the following functions: prepar- (c) Contracting Officer Warrant Program (COWP). GSA’s ing and issuing purchase orders, including issuing requests COWP is administered by the Office of Acquisition Policy. for quotations or solicitations, evaluating bids or proposals, (1) Factors in determination of need for warranted selecting sources, price/cost analysis, participating in price contracting officers. The COWP ensures that a GSA organi- negotiations, and contract award and administration. zation has qualified individuals as contracting officers who (b) Federal Acquisition Certification in Contracting meet the organization's needs for contracting authority. Fac- (FAC-C). All employees in the GS-1102 series must be certi- tors considered in determining the number of contracting offi- fied (FAC-C) at the appropriate level (Level I, II or III) in cers appropriate for a given organization include volume of order to be considered for a contracting officer warrant. actions, work complexity, and organizational structure. Effective October 1, 2014, contracting officers, regardless of (2) Training, education and experience. The COWP their series, and other contracting professionals in the ensures warrant applicants meet all federal and agency GS-1102 series must be certified at an appropriate level as of requirements for training, education and experience. October 1, 2014. Any contracting professional issued a senior (3) Responsibilities. level warrant after October 1, 2014, must be Level III certi- (i) GSA’s SPE: fied. (Refer to the Acquisition Workforce Community of (A) Establishes the policies, procedures, and Practice accessible through GSA’s Acquisition Portal (https:/ requirements that govern COWP. /insite.gsa.gov/portal/category/534186).) (B) Approves/disapproves in writing, any devia- (1) FAC-C Application Process: tions, waivers or exemptions from any of the COWP require- (i) Applicants are responsible for preparing and sub- ments. mitting their FAC-C certification request in FAITAS for (ii) HCAs: supervisor approval. The electronic application must include (A) Establish and budget for training plans for all supporting documentation such as transcripts, training cer- contracting officers. tificates, resume, and any other supporting documents (Refer (B) Monitor contracting officers’ performance. to the Acquisition Workforce Community of Practice acces- (C) Establish controls to ensure compliance with sible through GSA's Acquisition Portal (https:// laws, regulations, procedures, and good management practice insite.gsa.gov/portal/category/534186).) with respect to warrant use by Contracting Officers. (ii) The supervisor is responsible for verifying the (D) Determine the number of contracting officer accuracy and completeness of the application in FAITAS. warrants necessary for a particular work unit and the grade After supervisory review, the certification request is routed levels at which the warrant authority will be granted. electronically to the BCM in FAITAS. If the BCM recom- (E) Appoint a BCM to oversee the FAC and war- mends approval, the application is forwarded to the ACM, rant programs. unless delegated, for final approval. (F) Appoint the contracting activity’s Contract- (iii) After the ACM or designee approves, the ing Officer Warrant Board (COWB) to process requests for FAC-C certificate is generated through FAITAS. contracting officer warrants. (2) FAC-C Certifications from other agencies. (G) Establish written procedures for the COWB (i) Department of Defense (DoD). GSA will recog- to ensure the requirements of Federal Acquisition Regulation nize Defense Acquisition Workforce Improvement Act (FAR)1.603 and this section 501.603 are met when appoint- (DAWIA) certification issued by DOD activities as long as ing contracting officers. there is demonstrated proof that the CLP requirement was (H) Select and nominate through the COWB completed and maintained. Personnel with current DAWIA qualified candidates for appointment as contracting officers. certifications must submit a request for FAC-C in FAITAS. (I) Appoint contracting officers. The HCA may (ii) Other civilian agencies. GSA will recognize further limit warrant authorities at each warrant level. FAC-C certification issued by another civilian agency, as long (iii) ACM: as the FAC-C is current in the FAITAS certification history

501-6 (Change 62) CHANGE 61 OCTOBER 23, 2014

PART 501—GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION SYSTEM 501.603-2 (A) Ensures consistent implementation of the (G) The dollar value of a purchase order. COWP across GSA. (H) The dollar value of a modification to a pur- (B) Establishes minimum criteria for the con- chase order and not the aggregate purchase order dollar value. tracting activity's COWB to use in the selection, appointment, (iii) If an individual transaction includes both addi- and termination of appointment of GSA contracting officers. tions and deductions, the aggregate, absolute value of the (4) Applicability. COWP applies to all contracting offi- changes determines the warrant level required for award (e.g., cers except those appointed under the Inspector General Act the value of an individual action that adds $35,000 of work (Pub. L. 95-452). Contracting authority is not required to: and deducts $80,000 is $115,000). (i) Sign training authorizations for public course (iv) HCAs may further limit warrant authorities and offerings. dollar values.. (ii) Sign travel documents. Net Average Annual (iii) Order printing and duplicating services from Warrant Level Threshold Rent for Leases Government sources. Basic Up to $25,000 Up to $25,000 (iv) Order supplies from GSA stock through GSA Simplified Up to the Simplified Up to the Simplified Advantage! or other electronic means. Acquisition Acquisition Lease Acquisition (v) Sign Government Bills of Lading. Threshold Threshold (vi) Sign system-generated orders for motor vehi- Intermediate Up to and including Up to and including cles or for requisitions under the Federal Acquisition Service $10,000,000 $10,000,000 Special Order Program. Senior Above $10,000,000 Above $10,000,000 (vii) Authorize interagency transfers of funds. (viii) Use the Government telephone systems for Note: GSA use of the Government purchase card for commercial long distance and local service and/or approving micro-purchases shall follow the instructions under GSA payments for such services. Order 4200.1A CFO. (ix) Use the Federal Acquisition Service (FAS) (d) Change order authority. Contracting officers may nationwide contract for express small package transportation authorize COR change order authority in accordance with the services and/or approving payments for such services. limitations in GSAM 543.202, Authority to issue change (x) Certify receipt and acceptance of goods or ser- orders. vices. (This does not apply to certified invoices under (e) If the HCA determines that the considerations listed 513.370.) under GSAM 542.302(c) warrant the establishment of a con- (xi) Submit a Standard Form 145, Telephone Service tract administration office, a contracting officer with an Request (TSR), to the FAS. unlimited warrant may authorize contract administrative (5) Warrant levels. functions in accordance with GSAM 542.302(d). (i) COWP warrant levels are based on the dollar value of individual transactions. 501.603-2 Selection. (ii) Individual transactions include the following: (a) Contracting Officer Warrant Board (COWB). (A) The dollar value of a contract award, includ- (1) The COWB ensures that all of the applicable criteria ing the dollar value of option periods. have been met prior to granting any GSA contracting officer (B) The dollar value of a modification award, warrant. and not the aggregate contract dollar value. (2) Composition of the COWB. The HCA appoints the (C) The dollar value of a blanket purchase agree- Board members and the Chair. ment award including the dollar value of option periods. (i) COWB Chair. The COWB Chair evaluates the (D) The dollar value of a blanket purchase agree- contracting officer candidate's credentials prior to submission ment modification award, and not the aggregate blanket pur- to the COWB. chase agreement dollar value. (ii) Senior leadership representing each type of war- (E) The dollar value of an order award against an rant issued by the contracting activity. indefinite delivery, indefinite quantity contract (e.g. Federal (iii) Other specialized representation, such as legal Supply Schedules, Governmentwide Acquisition Contracts, counsel assistance (as requested). Multi-agency Contacts, agency- specific indefinite delivery, (iv) Any other designee with knowledge and experi- indefinite quantity contracts) including the dollar value of ence in the warrant procedures. option periods, and not the aggregate contact dollar value. (b) Nominations for appointment are submitted by the can- (F) The dollar value of a modification award to an didate's supervisor of record, in package form which must order against an indefinite delivery, indefinite quantity con- include the following: tract, and not the aggregate order dollar value.

501-7 CHANGE 61 OCTOBER 23, 2014

501.603-3 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (1) Completed and signed GSA Form 3410, Request for (https://insite.gsa.gov/portal/category/534186) for the mini- Appointment. The GSA Form 3410 must discuss the con- mum training requirements for warrants. tracting activity’s specific need for the warrant. Justify the (iv) In addition to the warrant requirements, individ- need in block 1 of the GSA Form 3410. uals may be required to complete additional training to (2) Completed and signed GSA Form 3409, Personal strengthen the acquisition workforce. Qualifications Statement for Appointment as a Contracting (v) Contracting officers with multiple warrant Officer, or a resume detailing the candidate's experience, edu- authorities (e.g., with authority to dispose of and to acquire cation, and training relevant to the position. goods and services) must complete the mandatory training (3) Verification of candidate's training. required for all warrant authorities at the applicable warrant (4) Copies of candidate's training certificates, unoffi- level(s). cial college transcripts and previous warrants (if previously (3) Educational requirements. warranted). (i) Applicants at pay grades 5 through 12. Appli- (5) A current warrant certificate from another HCA in cants for permanent warrants above the simplified acquisition GSA may be submitted instead of the items listed in para- level, who are at grades 5 through 12, must have completed a graphs (b)(2) through (b)(4) of this section. four year course of study leading to a bachelor’s degree or 24 (c) Evaluation of candidates for contracting officer war- semester hours in one of the designated fields as shown in rants. The COWB is responsible for evaluating a candidate's paragraph (c)(3)(iii) of this section. experience, training and education requirements prior to issu- (ii) Applicants at grades 13 and above. Applicants ance of a Basic, Simplified Acquisition, Intermediate and for permanent warrants above the simplified acquisition level, Senior level warrant. Note: designated approving officials who are at grade 13 or above, must have completed a shall follow the instructions under GSA Order 4200.1A CFO four year course of study leading to a bachelor’s degree that in granting micro-purchase authority. included or was supplemented by at least 24 semester hours (1) Experience requirements. The COWB must con- in any combination of the designated fields as shown in para- sider the candidate's relevant experience in determining the graph (c)(3)(iii) of this section. The SPE may waive these candidate's capability to assume contracting officer responsi- requirements. The applicant must demonstrate significant bilities at the desired level. analytical and decision-making capabilities, an acceptable job performance record, and qualifying experience. Warrant Level Experience Required (iii) The designated educational fields are: Basic At least 1 year of current (within last 3 years) contracting experience with (A) Accounting. progressively broader assignments (B) Business. Simplified Acquisition At least 2 years of current (within the last 5 (C) Finance. years) contracting experience with (D) Law. progressively broader assignments (E) Contracts Intermediate At least 3 years of current (within the last 7 (F) Purchasing years) contracting experience with (G) Economics. progressively broader assignments* (H) Industrial management. Senior At least 4 years of current (within the last (I) Marketing. 10 years) contracting experience with (J) Quantitative methods. progressively broader assignments* (K) Organization and management. *The COWB will consider the quality of past contracts and (iv) Employees who were warranted prior to January leases and the results of any independent review conducted 1, 2000, are considered to have met the educational standard by the contracting activity to verify the nominee's contract- for their existing warrant; however, warrant increases or new ing experience as defined in 501.603-1(a) at the interme- warrant applications are subject to applicable warrant require- diate and senior level. ments. (2) Training requirements. (v) To retain warrants, Contracting Officers must (i) Any contracting professional issued an unlimited meet the 80 hour CLP requirement, every two years, as out- warrant after October 1, 2014 must be Level III certified. lined in the FAC-C curriculum. (ii) Contracting officer candidates must complete the minimum training requirements. GSA has adopted the 501.603-3 Appointment. FAC-C curriculum established by the Federal Acquisition (a) Certificate of Appointment. Institute (FAI). (1) The HCA appoints contracting officers at the Basic, (iii) Refer to the Acquisition Workforce Community Simplified Acquisition, Intermediate, or Senior level using of Practice accessible through GSA's Acquisition Portal Standard Form 1402, Certificate of Appointment.

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PART 501—GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION SYSTEM 501.603-4 (2) The HCA signs the original Certificate of Appoint- (1) HCAs are required to keep and maintain compre- ment before it is issued to the appointed contracting officer. hensive files containing relevant information on all appointed (3) Suggested language for the Certificate of Appoint- contracting officers until such time as all warrant data is fully ment may be found on the Acquisition Workforce Commu- maintained in FAITAS as determined by the ACM. nity of Practice accessible through GSA's Acquisition Portal (2) HCAs are required to submit reports to the ACM (https://insite.gsa.gov/portal/category/534186). with consistent and up to date information on the contracting (b) Types of appointments. Candidates are nominated for officer warrants issued and terminated until such time as all either an interim or permanent appointment. warrant data is fully maintained in FAITAS as determined by (1) Interim appointments. Interim appointments are for the ACM. a specified period of time. Personnel who hold interim sim- (3) Acquisition professionals are responsible for main- plified acquisition warrants must complete all training taining a copy of their acquisition training history and source required for a permanent warrant within 1 year of the interim documents used for certification requests. appointment. Personnel who hold interim warrants above the (4) In accordance with GSA Order OAS P 1820.1, GSA simplified acquisition level must complete all training and Records Management Program, dispose of expired contract- formal education required for a permanent warrant within ing officer files and warrants by placing the contracting offi- 3 years of the interim appointment. cer records in an inactive file following reassignment, (2) Permanent appointments. A permanent appoint- termination of employment or revocation of designation. The ment may be made when a candidate who meets all require- inactive file cutoff date is the end of the fiscal year. The files ments for experience, education, and training at the time the are to be destroyed two years after the cutoff. appointment is made. (c) Transferability of Warrants. Warrants may not transfer 501.603-4 Termination. across contracting activities. Contracting officers that trans- (a) The SPE has the authority to suspend or terminate any fer to a new contracting activity must re-apply for a warrant GSA contracting officer appointment in any organizational in FAITAS. component of the agency. SPE suspensions or terminations of (d) Authority to make purchases for domestic and national warrants may not be overridden by any other GSA appointing security emergencies. official. (1) A contracting officer, you may enter into contracts (b) At any time, an HCA may terminate an appointment, on behalf of a GSA organization different from the organiza- change a permanent warrant to an interim warrant, reduce the tion specified in their Certificate of Appointment in response warrant level, or refuse to accept a warrant from another con- to a contingency operation, defense or recovery from certain tracting activity. attacks, major disaster declarations as defined in FAR part 18 (c) The supervisor of record must notify the BCM within and other domestic or national security emergencies. the organization when a contracting officer does any of the (2) The Office of the Chief Acquisition Officer following: (OCAO) or HCA may grant higher contracting authority (1) Resigns. during emergencies for Basic, Simplified and Intermediate (2) Transfers to another agency. warrants (See Office of Federal Procurement Policy Memo- (3) Is reassigned to another office within GSA. randum, Emergency Acquisition Guide, dated January 14, (4) Is terminated, or otherwise disciplined, for malfea- 2011 http://www.whitehouse.gov/sites/default/files/omb/ sance or incompetence. assets/procurement_guides/ (5) Does not need the appointment. emergency_acquisitions_guide.pdf. (6) Fails to comply with experience, education or train- (3) The OCAO or HCA may appoint contracting offi- ing requirements. cers with authority limited to entering into contracts required (d) Managers within the supervisory chain-of-command to respond to domestic or national security emergencies. This may at any time, suspend a contracting officer's appointment will provide GSA a cadre of emergency contracting officers for any of the following: who can instantly respond to emergencies if necessary. For (1) There is reason to believe that the contracting offi- warrants issued as a direct result of an emergency, the OCAO cer failed to exercise sound business judgment. or HCA must have reasonable assurance that the employee is (2) There is reason to believe that the contracting offi- eligible to be warranted if the nature of the emergency pre- cer engaged in other improprieties in carrying out contracting cludes submission of otherwise necessary required documen- officer responsibilities. tation for the warrant (see 501.603-3(b)). (3) Failure of the contracting officer to comply with (e) Record Maintenance and Disposal. continuous learning requirements.

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501.707 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 501.603-70 Fulfillment of required FAC-C training. supervisor. The application package must include the applica- Information on fulfillment and equivalencies for required tion form and copies of relevant training certificates. The FAC-C training can be found at https://insite.gsa.gov/portal/ supervisor is responsible for verifying the accuracy and com- category/534186. pleteness of the application package in FAITAS. After supervisory review, the certification request is routed electronically 501.604 Contracting Officer's Representative (COR). to the BCM. If the BCM recommends approval, the applica- The FAC-COR's role is to develop proper requirements tion is routed to the ACM for final approval. After the ACM and ensure during contract administration the contractors approves, the FAC-COR certificate is generated through meet the commitments of their contracts, including the time- FAITAS. liness and delivery of quality goods and services as required (f) Contracting officer’s responsibilities. by the contract. Information on the FAC-COR certification (1) In appointing CORs under GSAM 542.2, the con- requirements can be found at http://fai.gov/drupal/ tracting officer must take into consideration the appropriate certification/fac-cor. FAC-COR Level needed to protect the government's interest. (a) Applicability. Any GSA employee assigned to perform The contracting officer must consider the risk associated with COR duties, regardless of series, must obtain FAC-COR cer- the acquisition, including contract type, in order to determine tification, except as provided in paragraphs (b) and (c) of this the appropriate level of FAC-COR coverage. section. CORs must be certified at the appropriate level no (2) Contracting officers must provide appointment let- later than six months from the date of their appointment. ters in writing to the contractor, outlining the COR's respon- (b) FAC-COR waivers. The SPE may waive the require- sibilities under the contract and the limits of the COR's ment for obtaining the FAC-COR certifications prior to authority to the contractor. The contracting officer must also appointment as a COR. Waivers will only be considered in provide a copy to the COR and the COR supervisor, and main- compelling and well documented circumstances. This author- tain a copy in the official contract file, or a central file refer- ity is non-delegable. FAC-COR waivers are not transferable enced in the contract file. to other agencies. (3) The contracting officer is authorized to revoke a (c) Reciprocity of certifications. As described in OMB COR appointment. Any revoked COR appointment must be memorandum, "Revisions to the Federal Acquisition Certifi- documented in writing, notifying the COR, the COR's super- cation for Contracting Officers' Representatives," of Septem- visor, the contractor and the BCM. ber 6, 2011, (http://www.fai.gov), individuals certified as (g) Other executive agency FAC-COR. GSA will recog- Federal Acquisition Certification in Contracting (FAC-C) nize COR certifications issued by other executive agencies as Levels I or II or Federal Acquisition Certification for Program long as they appear in the FAITAS certification record and are and Project Managers (FAC-P/PM) Mid-Level/Journeyman compliant with current FAC-COR requirements, including are considered to have met the FAC-COR requirements for continuous learning. Level II. Individuals certified as FAC-C Level III or FAC-P/ (h) FAITAS. CORs must be registered in FAITAS, the offi- PM Senior/Expert are considered to have met the FAC-COR cial system of records for all civilian agency FAC programs requirements for Level III. These individuals must submit (www.fai.gov). CORs are responsible for submitting all train- their FAC certificates and continuous learning documents to ing and continuous learning activities into FAITAS. their BCMs for FAC-COR certification in accordance with the procedures shown in the Acquisition Workforce Commu- Subpart 501.7—Determinations and nity of Practice accessible through GSA's Acquisition Portal Findings (https://insite.gsa.gov/portal/category/534186). (d) HCAs or their designees, typically BCMs, must do all 501.707 Signatory authority. of the following: (a) The FAR frequently refers to determinations made by (1) Manage and monitor their FAC-COR programs. the agency head. Under section 309 of the Federal Property (2) Coordinate with the agency ACM to grant certifica- and Administrative Services Act, the Administrator autho- tions. rized HCA’s to act as agency head to facilitate procurement of (3) Evaluate candidate proficiencies and determine property and services under Title III of the Act. (See GSA course equivalencies for certification, in accordance with Delegation of Authority Manual, ADM P 5450.39C.) FAI's required COR competencies. (b) An HCA normally signs a class D&F. (4) Resolve any certification-related disputes. (c) If a statute precludes an agency head redelegating (e) FAC-COR application process. Applicants are respon- authority, the Administrator must sign the D&F (See, for sible for preparing an application package for submission example, FAR 6.302-7). electronically through FAITAS (www.fai.gov) to his or her

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Appendix 501A—[Reserved] Appendix 501A—[Reserved]

501A-1 Appendix 501A GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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501A-2 PART 502—DEFINITIONS OF WORDS AND TERMS

Sec. Subpart 502.1—Definitions 502.101 Definitions.

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502-ii CHANGE 62 JANUARY 13, 2014

PART 502—DEFINITIONS OF WORDS AND TERMS 502.101

PART 502—DEFINITIONS OF WORDS AND TERMS

Subpart 502.1—Definitions (3) The Assistant Commissioner for Integrated Tech- nology Services or designee; 502.101 Definitions. (4) The Assistant Commissioner for Travel, Motor “Agency competition advocate” means the GSA Competi- Vehicle and Card Services or designee; and tion Advocate in the Office of the Chief Acquisition Officer. (5) The Assistant Commissioner for Acquisition Man- “Agency labor advisor” means the Director of the General agement or designee for support offices with contracting Services Acquisition Policy Division within the Office of functions. Acquisition Policy. (c) In FAS Regions, the Assistant Regional Commissioner “Assigned counsel” means the attorney in the Office of or designee. General Counsel (including offices of Regional Counsel) “Debarring official” or “suspending official” means GSA’s assigned to provide legal review or assistance. Suspension & Debarment Official at https://insite.gsa.gov/ “Procuring activity competition advocate” means the indi- portal/category/534198. vidual designated in writing by the Head of the Contracting “Head of the contracting activity” means the Senior Pro- Activity (HCA). curement Executive (SPE); the Commissioners and Deputy “Contracting director” means: Commissioners of the Federal Acquisition Service (FAS) and (a) Except in the Federal Acquisition Service (FAS), a the Public Buildings Service (PBS); or their re-delegates. The director of a Central Office or Regional office Division Chief Administrative Services Officer serves as the HCA for responsible for performing contracting or contract adminis- the Internal Acquisition Division within the Office of Admin- tration functions. istrative Services. These officials serve within the limits of (b) In FAS Central Office— their delegated authority. The HCA delegations may be found (1) The Assistant Commissioner for Assisted Acquisi- on GSA’s Acquisition Portal (https://insite.gsa.gov/portal/ tion Services or designee; content/638514). (2) The Assistant Commissioner for General Supplies “Senior procurement executive” means the Deputy Chief and Services or designee; Acquisition Officer.

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502-2 AMENDMENT 2009–12 OCTOBER 7, 2009

PART 503—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST Sec. Subpart 503.1—Safeguards Subpart 503.4—Contingent Fees 503.101 Standards of conduct. 503.101-3 Agency regulations. 503.405 Misrepresentations or violations of the 503.104 Procurement integrity. Covenant Against Contingent Fees. 503.104-2 General. Subpart 503.5—Other Improper Business Practices 503.104-4 Disclosure, protection, and marking of 503.570 Advertising. contractor bid or proposal information and 503.570-1 Policy. source selection information. 503.570-2 Contract clause. 503.104-7 Violations or possible violations. Subpart 503.7—Voiding and Rescinding Contracts Subpart 503.2—Contractor Gratuities to 503.703 Authority. Government Personnel 503.705 Procedures. 503.203 Reporting suspected violations of the Gratuities clause. Subpart 503.8—Limitation on the Payment of 503.204 Treatment of violations. Funds to Influence Federal Transactions 503.806 Processing suspected violations. Subpart 503.3—Reports of Suspected Antitrust Violations Subpart 503.10—Contractor Code of Business 503.303 Reporting suspected antitrust violations. Ethics and Conduct 503.1004 Contract clauses.

503-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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503-ii AMENDMENT 2009–12 OCTOBER 7, 2009

PART 503—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 503.104-7

PART 503—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

Subpart 503.1—Safeguards (x) Department of Labor (DOL) personnel who process preaward EEO clearances under FAR 22.805; (xi) Attorneys in the Office of General Counsel and 503.101 Standards of conduct. Regional Counsel’s offices; and (xii) Personnel involved in contract approval. 503.101-3 Agency regulations. (2) The Senior Procurement Executive may authorize GSA Supplemental Ethical Standards of Conduct appear at additional classes of persons access to contractor bid or pro- 5 CFR Part 6701. posal information or source selection information. 503.104 Procurement integrity. (3) The contracting officer may authorize access to contractor bid or proposal information or source selection information if necessary to conduct the procurement. This includes release of information to outside evaluators under 515.305-70 503.104-2 General. in accordance with 537.204 and FAR 9.505-5 and 37.204. “Acquisition official” as defined in FAR 3.104-3(a)(2), are Limit access to only that information the person needs to do responsible for knowing the post-employment restrictions in his or her job. FAR 3.104-2(b)(3) and 3.104-3(d). (4) The contracting officer may use Conflict of Interest Acknowledgement and Nondisclosure Agreement referenced 503.104-4 Disclosure, protection, and marking of in 515.305(b)(1) to maintain the identity of individuals autho- contractor bid or proposal information and source rized access to contractor bid or proposal information and selection information. source selection information. (a) Persons authorized access to information. (1) The fol- (b) Procedures for marking and protecting information. lowing persons may access contractor bid or proposal infor- Any individual who prepares, makes, or controls contractor mation and source selection information to accomplish their bid or proposal information and source selection information responsibilities in a procurement action: must: (i) Requirements generators, including client agency (1) Mark documents as prescribed in FAR 3.104-4(c). representatives, and program and technical experts who Contracting officers may use GSA Form 3611, Cover Page develop statements of work, specifications or similar docu- Source Selection Information as the cover page for a documents; ment that contains source selection information. In addition, (ii) Contracting personnel supporting the contract- each page of the document must be marked in accordance ing officer; with FAR 3.104. (iii) Personnel serving on technical evaluation (2) Provide physical security for documents in the boards or source selection evaluation boards; office environment during, and after, duty hours. (iv) Supervisors in the contracting officer’s chain of (3) Secure interoffice mailing of documents by using command; opaque envelopes, “double wrapping” with more than one (v) Secretarial, clerical and administrative personnel envelope, and sealing envelopes securely. of the contracting activity responsible for the procurement; (4) Maintain strict control over oral communications (vi) Small Business Technical Advisors; about the acquisition. (vii) Small Business Administration (SBA) person- (c) Requests for information from Congress. For requests nel who review determinations not to set-aside acquisitions, from a member of Congress, see 505.403. determine the small business status of offerors under FAR 19.302, process applications for Certificates of Compe- tency under FAR 19.6, review subcontracting plans, or award 503.104-7 Violations or possible violations. contracts under the 8(a) program; (a) The HCA is the individual designated under FAR (viii) Personnel in the Credit and Finance Section of 3.104-7 (a)(1) to receive information related to a conclusion Region 6 and other personnel who support the contracting that a reported or possible violation has no impact on a pro- officer in making contractor responsibility determinations; curement. (ix) Contract auditors in the Office of Inspector Gen- (b) If the HCA receives information describing an actual eral and Regional Inspector General’s offices; or possible violation, the HCA must take all of the following actions:

(Change 40) 503-1 AMENDMENT 2009–12 OCTOBER 7, 2009

503.203 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

(1) Refer the matter immediately to the Inspector Gen- (c) IIf there is a dispute of fact material to making a deter- eral; mination, the Senior Procurement Executive, or designee, (2) Determine what action to take on the procurement may refer the matter to an agency fact-finding official, desig- under FAR 3.104-7 (b)–(g); and nated by the Suspension and Debarment Official, in accor- (3) Notify the Administrator if he or she determines that dance with GSAR 509.403. Referrals for fact-finding are not urgent and compelling circumstances, or other Government made in cases arising from a conviction or indictment as interests, justify the award or modification. defined in FAR 9.403. If a referral is made, the fact-finding (c) If a contracting officer has not been appointed, the con- official takes all the following actions: tracting director performs the contracting officer actions (1) Gives the contractor an opportunity to dispute mate- defined in FAR 3.104-7. rial facts relating to the determinations under FAR 3.204(a)(1) and (2); (2) Conducts proceedings under rules consistent with Subpart 503.2—Contractor Gratuities to FAR 3.204(b); Government Personnel (3) Schedules a hearing within 20 calendar days of receipt of the referral. The contractor or GSA may request an 503.203 Reporting suspected violations of the Gratuities extension for good cause; and clause. (4) Delivers to the Senior Procurement Executive, or (a) Employees must report immediately a suspected viola- designee, written findings of fact (together with a transcription of the Gratuities clause to each of the following: tion of the proceedings, if made) within 20 calendar days after (1) The contracting officer; the hearing record closes. The findings must resolve any (2) Assistant Inspector General for Investigations or the material disputes of fact by a preponderance of the evidence. Regional Special Agent in Charge; and (d) The Senior Procurement Executive, or designee, may (3) Deputy Standards of Conduct Counselor. reject the findings of the fact-finding official only if the find- (b) The report must describe the circumstances under ings are clearly erroneous or arbitrary and capricious. which the Gratuities clause has been violated and include all (e) In cases arising from conviction or indictment, or in pertinent documents. which there are no disputes of material fact, the Senior Pro- (c) The Office of Inspector General will investigate and, if curement Executive, or designee, conducts the hearing appropriate, forward a report and recommendation to the required by FAR 3.204(b). Department of Justice, the Senior Procurement Executive, or (f) If the Gratuities clause was violated, the contractor may the Office of General Counsel. See also 5 CFR 6701.107. present evidence of mitigating factors to the Senior Procure- 503.204 Treatment of violations. ment Executive, or designee, in accordance with FAR (a) The Senior Procurement Executive, or designee, makes 3.204(b) either orally or in writing, consistent with a schedule determinations under FAR 3.204. The Senior Procurement the Senior Procurement Executive, or designee, establishes. Executive, or designee, takes all the following actions: The Senior Procurement Executive, or designee, exercises the (1) Coordinates with legal counsel; Government’s rights under FAR 3.204(c) only after consider- (2) Initiates proceedings under FAR 3.204(a) by notifying mitigating factors. ing the contractor that GSA is considering action against the contractor for a violation of the Gratuities clause. Notice is Subpart 503.3—Reports of Suspected sent by a certified letter to the last known address of the party, Antitrust Violations its counsel, or agent for service of process. In the case of a business, notice is sent to any partner, principal officer, direc- 503.303 Reporting suspected antitrust violations. tor, owner or co-owner; and The contracting officer shall report evidence of suspected (3) Presumes receipt if no return receipt is received antitrust violations in acquisitions to the Assistant Inspector within 10 calendar days after mailing the notice. General for Investigations or the Regional Special Agent in (b) The contractor has 30 calendar days to exercise its Charge. When appropriate, the Office of Inspector General rights under FAR 3.204(b), unless the Senior Procurement will investigate and prepare a report and recommendation to Executive, or designee, grants an extension. the Attorney General and to the Senior Procurement Execu- tive for suspension or debarment consideration.

503-2 (Change 40) AMENDMENT 2009–12 OCTOBER 7, 2009

PART 503—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 503.705

Subpart 503.4—Contingent Fees refer the matter to the Senior Procurement Executive under FAR 3.705 and shall— (i) Identify in the referral the final conviction; (ii) Include the information required by FAR 3.705(d)(2) through (5); and (iii) Coordinate the referral with the Office of 503.405 Misrepresentations or violations of the Covenant Inspector General to determine whether to recommend debar- Against Contingent Fees. ment. Employees who suspect or have evidence of violations of (b) Senior Procurement Executive’s actions: the Covenant Against Contingent Fees must report the matter (1) Reviews the referral and coordinates with assigned to the contracting officer as well as to the Office of Inspector counsel and the contracting activity. General. If appropriate, the Office of Inspector General will (2) Takes both the following actions, if the official forward a report and recommendation to the Department of decides to declare void and rescind a contract and to recover Justice. the amounts expended and the property transferred: Subpart 503.5—Other Improper Business (i) Issues the notice required by FAR 3.705; and Practices (ii) Conducts the hearing contemplated by FAR 3.705(c)(3). 503.570 Advertising. (3) Refers the matter to the agency fact-finding official, in case of a dispute of material fact about the agency decision. 503.570-1 Policy. The Senior Procurement Executive makes this referral if the GSA policy precludes contractors from making references dispute of fact relates to any of the following: to GSA contracts in commercial advertising in a manner that (i) Contracts affected by the final conviction. states or implies the Government approves or endorses the (ii) Amounts expended and property transferred by product or service or considers it superior to other products or the Government under the affected contracts. services. The intent of this policy is to prevent the appearance (iii) Identity and value of any tangible benefits of Government bias toward any product or service. received by the Government under the affected contracts. (4) Issues GSA’s final decision under FAR 3.705(e) 503.570-2 Contract clause. after receiving the fact-finding official’s report, if a referral Insert the clause at 552.203-71, Restriction on Advertising, was made. The Senior Procurement Executive may reject the in solicitations and contracts, including acquisitions of lease- fact-finding official’s findings only if they are clearly errone- hold interests in real property, if the contract amount is ous or arbitrary and capricious. The Senior Procurement expected to exceed the simplified acquisition threshold. Executive may explain any such rejection in writing. (5) Coordinates the final decision with the contracting activity and provides the activity a copy of the decision. Subpart 503.7—Voiding and Rescinding (c) Fact-finding official’s actions: The fact-finding official Contracts takes all the following actions: (1) Gives the contractor an opportunity to dispute material facts. (2) Conducts the proceedings under rules consistent 503.703 Authority. with FAR 3.705(c)(3). Pursuant to FAR 3.703 and 3.705(b), the authority to void (3) Schedules a hearing within 20 calendar days after or rescind contracts resides with the Senior Procurement receiving the referral. The official may grant extensions for Executive. good cause at the request of the contractor or GSA. (4) Delivers written findings of fact to the voiding and 503.705 Procedures. rescinding official (together with a transcription of the pro- (a) Contracting officer’s actions: ceeding, if made) within 20 calendar days after the hearing (1) If a contract is tainted by misconduct, the contract- record closes. The findings must resolve any material disputes ing officer shall consult with assigned counsel to determine if of fact by a preponderance of the evidence. the Government has a common law remedy such as avoid- (5) Coordinates the final decision with the contracting ance, rescission, or cancellation. activity and provides the activity a copy of the decision. (2) If the contractor has a final conviction for a violation under 18 U.S.C. 201-224, the contracting officer shall

(Change 40) 503-3 AMENDMENT 2009–12 OCTOBER 7, 2009

503.806 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Subpart 503.8—Limitation on the Payment Subpart 503.10—Contractor Code of of Funds to Influence Federal Transactions Business Ethics and Conduct

503.806 Processing suspected violations. 503.1004 Contract clauses. Evidence of suspected violations of 31 U.S.C. 1352, Lim- (a) The FAR threshold for the clause at 52.203-14, Display itation on the Use of Appropriated Funds to Influence Certain of Hotline Poster(s), is $5,000,000. However, GSA has exer- Federal Contracting and Financial Transactions, should be cised the authority provided at FAR 3.1004(b)(1)(i) to estab- submitted to the Assistant Inspector General for Investigation lish a lower threshold, $1,000,000, for inclusion of the clause or the Regional Special Agent in Charge. When appropriate, when the contract or order is funded with disaster assistance the Office of Inspector General will investigate and prepare a funds. report and recommendation to the Department of Justice. (b) The information required to be inserted in the clause at FAR 52.203-14, Display of Hotline Poster(s), is as follows: (i) Poster: GSA Office of Inspector General “FRAUDNET HOTLINE”; and (ii) Obtain from: Contracting Officer.

503-4 (Change 40) CHANGE 55 OCTOBER 1, 2012

PART 504—ADMINISTRATIVE MATTERS

Sec. Subpart 504.1—Contract Execution Subpart 504.6—Contract Reporting 504.101 Contracting officer’s signature. 504.604 Responsibilities. 504.103 [Reserved]. 504.605 Procedures. 504.605-70 Federal Procurement Data System Public– Subpart 504.2—Contract Distribution Access to Data. 504.201 Procedures. 504.606 Reporting Data. 504.203 Taxpayer identification information. Subpart 504.8—Government Contract Files Subpart 504.4—Safeguarding Classified 504.800 Scope of subpart. Information Within Industry 504.802 Contract files. 504.402 General. 504.803 Contents of contract files. 504.470 Acquisitions involving classified 504.804-5 Procedures for closing out contract files. information. 504.805 Storage, handling, and disposal of contract 504.470-1 [Reserved]. files. 504.470-2 [Reserved]. 504.471 Processing security requirements checklist Subpart 504.9—Taxpayer Identification (DD Form 254). Number Information 504.472 Periodic review. 504.902 General. 504.473 Recurring procurement. 504.904 Reporting contract information to the IRS. 504.474 Control of classified information. Subpart 504.11—Central Contractor 504.475 Return of classified information. Registration 504.476 Breaches of security. 504.1103 Procedures. Subpart 504.5—Electronic Commerce in Subpart 504.13—Personal Identity Verification Contracting of Contractor Personnel 504.500 [Reserved]. 504.1301 Policy. 504.502 Policy. 504.1303 Contract clause. 504.570 [Reserved]. Subpart 504.70—[Reserved]

504-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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504-ii (Change 55) CHANGE 55 OCTOBER 1, 2012

PART 504—ADMINISTRATIVE MATTERS 504.472

PART 504—ADMINISTRATIVE MATTERS

Subpart 504.1—Contract Execution Subpart 504.4—Safeguarding Classified Information Within Industry 504.101 Contracting officer’s signature. Contract, contract modifications, blanket purchase agree- 504.402 General. ments, and task and/or delivery orders may be executed man- (a) This subpart prescribes procedures for safeguarding ually or electronically using a digital signature. In the classified information required to be disclosed to contractors absence of the original contracting officer, another contract- in connection with the solicitation of offers, and the award, ing officer with appropriate warrant authority may sign. performance, and termination of contracts. Always type or stamp the name and title of the contracting officer signing the contract on the document, unless it is elec- (b) As used in this subpart, the term “Contractor(s)” means tronically signed. An electronic contract which includes the prospective contractors, subcontractors, vendors, and suppli- name of the contracting officer satisfies the typed, stamped or ers. printed requirement found in FAR 4.101. GSA Order CIO 2162.1 (GSA Digital Signature Policy dated December 2, 504.470 Acquisitions involving classified information. 2010) is the guidance for the use of digital signatures as the HCA’s must consider how adequate security will be estab- preferred means of providing signatures for GSA documents, lished, maintained, and monitored before accepting a reim- forms, correspondence, and/or emails. bursable agreement for a requirement involving classified information. Further, HCAs are responsible for ensuring that 504.103 [Reserved]. the contracting officers, other procurement personnel, and contracting officer representatives (CORs) assigned to the Subpart 504.2—Contract Distribution acquisition have the appropriate security clearances, prior to accepting a reimbursable agreement involving access to, or generation of, classified information. 504.201 Procedures. (a) The contracting officer must send documentation to the 504.470-1 [Reserved]. paying office on all contracts for which GSA generates a delivery or task order. 504.470-2 [Reserved]. (1) For Federal Acquisition Service contracts entered into the FSS-19 system, the contracting officer must send a 504.471 Processing security requirements checklist system generated contract listing. (DD Form 254). (2) For all other contracts, the contracting officer must (a) The contracting officer must prepare DD Form 254, send a “Duplicate Original” of the entire contract or modifi- Contract Security Classification Specification (illustrated in cation. FAR 53.303-DD-254), for contracts involving contractor (b) The contracting officer must certify that the “Duplicate access to classified information. This form identifies for con- Original” is a true copy of the contract, modification, task tractors the areas of classified information involved. The con- and/or delivery order, if not electronically signed, by writing tracting officer may use written notice of classification for your signature, in ink, on the award or modification form (i.e., research or service contracts. SF 26, 33, 1442, etc.). The contracting officer must certify all (b) Obtain instructions or guidance on completing DD contracts except: Form 254 from the Security and Emergency Management (1) Leases of real property. Division, Office of Mission Assurance (OMA). (2) Schedule contracts. (3) Standard or GSA multipage purchase/delivery/task 504.472 Periodic review. order carbon forms. (a) The contracting officer in coordination with the appropriate program security officer must review DD Form 254 at 504.203 Taxpayer identification information. least once a year, or whenever a change in the phase of per- FAR 4.203(a) does not apply to leases of real property (see formance occurs, to determine if the classified information 504.904) or FAR Part 38 Federal Supply Schedule Contract- can be downgraded or declassified. ing. (b) The contracting officer must inform the contractor of the results of the review by one of the following means: (1) Issuance of a revised specification.

504-1 CHANGE 55 OCTOBER 1, 2012

504.473 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (2) Written instructions instead of DD Form 254, if promptly to Security Branch Chief, Security and Emergency authorized. Management Division, Office of Mission Assurance (OMA). (3) Written notification if the review results in no Subpart 504.5—Electronic Commerce in change in the classification specifications. (c) The contracting officer must prepare a final checklist Contracting upon termination or completion of the contract in accordance with FAR 4.805-5. 504.500 [Reserved].

504.473 Recurring procurement. 504.502 Policy. The contracting officer must prepare a new DD Form 254 Use of electronic signatures is encouraged and can be used only if a change occurs in either of the following: to sign and route documents in GSA’s IT systems to contrac- (a) End item. tually obligate funds. The method of authentication used for (b) Previous security classification. electronic signatures shall be consistent with the level (1-4) determined from the e-authentication risk assessment in 504.474 Control of classified information. accordance with OMB M-04-04, E-authentication Guidance (a) The contracting officer must record, mark, handle, and for Federal Agencies, and the respective technology safe- transmit classified information in accordance with the guards applicable to that level or risk from National Institute requirements of the Security Branch Chief, Security and of Standards and Technology 800-63, Electronic Authentica- Emergency Management Division, Office of Mission Assur- tion Guideline. ance (OMA). (b) The contracting officer must obtain the consent of the 504.570 [Reserved]. originating agency before releasing classified information to a contractor. Subpart 504.6—Contract Reporting 504.475 Return of classified information. (a) Contracting officers must recover classified informa- 504.604 Responsibilities. tion, unless it has been destroyed as provided in Section 7 of (a) The Senior Procurement Executive (SPE), in coordina- Chapter 5 of the National Industrial Security Program Oper- tion with the HCA, shall establish necessary policies to ensure ating Manual (NISPOM). Information on NISPOM can be the accurate and timely input of data into FPDS. At a mini- found at http://www.fas.org/sgp/library/nispom.htm. mum, the SPE and the HCA shall ensure that the following (b) Contracting officers must ensure that classified infor- procedures are implemented. mation provided by the government is returned immediately (1) Contract writing systems capable of reporting after any of the following events: directly into FPDS shall be configured to do so as a condition (1) Bid opening or closing date for receipt of proposals of making an award. by non-responding offerors. (2) To ensure the accuracy of data entered, reports of (2) Contract award by unsuccessful offerors. actions awarded shall be routinely generated from the contract (3) Termination or completion of the contract. writing system, examined and compared to data contained in (4) Notification that authorization to release classified FPDS to assure that those actions have been reported accu- information has been withdrawn. rately to FPDS. (5) Notification that a facility: (3) Organizations without a contract writing system (i) Does not have adequate means to safeguard clas- shall report the data using the FPDS web portal interface not sified information; or later than 14 days after an award is made. To ensure data entry (ii) Has had its security clearance revoked or inacti- and accuracy, logs of contract actions shall be regularly vated. reviewed and compared to data entries in FPDS. (6) Whenever otherwise instructed by the authority (4) HCAs shall also verify and validate accuracy of the responsible for the security classification. data and ensure contract awards have been entered into FPDS (c) The Government agency that provided classified infor- within the appropriate time frames. mation to a GSA contractor is responsible for the return of the information.

504.476 Breaches of security. GSA employees responsible for the protection of classified information must refer the facts of an unauthorized disclosure

504-2 (Correction) CHANGE 55 OCTOBER 1, 2012

PART 504—ADMINISTRATIVE MATTERS 504.605

(b) Contracting officers are the individuals primarily 504.605 Procedures. responsible for the accuracy of data submitted to FPDS as (a) Uniform procurement instrument identification. This well as the submission and accuracy of the individual contract subpart: action report (CAR). (1) Prescribes procedures for identifying contracts, (c) The contracting officer shall, at a minimum, take the orders, and other procurement instruments regardless of dol- following steps necessary to verify the accuracy of the CAR: lar threshold. (1) In the case of a contract writing system, review the (2) Applies to all contracting activities, except: CAR information for accuracy and completeness prior to sub- (i) Federal Acquisition Services (FAS) Multiple mission to FPDS and prior to the release of the contract award. Award Schedule (MAS) procurement activities, and FAS (2) In the absence of a Contract Writing System, ensure Office of General Supplies and services (QS). that the CAR information is submitted to FPDS within 14 (ii) Real property leasing. days after contract award. (b) Policy. (1) Contracting officers shall use the uniform (3) To further assure accurate contract data, consider procurement instrument identification system for procure- including a copy of the CAR with award documents sent to the ment instruments. Do not use it for: contractor for the contractor's knowledge review and informa- (i) Purchases made through certified invoice proce- tion. dures (see 513.370). (d) The Chief Acquisition Officer (CAO) shall periodi- (ii) Purchases made with the Governmentwide com- cally statistically sample the GSA FPDS file and provide a list mercial purchase card. of transactions to the contracting activities for certification. (2) Complete the contract number block provided on (1) The review process should include procedures, the applicable forms. If a space is not reserved for the pre- comparisons of contract file data to FPDS data entries, and scribed number, place the number in the upper right-hand cor- comparisons of printouts of FPDS data to their contract writ- ner of the form. ing system data for accuracy. (3) Each contracting office must maintain records to (2) The verification and validation shall be conducted ensure continuity and control of procurement instrument by an organization or person that did not award the contracts identification numbers. being reviewed. HCAs may institute any appropriate process (c) Solicitations. Contracting officers may use their discre- that complies with this requirement. tion when numbering Invitations for Bid (IFB), Requests for (3) HCAs shall provide certifications of the accuracy, Information (RFI), Requests for Quotations (RFQ), and timeliness and validity of their FPDS data on a quarterly basis Requests for Proposals (RFP). Contracting officers may use to the CAO based on the list of transactions provided to HCAs the basic procurement instrument identification numbering under paragraph (d) of this section. Certifications to the CAO system, prescribed below in paragraph (d) of this section, shall include a description of the means used to verify the applying the appropriate instrument code from paragraph (i) accuracy and completeness of the data and a statement that all of this section, or may use an independently generated instru- discrepancies found have been corrected. ment code, provided that numbering within each procurement (e) The CAO will provide the annual certification of GSA’s office follows a consistent numbering convention and each FPDS data to OMB required by FAR 4.604(c). This certifica- instrument identification number is unique. tion will be based on the Regional and Heads of Services and Staff Offices’ reviews and certifications and the CAO’s review. Certifications are due not later than 15 working days after the end of the quarter.

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504.605 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

(d) Awards. The basic procurement instrument identifica- Content tion number normally is assigned at award. The contracting Description office may assign a number when it receives a procurement Character(s) Content Location Example request to facilitate procurement tracking. The basic procure- 6–7 Last Two Digits of 98 ment instrument identification number stays the same Fiscal Year of Number Assignment throughout the life of the procurement instrument. It consists of 14 alphanumeric characters as follows: 8–9 Preparing Located in PB Contracting Office FPDS-NG Content Code Description GSA Detailed Character(s) Content Location Example Contracting Office List 1–2 Agency Designation Always “GS” GS Code 10–13 Serial Number 504.605(j) B096 (in sequence as 3–4 Region/Central 504.605(g) 02 issued by the Office Identification contracting office) Code 5 Service/Office Code 504.605(h) P (f) Supplemental procurements. Modifications to the basic 6–7 Last Two Digits of 99 contract instrument and to calls/orders against contracts are Fiscal Year of numbered with a four character alphanumeric number. The Number Assignment supplemental identification numbering system applies to all 8–9 Preparing Located in PF modifications to contracts and to call/orders against contracts. Contracting Office FPDS-NG Code Character(s) Content Description Example GSA Detailed 1 Office Issuing A = Administrative A Contracting Office Modification Office List P = Purchasing Office 10 Instrument Code 504.605(i) L 2 Action Type A = Administrative S 11–14 Serial Number 504.605(j) 0001 Change C = Change Order (e) Orders. Delivery or task orders under indefinite deliv- O = Other ery contracts and schedule contract orders are identified by S = Supplemental placing a 13-character alphanumeric identification number in Agreement (bilateral signatures) the order number block of the order form as shown in the table 3–4 Serial Number 01–99 B2 below. The basic indefinite delivery or schedule contract Al–A9 to ZI–Z9 number is placed in the contract number block of the order AA–AZ to ZA–ZZ form. (g) Region/Central Office Codes. Content Description 00 Central Office Character(s) Content Location Example 01 Region 1 1–2 Agency Designation Always “GS” GS Code 02 Region 2 3 Service/Office Code 504.605(h) P 03 Region 3 04 Region 4 4–5 Region/Central 504.605(g) 01 Office Identification 05 Region 5 Code 06 Region 6 07 Region 7 08 Region 8 09 Region 9 10 Region 10 11 National Capital Region

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PART 504—ADMINISTRATIVE MATTERS 504.800 (h) Preparing Service/Office Codes. (4) Alphanumeric characters are serially assigned after the numeric series is exhausted. H Office of Administrative Services (5) The allowable numeric and alphanumeric B Office of the Chief Financial Officer sequences, excluding alpha I and O are: Q Federal Acquisition Service (i) 0001 through 9999. G Civilian Board of Contract Appeals (ii) A001 through A999, B001 through B999. C Office of the Chief People Officer (iii) and so on to Z001 through Z999. I Office of Chief Information Officer (6) Each issuing office is responsible for controlling serial number assignments. J Office of Inspector General L Office of General Counsel 504.605-70 Federal Procurement Data System Public– M Office of Governmentwide Policy Access to Data. P Public Buildings Service (a) The FPDS database. The General Services Administra- X Office of Citizen Services and Innovative tion awarded a contract for creation and operation of the Fed- Technologies eral procurement Data System (FPDS) database. That database includes information reported by departments and (i) Procurement Instrument Type Codes. agencies as required by FAR subpart 4.6. One of the primary A Agreements, including basic agreements, basic purposes of the FPDS database is to provide information on ordering agreements, and blanket purchase Government procurement to the public. agreements. (b) Fee for direct hook-up. To the extent that a member of B Invitation for Bid (IFB). the public requests establishment of real-time integration of C Contracts, including letter contracts, contracts reporting services to run reports from another application, a referencing basic agreements, or basic ordering one-time charge of $2,500 for the original integration must be agreements, excluding indefinite delivery paid by the requestor. This one-time charge covers the setup contracts. and certification required for an integrator to access the FPDS D Indefinite delivery contracts, including definite database and for technical assistance to help integrators use quantity, requirements, and indefinite quantity. the web services. The fee will be paid to the FPDS contractor E Sales contracts. and credited to invoices submitted to GSA by the FPDS contractor. F–H Reserved. I Standing Price Quotation (SPQ). 504.606 Reporting Data. J–L Reserved. (a) Reporting requirements. Detailed specification of M Purchase orders (open market simplified FPDS data reporting requirements is contained in the acquisition)—manual. FPDS-NG FAQs document (available at https:// N Request for Information (RFI). www.fpds.gov/wiki/index2.php/FPDS-NG_FAQ). Reporting P Purchase orders (open market simplified offices are encouraged to use automated information systems acquisition)—automated. for FPDS data reporting, provided that the systems contain all Q Request for Quotation (RFQ). required FPDS data elements via the machine-to-machine R Request for Proposal (RFP). process and the automated acquisition system has received S Schedule contract. the proper certification from the FPDS system manager. (b) The GSA FPDS Sustainability Coding Guidelines at T–Z Reserved. http://insite.gsa.gov/sustainableacquisition must be followed (j) Serial Number Codes. (1) A separate series of numbers when selecting codes for the following sustainability data ele- may be used for each basic instrument type (see 504.605(d) ments: and 504.605(j)). (1) Recovered Materials/Sustainability. (2) For delivery or task orders, each order issued by (2) Use of EPA Designated Products. contracting office must receive a consecutive serial number. That is, orders are numbered in sequence as issued by the con- Subpart 504.8—Government Contract Files tracting office, but they are not in sequence under any individual contract. 504.800 Scope of subpart. (3) At the beginning of each fiscal year, the first number This subpart prescribes a standard contract file format for assigned is 0001. all contracts that exceed the simplified acquisition threshold,

504-5 CHANGE 55 OCTOBER 1, 2012

504.802 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL except leases of real property. This subpart may be applied to (1) Requisition or request for contractual action. purchases using simplified acquisition procedures. Include the certification of the accuracy and completeness of data supporting a recommendation by technical or require- 504.802 Contract files. ments personnel to use other than full and open competition. (a) File standardization. The contracting officer must (See FAR 6.303-1(b).) place all information and documentation required by FAR (2) Specifications, drawings, and other technical docu- 4.802 and 4.803 in the contract file and organize the file in the ments. standard contract file format as set out in 504.803. (3) Acquisition plan including, if applicable, the deter- (b) Responsibility for files. (1) The contracting officer is mination required by OMB Circular A-76 and concurrence of responsible for the official file. Individuals creating docu- the cognizant competition advocate. ments relating to the contract must forward those documents (4) Determination and findings required by FAR 1.7 to the contracting officer for inclusion in the file. and 501.7, or justification required by FAR 6.303, including (2) The contracting officer is responsible for transfer- the certification of accuracy and completeness of the justifi- ring official contract files to the National Archives and cation. Records Administration and for maintaining appropriate (5) Department of Labor Wage Determination. records that will facilitate file retrieval. (6) Small business determinations. (c) Transfer of responsibility for contract files. (1) When (7) Source list. responsibility for a contract transfers from one contracting (8) Statement as to synopsis of proposed procurement officer to another contracting officer, e.g., transfer of assign- under FAR 5.2 or other required advertisements under 505.2. ments or redelegation of contract administration authority (9) Presolicitation notice. (intraoffice or interoffice), the original contracting officer (10) IFB/RFP and amendments. must prepare a detailed listing by file number and name to (11) Abstract of bids or proposals including identifica- identify the file(s) being transferred. tion of the low bidder or offeror, discounted price, etc. (2) Retain a copy of the listing and send a copy to the (12) Cost or pricing data and information other than successor contracting officer as advance notice of the files cost or pricing data. Include the waiver and documentation being transferred. supporting the waiver if the requirement for submission of (3) Retain duplicates of the files transferred until the cost or pricing data is waived, as provided in successor contracting officer acknowledges receipt of the FAR 15.403-1(b)(4). files. (13) Field pricing report (see FAR 15.404-2). (4) Send the files being transferred to the successor (14) Price or cost analysis report prepared under contracting officer by certified mail, return receipt requested, FAR 15.404, including: or by another method requiring the successor contracting offi- (i) Supporting technical analyses, other than those cer's signature to acknowledge receipt. Send two copies of supporting an audit report. the listing with the transferred files. (ii) Profit or fee analysis required by FAR 15.404-4 (5) The successor contracting officer must sign one and 515.404-4. copy of the listing, certifying receipt of the files listed, and (iii) An independent Government estimate, if return the signed copy to the originating contracting officer. required. (15) Documentation required by FAR 15.406, written 504.803 Contents of contract files. to permit reconstruction of the acquisition’s major events. (a) Arrangement. (1) Tab the contract file. (16) Certificate of current cost or pricing data, if appli- (2) File items in reverse order starting with item (1) on cable. the bottom of the file and item (27) on the top. (17) Pre-award survey. (3) File documents within a tab chronologically with (18) EEO compliance review. the most recent document on top. (19) “No bid” or “no proposal” correspondence. (4) Place documents too voluminous for an individual (20) Unsuccessful bids or proposals. Include a copy of tab in a separate file. Annotate the tab with the location of the each rejected bid and unacceptable proposal. separate file. (21) Mistakes in bids and protests. Include all corre- (5) Omit any tab not required for the contract. spondence and determinations relating to mistakes in bids dis- (b) Tab contents. The following instructions apply to con- closed before award or protests. tract actions up to award. Contracting activities may develop (22) Actions taken on late bids or proposals. further guidance on tabbing postaward actions tailored to (23) Contract action. Include: their requirements. Tab the contract file as specified below: (i) Successful bid or proposal and all pertinent correspondence applicable to the contract action, including evi-

504-6 CHANGE 55 OCTOBER 1, 2012

PART 504—ADMINISTRATIVE MATTERS 504.804-5 dence of submission of contract award data to paying office cers shall ensure that the contract award document and the (see 504.201). statement of work includes the following statement: (ii) Subcontracting plans incorporated in and made a “For payment purposes, the contractor shall mark its material part of a contract, as required by final invoice for payment as Final Invoice for Payment.” FAR 19.705-5(a)(5). (24) Evidence of legal review, if required. (1) For task and delivery orders awarded under these (25) Approvals. Include, as applicable: procedures, the orders shall also include the statement above. (i) GSA Form 1535, Recommendation for Award. (2) Contracting officers shall instruct contracting offi- (ii) Documentation of approval of subcontracting cer representatives or project managers receiving supplies plan. and services under the simplified acquisition procedures to (iii) Record of individuals authorized access to con- forward copies of the receiving report and final invoice to the tractor bid or proposal information or source selection infor- contracting officer for contract close-out purposes. mation (see 503.104-4(a)(4)). (d) Cancellation of open items with residual balances. (26) Notices of award. (1) Open item balances (remaining) of $100,000 and (27) FPDS Contract Action Report, or other sys- below should be canceled if deemed invalid following the tem-generated equivalent. procedures below. Service and Staff Office (SSO) funds man- (c) Index. (1) Place an index of the file tabs in the file, or agers (persons certifying the availability of funds) will have simulate electronically an index of the tabs and include in the the authority and responsibility to cancel balances if deemed front of the electronic version of the contract file. Identify invalid. Only valid obligations should be retained in the items that do not apply. If necessary, briefly explain why. The financial accounting system. contracting officer may use the GSA Form 3420, Contract/ (2) The following procedures should be followed to Modification File Checklist File Format (Award), for the cancel invalid obligations: index, or an electronically created index inclusive of the items (i) The SSO funds managers will generate a list of detailed under GSAR 504.803(b). proposed deobligations and present it to the contracting offi- (2) Include subheadings under a tab if required by the cer and his/her director for review and approval. contracting officer’s office. (ii) The contracting officer or director shall respond to the SSO funds manager within 45 days, justifying in writ- 504.804-5 Procedures for closing out contract files. ing why any open item on the list should not be canceled. (a) HCAs are directed to take appropriate steps to ensure (iii) If the funds manager receives no response from that physically completed contracts are formally closed in the contracting officer, the funds manager is authorized to accordance with the procedures at FAR 4.804, GSAM take appropriate steps to deobligate the open items in the 504.804-5, and guidelines provided below for simplified accounting and business systems. acquisitions and contracts with residual balances. HCAs are (iv) When a contracting officer approves the cancel- reminded that when closing out contract actions at FAR lation of obligation under items b or c, above, the contracting 4.804-1(a)(2), (3), and (4), the contracting officer shall use the officer shall prepare the appropriate documents necessary closeout procedures at FAR 4.804-5. However, these closeout (e.g., contract modification) for the contract file. actions may be modified to reflect the extent of administration (e) These actions by the SSO funds managers shall be con- that has been performed. Contracting activities that have sup- sidered an internal financial accounting action and shall have plemented the FAR procedures with instructions pertinent to no bearing on the Government’s rights and duties under the the specific contract types, business systems, and resources contracts until the contracting officer officially closes the con- employed are encouraged to continue the use of such supple- tract. ments. (f) Non-contracting officer acquisitions. For newly cre- (b) Contracting officers must be vigilant and proactive ated open items that did not require the signature of a contract- with respect to proper contract closeout procedures. They ing officer (GSAM 501.603-1(f)) the funds manager has the must not allow completed contracts to remain open indefi- authority to correct or cancel any open item not deemed valid. nitely or allow a failure to conduct timely closeout to violate Examples of such document types include micropurchases regulatory or statutory requirements, or negatively impact using the governmentwide commercial purchase card, inter- GSAs accurate and timely financial reporting. nal GSA orders and security clearances (e.g., IX, IY, GX). (c) Under FAR 4.804-1(a)(1), the contracting officer only The funds managers should follow the financial systems pro- needs evidence of receipt of goods and services and final pay- cedures outlined in this memorandum for cancellation and ment to closeout the contract files. For contracts awarded should inform the originator of the open item of the cancella- under the simplified acquisition procedures, contracting offi- tion.

504-7 CHANGE 55 OCTOBER 1, 2012

504.805 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

504.805 Storage, handling, and disposal of contract files. Subpart 504.11—Central Contractor The contracting officer’s accountability for contract files ends when the following three conditions exist: Registration (a) The files’ retention period expires. (b) The contracting officer receives the notice of disposal 504.1103 Procedures. from the National Archives and Records Administration. In addition to the requirements found in FAR 4.1103, prior (c) The records liaison officer whose organization has to awarding a contractual instrument the contracting officer functional responsibility for the files approves disposal. must- (1) Verify that the prospective contractor’s legal business Subpart 504.9—Taxpayer Identification name, Doing-Business-As (DBA) name (if any), physical street address, and Data Universal Number System (DUNS) Number Information number or DUNS+4 number, as found in the CCR, match the information that will be included in the contract, order, or 504.902 General. agreement resulting from the vendor’s quote or proposal. (a) Debt collection. The Debt Collection Improvement Act Correct any mismatches by having the vendor amend the of 1996 requires each contractor doing business with GSA to information in the CCR and/or the quote or proposal. The furnish its Tax Identification Number (TIN). The Govern- CCR information can be accessed through GSA’s CCR repos- ment is required to include with each certified voucher pre- itory (contact the GSA Systems Programming Branch for pared and submitted to a disbursing official, the TIN of the instructions, a user ID, and password). contractor receiving payment under the voucher. The TIN (2) Ensure that the contractor’s address code exists in may be used by the Office of Financial Policy and Operations Pegasys and that it is CCR enabled with the contractor’s to collect and report on any delinquent amounts arising out of DUNS or DUNS+4 number. This can be done by searching the contractor's relationship with the Government. Pegasys records using the contractor’s Taxpayer Identifica- (b) Information reporting to the IRS. The TIN is also tion Number (TIN). If no code exists, request that a new required for Office of Financial Policy and Operations report- address code be established by the Finance Center for CCR ing of certain contract information (see FAR 4.903) and pay- compliance. ment information (see GSAM 504.904) to the IRS. (3) Ensure that the contractor’s identifying information is correctly placed on the contractual instrument, using special 504.904 Reporting contract information to the IRS. care to ensure that the legal name and “remit to” name match (a) The Office of Financial Policy and Operations reports exactly. (Note: Lockbox names or numbers should not be to IRS on payments made to certain contractors for services used to replace the contractor’s name in the remittance block performed and to lessors for providing space in buildings. on the contractual instrument.) This is required by 26 U.S.C. 6041 and 6041A and imple- (4) Unless one of the exceptions to registration in CCR mented in 26 CFR. To assist the Office of Financial Policy applies (see FAR 4.1102(a)), the contracting officer must not and Operations in reporting to the IRS, contracting officers award a contract to a prospective contractor who is not regis- must indicate on obligating documents sent to Finance (e.g., tered in CCR. If no exceptions are applicable, and the needs purchase, delivery, or task orders; contracts; the GSA Form of the requiring activity allows for a delay in award, see FAR R-620 for leases; or certified invoices) the contractor's orga- 4.1103(b)(1). nizational structure (e.g., corporation, partnership) and taxpayer identification number (TIN).

504-8 CHANGE 55 OCTOBER 1, 2012

PART 504—ADMINISTRATIVE MATTERS 504.1303 Subpart 504.13—Personal Identity Subpart 504.70—[Reserved] Verification of Contractor Personnel

504.1301 Policy. Contracting officers must follow the procedures contained in CIO P2181.1 - GSA HSPD-12 Personal Identity Verifica- tion and Credentialing Handbook, which may be obtained from the CIO Office of Enterprise Solutions, to ensure compliance with Homeland Security Presidential Directive-12 (HSPD-12) “Policy for a Common Identification Standard for Federal Employees and Contractors,” Office of Management and Budget Memorandum M-05-24, and Department of Com- merce FIPS PUB 201.

504.1303 Contract clause. Insert the clause at 552.204-9, Personal Identity Verifica- tion Requirements, in solicitations and contracts when it is determined that contractor employees will require access to federally controlled facilities or information systems to perform contract requirements.

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504-10 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING This page intentionally left blank. PART 505—PUBLICIZING CONTRACT ACTIONS

Sec. Subpart 505.1—Dissemination of Information Subpart 505.4—Release of Information 505.101 Methods of disseminating information. 505.403 Requests from Members of Congress. Subpart 505.2—Synopses of Proposed Contract Subpart 505.5—Paid Advertisements Actions 505.502 Authority. 505.202 Exceptions. 505.503 Procedures. 505.203 Publicizing and response time. 505.504 Use of advertising agencies. 505.270 Synopsis of amendments to solicitations. Subpart 505.3—Synopses of Contract Awards 505.303 Announcement of contract awards. 505.303-70 Notification of proposed substantial awards and awards involving congressional interest.

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505-ii AMENDMENT 2010-02 JUNE 10, 2010

PART 505—PUBLICIZING CONTRACT ACTIONS 505.303-70 PART 505—PUBLICIZING CONTRACT ACTIONS

Subpart 505.1—Dissemination of Subpart 505.3—Synopses of Contract Information Awards

505.101 Methods of disseminating information. 505.303 Announcement of contract awards. If the acquisition is for real property appraisal services Compliance with 505.303-70 fulfills the reporting require- estimated to cost $25,000 or more and is not exempt under ments of FAR 5.303(a). FAR 5.202 or GSAR 505.202, then the contracting officer 505.303-70 Notification of proposed substantial awards must publicize the proposed acquisition in FedBizOpps. and awards involving congressional interest. (Note: See Part 570 for information regarding publicizing (a) Applicability. This section applies to any proposed contracts actions for leasehold interests in real property.) award exceeding or estimated to exceed: (1) $500,000 for a contract under the 8(a) program. Subpart 505.2—Synopses of Proposed (2) $1,000,000 for a supply contract unless it involves Contract Actions any of the following: (i) Motor vehicles. 505.202 Exceptions. (ii) Supplies with not readily identifiable points of The Administrator has determined under section 18(c)(3) origin. of the Office of Federal Procurement Policy Act, as amended (iii) Supplies with foreign production points. (41 U.S.C. 416 (c)(3)) and Section 8(g)(3) of the Small Busi- (3) $3,500,000 for a design (Architect/Engineer) or ness Act, as amended (15 U.S.C. 644(g)(3)) that: construction contract. (a) Synopsizing in FedBizOpps is not always appropriate (4) $500,000 for any other contract, or class of contract, for acquisitions of real property appraisal services. The con- if a Member of Congress has specifically requested notifica- tracting officer must, publicize such contract actions follow- tion of award to a contractor in his/her district or State. ing the procedures in 505.203. (b) Notification Procedures. (1) The Office of Congres- (b) It is not appropriate or reasonable to publish an sional and Intergovernmental Affairs (OCIA) will provide in advance notice of acquisitions of works of art, including the writing to the HCA the names of members of Congress (in design, execution and installation of the artwork, under the whose district or State the contractor is located and the work Art-in-Architecture Program. is to be performed), who wish to be notified of any award under subparagraph (a)(4) of this subsection. 505.203 Publicizing and response time. (2) Notify OCIA either by: If publicizing in newspapers, ensure that the notice appears (i) Electronic mail to OCIA [email protected]. at least three calendar days before issuance of the solicitation. (ii) Facsimile to (202) 208-1300. Allow at least these minimum response times: (iii) Hand delivery to 1800 F Street, NW, Room (1) For real property appraisal services valued at less 6106, Washington, DC 20405. than the applicable Trade Agreements Act (TAA) threshold (3) Except for awards under urgent and compelling cir- (see FAR 25.401(b), 10 calendar days prior to receipt of initial cumstances, the contracting officer must provide the notice to offers. OCIA on the day of award and 24 hours before telephonic or (2) For real property appraisal services valued at or e-mail notice (if applicable) is provided to the contractor. If over the applicable TAA threshold, 40 calendar days prior to the contracting officer cannot meet this timeframe, the con- receipt of initial offers. If the acquisition falls in a general cat- tracting director must notify OCIA by telephone or e-mail. egory identified in an annual forecast, the period may be (4) For awards under subparagraph (a)(4) of this sec- reduced to as few as 10 days. tion, provide a copy of the notice to the Regional congressional liaison office. 505.270 Synopsis of amendments to solicitations. (c) Contents of notice. (1)Provide the information in Synopsize in the CBD FedBizOpps any solicitation accordance with the format at http://www.gsa.gov/forms. amendment when the amendment either: (2) The notification to OCIA may contain sensitive (a) Increases the value of the contract action above the preaward information. The notification must be labeled threshold requiring synopsis, or accordingly. OCIA and regional congressional liaison offices (b) Makes other non-cardinal changes to the solicitation, are responsible for the security of such information and will such as a new time and date for receipt of offers, minor establish procedures governing its release before official noti- changes or clarifications to the statement of work. fication of award. Unless otherwise authorized by the con-

(Change 45) 505-1 AMENDMENT 2010-02 JUNE 10, 2010

505.403 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL tracting officer, the release of such information before award accordance with FAR 5.502(a). Approval is not required if is limited to members of Congress and their staff. FAR 5.101 or GSAR 505.101 requires publication. Document (d) Release of awards. (1)The Associate Administrator the contract file with the regulatory citation or written for OCIA will identify notifications which require priority approval to support the use of paid newspaper advertisements. processing. OCIA will release such notices at the time and (b) Other media. Advance approval is not required to date specified by the Associate Administrator. advertise in other media. (2) Unless notified to the contrary, the contracting officer may release awards described in paragraph (a) of this sec- 505.503 Procedures. tion, or information related to them, after two full workdays (a) Substitute form. Unless the contracting officer makes (48 hours) from the time and date of notification to OCIA. an award or order via electronic commerce or by using the This is done to ensure that the notification has occurred and Governmentwide commercial purchase card, use GSA Form contract award has actually taken place. The date/time stamp 300, Order for Supplies and Services. on the e-mail, facsimile transmission, or hand delivery receipt (b) Invoice receipt by contracting officer. After receiving establishes the time and date of notification. an invoice and proof of advertising from a publisher, radio or television station, or advertising agency, the contracting offi- Subpart 505.4—Release of Information cer shall take the following actions: (1) Certify the invoice for payment. 505.403 Requests from Members of Congress. (2) Submit the invoice to Finance. (a) The contracting officer shall consult with legal counsel (3) Retain the proof of advertising in the contract file. if the response would disclose any of the following: (c) Invoice receipt by receiving official. If a receiving offi- (1) Classified material. cial receives an invoice from a publisher, radio or television (2) Confidential business information. station, or advertising agency, he or she takes all the following (3) Contractor bid or proposal information or source actions: selection information as defined in FAR 3.104-3. (1) Prepares a receiving report. (4) Information prejudicial to a competitive acquisi- (2) Submits the invoice and receiving report to Finance tion. for payment. (b) If the response involves proprietary or source selection (3) Gives the contracting officer a copy of the receiving information, the contracting officer shall use the GSA Form report for retention in the contract file. 3611 for clarity and visibility. (c) Refer the proposed response to the HCA and inform the 505.504 Use of advertising agencies. OCIA of the action taken. The services of commercial advertising agencies may be used only if the contracting officer determines that the ser- Subpart 505.5—Paid Advertisements vices rendered by those agencies can either: (a) Increase competition for contracts; or 505.502 Authority. (b) Improve the effectiveness of GSA advertising and mar- (a) Newspapers. The Senior Procurement Executive must keting programs. approve publication of paid newspaper advertisements in

505-2 (Change 45) CHANGE 62 JANUARY 13, 2014

PART 506—COMPETITION REQUIREMENTS

Sec. Subpart 506.2—Full and Open Competition Subpart 506.3—Other than Full and Open After Exclusion of Sources Competition 506.202 Establishing or maintaining alternative 506.303 Justifications. sources. 506.303-1 Requirements. Subpart 506.5—Competition Advocates 506.501 Requirement.

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506-ii CHANGE 62 JANUARY 13, 2014

PART 506—COMPETITION REQUIREMENTS 506.501 PART 506—COMPETITION REQUIREMENTS

Subpart 506.2—Full and Open Competition 41 U.S.C. 253(c)(7), which does not permit class justifica- After Exclusion of Sources tions. (b) Justifications based on 41 U.S.C. 253(c)(7). For a jus- 506.202 Establishing or maintaining alternative sources. tification based on the authority of 41 U.S.C. 253(c)(7) (see An HCA signs determinations and findings required by FAR 6.302-7), submit the justification for the Administrator’s FAR 6.202. approval through the Senior Procurement Executive. (c) Justifications for contract actions subject to the Agree- Subpart 506.3—Other than Full and Open ment on Government Procurement. When you acquire eligible products without full and open competition using the Competition authority in FAR 6.302-3(a)(2)(i) or 6.302-7, furnish a copy of the approved justification to the Senior Procurement Exec- 506.303 Justifications. utive. The Senior Procurement Executive will transmit the justification to the U.S. Trade Representative. 506.303-1 Requirements. (a) Proposing a class justification. If you determine that Subpart 506.5—Competition Advocates the facts supporting other than full and open competition would be present in other GSA contracting activities, you 506.501 Requirement. should propose a class justification. Recommend through The appointment of the procuring activity competition appropriate channels that the Senior Procurement Executive advocate by the HCA must be communicated to the procuring approve a class justification for all GSA contracting activities. staff, the agency competition advocate and the Senior Pro- This does not apply to justifications based on the authority of curement Executive.

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506-2 CHANGE 50 JUNE 15, 2011

PART 507—ACQUISITION PLANNING

Sec. Subpart 507.1—Acquisition Plans Subpart 507.70—Additional Requirements for 507.101 Definitions. Purchases in Support of National Security 507.103 Agency-head responsibilities. Systems involving Weapons Systems 507.104 General procedures. 507.7000 Scope of subpart. 507.105 Contents of acquisition plans 507.7001 Policy.

Subpart 507.5—Inherently Governmental Functions 507.503 Policy.

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507-ii CHANGE 65 JUNE 24, 2015

PART 507—ACQUISITION PLANNING 507.105 PART 507—ACQUISITION PLANNING Subpart 507.1—Acquisition Plans (10) Follow sustainability policies and procedures specified in Part 523 throughout the procurement. 507.101 Definitions. (b) The contracting officer shall: “Planner” means the person residing in the requirements (1) Ensure that acquisition planning and market office who initiates, coordinates and prepares written acquisi- research are performed for all acquisitions. tion plans. The person may be in an individual program office (2) Ensure that the contract file contains a copy of the or have responsibility for a number of such offices. approved acquisition plan. “Planning team” means a team of individuals formed to (c) Applicability. With the following exceptions, all acqui- prepare individual elements of an acquisition plan. The team sitions, including orders and BPAs, require written acquisi- should be comprised of technical and professional represen- tion plans. tatives from the requirements customer, contracting, budget, (1) When awarding a single IDIQ contract or a BPA for counsel, small business technical advisors (SBTA), and other a specific requirement and agency, an acquisition plan will be offices as warranted. developed for the base contract. The resulting orders should “Requirements office” means the internal GSA office that be covered by and reference the same acquisition plan. establishes and funds the agency need. If an organization out- (2) Oral plans. side of GSA establishes and funds the need, then the require- (d) The planner is encouraged to use the Acquisition Plan- ments office will be the GSA office that is managing the ning Wizard (APW) (found at http://apw.gsa.gov), or any suc- acquisition for that outside organization. cessor system, for all acquisitions exceeding the SAT. Not later than 7 calendar days after the acquisition plan is 507.103 Agency-head responsibilities. approved, if not completed in APW, an electronic copy shall The HCA must ensure that the planning team adheres to be sent to [email protected]. the requirements of FAR Part 7, Acquisition Planning. 507.105 Contents of acquisition plans. 507.104 General procedures. (a) Written. (1) The APW contains the format prescribed (a) The planner shall: in FAR 7.105 and shall be used in the preparation of acquisi- (1) Comply with the requirements of FAR Subpart 7.1, tion plans. Where a particular element described in FAR and coordinate with other members of the planning team as 7.105 does not apply, the acquisition plan should read “not appropriate. applicable.” The dollar value, complexity (e.g., commercial (2) Write the acquisition plan using all planning team versus non-commercial item) and method of acquisition (e.g., members especially for complex or highly sensitive acquisi- full and open competition versus task/delivery order) of the tions. supplies and services to be acquired will affect the scope and (3) Review the acquisition history of the supplies and breadth of the acquisition plan. services. (2) FAR 7.106 (major systems) and FAR 7.107 (bun- (4) Review the description of the supplies, including dling) shall be addressed in the plans, if applicable. (when necessary for adequate description) a picture, drawing, (3) For leasehold interests in real property, a modified diagram, or other graphic representation. version of the contents of acquisition plans for leases is pro- (5) Coordinate with the Small Business Technical vided in the APW. Advisor (SBTA) as necessary to fulfill the requirements of (4) The requirement for a written plan may be waived FAR 7.104(d)(1). by the appropriate level of an approving official listed in (6) Coordinate with local representatives of the Office GSAM 507.105(c). When the requirement for a written plan of the Chief Information Officer (CIO) if the action involves is waived, an oral plan is still required. The planner must IT services or supplies for use by GSA to ensure compliance obtain approval for the oral plan from the approving official. with the requirements of GSA Order CIO 2135.1, GSA Infor- (b) Oral plans. Oral plans are only authorized by approval mation Technology (IT) Capital Planning and Investment of the HCA and may be used in unusual and compelling situ- Control (not required for establishing a Federal Supply ations. The planner shall document a summary of the oral Schedule program). plan, and shall also include: the name and signature of the (7) Obtain concurrence of the contracting officer, and approving official; the date the oral plan was approved; and approvals as required in paragraph 507.105(c)(1). the reason for waiving a written plan. The summary shall be (8) Coordinate with the Office of General Counsel on included in the official contract file. In addition, the summary an as needed basis, but definitely for plans over $20 million. should be a part of, or attached to, any justification for other (9) Ensure that an interagency agreement is in place in than full and open competition as required by FAR 6.302, or all agency specific clauses, terms and conditions are incorpo- in the basis for using an exception to the fair opportunity prorated in the acquisition, when conducting purchases on behalf cess required by FAR 16.505(b)(2). The summary may be of other agencies. prepared after award if preparation before award would

507-1 CHANGE 50 JUNE 15, 2011

507.503 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL unreasonably delay the award, such as in the case of circum- (b) The requirements office must also review the examples stances warranting the use of a letter contract. of functions listed under paragraph (d) of FAR 7.503. While (c) Approval thresholds. (1) The following are the dollar these functions are not inherently governmental, they may value thresholds and the level of the approving official for restrict the discretionary authority, decision-making responsi- approving acquisition plans or waiving written plans. For bility, or accountability of Government officials using the purposes of leasing, the Simplified Leasing Acquisition contractor services or work products. If the services to be Threshold (SLAT) is defined in Part 570. The HCA may acquired may cause such restrictions, the acquisition plan authorize higher level approving officials for the thresholds must discuss the associated vulnerabilities, and address man- set out below. agement controls to mitigate them. (1) These measures may include requiring special controls and safeguards to prevent improper personal services Threshold Approving Official relationships, contractor personnel access to privileged or Below the SAT Contracting Officer sensitive information, and/or confusion regarding the mistak- (SLAT for leases) ing of contractor employees for Federal employees. SAT (SLAT for leases) to, One Level above the Contracting (2) The requirements office is directed to use FAR and including, $5.5 million Officer 37.104 and 37.5 and OFPP Policy Letter 93-1 for guidance in Over $5.5 million to, Contracting Director addressing these considerations. and including, $20 million (3) The HCA resolves any disagreement regarding the Over $20 million to, and Regional Commissioner or requirements official’s determination, following the guide- including, $50 million Deputy Regional Commissioner lines in FAR 7.5. The HCA may delegate this authority to a Over $50 million HCA level not lower than the contracting director.

Note: Thresholds shall include all options. Subpart 507.70—Additional Requirements for Purchases in Support of National Security (2) If the acquisition meets one of the following criteria Systems involving Weapons Systems and is greater than the SAT, the planner must obtain HCA approval of the plan: 507.7000 Scope of subpart. (a) Complex, critical to agency strategic objectives This subpart prescribes acquisition policies and proce- and mission, highly visible or politically sensitive. dures for use in acquiring information technology supplies, (b) An acquisition with which GSA has little or no services and systems in support of a weapon system as part of experience that may result in a need for greater oversight or a national security system, as defined by FAR 39.002. risk management. (c) Actions using significantly changed methods 507.7001 Policy. (e.g., methods of procurement such as lease versus purchase, (a) Although GSA’s mission does not include the direct or methods of performance such as contractor versus Govern- acquisition of weapon systems on behalf of the Department of ment personnel). Defense (DoD), GSA contracting activities may procure (d) New construction or repair, lease prospectus and information technology supplies, services and systems in sup- alteration prospectus budget line items. port of a weapon system, which is part of a national security (e) Any acquisition that requires contract bundling system (e.g., components, services to install and maintain (FAR 7.107). weapon systems, ancillary items and services) when responding to a bona-fide requirement received from a requiring agency or program office. Subpart 507.5—Inherently Governmental (b) Contracting Officers shall ensure that all requiring Functions agency regulations and the policies and directives of The Committee on National Security Systems at www.cnss.gov 507.503 Policy. are incorporated during the acquisition planning stage and are (a) Concurrent with the transmittal of each statement of met before acquiring information technology supplies, ser- work or any modification to a statement of work for a service vices and systems in support of a weapon system as part of a contract, the requirements office must provide the contracting national security system. officer a written determination that none of the functions to be (c) Employees responsible for or procuring information performed are inherently governmental as defined in FAR technology supplies, services and systems in support of a 7.5. The determination must include a statement that the weapon system shall possess the appropriate security clear- requirement is not for functions similar to those listed under ance associated with the level of security classification related FAR 7.503(c). to the acquisition. They include, but are not limited to contracting officers, contract specialists, project/program managers, and contracting officer representatives.

507-2 PART 508—REQUIRED SOURCES OF SUPPLIES AND SERVICES

Sec. Subpart 508.6—Acquisition from Federal Prison Subpart 508.7—Acquisition from Nonprofit Industries, Inc. Agencies Employing People Who Are Blind or 508.604 Ordering procedures. Severely Disabled 508.604-70 Delinquent delivery orders. 508.705 Procedures. 508.605 Clearances. 508.705-4 Compliance with orders. 508.705-70 Adding items to the Procurement List. 508.705-71 Central non-profit agency performance capability. 508.706 Purchase exceptions. Subpart 508.8—Acquisition of Printing and Related Supplies 508.802 Policy.

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508-ii CHANGE 17 OCTOBER 1, 2006

PART 508—REQUIRED SOURCES OF SUPPLIES AND SERVICES 508.802 PART 508—REQUIRED SOURCES OF SUPPLIES AND SERVICES

Subpart 508.6—Acquisition from Federal (2) The award price(s) for the commodity or service. Prison Industries, Inc. (b) The Committee for Purchase from People Who Are Blind or Severely Disabled (the Committee), at the CNA’s 508.604 Ordering procedures. request may assign the supply or service to the CNA for development by a workshop. 508.604-70 Delinquent delivery orders. (c) Before issuing a solicitation, ask the CNA about the (a) Establish delivery schedules based on the lead time status of any item in which the Committee has expressed required by Federal Prison Industries (FPI). interest. (b) You may use delinquent orders as the reason for (d) The Committee may request that a procurement be requesting clearance to procure from other sources until FPI delayed pending Committee action. The contracting activity can make deliveries. must consult with the Office of Small Business Utilization (E) before rejecting such a request. 508.605 Clearances. Cite FPI clearance numbers in solicitations and award doc- 508.705-71 Central non-profit agency performance uments. capability. (a) Include on the purchase document both the annual Subpart 508.7—Acquisition from Nonprofit requirement and the estimated monthly requirement. (b) With the permission of the Committee, you may verify Agencies Employing People Who Are Blind the workshop’s ability to satisfy the Government’s estimated or Severely Disabled monthly requirement by requesting a preaward survey. If the CNA cannot satisfy the Government's requirement, you may 508.705 Procedures. request a purchase exception only for those quantities the CNA cannot provide in a timely manner. 508.705-4 Compliance with orders. (a) Until all deliveries are made on a delinquent order, take 508.706 Purchase exceptions. one of the following actions: Cite CNA purchase exception numbers in solicitations and (1) For an excusable delay, extend the contract delivery award documents. schedule without obtaining consideration. (2) For an inexcusable delay, review and adjust contract Subpart 508.8—Acquisition of Printing and prices following normal procedures. Related Supplies (b) If the central non-profit agency (CNA) delays acting on a request for, or refuses to grant, a purchase exception, refer 508.802 Policy. the matter to the contracting director for resolution. The Director of the Reproduction and Visual Arts Division in the Office of Communications (X) is both GSA’s: 508.705-70 Adding items to the Procurement List. (a) Central printing authority. (a) If a CNA expresses interest in adding an item to the (b) Liaison with the Joint Committee on Printing and the Procurement List, provide the CNA with both: Public Printer on all matters related to printing. (1) The most recent solicitations issued for the commodity or service.

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508-2 (Change 17) AMENDMENT 2009–01 APRIL 24, 2009

PART 509—CONTRACTOR QUALIFICATIONS

Sec. Subpart 509.1—Responsible Prospective Subpart 509.4—Debarment, Suspension, and Contractors Ineligibility 509.401 Applicability. 509.105 Procedures. 509.403 Definitions. 509.105-1 Obtaining information. 509.405 Effect of listing. 509.105-2 Determinations and documentation. 509.405-1 Continuation of current contracts. 509.405-2 Restrictions on subcontracting. 509.406 Debarment. Subpart 509.3—First Article Testing and 509.406-1 General. Approval 509.406-3 Procedures. 509.302 General. 509.407 Suspension. 509.306 Solicitation requirements. 509.407-1 General. 509.407-3 Procedures. Subpart 509.5—Organizational and Consultant Conflicts of Interest 509.503 Waiver.

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509-ii AMENDMENT 2009–01 APRIL 24, 2009

PART 509—CONTRACTOR QUALIFICATIONS 509.401

PART 509—CONTRACTOR QUALIFICATIONS

Subpart 509.1—Responsible Prospective Subpart 509.3—First Article Testing and Contractors Approval

509.302 General. (a) If first article testing and approval is required, GSA 509.105 Procedures. usually requires that the contractor perform testing and that the first article: 509.105-1 Obtaining information. (1) Be produced at the same facility where production (a) From a prospective contractor. FAR 9.105-1 lists a quantities will be produced; and number of sources of information that a contracting officer (2) Serve as the manufacturing standard. may utilize before making a determination of responsibility. (b) Coordinate the need for first article testing and The contracting officer may request information directly from approval with the Contract Operations Management Division a prospective contractor using GSA Form 527, Contractor’s (FXCC), which will provide the information to complete the Qualifications and Financial Information, but only after clauses at FAR 52.209-3 or 52.209-4. exhausting other available sources of information. (b) From Government personnel. The contracting officer 509.306 Solicitation requirements. may solicit and consider information from any appropriate The clauses at FAR 52.209-3 and 52.209-4 do not cover all activities, e.g., legal counsel, quality control, contract man- the solicitation requirements described in FAR 9.306. If a agement, credit and finance, and auditors before determining solicitation contains a testing and approval requirement, the that an offeror is responsible. contracting officer must address the requirements in FAR 9.306(d) and (f) through (j) in the solicitation’s Section H, 509.105-2 Determinations and documentation. special contract requirements. (a) The contracting officer shall provide written notification to a prospective contractor determined not responsible. Include the basis for the determination. Notification provides the prospective contractor with the opportunity to correct any Subpart 509.4—Debarment, Suspension, and problem for future solicitations. Ineligibility (b) Due to the potential for de facto debarment, the contracting officer shall avoid making repeated determinations of 509.401 Applicability. nonresponsibility based on the same past performance infor- This subpart applies to all the following: mation. (a) Acquisitions of personal property, nonpersonal ser- (c) To provide for timely consideration of the need to insti- vices, construction, and space in buildings. tute action to debar a contractor, the contracting officer shall (b) Acquisition of transportation services (Federal Man- submit a copy of each nonresponsibility determination, other agement Regulation (FMR) Parts 102-117 and 102-118 (41 than those based on capacity or financial capability, to the CFR parts 102-117 and 102-118)). Suspension and Debarment Official in the Office of the Chief (c) Contracts for disposal of personal property (FMR Parts Acquisition Officer. 102-36 through 102-38 (41 CFR parts 102-36 through 102-38)). (d) Covered transactions as defined by 41 CFR part 105-68.

509-1 AMENDMENT 2009–01 APRIL 24, 2009

509.403 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

509.403 Definitions. 509.406 Debarment. “Debarring official” means the Suspension and Debarment Official within the Office of the Chief Acquisition Officer. 509.406-1 General. “Fact-finding official,” means the Suspension and Debar- The Suspension and Debarment Official is the designee ment Official or a designee. under FAR 9.406-1(c). “Notice” means a letter sent by certified mail, return receipt requested, to the last known address of a party, its 509.406-3 Procedures. counsel, or agent for service of process. In the case of a busi- (a) Investigation and referral. (1) Refer to the Suspension ness, such notice may be sent to any partner, principal officer, and Debarment Official matters involving serious contract director, owner or co-owner, or joint venturer. If no return improprieties or performance deficiencies. Performance defi- receipt is received within 10 calendar days of mailing, receipt ciencies that continue over a period of time or apply to more will then be presumed. than one contract may warrant debarment consideration. “Suspending official” means the Suspension and Debar- (2) Refer possible criminal or fraudulent activities to ment Official within the Office of the Chief Acquisition Offi- the Office of the Inspector General (OIG). See cer. 5 CFR 6701.107, Reporting Waste, Fraud, Abuse, and Cor- ruption. If, after investigation, the OIG believes a cause for 509.405 Effect of listing. debarment exists, it will refer the matter to the Suspension and Debarment Official for consideration of debarment action. 509.405-1 Continuation of current contracts. (b) Reports. Include in referrals to the Suspension and (a) When a contractor appears on the current EPLS, con- Debarment Official a report that contains at least the follow- sider terminating a contract under any of the following cir- ing: cumstances: (1) The recommendation and supporting rationale. (1) Any circumstances giving rise to the debarment or (2) A list of parties to be considered for possible debar- suspension also constitute a default in the contractor’s perfor- ment, including the contractor, principals, and affiliates. mance of the contract. Include last known home and business addresses, zip codes, (2) The contractor presents a significant risk to the Gov- and DUNS Numbers. ernment in completing the contract. (3) A statement of facts. (3) The conduct that provides the cause of the suspen- (4) Copies of documentary evidence and a list of wit- sion, proposed debarment, or debarment involved a GSA con- nesses. Include addresses and telephone numbers. Determine tract. their availability to appear at a fact-finding proceeding and (b) Before terminating a contract when a contractor identify the subject matter of their testimony. appears on the current EPLS, consider the following factors: (5) GSA’s acquisition history with the contractor. (1) Seriousness of the cause for debarment or suspen- Include recent experience, copies of the pertinent contracts, sion. and an explanation of impact debarment would have on GSA (2) Extent of contract performance. programs. OIG referrals do not require this explanation; the (3) Potential costs of termination and reprocurement. Suspension and Debarment Official will obtain the informa- (4) Need for or urgency of the requirement, contract tion directly from the contracting activity(s). coverage, and the impact of delay for reprocurement. (6) A list of any known active or potential criminal (5) Availability of other safeguards to protect the Gov- investigations, criminal or civil proceedings, or administra- ernment’s interest until completion of the contract. tive claims before the Board of Contract Appeals. (6) Availability of alternate competitive sources to meet the requirement (e.g., other multiple award contracts, readily available commercial items.) (c) Review. The Suspension and Debarment Official will (c) The responsibilities of the agency head under FAR review the report, and after coordinating with assigned legal 9.405-1 are delegated to the GSA Suspension and Debarment counsel— Official. (1) Initiate debarment action; (2) Decline debarment action.; (3) Request additional information; or (4) Refer the matter to the OIG for further investigation 509.405-2 Restrictions on subcontracting. and development of a case file. The responsibilities of the agency head under FAR 9.405-2(a) are delegated to the GSA Suspension and Debar- ment Official.

509-2 AMENDMENT 2009–01 APRIL 24, 2009

PART 509—CONTRACTOR QUALIFICATIONS 509.503

(d) Decisionmaking process. (1) The Suspension and (vii) Conduct hearings under rules consistent with Debarment Official will provide: FAR 9.406-3 pertaining to fact finding. Neither the Federal (i) Notice of declinations, proposed debarments, and Rules of Evidence nor the Federal Rules of Civil Procedure decisions to the referring activity. govern fact finding. Hearsay evidence may be presented and (ii) Notice of proposed debarment to each party will be given appropriate weight by the fact-finding official. being considered for debarment. (viii) Provide for witness testimony. Witnesses may (iii) Decision notices to each party after considering testify in person. Witnesses are subject to cross examination. information in the administrative record and information and (ix) Prepare written findings of fact based on a pre- argument submitted by the affected party or parties. ponderance of the evidence and submit them to both the Sus- (2) A party proposed for debarment: pension and Debarment Official and the contractor within 20 (i) Has 30 calendar days after receipt of the notice to calendar days following the conclusion of the fact-finding respond to the Suspension and Debarment Official or the proceeding. debarment becomes final. (ii) May request and receive a copy of the adminis- 509.407 Suspension. trative record that was the basis for the proposed debarment. If information is withheld, the party will be notified and pro- 509.407-1 General. vided the reason. The Suspension and Debarment Official is the designee (iii) May request the opportunity to present informa- under FAR 9.407-1(d). tion and argument in person to the Suspension and Debarment Official. The Suspension and Debarment Official will sched- 509.407-3 Procedures. ule an oral presentation within 20 calendar days of receipt of (a) General. The procedures in 509.406-3 apply to suspen- the request, unless a longer period of time is requested by the sion actions except as noted in paragraph (b)of this section. party. An oral presentation is informal and a transcript usually (b) Fact-finding. (1) Fact-finding will not be conducted in is not made. The party may supplement the oral presentation an action: with written information and arguments. (i) Based on an indictment. (iv) May identify to the Suspension and Debarment (ii) When the Suspension and Debarment Official Official material facts in dispute and the bases. For an action finds no genuine dispute of material facts. other than one based on a conviction or civil judgment, a party (2) If the action is not based on an indictment, the Sus- may request review and a written finding by a fact-finding pension and Debarment Official must coordinate with the official. Department of Justice or state prosecutorial authority through (3) Following a review of the record and, if needed, a OIG. Based on the advice received, the Suspension and presentation by the contractor in opposition to the proposed Debarment Official will determine if fact-finding would action, the Suspension and Debarment Official will determine impair substantial interests of the Federal or state Govern- whether there is a genuine dispute of material fact. If so, the ment. In an action not based on an indictment, a suspended Suspension and Debarment Official will initiate the fact-find- party may: ing process. The fact-finding official will: (i) Identify to the Suspension and Debarment Offi- (i) Establish a date for a fact-finding proceeding, cial material facts in dispute and the bases. normally to be held within 45 days of the determination of (ii) Request review and a written finding by a who will function as the fact-finding official. fact-finding official to resolve genuine disputes of material (ii) Grant extensions for good cause. fact. For procedures involving a genuine dispute of material (iii) Provide notice of the scheduled hearing. fact, see 509.406-3(d)(3). (iv) Provide the parties with a schedule for exchange of documents and witness lists. Subpart 509.5—Organizational and (v) Develop an official transcript of the fact-finding Consultant Conflicts of Interest proceeding. (vi) Provide the Government’s representative and 509.503 Waiver. the contractor with an opportunity to present evidence rele- The Senior Procurement Executive is the designee under vant to the facts at issue. The contractor may appear in person FAR 9.503. or through a representative.

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509-4 CHANGE 65 JUNE 24, 2015

PART 510—MARKET RESEARCH

Sec. 510.002 Pre-Award Procedures

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510-ii CHANGE 65 JUNE 24, 2015

PART 510—MARKET RESEARCH 510.002 PART 510—MARKET RESEARCH

510.002 Pre-Award Procedures (b) Ensure statement of work includes sustainability (a) Market research must be conducted in accordance with requirements in accordance with 523.104(a)(2). 523.104(a)(1).

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510-2 CHANGE 50 JUNE 15, 2011

PART 511—DESCRIBING AGENCY NEEDS

Sec. 511.002 Policy. Subpart 511.4—Delivery or Performance Schedules Subpart 511.1—Selecting and Developing 511.401 General. Requirements Documents 511.404 Contract clauses. 511.102 Security of Information Technology Data 511.104 Use of brand name or equal purchase Subpart 511.6—Priorities and Allocations descriptions. 511.600 Scope of subpart. 511.601 [Reserved] Subpart 511.2—Using and Maintaining 511.602 General. Requirements Documents 511.603 Procedures. 511.204 Solicitation provisions and contract clauses.

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511-ii CHANGE 50 JUNE 15, 2011

PART 511—DESCRIBING AGENCY NEEDS 511.204

PART 511—DESCRIBING AGENCY NEEDS

511.002 Policy. Subpart 511.2—Using and Maintaining FAR 11.002(b) and GSA Order ADM 8000.1C, GSA Met- ric Program, establish policy for using the metric system in Requirements Documents procurements. 511.204 Solicitation provisions and contract clauses. Subpart 511.1—Selecting and Developing (a) Federal specifications. The contracting officer shall insert the clause at 552.211-72, Reference to Specifications in Requirements Documents Drawings, in solicitations and contracts citing Federal or agency specifications that contain drawings.

511.102 Security of Information Technology Data For actions that pertain to information systems or contrac- (b) Supply contracts that exceed the simplified acquisition tor managed government data, use the guidance identified threshold. (1) The contracting officer shall include the clause under GSA’s office of the Senior Agency Information Secu- at 552.211-73, Marking, in solicitations and contracts for sup- rity Officer publication CIO IT Security Procedural Guide plies when deliveries may be made to both civilian and mili- 09–48. The guide can be accessed at http://www.gsa.gov/ tary activities and the contract amount is expected to exceed portal/category/25690. The contracting officer shall coordi- the simplified acquisition threshold. nate with program officials or requiring activities to ensure (2) The contracting officer shall include the clause at that the solicitation includes the appropriate information 552.211-75, Preservation, Packaging, and Packing, in solici- security requirements. The information security require- tations and contracts for supplies expected to exceed the sim- ments must be sufficiently detailed to enable contractors to plified acquisition threshold. The contracting officer may fully understand the information security regulations, man- also include the clause in contracts estimated to be at or below dates, and requirements under the contract or task order. the simplified acquisition threshold when appropriate. The contracting officer shall use Alternate I in solicitations and 511.104 Use of brand name or equal purchase contracts for— descriptions. (i) Federal Supply Schedule 70 and the Consolidated (a) A brand name or equal purchase description must avoid Products and Services Schedule containing information tech- specifying characteristics that do not materially affect the nology Special Item Numbers; or intended end use and which unnecessarily restrict competi- (ii) Federal Supply Schedules for recovery purchas- tion. ing (see 538.7102). (b) When the contracting officer uses a brand name or (3) The contracting officer shall insert a clause substan- equal purchase description, best practice is to cite the known tially the same as the clause at 552.211-76, Charges for Pack- acceptable brand name products in current manufacture, aging, Packing, and Marking, in solicitations and contracts for rather than only a single brand name product. For example, supplies to be delivered to GSA distribution centers. cite the acceptable brand name products identified during (4) The contracting officer shall include the clause market research. 552.211-85, Consistent Pack and Package Requirements, in (c) The contracting officer may require samples for “or solicitations and contracts for supplies when deliveries may equal” offers, but not for “brand name” offers. be made to both civilian and military activities and the con- (d) The contracting officer shall provide for full consider- tract amount is expected to exceed the simplified acquisition ation and evaluation of “or equal” offers against the salient threshold. characteristics specified in the purchase description and shall (5) The contracting officer shall include the clause not reject offers for minor differences in design, construction, 552.211-86, Maximum Weight Per Shipping Container, in or features that do not affect the suitability of the product for solicitations and contracts for supplies when deliveries may its intended use. be made to both civilian and military activities and the contract amount is expected to exceed the simplified acquisition threshold. (6) The contracting officer shall include the clause 552.211-87, Export Packing, in solicitations and contracts for

511-1 CHANGE 63 MAY 20, 2015

511.401 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL supplies when deliveries may be made to both civilian and “required” time of delivery or shipment, expressed in specific military activities and the contract amount is expected to periods from receipt by the contractor of a notice of award or exceed the simplified acquisition threshold. an order. (b) Multiple award schedules. (1) In multiple award (7) The contracting officer shall include the clause schedule solicitations, preferred practice is to state delivery 552.211-88, Vehicle Export Preparation, in solicitations and times as “desired.” Require offerors to indicate a definite contracts for supplies when deliveries may be made to both number of days for delivery. civilian and military activities and the contract amount is (2) In negotiations, the contracting officer should expected to exceed the simplified acquisition threshold. secure the best possible delivery time regardless of the (8) The contracting officer shall include the clause at “desired” delivery time(s) in the solicitation. For example, 552.211-89, Non-Manufactured Wood Packaging Material some offers comply with the Government’s desired delivery for Export, in solicitations and contracts for supplies when time, but others cite substantially shorter delivery times. In deliveries may be made to both civilian and military activities such cases, the contracting officer should negotiate with the overseas and the contract amount is expected to exceed the former offerors to bring their offers in line with the latter. simplified acquisition threshold. Contracting officers should negotiate variable delivery time (9) The contracting officer shall include the clause offers (e.g., 30-90 days) to keep the timespan to a minimum. 552.211-90, Small Parts, in solicitations and contracts for sup- If the span applies to several items or several quantity breaks plies when deliveries may be made to both civilian and mili- for one item, the contracting officer may segregate the items tary activities and the contract amount is expected to exceed or item quantity breaks into smaller groups and assign more the simplified acquisition threshold. specific delivery times. (10) The contracting officer shall include the clause (c) Unusually short delivery times. A requisitioning office 552.211-91, Vehicle Decals, Stickers, and Data Plates, in that requests an unusually short delivery time must provide solicitations and contracts for supplies when deliveries may satisfactory written justification. A sound justification is par- be made to both civilian and military activities and the con- ticularly important where the time specified is so short that it tract amount is expected to exceed the simplified acquisition may limit competition and possibly result in higher prices. threshold. Examples of justifications include: (11) The contracting officer shall include the clause (1) Furniture is required to outfit quarters scheduled for 552.211-92, Radio Frequency Identification (RFID) using occupancy on a specific date. Passive Tags, in solicitations and contracts for supplies when (2) Construction material is required to meet job prog- deliveries may be made to military activities and the contract ress schedules. amount is expected to exceed the simplified acquisition (3) Supplies are required at a port to meet scheduled threshold. ship departures. (d) Early delivery. When the requisitioning office needs a (c) Supply contracts. The contracting officer shall include portion of the total delivery early, the contracting officer the clause at 552.211-77, Packing List, in solicitations and should consider whether to— contracts for supplies, including purchases over the micropur- (1) Require that portion by the early date and the bal- chase threshold. Use Alternate I in solicitations and contracts ance later; for— (2) Include the portion required early and the balance as (1) FSS Schedule 70 and the Consolidated Products and separate items in the same solicitation; or Services Schedule containing information technology Special (3) Procure the two portions separately. Item Numbers; or (e) Multiple delivery time requirements. If a solicitation (2) Federal Supply Schedules for recovery purchasing contains a mix of items that require different delivery times, (see 538.7102). the contracting officer must specify the delivery periods separately. When practical, the contracting officer can group Subpart 511.4—Delivery or Performance items with similar delivery time requirements according to delivery times in the solicitation. Schedules

511.401 General. (a) Other than multiple award schedules. Preferred practice is to state time of delivery in solicitations and contracts as

511-2 AMENDMENT 2009–14 JANUARY 14, 2010

PART 511—DESCRIBING AGENCY NEEDS 511.602

511.404 Contract clauses. 511.601 [Reserved] In supply contracts, the contracting officer shall use the clauses as specified in this section. 511.602 General. (a) Shelf-life items. The contracting officer shall use the (a) The purpose of the DPAS is to assure the timely avail- following clauses in solicitations and contracts that require ability of industrial resources to meet current national delivery of shelf-life items within a specified number of defense, energy, and civil emergency preparedness program months from the date of manufacture or production: requirements and to provide an operating system to support (1) The contracting officer shall insert 552.211-79, rapid industrial response in a national emergency. The pri- Acceptable Age of Supplies, if the required shelf-life period mary statutory authority for the DPAS is Title I of the Defense is 12 months or less, and lengthy acceptance testing may be Production Act of 1950, as amended, with additional author- involved. For items having a limited shelf-life, substitute ity from the Selective Service Act of 1948 and the Robert T. Alternate I when required by the director of the portfolio con- Stafford Disaster Relief and Emergency Assistance Act. cerned. Executive Orders 12919 and 12742 delegate to the DOC (2) The contracting officer shall insert 552.211-80, Age authority to administer the DPAS. Within the DOC, the Office on Delivery, if the required shelf-life period is more than 12 of Strategic Industries and Economic Security (SIES) is months, or when source inspection can be performed within a assigned responsibility for DPAS implementation, adminis- short time period. tration, and compliance. (b) Stock replenishment contracts. The contracting officer (b) The DPAS is published in the Code of Federal Regula- shall insert 552.211-81, Time of Shipment, in solicitations and tions at 15 CFR part 700. This regulation provides an over- stock replenishment contracts that do not include the Avail- view, a detailed explanation of operations and procedures, and ability for Inspection, Testing, and Shipment/Delivery clause other implementing guidance, including information on spe- at 552.211-83 and require shipment within 45 calendar days cial priorities assistance and compliance. after receipt of the order. If shipment is required in more than (c) Orders placed under DPAS are “rated orders.” Rated 45 days, the contracting officer shall use Alternate I. orders must receive preferential treatment only as necessary (c) Indeterminate testing time. The contracting officer to meet delivery requirements. Rated orders are identified by shall insert 552.211-83, Availability for Inspection, Testing, a rating symbol of either “DX” or “DO” followed by a pro- and Shipment/Delivery, in solicitations and contracts that program identification symbol. All “DO” rated orders have equal vide for source inspection by Government personnel and that priority with each other and take preference over unrated require lengthy testing for which time frames cannot be deter- orders. All “DX” rated orders have equal priority with each mined in advance. If the contract is for stock items, the con- other and take preference over “DO” rated orders and unrated tracting officer shall use Alternate I. orders. A program identification symbol indicates which (d) The contracting officer shall insert the clause at approved program is supported by the rated order. 552.211-94, Time of Delivery, in solicitations and contracts (d) The authority delegated to GSA shall not be used to for supplies for the Stock Program when neither of the FAR support the procurement of any items that— delivery clauses (FAR 52.211-8 or 52.211-9) is suitable. (1) Are commonly available in commercial markets for general consumption; (2) Do not require major modification when purchased Subpart 511.6—Priorities and Allocations for approved program use; (3) Are readily available in sufficient quantity so as to 511.600 Scope of subpart. cause no delay in meeting approved program requirements; or Pursuant to the Defense Priorities and Allocations System (4) Are to be used primarily for administrative purposes (DPAS) Delegation 3, the Department of Commerce (DOC) (including Federal Supply Classification (FSC) classes, has delegated to GSA the authority to use the DPAS under cer- groups, or items), such as for personnel or financial manage- tain conditions. DPAS Delegation 3 restricts use of DPAS ment. The Commissioner, FAS, shall issue additional guid- authority to GSA supply system procurement in support of the ance, as may be necessary, to ensure effective implementation Department of Defense (DoD), Department of Energy (DoE), of its delegated DPAS authority. and Federal Emergency Management Agency (FEMA) approved programs.

511-3 AMENDMENT 2009–14 JANUARY 14, 2010

511.603 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

511.603 Procedures. (2) A required delivery date. The words “as soon as (a) A DPAS rating may be placed against an entire contract possible” or “immediately” do not constitute a required deliv- at time of award or an individual order issued under an exist- ery date. Use of either a specific date or a specified number ing, otherwise unrated, contract. FAR 11.604 requires con- of days ARO (after receipt of order) is acceptable. tracting officers to insert the provision at 52.211-14, Notice of (3) The written signature on a manually placed order, or Priority Rating for National Defense, Emergency Prepared- the digital signature or name on an electronically placed order ness, and Energy Program Use, in solicitations when the con- of an individual authorized to place rated orders. tract or order to be awarded will be a rated order and to insert (4) A statement that reads substantially as follows: the clause at 52.211-15, Defense Priority and Allocation “This is a rated order certified for national defense use, and Requirements, in contracts that are rated orders. you are required to follow all the provisions of the Defense (b) In addition to the FAR provision and clause referenced Priorities and Allocations System regulation (15 CFR part in paragraph (a) of this section, the contract or order must 700)”. include the following (see 15 CFR 700.12): (c) Multiple and Single Award Schedule contracts are not (1) The appropriate priority rating symbol (i.e., either rated at time of award. “DO” or “DX”) along with the program identification symbol. When GSA contracting officers place DO rated orders, they must use program identification symbol “K1”. When placing a DX-rated order for other agencies, GSA contracting officers must use the requesting agency program identification symbol from the DoD Master Urgency List and may only do so when GSA is acting as the procuring agent for DoD or DoE and has received a “DX” rated contract or order from either department.

511-4 PART 512—ACQUISITION OF COMMERCIAL ITEMS

Sec. Subpart 512.2—Special Requirements for the Subpart 512.3—Solicitation Provisions and Acquisition of Commercial Items Contract Clauses for the Acquisition of 512.203 Procedures for solicitation, evaluation, and Commercial Items award. 512.301 Solicitation provisions and contract clauses for the acquisition of commercial items. 512.302 Tailoring of provisions and clauses for the acquisition of commercial items.

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512-ii AMENDMENT 2010–01 MARCH 4, 2010

PART 512—ACQUISITION OF COMMERCIAL ITEMS 512.301

PART 512—ACQUISITION OF COMMERCIAL ITEMS

Subpart 512.2—Special Requirements for ment protection provisions of FAR 28.102-1, 28.102-2 and the Acquisition of Commercial Items 28.102-3 apply. (5) Construction contracts awarded as commercial item 512.203 Procedures for solicitation, evaluation, and acquisitions should not exceed the prospectus threshold. The award. prospectus threshold as referenced in section 102-73.35 of the (a) Federal Supply Schedule contracts. For Federal Supply Federal Management Regulation (FMR) is posted at http:// Schedule contracts, the contracting officer shall use the poli- www.gsa.gov/annualprospectusthreshold. cies in FAR Part 12 and this Part 512 in conjunction with the policies and procedures in FAR Part 38 and Part 538. See Subpart 512.3—Solicitation Provisions and Subpart 515.70, Use of Bid Samples, if applicable. Contract Clauses for the Acquisition of (b) Deregulated/Competitive Acquisitions for Natural Gas Commercial Items and Electricity. For deregulated/competitive acquisitions, the contracting officer shall use policies and procedures in FAR 512.301 Solicitation provisions and contract clauses for Part 12 and this Part 512 in conjunction with the policies and the acquisition of commercial items. procedures in FAR 41.202 (a) and (b), the review require- (a) Solicitation provisions and clauses. Insert these pro- ments of FAR Part 41, and GSAM Part 541, as applicable. visions or clauses in solicitations or solicitations and con- (c) Construction as a commercial item. The provisions tracts, respectively, in accordance with the instructions and clauses in FAR Part 36 and GSAM Part 536 address the provided: fundamental aspects of construction contracting. FAR Part 36 (1) 552.212-71, Contract Terms and Conditions and GSAM Part 536 apply well-established commercial prin- Applicable to GSA Acquisition of Commercial Items, ciples that are designed to result in an equitable distribution of when listed clauses apply. The clause provides for incor- risk between the Government and its contractors. The con- poration by reference of terms and conditions which are, tracting officer should consider the following when contem- to the maximum extent practicable, consistent with cus- plating a construction acquisition as a commercial item— tomary commercial practice. If necessary, tailor this (1) FAR Part 12, as currently promulgated, should clause. rarely be used for new construction acquisitions or non-rou- (2) 552.212-72, Contract Terms and Conditions tine alteration and repair services. Required to Implement Statutes or Executive Orders (2) FAR Part 12 and GSAM Part 512 may be used in Applicable to GSA Acquisitions of Commercial Items, limited circumstances involving construction contracting, when listed clauses apply. The clause provides for the primarily for routine alteration and repair services as well as incorporation by reference of terms and conditions for the acquisition of commercial construction materials and required to implement provisions of law or executive associated ancillary services. It may be appropriate to use orders that apply to commercial item acquisitions. FAR Part 12 and GSAM Part 512 for routine projects such as painting or carpeting, simple hanging of drywall, everyday (b) Discretionary use of GSAR provisions and clauses. electrical or plumbing work, and similar noncomplex ser- Consistent with the limitations contained in FAR vices, as well as for purchases of commercial construction 12.302(c), include in solicitations and contracts by adden- material and associated ancillary services. dum other GSAR provisions and clauses. (3) Whether a construction acquisition is conducted (c) Use of additional provisions and clauses. The Senior under FAR Part 36 or FAR Part 12, the contracting officer Procurement Executive must approve the use of a provi- must adhere to the policies of FAR Subpart 22.4. This subpart sion or clause that is either not: addresses labor standards for contracts involving construc- (1) Prescribed in the FAR or GSAR for use in con- tion. Prior to making the determination that a construction tracts for commercial items. acquisition can be conducted as a commercial item, the con- (2) Consistent with customary commercial practice. tracting officer should conduct appropriate market research in accordance with FAR Part 10 and GSAM Part 510. (4) Construction contracts in excess of $2,000 must include an applicable Davis-Bacon wage determination found at http://www.access.gpo.gov/davisbacon/. If the construction contract is greater than $30,000, then the SF 1442 should be used in lieu of the SF 1449 and the bonds or alternate pay-

512-1 AMENDMENT 2010–01 MARCH 4, 2010

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

(d) In solicitations issued in conjunction with the policy 512.302 Tailoring of provisions and clauses for the and procedures in FAR Part 14, Sealed Bidding; or FAR acquisition of commercial items. Part 15, Contracting by Negotiation, include the two FAR 12.302(c) severely limits tailoring of clauses or oth- notices in paragraphs (d)(1) and (d)(2) of this section, erwise including additional terms or conditions in commer- except that acquisitions of leasehold interests in real prop- cial item contracts in a manner that is inconsistent with erty, must include only the notice in paragraph (d)(1) of customary commercial practice. Such tailoring requires a this section. waiver approved as follows: (1) The information collection requirements con- (a) Individual contract. The contracting officer’s supervi- tained in this solicitation/contract are either required by sor approves the request. regulation or approved by the Office of Management and (b) Class of contracts. The contracting director approves Budget pursuant to the Paperwork Reduction Act and the request. assigned OMB Control No. 3090-0163. (2) The General Services Administration’s hours of operation are 8 a.m. to 4:30 p.m. Requests for preaward debriefings postmarked or otherwise submitted after 4:30 p.m. will be considered submitted the following business day. Requests for postaward debriefings delivered after 4:30 p.m. will be considered received and filed the following business day.

512-2 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES This page intentionally left blank. AMENDMENT 2009–07 MAY 28, 2009

PART 513—SIMPLIFIED ACQUISITION PROCEDURES

Sec. Subpart 513.1—Procedures Subpart 513.3—Simplified Acquisition Methods 513.106-1 Soliciting competition. 513.301 Governmentwide commercial purchase card. 513.106-3 Award and documentation. 513.302 Purchase orders. 513.302-70 Purchase order and related forms. 513.303 Blanket purchase agreements (BPAs). 513.303-3 Preparation of BPAs. 513.307 [Reserved] 513.370 Certified invoice procedure. 513.370-1 Applicability. 513.370-2 Limitations. 513.370-3 Invoices. Subpart 513.4—Fast Payment Procedure 513.401 General.

(Change 35) 513-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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513-ii CHANGE 44 MAY 3, 2010

PART 513—SIMPLIFIED ACQUISITION PROCEDURES 513.303-3 PART 513—SIMPLIFIED ACQUISITION PROCEDURES

Subpart 513.1—Procedures (2) The GSA Form 300 may also be used to make other purchases when a specific form is not prescribed. It may be 513.106-1 Soliciting competition. used as a delivery or task order instead of SF 1449, Solicita- (a) “Urgency”, as used in FAR 13.106-1(a)(1)(iii) and tion/Contract/Order for Commercial Items. The contracting 13.106-1(b), includes situations which, if not corrected imme- officer may require the signature of the contractor on the GSA diately, will result in unnecessary expenditure of funds, prop- Form 300, Order for Supplies and Services, when used as a erty damage, personal injury, or interruption of agency purchase order or task order. functions. (3) Prepare and process GSA Form 300. Use GSA (b) To avoid unnecessarily restricting competition for Form 300-A, Order for Supplies or Services–Continuation, if urgent requirements, consider the following actions: additional space is needed. (1) Inviting prospective offerors to visit the site. (b) Use GSA Form 1458, Motor Vehicle Shop Work Order, (2) Informing them orally of the exact requirements. Repair and Purchase Order, or the GSA Form 300 when mak- (3) Requesting them to prepare quotations. ing purchases in connection with the maintenance, servicing or repair of GSA fleet management vehicles. 513.106-3 Award and documentation. (c) Use GSA Form 300, Order for Supplies or Services, or File documentation and retention. Contracting officers GSA Form 3186, Order for Supplies or Services, or GSA may use GSA Form 2010, Small Purchase Tabulation Source Form 3186-B, Order for Supplies or Services (EDI), when List/Abstract, to document written and oral quotations. If a making simplified acquisitions or placing orders against lower-priced offer was not evaluated, the contracting officer established contracts through the FSS-19 system. should document the basis for its rejection, e.g., offeror is (1) Use GSA Form 3186 for mail orders placed against debarred or suspended, offer is not responsive to the require- established contracts. ment, offer is a large business (and the acquisition is set (2) Document the file for a delivery, task, or purchase aside). order transmitted to contractors electronically using Elec- tronic Data Interchange (EDI) procedures by generating a GSA Form 3186-B or GSA Form 300. Subpart 513.3—Simplified Acquisition (d) Use GSA Form 8002B, Motor Vehicle Delivery Order, Methods to order fleet management vehicles. Do not use this form as a purchase order for simplified acquisitions. Use GSA Form 513.301 Governmentwide commercial purchase card. 8002A to notify the consignee of the status of motor vehicle (a) GSA Order, Guidance on Use of the Credit Card for requisitions. Purchases (CFO 4200.1), establishes procedures for using the Governmentwide commercial purchase card to make pur- 513.303 Blanket purchase agreements (BPAs). chases and payments. (b) Holders of the Governmentwide commercial purchase 513.303-3 Preparation of BPAs. card must comply with all procedures and documentation (a) Description of agreement. Describe limitations, if any, requirements that apply to the procurement action. on the geographic area to be served. The GSA Form 3521, Blanket Purchase Agreement, may be used to prepare a blan- 513.302 Purchase orders. ket purchase agreement. (b) Delivery tickets. Instruct the contractor to include the 513.302-70 Purchase order and related forms. name of the individual placing the order on the delivery ticket. (a) GSA Form 300, Order for Supplies and Services, is a The individual receiving the item or service must sign and multipurpose form used for purchases of supplies or services, date the delivery or service ticket. Both the supplier and the orders under existing contracts or agreements, and orders receiving office must retain a copy of the delivery ticket. from required sources of supplies and services. All clauses, (c) Invoices. If the contracting officer has exhausted all terms and conditions applicable to the type of order, which are efforts to get a supplier to accept one of the invoicing state- not included in the underlying contract, shall be incorporated ments outlined in FAR 13.303-3(a)(6), the contracting officer in the order. Clauses can be incorporated by reference or in may deviate in order to permit the submission and payment of full text. See GSA Order, Guidance on Use of the Credit Card invoices for each delivery under the BPA. The contracting for Purchases (CFO 4200.1), for forms required for purchase officer shall document efforts and the contractor’s refusal. card actions. (d) Processing invoices. The designated billing office must (1) Use GSA Form 300, Order for Supplies or Services, time-stamp invoices to indicate the date of receipt. The order- when making purchases payable through PEGASYS. ing office must forward an invoice to the appropriate Finance Division within 5 workdays of its receipt or acceptance of the

513-1 AMENDMENT 2009–07 MAY 28, 2009

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL supplies or services. An exception applies if the BPA provides (b) Upon receipt of the invoice, the receiving office must for the accumulation of invoices for a specified period. If this take all the following actions: exception applies, the ordering office must forward the accu- (1) Time-stamp the invoice to indicate the date the mulated invoices within 5 workdays after the specified period invoice is received. for accumulation. Mark all invoices to indicate that purchases (2) Verify the accuracy of the invoiced amount. were made under a BPA. (3) Verify that the supplies or services have been received and accepted. Whenever possible, require that inspection and acceptance or rejection occur within 7 calen- 513.307 [Reserved] dar days of delivery or completion. (c) Before certifying the invoice and forwarding it to the 513.370 Certified invoice procedure. appropriate office, the contracting officer or a designated representative must obtain a certification of receipt and accep- 513.370-1 Applicability. tance from the individual who actually inspected and If advantageous to the Government, the contracting officer accepted the supplies or services. may acquire supplies or services on the open market from (d) Within 5 workdays after receipt of the invoice or suppliers using a vendor’s invoice instead of a purchase order. acceptance of the supplies or services, whichever is later, forward the invoice stamped with the Certified Invoice Stamp. 513.370-2 Limitations. (1) Complete the accounting information, received and (a) Purchases are subject to FAR Part 13 and Part 513 and accepted dates, taxpayer identification number (TIN), type of these limitations: business (corporation, sole proprietorship/partnership, or (1) The amount of any one purchase must not exceed other), and certification, and PEGASYS Document Number the micro-purchase threshold. (PDN) . (2) Neither the supplier nor the Government require a (2) If a Certified Invoice Stamp is not available, place purchase order. the following statement on the invoice along with the PDN (3) The individual making the purchase does not have a number, accounting information, TIN, and the type of busi- Governmentwide commercial purchase card or the card is not ness. (Note: In some organizations, the PDN number is deter- accepted by the supplier. mined by a budget or executive office within the service or (4) Appropriate invoices can be obtained from the sup- staff office.) plier. “I certify that these goods and/or services were received on (b) If the contracting officer uses certified invoice proce- [Date] and accepted on [Date]. An oral purchase was autho- dures, the contracting officer still must: rized and no confirming order has been issued.” (1) Verify price reasonableness using the conditions contained in FAR 13.202(a). (2) Certify that the quality and quantity of items/ser- Signature of Contracting/Ordering Officer vices furnished comply with the verbal agreement made with the supplier. Print name and telephone no. Date invoice received (c) Authorized individuals without warrants may solicit quotations. Although FAR 1.601(a) states that contracts may Subpart 513.4—Fast Payment Procedure be entered into and signed on behalf of the Government only by contracting officers, a non-warranted Government 513.401 General. employee may place a micro-purchase when a contracting GSA contracting activities are authorized to use fast pay- officer approves in advance the placement of an order. ment procedures solely for utility service payments. Approval must be in writing on GSA Form 2010 or other documentation unless the geographic distance makes it impracticable. In those cases, the contracting officer may provide approval by telephone or e-mail. The authorized individual must document the file accordingly.

513.370-3 Invoices. (a) If the contracting officer uses these procedures, s/he must require the suppliers to immediately submit properly prepared itemized invoices.

513-2 (Change 35) CHANGE 60 OCTOBER 22, 2014

PART 514—SEALED BIDDING

Sec. Subpart 514.2—Solicitation of Bids Subpart 514.3—Submission of Bids 514.201 Preparation of invitations for bids. 514.302 Bid Submission. 514.201-1 Uniform contract format. 514.303 Modification or withdrawal of bids. 514.201-2 Part I—The Schedule. 514.304 Late bids, late modifications of bids, or late 514.201-6 Solicitation provisions. withdrawal of bids. 514.201-7 [Reserved] 514.370 Copies of bids required. 514.201-70 GSA Form 1602. Subpart 514.4—Opening of Bids and Award of 514.202 General rules for solicitation of bids. Contract 514.202-4 Bid samples. 514.401 Receipt and safeguarding of bids. 514.202-5 Descriptive literature. 514.402 Opening of bids. 514.211 Release of acquisition information. 514.402-1 Unclassified bids. 514.270 Aggregate awards. 514.402-70 Preferred practices for conducting bid 514.270-1 Definition. openings. 514.270-2 Justification for use. 514.403 Recording of bids. 514.270-3 Evaluation factors for award. 514.404 Rejection of bids. 514.270-4 Grouping line items for aggregate award. 514.404-1 Cancellation of invitations after opening. 514.270-5 Evaluation methodologies for aggregate 514.404-2 Rejection of individual bids. awards. 514.407 Mistakes in bids. 514.270-6 Guidelines for using the weight factors 514.407-3 Other mistakes disclosed before award. method. 514.407-4 Mistakes after award. 514.270-7 Guidelines for using the price list method. 514.408 Award. 514.408-6 Equal low bids. 514.408-70 Forms for recommending award(s).

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514-ii CHANGE 60 OCTOBER 22, 2014

PART 514—SEALED BIDDING 514.211

PART 514—SEALED BIDDING

Subpart 514.2—Solicitation of Bids (c) Highlight significant changes from previous solicitations covering the same supplies or services. (d) Include other special notices, as appropriate. 514.201 Preparation of invitations for bids. 514.202 General rules for solicitation of bids. 514.201-1 Uniform contract format. Include the following notice in each solicitation: 514.202-4 Bid samples. “The information collection requirements contained in this (a) Requirements for samples in invitations for bids. solicitation/contract, are either required by regulation or (1) When bid samples are required, the contracting offi- approved by the Office of Management and Budget pursuant cer shall require bidders to submit samples produced by the to the Paperwork Reduction Act and assigned OMB Control manufacturer whose products will be supplied under the con- No. 3090-0163.” tract. (2) The FAR limits use of bid samples to cases where 514.201-2 Part I—The Schedule. the contracting officer cannot describe some characteristics of (a) When using Standard Form 33, Solicitation, Offer and a product adequately in the specification or purchase descrip- Award, include the following cautionary notice: tion. This usually applies to subjective characteristics. The “Notice to Bidders—Use Item 13 of the Standard Form contracting officer may determine that there is a need to 33, Solicitation, Offer and Award, to offer prompt payment examine objective characteristics of bid samples to determine discounts. The Prompt Payment clause of this solicitation sets the responsiveness of a bid. The contracting officer should forth payment terms. Do not insert any statement in Item 13 base the determination on past experience or other valid con- that requires payment sooner than the time stipulated in the siderations. In the solicitation, separately list “Subjective Prompt Payment clause (See FAR 52.232-25, 52.232-26, or Characteristics” and “Objective Characteristics.” 52.232-27, as applicable). EXAMPLE: If you insert “NET (3) A provision appears at 552.214-72, Bid Sample 20” in Item 13, GSA will reject your bid as nonresponsive Requirements. This provision may be modified to fit the cir- because the entry contradicts the 30 day payment terms spec- cumstances of a procurement. ified in the Prompt Payment clause.” (b) Handling bid samples. (1) Samples from accepted bids (b) When using other authorized forms (e.g., Standard must be retained for the period of contract performance. If Form 1447, Solicitation/Contract; Standard Form 1449, there are no outstanding claims regarding the contract, the Solicitation/Contract/Order for Commercial Items), include contracting officer may authorize disposal of the samples at the notice in paragraph (a) of this section. Change the refer- the end of the contract term following the bidder’s instruc- ence to the form number, form title, and item number accord- tions. ingly. (2) If the contracting officer anticipates a claim regarding the contract, the contracting officer shall require that the 514.201-6 Solicitation provisions. bid samples be retained until the claim is resolved. When considering all or none bids, insert the provision at (3) The contracting officer shall require that samples 552.214-70, “All or None” Bids, in the solicitation. from unsuccessful bids be retained until award. After award, these samples may be disposed of following the bidder’s instructions. 514.201-7 [Reserved] 514.202-5 Descriptive literature. Requirements for Invitations for bids. When using brand 514.201-70 GSA Form 1602. name or equal purchase descriptions, the provision at FAR The contracting officer may use GSA Form 1602, Notice 52.211-6 satisfies the requirement for descriptive literature. Concerning Solicitation, to do any of the following: (a) Describe the type of contract, the duration of the con- 514.211 Release of acquisition information. tract, and the type of supplies or services being procured. Before award, the contracting officer and all other mem- (b) Direct the attention of prospective bidders to review bers of the acquisition team must limit access to information and carefully consider the information at FAR 14.404-2 that concerning the Government cost estimate to Government per- may result in rejection of the bid. In addition, cite any special sonnel whose official duties require knowledge of the esti- requirements which, if overlooked, may result in rejection of mate and to non-Government personnel with a need to know the bid. and who have signed a non-disclosure agreement (contracting

514-1 514.270 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL officers may tailor the non-disclosure agreement at Figure 514.270-3 Evaluation factors for award. 515.3-1 for these purposes). After award, the contracting offi- The solicitation should clearly state the basis for evaluating cer may reveal the total amount of the Government estimate bids for aggregate award, require bidders to submit a price on upon request. The contracting officer is not authorized to each item within the group or a percentage to be added or sub- release the basis for calculating the estimate at any time. tracted from a list price, and advise bidders that failure to submit prices as required within a group makes a bid ineligible for 514.270 Aggregate awards. award for that group.

514.270-1 Definition. 514.270-4 Grouping line items for aggregate award. “Aggregate award” means an arrangement whereby two or (a) Supplies and services. This subsection applies to more separately priced line items are combined for award to acquisitions of supplies and services. that bidder whose bid will result in the lowest overall cost to (b) Effect on competition. Provide for full and open com- the Government for the line items as a group. The individual petition when grouping items for award. Grouping items for price for each item does not have to be the lowest bid received. award may preclude a significant number of firms from bid- (See also the definition of a “line item” in FAR 3.302.) ding. This occurs if firms are unable to provide all the types or quantities of supplies or services, or make deliveries to the 514.270-2 Justification for use. various delivery points included in the prospective aggregate (a) GSA usually solicits prices and reserves the right to group. make award for individual line items. In some cases it serves (c) Grouping different articles. Include only related arti- GSA’s best interest to combine two or more line items for an cles in an aggregate group. Related articles are those normally aggregate award. Such cases include when: manufactured or produced by a majority of prospective bid- (1) Users desire uniformity of design, style, and finish, ders. Grouping unrelated articles often restricts competition (e.g., suites of household furniture). unnecessarily. (2) The articles will be assembled and used as a unit, (d) Grouping geographic locations or delivery points. Con- and different manufacturers’ components may not be inter- sider the following guidelines before deciding to group differ- changeable. ent geographic locations or delivery points: (3) Users have high demand for certain articles, but (1) A delivery point may have sufficient requirements demand for related articles is insufficient to attract competi- so that individual shipments involve economic production tive bids (e.g., various sizes of socket wrenches). runs and carload or truckload quantities. In this case, list it as (4) Awarding the low-demand articles in conjunction a separate line item. with the high-demand articles may encourage competition. (2) The types of bidders (i.e., small or large firms, man- (5) One location (delivery point) has a large require- ufacturers or distributors, etc.) who responded to previous ment, and another location has a requirement too small to solicitations can provide important information. For example, individually attract competitive bids. if previous bidders are distributors with franchises in certain (6) Awarding and administering numerous small con- territories, grouping different territories could tend to restrict tracts for similar articles or services is impractical. competition. (b) Before deciding to combine items for aggregate award, (3) Transportation costs can affect competition and the contracting officer should consider the following factors: pricing. They may constitute a significant portion of the total (1) The capability of bidders to furnish the types and delivered cost. Obtain the advice and assistance of transporta- quantities of supplies or services in the aggregate. tion specialists before grouping geographic locations or delivery points. Depending upon the supplies being acquired: (2) How grouping delivery points will affect bidders. (i) Grouping widespread geographic locations or (3) Which combinations will accurately project the delivery points may reduce competition or result in higher lowest overall cost to the Government. prices. It can cause the loss of “area pricing” advantages pro- (c) The contracting officer should not use an aggregate vided by a supplier with a single production point. award if it will significantly restrict the number of eligible (ii) Conversely, for many small commercial items bidders. (hand tools, locks, etc.), manufacturers may quote the same price for delivery anywhere in the U.S. (iii) Tariff boundaries can also affect how manufacturers price deliveries to different areas.

514-2 (Change 60) PART 514—SEALED BIDDING 514.270-7

514.270-5 Evaluation methodologies for aggregate 514.270-7 Guidelines for using the price list method. awards. (a) General. The price list method helps avoid unbalanced (a) Definite quantity contracts without options. For defi- bidding when making aggregate awards, but lack accurate nite quantity contracts without options, the evaluated bid price estimates of anticipated quantities. This method establishes is the total bid price, as adjusted for any price-related factors base prices for bidders to use in preparing their bids. identified in the solicitation. This reflects the actual cost to the (b) Solicitation requirements. When using the price list Government and will identify the most advantageous bid. method, in the solicitation: (b) Indefinite quantity contracts, requirements contracts, (1) Include the price list. and options. Indefinite quantity and requirements contracts (2) Include an estimate of requirements. use estimated quantities. Options involve the probability of (3) Require the bidder to express its price as “net” or as whether and when the options will be exercised. These situa- a percentage added to or subtracted from the list prices for tions may result in unbalanced bids (see FAR 15.404-1(g)), each group. Require the bidder to quote only one percentage leading to inaccurate evaluation of the projected cost and factor for each group. This means that the bidder provides one award to other than the most advantageous bid. To avoid percentage factor that applies to every item in a group; not a unbalanced bids, GSA has two preferred methods for evaluat- separate percentage for each item. “Net” indicates the bidder ing bids for aggregate awards: weight factors and price list. chooses to submit the list prices as its bid. (1) Weight factors method. Assign a weight to each item (4) Identify the percentage factor in (3) above as a in a group. The weight is based on the portion of quantities price-related evaluation factor. that item represents. To evaluate bids, multiply each unit price (c) Developing list prices. Price lists may be developed by its weight factor, then total the results. using one or more of the following sources: (2) Price list method. Establish prices for bidders to use (1) Industry published prices. as a base for preparing their bids. Prepare a list that identifies (2) Industry surveys. a base price for each item in a group. Bidders bid a percentage (3) Government cost estimates based on knowledge of factor to add to or subtract from the base price. the supplies or services and previous contract prices. (d) First time use for an item or service. The first time the 514.270-6 Guidelines for using the weight factors method. contracting officer uses list prices for an item or service, give (a) Use the weight factors method when there are reliable prospective bidders an opportunity to review the proposed estimates for the quantities needed in an acquisition. Reliable list. Also provide information on how GSA will use the list estimates of quantities form the foundation for: prices. This information may be provided in a draft solicita- (1) Accurate evaluation of the projected cost of each tion. bid. (e) Balanced prices. Ensure that the list prices for the (2) An appropriate determination of which bid is most grouped items bear a reasonable and balanced relationship to advantageous to the Government for the aggregate group. one another. Prices may be used from previous awards made (b) Assign a weight factor to each item in a group. Develop using the weight factors method to develop price lists. Review the weight factor by calculating the portion of the total quan- those prices first to ensure they did not result from unbalanced tity in a defined group that each item represents. bidding. (c) To evaluate bid prices, first multiply the price bid for (f) Evaluation and award. Consider all price-related fac- each item (unit price X quantity) by its weight factor. Then, tors identified in the solicitation. Award to the responsive and add the subtotals together to project the cost for the aggregate responsible bidder whose percentage factor produces the most group. favorable price to the Government. This represents the most (d) Estimated quantities may be reduced to smaller num- advantageous bid. bers by a common denominator. This may help facilitate the (g) Example. The following illustrates a bidding schedule computations involved in evaluating bids. arrangement for a group of items for aggregate award under (e) Consider all price-related factors identified in the solic- the price list method: itation. Award to the responsive and responsible bidder with the lowest evaluated overall cost to the Government for the aggregate group. This represents the most advantageous bid.

(Change 60) 514-3 514.302 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

(6) If providing quantity estimates, state that the esti- Drills, Twist, High Speed, under Federal Specification (no. and mates are for information only and do not constitute guaran- date)_ and Amendment (no. and date), Wire gauge sizes, straight shank, short length, Type C tees or commitments to order items under the contract. National Stock Drill Est. List (7) Solicit two percentage factors for the line item unit Item No. Number Size Quantity Unit Price prices listed: one for the unit prices for work performed during Group 1 (Items 1 through 5) normal working hours and the second for the unit prices for 1 5133-00-189-9246 1 2,800 Pkg $11.16 work performed outside of normal working hours. (8) When the solicitation further groups unit prices by 2 5133-00-189-9247 2 2,400 Pkg $11.16 trade or business category, multiple percentages may be 3 5133-00-189-9248 3 2,800 Pkg $10.44 required. 4 5133-00-189-9249 4 1,600 Pkg $10.80 (9) For the evaluated bid price, add together (i) and (ii): 5 5133-00-189-9250 5 2,000 Pkg $10.80 (i) The percentage of work performed during normal The bid on each item above is the list price shown minus/plus work hours multiplied by the total estimate adjusted by the percent. (Bidder, insert “net” or a single percentage amount bidder’s percentage factor for that portion of the work, plus in the blank space and cross out minus or plus, as appropriate.) (ii) The percentage of work performed during other (h) Special considerations for contracts for store stock than normal working hours multiplied by the total estimate items. Show estimated quantities only if estimates of demand adjusted by the bidder’s percentage factor for that portion of for each item within a group can be derived from Government the work. records or verified contractor sales reports. Use only current (10) Consider other price-related factors identified in estimates. If the Government’s needs cannot be estimated, the the solicitation. Make award to the responsible and responsive solicitation may include past orders. (See CG Decision, bidder submitting the lowest overall evaluated bid price for B-209037, 82-2 CPD para 323 (1982).) the aggregate group. This represents the most advantageous (i) Special considerations for repair and alteration con- bid. tracts. In the solicitation: (1) List the estimated quantities for work to be per- Subpart 514.3—Submission of Bids formed during both normal working hours and outside of normal working hours. 514.302 Bid Submission. (2) State the percent of work anticipated to be per- GSA contracting officers shall not consider telegraphic formed during normal working hours. bids communicated by telephone. (3) List the unit prices for work to be performed during both normal working hours and outside of normal working 514.303 Modification or withdrawal of bids. hours. (a) A telegraphic modification or withdrawal of a bid by (4) Define “normal” in terms of hours and days of the telephone under the circumstances in FAR 14.303(a) shall not week. be considered. (5) Advise bidders of the previous year’s total expenditures or portions of that total attributable to the listed items.

514-4 (Change 60) PART 514—SEALED BIDDING 514.402-70 (b) The receipt required by FAR 14.303(b) for withdrawal (5) The bid custodian records each bid and modifica- of a bid in person should read: tion delivered before bid opening on the bidders’ list on the I am a bona fide agent for or representative of day of receipt. The custodian stores bids and modifications in (Bidder’s name and address) . I am authorized to with- a suitable secured cabinet. draw the bid on IFB No. scheduled for (b) At the scheduled bid opening time, the bid custodian opening on , and acknowledge receipt delivers all bids received in response to the invitation, with of the unopened bid. the original and one copy of the bidders’ list, to the bid opening official or designee. The bid opening official or designee Name and telephone no. Date acknowledges receipt of the bids by signing the copy of the form and returning it to the bid custodian. The original list becomes part of the contract file. 514.304 Late bids, late modifications of bids, or late (c) When a regional Small Business Utilization Center withdrawal of bids. (SBUC) is designated to receive bids, the regional SBUC Upon receiving a late bid, the bid custodian records it on Director may designate an individual(s) working at a Field the duplicate copy of the list of bidders. The bid custodian Office as a bid custodian, provided all the following condi- then immediately notifies the responsible contracting officer tions are met: of the bid. The contracting officer must arrange for pick-up or (1) The Field Office has adequate space and facilities. delivery of the bid. (2) The individual(s) designated as a bid custodian has been trained. 514.370 Copies of bids required. (3) The Field Office has a Small Business Technical Require each bidder to submit an original and at least one Advisor. copy of its bid. This requirement does not apply to bids trans- (4) The bid custodian(s) must submit monthly reports mitted and received through an electronic commerce method to the regional SBUC Director. The regional SBUC Director authorized by the solicitation. forwards these reports to the Office of Small Business Utili- Subpart 514.4—Opening of Bids and Award zation (E). of Contract 514.402 Opening of bids. 514.401 Receipt and safeguarding of bids. (a) The specific location for receipt and safeguarding of 514.402-1 Unclassified bids. bids and modifications shall be identified in the solicitation. (a) Location of bid openings. Public bid openings take Handle bids as follows: place in the regional SBUC if the bid custodian is in the (1) Authorized personnel mark the envelope (or other regional SBUC. If the bid opening occurs elsewhere, inform covering) of each package identified as a bid or modification the regional SBUC. Give the regional SBUC the invitation with a time-stamp or the place, date, and time of receipt. They number and the location of the bid opening. then deliver the bid by special handling to the bid custodian. (b) Bid opening officer. (1)The contracting officer may (2) Deposit hand-carried bids into the designated appoint a qualified employee of the contracting office as locked bid box, safe, or secured, restricted-access electronic assistant bid opening officer as provided in FAR 14.402-1(b). bid box. At least once daily and immediately preceding the (2) The distance between the regional SBUC and the time scheduled for bid opening, the bid custodian removes contracting office may make it impracticable for the contract- and time stamps the bids. If a bidder hands a bid to the bid cus- ing officer to conduct bid opening. In this case, the contract- todian or other GSA employee, the custodian or employee ing officer may request the HCA and the Associate time stamps the bid immediately. Administrator for Small Business Utilization (E) in Central (3) When the solicitation authorizes telegraphic or fac- Office, or the SBUC Director in the Region, to authorize a simile bids and modifications, the bid custodian seals each in qualified regional SBUC employee to open, read, and record an envelope immediately upon receipt. The custodian labels bids. the envelope with appropriate identification. (c) Bid openings are open to business representatives, (4) For each invitation, the bid custodian prepares a bid- members of the press, and the general public. ders’ list using GSA Form 1378, Record of, and Receipt for, Bids and Responses, or the appropriate bid abstract form. The 514.402-70 Preferred practices for conducting bid list includes the name and address of all responses, including openings. any bid modifications, received before bid opening time. The (a) To ensure that bid opening occurs at the exact time list also indicates withdrawn bids. specified, verify the accuracy of the timepiece to be used.

(Change 60) 514-5 514.403 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (b) For the information of bidders present, provide an late bids determined eligible for consideration on the bid audible announcement approximately one minute prior to bid abstract or, if necessary, in an amendment. opening. (b) In abstracts for aggregate awards, record: unit prices, (c) Announce audibly when the exact time of opening weight factors, totals for each aggregate group, and any other arrives. In the announcement, identify the invitation(s) sched- information required for bid evaluation. uled for opening. (c) For building services, contracting activities in PBS (d) For construction contracts that provide for bid alter- may use GSA Form 3471, Abstract of Offers, instead of the nates, announce the amount of funds available for the award Standard Form 1409, Abstract of Offers. before opening bids. (e) Open the bids in full view of the parties present. 514.404 Rejection of bids. (f) When practicable and feasible, announce the following information from each bid: the bidder’s name, item and unit 514.404-1 Cancellation of invitations after opening. price bid, and other pertinent information, such as delivery The HCA, or designee, makes any determinations required and discount terms. by FAR 14.404-1. (g) For bids submitted in multiple copies, one copy remains in the bid opening room for public examination until 514.404-2 Rejection of individual bids. the bid abstract is substituted. The contracting activity uses (a) The contracting officer may use the “Remarks” Item on the original. For bids submitted in original only, see FAR GSA Form 1535, Recommendation for Award(s), or other 14.402-1(c). The contracting activity retains all supplemental appropriate documentation to record findings with respect to financial forms or other information submitted with a bid. Do rejected bids. not provide supplemental information for public examination. (b) Document any bid rejected for nonresponsiveness, (h) Forward any negotiable instruments submitted as bid nonresponsibility, ineligibility, or because the bid after evalu- guarantees to the appropriate Finance Office following proce- ation is no longer low. Examples of bids which may no longer dures established by the Chief Financial Officer. After award, be low after evaluation include aggregate bids, “all or none” cancellation of the solicitation, or rejection of all bids, direct bids, bids evaluated for freight costs, and bids evaluated using the appropriate Finance Office to refund the amount of the bid Buy American differentials. guarantee to unsuccessful bidders. The contracting officer (c) For sensitive or controversial bid rejections, include all may authorize return of a bid guarantee before award when supporting documentation to justify awards. This includes requested by a bidder who is not in contention for the award. copies of the bid to be rejected and the proposed awardee, Retain other forms of bid guarantees (e.g., bid bonds, letters statements from or records of conversations with the requisi- of credit, corporate and individual sureties, etc.) in the con- tioning activity, plant facilities and financial responsibility tract file. reports, and other relevant correspondence or reports (Certif- (i) Prepare a record of the opening for the contract file. icates of Competency, copies of Congressional correspon- Include the names of persons attending the bid opening and dence or other high level interest, etc.). the firms or organizations they represent. 514.407 Mistakes in bids. (j) Verify the entries on all copies of a bid. Resolve any suspected mistake(s) following the procedures in FAR 514.407-3 Other mistakes disclosed before award. 14.407. Delegation of authority by head of the agency. Under FAR (k) Retain the envelopes in which bids and bid modifica- 14.407-3(e), contracting directors (see 502.101) are autho- tions are received until all awards are made. After award, rized, without power of redelegation, to make: retain those with notations concerning abnormal receipt or (a) The determinations regarding corrections and with- opening for identification in the solicitation file. The contract- drawals under FAR 14.407-3(a), (b), and (c); and ing officer may destroy the remainder. (b) The corollary determinations not to permit withdrawal or correction under FAR 14.407-3(d). 514.403 Recording of bids. (a) As soon as practicable, make a copy of the abstract of 514.407-4 Mistakes after award. bids and any amendments available for public examination at The contracting director and assigned counsel are required the location of the bid opening. Make the abstract available to review and approve the contracting officer’s determina- for public examination for at least 30 calendar days. Include tions under FAR 14.407-4(b) and (c).

514-6 (Change 60) PART 514—SEALED BIDDING 514.408-70 514.408 Award. mendation for Award(s), Continuation Sheet, to document proposed awards. One or more awards may be set forth on 514.408-6 Equal low bids. each form. Contracting activities have the discretion to use To determine the status of bidders in a tie-bid situation, use other means of documentation that meet their needs for infor- the bidders’ status as of the date the bids were signed. mation to support an award recommendation.

514.408-70 Forms for recommending award(s). Contracting activities may use GSA Form l535, Recom- mendation for Award(s), and GSA Form 1535-A, Recom-

(Change 60) 514-7 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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514-8 PART 515—CONTRACTING BY NEGOTIATION

Sec. Subpart 515.2—Solicitation and Receipt of Subpart 515.5—Preaward, Award, and Proposals and Information Postaward Notifications, Protests, and Mistakes 515.204 Contract format. 515.506 Postaward debriefing of offerors. 515.204-1 Uniform contract format. 515.570 Release of information concerning 515.205 Issuing solicitations. unsuccessful offerors. 515.207 Handling proposals and information. Subpart 515.6—Unsolicited Proposals 515.209 Solicitation provisions and contract clauses. 515.601 Definitions. 515.209-70 Examination of records by GSA clause. 515.606 Agency procedures. 515.210 Forms. 515.606-2 Evaluation. 515.210-70 GSA Form 1602. 515.609 Limited use of data. Subpart 515.3—Source Selection Subpart 515.70—Use of Bid Samples 515.300 Scope of subpart 515.7000 General. 515.305 Proposal evaluation. 515.7001 Policy. 515.305-70 Use of outside evaluators. 515.7002 Procedures. 515.306 Exchanges with offerors after receipt of proposals. Appendix 515A—Source Selection Procedures Subpart 515.4—Contract Pricing 515.403 Obtaining cost or pricing data. 515.403-4 Requiring cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b). 515.404-2 Information to support proposal analysis. 515.404-4 Profit. 515.404-70 Nonprofit organizations. 515.405 Price negotiation. 515.408 Solicitation provisions and contract clauses.

515-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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515-ii PART 515—CONTRACTING BY NEGOTIATION 515.209-70

r PART 515—CONTRACTING BY NEGOTIATION

Subpart 515.2—Solicitation and Receipt of quotations in competitively negotiated procurements. You may modify the forms to include the information necessary Proposals and Information for evaluation. (2) Abstracts contain contractor bid or proposal infor- 515.204 Contract format. mation and source selection information. See FAR 15.201, 15.207, 15.306, 15.5, and 24.2 about disclosing information. 515.204-1 Uniform contract format. (a) The uniform contract format is not required for leases 515.209 Solicitation provisions and contract clauses. of real property. (b) Each solicitation and contract must include the two 515.209-70 Examination of records by GSA clause. notices in paragraphs (b)(1) and (b)(2) of this subsection, except that acquisitions of leasehold interests in real property, Clause for other than multiple award schedules must include only the notice in (b)(1): (a) For other than multiple award schedule (MAS) con- (1) The information collection requirements contained tracts, insert the clause at 552.215-70, Examination of in this solicitation/contract are either required by regulation or Records by GSA, in solicitations and contracts over $100,000, approved by the Office of Management and Budget pursuant including acquisitions of leasehold interests in real property, to the Paperwork Reduction Act and assigned OMB Control that meet any of the conditions listed below: No. 3090-0163.” (1) Involve the use or disposition of Government-fur- (2) GSA’s hours of operation are 8:00 a.m. to 4:30 p.m. nished property. Requests for preaward debriefings postmarked or otherwise (2) Provide for advance payments, progress payments submitted after 4:30 p.m. will be considered submitted the based on cost, or guaranteed loan. following business day. Requests for postaward debriefings (3) Contain a price warranty or price reduction clause. delivered after 4:30 p.m. will be considered received and filed (4) Involve income to the Government where income is the following business day.” based on operations under the control of the contractor. (5) Include an economic price adjustment clause where the adjustment is not based solely on an established, third 515.205 Issuing solicitations. party index. Potential sources, as used in FAR 15.205, include both of (6) Are requirements, indefinite-quantity, or letter type the following: contracts as defined in FAR Part 16. (a) The incumbent contractor, except when its written (7) Are subject to adjustment based on a negotiated cost response to the notice of contract action under escalation base. FAR Subpart 5.2 states a negative interest. (8) Contain the provision at FAR 52.223-4, Recovered (b) Offerors that responded to recent solicitations for the Material Certification. same or similar items. (b) You may modify the clause at 552.215-70 to define the 515.207 Handling proposals and information. specific area of audit (e.g., the use or disposition of Govern- (a) Unclassified Proposals. In most cases, the best practice ment-furnished property, compliance with the price reduction is to require offerors to submit proposals and modifications to clause). Counsel and the Assistant Inspector General-Audit- the issuing contracting office. You may chose to use the local ing or Regional Inspector General-Auditing, as appropriate, Business Service Center (BSC) for receipt and safeguarding must concur in any modifications to the clause. of proposals. If so, make appropriate arrangements with the BSC. Clause for multiple award schedules (b) Classified Proposals. Handle classified proposals and (c) Insert the clause at 552.215-71, Examination of quotations according to 504.4, 41 CFR Part 105-60, and GSA Records by GSA (Multiple Award Schedule), in solicitations Freedom of Information Act procedures at http:// and contracts for MAS contracts. www.gsa.gov/staff/c/ca/FOIA/FoiaProc/mainpage.html. (c) Recording of offers. Abstracts help to summarize key aspects of proposals when you receive multiple responses to a solicitation (see FAR 4.803(a)(10)). (1) You may use GSA or Standard Forms prescribed for abstracting bids in sealed bidding to abstract proposals or

515-1 515.210 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

(d) With the Senior Procurement’s Executive approval, (b) Actions before releasing proposals. Before releasing you may modify the clause at 552.215-71 to provide for any proposal to an evaluator you must take all the following post-award access to and the right to examine records to verify actions: that the pre-award/modification pricing, sales or other data (1) Obtain the signed original “Conflict of Interest related to the supplies or services offered under the contract Acknowledgment and Nondisclosure Agreement” from each which formed the basis for the award/modification was accu- Government and nongovernment individual serving as an rate, current, and complete. The following procedures apply: evaluator. Use the Acknowledgment/Agreement in (1) Such a modification of the clause must provide for Figure 515.3-1. the right of access to expire 2 years after award or modifica- (i) For employees of other Executive agencies, tion. replace the reference in paragraph (c) of the Acknowledge- (2) Before modifying the clause, you must make a ment/Agreement to GSA’s supplemental standards with a ref- determination that absent such access there is a likelihood of erence to the applicable agency. significant harm to the Government and submit it to the Senior (ii) For nongovernment evaluators, substitute Procurement Executive for approval. paragraph (c) of the Acknowledgement/Agreement with the (3) The determinations under paragraph (d)(2) must be language below and delete paragraph (h): made on a schedule-by-schedule basis. “(c) I have read and understand the requirements of subsection 27(a) and 27(b) of the Office of Federal Pro- 515.210 Forms. curement Policy Act (41 U.S.C. 423).” (2) Attach to each proposal a cover page bearing the fol- 515.210-70 GSA Form 1602. lowing notice: You may use GSA Form 1602, Notice Concerning Solici- tation, to do any of the following: (a) Describe the type of contract, the duration of the con- Government Notice for Handling Proposals tract, and the type of supplies or services being procured. (b) Direct the attention of prospective offerors to special To anyone receiving this proposal or proposal abstract: (1) This proposal must be used and disclosed for evaluation requirements which, if overlooked, may result in rejection of purposes only. the offer. (2) You must apply a copy of this Government notice to any (c) Highlight significant changes from previous solicita- reproduction or abstract of this proposal. tions covering the same supplies or services. (3) You must comply strictly with any authorized restrictive notices (d) Include other special notices as appropriate. which the submitter places on this proposal. (4) You must not disclose this proposal outside the Government for Subpart 515.3—Source Selection evaluation purposes except to the extent authorized by, and in accordance with, the procedures in 48 CFR 515.305-71. 515.300 Scope of subpart (c) Cost or price evaluation—MAS. When evaluating In addition to the policies and procedures of FAR 15.3, prices under MAS, compare an offeror’s price to GSA with its Appendix 515A, Source Selection Procedures, provides guid- price to other customers. In this comparison, consider dis- ance and advice on various source selection techniques. counts for early payment to the extent provided in 552.232-8, 515.305 Proposal evaluation. Discounts for Prompt Payment. (a) Restrictions placed on a proposal by the submitter. If (d) Past performance evaluation information: you receive a proposal with more restrictive conditions than (1) You must use information from the Past Perfor- those in the provision at FAR 52.215-1(e), ask whether the mance Information Retrieval System (PPIRS) at submitter is willing to accept the conditions of the paragraph www.ppirs.gov when evaluating an offeror’s past perfor- at FAR 52.215-1(e). If the submitter refuses, consult with mance. In addition, you may also obtain information through: legal counsel on whether to accept the proposal as marked or (i) Questionnaires tailored to the circumstances of return it. the acquisition, (ii) Interviews with program manages and contracting officers, or (iii) Other sources. (2) You may obtain information to evaluate an offeror’s past performance on subcontracting plan goals and small disadvantaged business participation, monetary targets, and notifications under FAR 19.1202-4(b) from the following sources:

515-2 PART 515—CONTRACTING BY NEGOTIATION 515.306

FIGURE 515.3-1. CONFLICT OF INTEREST ACKNOWLEDGMENT AND NONDISCLOSURE AGREEMENT Conflict of Interest Acknowledgment and Nondisclosure Agreement For proposals submitted in response to GSA solicitation no. , I agree to the following: (a) To the best of my knowledge and belief, no conflict of interest exists that may either: (1) Diminish my capacity to impartially review the proposals submitted. (2) Or result in a biased opinion or unfair advantage. (b) In making the above statement, I have considered all the following factors that might place me in a position of conflict, real or apparent, with the evaluation proceedings: (1) All my stocks, bonds, other outstanding financial interests or commitments. (2) All my employment arrangements (past, present, and under consideration). (3) As far as I know, all financial interests and employment arrangements of my spouse, minor children, and other members of my immediate household. (c) I have read and understand the requirements of the Standards of Ethical Conduct for Employees of the Executive Branch (5 CFR. part 2635) and Supplemental Standards of Ethical Conduct for Employees of the General Services Administration (5 CFR. part 6701). (d) I have a continuing obligation to disclose any circumstances that may create an actual or apparent conflict of interest. If I learn of any such conflict, I will report it immediately to the Contracting Officer. I will perform no more duties related to evaluating proposals until I receive instructions on the matter. (e) I will use proposal information for evaluation purposes only. I understand that any authorized restriction on disclosure placed on the proposal by the prospective contractor, prospective subcontractor, or the Government applies to any reproduction or abstracted information of the proposal. (f) I will use my best efforts to safeguard proposal information physically. I will not disclose the contents of, nor release any information about, the proposals to anyone other than: (1) The Source Selection Evaluation Board or other panel assembled to evaluate proposals submitted in response to the solicitation identified above. (2) Other individuals designated by the Contracting Officer. (g) After completing evaluation, I will return to the Government all copies of the proposals and any abstracts. (h) GSA Appropriations Act restriction: These restrictions are consistent with and do not supersede, conflict with, or otherwise alter the employee obligations, rights, or liabilities created by Executive Order No. 12958; section 7211 of title 5, United States Code (governing disclosures to Congress); section 1034 of title 10, United States Code, as amended by the Military Whistleblower Protection Act (governing disclosure to Congress by members of the military); section 2302(b)(8) of title 5, United States Codes, as amended by the Whistleblower Protection Act (governing disclosures of illegality, waste, fraud, abuse or public health or safety threats); the Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 et seq.) (governing disclosures that could expose confidential Government agents); and the statutes which protect against disclosure that may compromise the national security, including sections 641, 793, 794, 798, and 952 of title 18, United States Code, and section 4(b) of the Subversive Activities Act of 1950 (50 U.S.C. 783(b). The definitions, requirements, obligations, rights, sanctions, and liabilities created by said Executive order and listed statutes are incorporated into this agreement and are controlling.

(Enter name of evaluator and organization) Date (i) The Small Business Administration. (ii) Information on prior contracts from contracting Notice About Releasing Proposals officers and administrative contracting officers. (1) The Government intends to disclose proposals received in (iii) Offeror’s references. response to this solicitation to nongovernment evaluators. (iv) Past performance information collected under (2) Each evaluator will sign and provide to GSA a “Conflict of Interest Acknowledgment and Nondisclosure Agreement.” FAR 42.15 and available through PPIRS. (d) Relationship to the Freedom of Information Act. 515.305-70 Use of outside evaluators. Release of a proposal outside the Government for evaluation (a) Conditions. To use outside evaluators, you must meet does not constitute the release of information under the Free- the restrictions in FAR 37.203 and 537.2. dom of Information Act (5 U.S.C. 552). (b) Limitations on disclosing proposal information. You 515.306 Exchanges with offerors after receipt of may disclose proposal information outside the Government proposals. before the Government’s decision as to contract award only to Limit access to Government cost estimates to Government the extent authorized in this section. Disclosure and handling personnel whose official duties require knowledge of the esti- must comply with FAR 3.1 and 503.1. mate. During negotiations, you may disclose part or all of the (c) Solicitation notice. Include in the solicitation a notice Government estimate under FAR 15.306(e) when necessary substantially as follows: to arrive at a fair and reasonable price. After award, you may reveal the total amount of the independent Government estimate.

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Subpart 515.4—Contract Pricing factor breakdown and documentation of profit objective). Exclude factors within the structured approach that do not apply to the procurement. 515.403 Obtaining cost or pricing data. (d) Profit-analysis factors. Consider the following factors when you negotiate profit. Use the weight ranges listed after 515.403-4 Requiring cost or pricing data each factor when you use the structured approach. (10 U.S.C. 2306a and 41 U.S.C. 254b). To determine if a contract action meets the threshold at Weight FAR 15.403-4 for requesting cost and pricing data, consider Ranges the value of the action plus any priced options. Exercise of a in priced option is not a price adjustment and does not require Profit Factors Percent submission of cost and pricing data. Contractor Effort Material acquisition 1 to 4 Conversion direct labor 4 to 12 515.404-2 Information to support proposal analysis. Conversion related indirect cost: (a) “Field pricing assistance” is provided by the Assistant Other costs 1 to 3 Inspector General-Auditing, or the Regional Inspector Gen- General management 2 to 5 eral-Auditing, as appropriate. Other Factors Contract cost risk 0 to 7 (b) Follow the procedures in GSA Order, Audit resolution Capital investments -2 to +2 and follow-up system, Ch. 3 (ADM P 2030.2B) for handling Federal socioeconomic -.5 to +.5 contract audit reports. programs Cost-control and other past -2 to +2 515.404-4 Profit. accomplishments (a) Structured approach for determining profit or fee Independent development and -2 to +2 additional factors objectives. Base the analysis of profit factors on information available to the Government before negotiations. Obtain such (e) GSA Form 1766. You may use GSA Form 1766, Struc- information from proposals, audit data, performance reports, tured Approach Profit/Fee Objective, to help compute the preaward surveys and the like. The structured approach helps profit objective. Measure the Contractor Effort by assigning establish a profit objective. It also provides a basis for docu- a profit percentage within the designated weight ranges to menting the objective, including an explanation of any signif- each element of cost recognized. icant departure from this objective in reaching a final (f) Facilities capital cost of money. If you allow facilities agreement. Prepare documentation commensurate with the capital cost of money as an item of cost, either as a part of your dollar value and complexity of the proposed procurement. price/cost objective in a firm fixed price type contract or as an (b) Exemptions from requirement to use the structured allowable cost in a flexibly priced type contract, e.g., cost approach. reimbursement or fixed price incentive type contract, reduce (1) The following types of procurements are exempt the profit/fee objective as follows. After you develop a dollar from the structured approach: profit/fee amount for the requirement, subtract from that (i) Management contracts for operation and/or aggregate dollar profit/fee amount any dollar amount allowed maintenance of Government facilities. for facilities capital cost of money. The remainder is the (ii) Contracts primarily requiring delivery of mate- profit/fee objective. rial supplied by subcontractors. (g) Calculating profit dollars. After computing a total dol- (iii) Termination settlements. lar profit for Contractor Effort, calculate the specific profit (iv) Cost-plus-award-fee contracts. dollars for the categories under Other Factors. Do this by mul- (v) Contracts and contract modifications of tiplying the total Government cost objective, excluding any $100,000 or less in value. cost of money for facilities capital, by the specific weights (vi) Architect-engineer and construction contracts. assigned to the elements in Other Factors. (2) You may request exemptions for other contracts (h) Common factors. In determining the value of each fac- having unusual pricing situations where you determine the tor, consider the definition, description, and purpose of the structured approach is unsuitable. Document your justifica- factors prescribed in FAR 15.404-4(d) and this subsection. tion in writing. The HCA must approve all such exemptions. (1) General management. Management problems sur- (c) Other methods for exempted procurements. Under face in various degrees. Consider the management expertise exempted procurements, you may use other methods for exercised to solve them as an element of profit. For example, establishing profit objectives. In general, use methods sup- a new program for an item that involves advanced state of the ported in a manner similar to the structured approach (profit art techniques may involve more problems and require more

515-4 PART 515—CONTRACTING BY NEGOTIATION 515.404-70 managerial time and abilities of a higher order than a fol- (v) Service contracts. Apply a weight range of 0 to low-on contract. If an initial contract creates more problems 4 percent for cost risk. A firm fixed-price contract, not priced and merits a higher profit weight, then a follow-on should on a labor-hour method, may warrant high consideration for merit a downward adjustment, as many of the problems contractor cost risk. It may merit a weight up to 4 percent. should have been solved. Evaluate the underlying managerial Conversely, a cost-plus-fixed-fee service contract normally effort involved on a case-by-case basis. warrants a zero cost risk factor. (2) Other costs. Include all other direct costs of contrac- (4) Capital investments. In evaluating this factor for tor performance under this item (e.g., travel and relocation, profit weights, consider the following: direct support, and consultants). When you analyze these (i) Facilities. (A) To evaluate how this factor con- costs, consider: tributes to the profit objective, you need to know the level of (i) Their significance. facilities use needed for contract performance, the source of (ii) Their nature. financing for the facilities, and the overall cost effectiveness (iii) How much they contribute to contract perfor- of the facilities offered. mance. (B) Contractors who furnish their own facilities (3) Contract cost risk. When you select the proper con- that significantly contribute to lower total contract costs, war- tract type, the reward for risk by contract type will usually fall rant additional profit. Contractors who rely on the Govern- into the ranges below. ment to provide or finance facilities warrant less profit. (i) Cost-reimbursement type contracts. 0–3 percent. Evaluate situations between the above examples on their mer- A cost-plus-a-fixed-fee contract does not normally justify a its and make either a positive or negative profit weight adjust- reward for risk in excess of 0 percent. Only a contract that ment, as appropriate. contains cost risk features such as ceilings on overhead might (C) You do not need to adjust the profit when a merit a higher weight. Such cases may justify up to 1 percent. contractor who owns a large quantity of facilities will perform Cost-plus-incentive-fee contracts fill the remaining portion of a contract that does not benefit from these facilities, or when the 0 to 3 percent range. For these, assign weightings based on a contractor’s use of its facilities has a minimum cost impact such factors as confidence in target cost, share ratio of fee(s), on the contract. etc. (ii) Payments. Consider the frequency of payments (ii) Fixed-price type contracts. 3–7 percent. This by the Government to the contractor. Assess the impact the weight range is wide enough to accommodate the many types contract will have on the contractor’s cash flow. Generally, of fixed-price arrangements. Assign weightings based on the payments more frequent than monthly merit negative consid- cost risk assumed. Only firm fixed-price contracts should eration, with maximum reduction as the contractor’s working reach the top end of the range. capital approaches zero. Payments less frequent than monthly (iii) Subcontracting program. The contractor’s sub- merit positive consideration, with additional consideration for contracting program may significantly impact the contrac- payments less frequent than the contractor’s or the industry’s tor’s risk under a contract. It could affect risk in terms of both normal practice. cost and performance. Consider this in selecting a weight for cost risk. The prime contractor may effectively transfer cost 515.404-70 Nonprofit organizations. risk to a subcontractor. This merits a risk evaluation below the (a) The structured approach for determining profit or fee range that would otherwise apply for the contract type pro- objectives was designed for other than nonprofit organiza- posed. However, you should not evaluate risk lower when a tions. However, if modified as below, you may use it to estab- substantial portion of the contract cost represents subcon- lish fee objectives for nonprofit organizations (See tracts, but without any substantial transfer of contractor’s risk. FAR 31.701). Do not apply the modifications as a deduction (iv) Definitizing letter contracts, unpriced change to historical fee levels. Instead apply them as a reduction in orders, and unpriced orders under basic ordering agree- the fee objective calculated under the structured approach. ments. Consider the effect on risk as a result of partial perfor- (b) For contracts with nonprofit organizations, subtract an mance before definitization. Some circumstances may adjustment of up to 3 percent from the total profit-fee objec- effectively reduce the contractor’s total risk, while others may tive. In developing this adjustment, consider each of the fol- have no effect. Determine an equitable profit weight for all lowing factors: recognized costs, both those incurred and future costs. Con- (1) Tax position benefits. sider all attendant circumstances, not just the portion of costs (2) Granting of financing through letters of credit. incurred or percentage of work completed before definitiza- (3) Facility requirements of the nonprofit organization. tion. (4) Other factors that may work to the advantage or dis- advantage of the contractor as a nonprofit organization.

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515.405 Price negotiation. (3) Any additional supporting information requested by If a contractor insists on a price or demands a profit or fee the Contracting Officer. The Contracting Officer may require that you consider unreasonable as outlined in FAR 15.405(d), additional supporting information, but only to the extent nec- refer the matter to one level above the contracting officer for essary to determine whether the price(s) offered is fair and resolution. reasonable. 515.408 Solicitation provisions and contract clauses. (4) By submission of an offer in response to this solici- MAS Requests for Information Other Than Cost or tation, the Offeror grants the Contracting Officer or an autho- Pricing Data rized representative the right to examine, at any time before (a) You should use Alternate IV of the FAR provision at initial award, books, records, documents, papers, and other 52.215-20, Requirements for Cost or Pricing Data or Informa- directly pertinent records to verify the pricing, sales and other tion Other Than Cost or Pricing Data, for MAS contracts to data related to the supplies or services proposed in order to provide the format for submission of information other than determine the reasonableness of price(s). Access does not cost or pricing data for MAS contracts. To provide uniformity extend to Offeror’s cost or profit information or other data rel- in requests under the MAS program, you should insert the fol- evant solely to the Offeror’s determination of the prices to be lowing in paragraph (b) of the provision: offered in the catalog or marketplace. (1) An offer prepared and submitted in accordance with (b) Insert the following format for commercial sales prac- the clause at 552.212-70, Preparation of Offer (Multiple tices in the exhibits or attachments section of the solicitation Award Schedule). and resulting contract (see FAR 12.303). (2) Commercial sales practices. The Offeror shall submit information in the format provided in this solicitation in accordance with the instructions at Figure 515.4-2 of the GSA Acquisition Regulation (48 CFR 515.4-2), or submit information in the Offeror’s own format.

515-6 PART 515—CONTRACTING BY NEGOTIATION 515.408

COMMERCIAL SALES PRACTICES FORMAT Name of Offeror SIN(s)

NOTE: Please refer to Clause 552.212-70, Preparation of Offer (Multiple Award Schedule), for additional information concerning your offer. Provide the following information for each SIN (or group of SINs or SubSIN for which information is the same). (1) Provide the dollar value of sales to the general public at or based on an established catalog or market price during the previous 12-month period or the offerors last fiscal year: $ . State beginning and ending of the 12 month period. Beginning ending . In the event that a dollar value is not an appropriate measure of the sales, provide and describe your own measure of the sales of the item(s). (2) Show your total projected annual sales to the Government under this contract for the contract term, excluding options, for each SIN offered. If you currently hold a Federal Supply Schedule contract for the SIN the total projected annual sales should be based on your most recent 12 months of sales under that contract. SIN $ SIN $ SIN $ (3) Based on your written discounting policies (standard commercial sales practices in the event you do not have written discounting policies), are the discounts and any concessions which you offer the Government equal to or better than your best price (discount and concessions in any combination) offered to any customer acquiring the same items regardless of quantity or terms and conditions? YES NO (See definition of “concession” and “discount” in 552.212-70.) (4) (a) Based on your written discounting policies (standard commercial sales practices in the event you do not have written discounting policies), provide information as requested for each SIN (or group of SINs for which the information is the same) in accordance with the instructions at Figure 515.4-2, which is provided in this solicitation for your convenience. The information should be provided in the chart below or in an equivalent format developed by the offeror. Rows should be added to accommodate as many customers as required. Column 1 Column 2 Column 3 Column 4 Column 5 Customer Discount Quantity/Volume FOB Term Concessions

(b) Do any deviations from your written policies or standard commercial sales practices disclosed in the above chart ever result in better discounts (lower prices) or concessions than indicated? YES NO . If YES, explain deviations in accordance with the instructions at Figure 515.4-2, which is provided in this solicitation for your convenience. (5) If you are a dealer/reseller without significant sales to the general public, you should provide manufacturers’ information required by paragraphs (1) through (4) above for each item/SIN offered, if the manufacturer’s sales under any resulting contract are expected to exceed $500,000. You must also obtain written authorization from the manufacturer(s) for Government access, at any time before award or before agreeing to a modification, to the manufacturer’s sales records for the purpose of verifying the information submitted by the manufacturer. The information is required in order to enable the Government to make a determination that the offered price is fair and reasonable. To expedite the review and processing of offers, you should advise the manufacturer(s) of this requirement. The contracting officer may require the information be submitted on electronic media with commercially available spreadsheet(s). The information may be provided by the manufacturer directly to the Government. If the manufacturer’s item(s) is being offered by multiple dealers/resellers, only one copy of the requested information should be submitted to the Government. In addition, you must submit the following information along with a listing of contact information regarding each of the manufacturers whose products and/or services are included in the offer (include the manufacturer’s name, address, the manufacturer’s contact point, telephone number, and FAX number) for each model offered by SIN: (a) Manufacturer’s Name. (b) Manufacturer’s Part Number. (c) Dealer’s/Reseller’s Part Number. (d) Product Description. (e) Manufacturer’s List Price. (f) Dealer’s/Reseller’s percentage discount from list price or net prices. (End of Format)

(c) Include the instructions for completing the commercial sales practices format in Figure 515.4-2 in solicitations issued under the MAS program.

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FIGURE 515.4-2. INSTRUCTIONS FOR COMMERCIAL SALES PRACTICES FORMAT If you responded “YES” to question (3), on the COMMERCIAL SALES PRACTICES FORMAT, complete the chart in question (4)(a) for the customer(s) who receive your best discount. If you responded “NO”, complete the chart in question (4)(a) showing your written policies or standard sales practices for all customers or customer categories to whom you sell at a price (discounts and concessions in combination) that is equal to or better than the price(s) offered to the Government under this solicitation or with which the Offeror has a current agreement to sell at a discount which equals or exceeds the discount(s) offered under this solicitation. Such agreement shall be in effect on the date the offer is submitted or contain an effective date during the proposed multiple award schedule contract period. If your offer is lower than your price to other customers or customer categories, you will be aligned with the customer or category of customer that receives your best price for purposes of the Price Reductions clause at 552.238-75. The Government expects you to provide information required by the format in accordance with these instructions that is, to the best of your knowledge and belief, current, accurate, and complete as of 14 calendar days prior to its submission. You must also disclose any changes in your price list(s), discounts and/or discounting policies which occur after the offer is submitted, but before the close of negotiations. If your discount practices vary by model or product line, the discount information should be by model or product line as appropriate. You may limit the number of models or product lines reported to those which exceed 75% of actual historical Government sales (commercial sales may be substituted if Government sales are unavailable) value of the special item number (SIN). Column 1—Identify the applicable customer or category of customer. A “customer” is any entity, except the Federal Government, which acquires supplies or services from the Offeror. The term customer includes, but is not limited to original equipment manufacturers, value added resellers, state and local Governments, distributors, educational institutions (an elementary, junior high, or degree granting school which maintains a regular faculty and established curriculum and an organized body of students), dealers, national accounts, and end users. In any instance where the Offeror is asked to disclose information for a customer, the Offeror may disclose information by category of customer if the Offeror’s discount policies or practices are the same for all customers in the category. (Use a separate line for each customer or category of customer.) Column 2—Identify the discount. The term “discount” is as defined in solicitation clause 552.212-70, Preparation of Offer (Multiple Award Schedule). Indicate the best discount (based on your written discounting policies or standard commercial discounting practices if you do not have written discounting policies) at which you sell to the customer or category of customer identified in column 1, without regard to quantity; terms and conditions of the agreements under which the discounts are given; and whether the agreements are written or oral. Net prices or discounts off of other price lists should be expressed as percentage discounts from the price list which is the basis of your offer. If the discount disclosed is a combination of various discounts (prompt payment, quantity, etc.), the percentage should be broken out for each type of discount. If the price lists which are the basis of the discounts given to the customers identified in the chart are different than the price list submitted upon which your offer is based, identify the type or title and date of each price list. The contracting officer may require submission of these price lists. To expedite evaluation, offerors may provide these price lists at the time of submission. Column 3—Identify the quantity or volume of sales. Insert the minimum quantity or sales volume which the identified customer or category of customer must either purchase/order, per order or within a specified period, to earn the discount. When purchases/orders must be placed within a specified period to earn a discount indicate the time period. Column 4—Indicate the FOB delivery term for each identified customer. See FAR 47.3 for an explanation of FOB delivery terms. Column 5—Indicate concessions regardless of quantity granted to the identified customer or category of customer. Concessions are defined in solicitation clause 552.212-70, Preparation of Offers (Multiple Award Schedule). If the space provided is inadequate, the disclosure should be made on a separate sheet by reference. If you respond “YES” to question 4(b) in the Commercial Sales Practices Format, provide an explanation of the circumstances under which you deviate from your written policies or standard commercial sales practices disclosed in the chart on the Commercial Sales Practices Format and explain how often they occur. Your explanation should include a discussion of situations that lead to deviations from standard practice, an explanation of how often they occur, and the controls you employ to assure the integrity of your pricing. Examples of typical deviations may include, but are not limited to, one time goodwill discounts to charity organizations or to compensate an otherwise disgruntled customer; a limited sale of obsolete or damaged goods; the sale of sample goods to a new customer; or the sales of prototype goods for testing purposes. If deviations from your written policies or standard commercial sales practices disclosed in the chart on the Commercial Sales Practices Format are so significant and/or frequent that the Contracting Officer cannot establish whether the price(s) offered is fair and reasonable, then you may be asked to provide additional information. The Contracting Officer may ask for information to demonstrate that you have made substantial sales of the item(s) in the commercial market consistent with the information reflected on the chart on the Commercial Sales Practices Format, a description of the conditions surrounding those sales deviations, or other information that may be necessary in order for the Contracting Officer to determine whether your offered price(s) is fair and reasonable. In cases where additional information is requested, the Contracting Officer will target the request in order to limit the submission of data to that needed to establish the reasonableness of the offered price. (End of Figure)

515-8 PART 515—CONTRACTING BY NEGOTIATION 515.7001

(d) Insert the clause at 552.215-72, Price Adjustment— (b) The office designated in writing by the Regional Failure to Provide Accurate Information, in solicitations and Administrator in the Regions. contracts under the MAS program. 515.606 Agency procedures. (e) You should use Alternate IV of FAR 52.215-21, Coordinating offices serve as agency points of contact and Requirements for Cost or Pricing Data or Information Other establish procedures for controlling the receipt, evaluation, Than Cost or Pricing Data—Modifications, to provide for and timely disposition of proposals consistent with FAR 15.6. submission of information other than cost or pricing data for MAS contracts. To provide for uniformity in requests under 515.606-2 Evaluation. the MAS program, you should insert the following in Complete the evaluation as soon as practicable, normally paragraph (b) of the clause: within 45 calendar days. Communicate the results of the eval- (1) Information required by the clause at 552.243-72, uation to the submitter. Modifications (Multiple Award Schedule). (2) Any additional supporting information requested by 515.609 Limited use of data. the Contracting Officer. The Contracting Officer may require When you release an unsolicited proposal for evaluation, additional supporting information, but only to the extent nec- use the “Conflict of Interest Acknowledgment and Nondis- essary to determine whether the price(s) offered is fair and closure Agreement” in Figure 515.3-1. reasonable. (3) By submitting a request for modification, the Con- Subpart 515.70—Use of Bid Samples tractor grants the Contracting Officer or an authorized representative the right to examine, at any time before agreeing to 515.7000 General. a modification, books, records, documents, papers, and other Except as provided in 515.7002 and 515.7003, the policy directly pertinent records to verify the pricing, sales and other and procedures in FAR 14.202-4 and 514.202-4 apply to data related to the supplies or services proposed in order to negotiated acquisitions. When referring to FAR 14.202-4 and determine the reasonableness of price(s). Access does not 514.202-4, the term “bid” means “offer” or “proposal.” The extend to Contractor’s cost or profit information or other data terms “bidder” and “invitation” or “invitation for bids” are relevant solely to the Contractor’s determination of the prices used synonymously with “offeror” and “solicitation” or to be offered in the catalog or marketplace. “RFP”.

Subpart 515.5—Preaward, Award, and 515.7001 Policy. (a) The terms “responsiveness” and “nonresponsive” do Postaward Notifications, Protests, and not apply to negotiated acquisitions. FAR 14.202-4(b)(2) and Mistakes (4) do not apply to the use of bid samples under this subpart. (b) Instead of FAR 14.202-4(b)(2) and (4), apply the fol- 515.506 Postaward debriefing of offerors. lowing: For purposes of determining the date of receipt of a request (1) Use bid samples in the technical evaluation of pro- for a postaward debriefing, GSA’s hours of operation are posals to both: 8:00 a.m. to 4:30 p.m. Requests received after 4:30 p.m. will (i) Determine the acceptability of the samples to be considered received the following business day. meet GSA’s requirement. (ii) Ensure compliance with all subjective and objec- 515.570 Release of information concerning unsuccessful tive characteristics listed in the solicitation. offerors. (2) If you conduct written or oral discussions, you may Consult FAR 24.2, 41 CFR part 105-60, and GSA Free- exclude a proposal from further consideration for award only dom of Information Act procedures at http://www.gsa.gov/ if you meet all the following conditions: staff/c/ca/FOIA/FoiaProc/mainpage.html. to determine what (i) You discussed with the offeror any deficiencies information you may disclose. found in the samples. (ii) You gave the offeror an opportunity to correct Subpart 515.6—Unsolicited Proposals those deficiencies. (iii) The sample still fails to conform to each of the 515.601 Definitions. characteristics listed in the solicitation. (See FAR 15.609 and “Coordinating office,” as used in this subpart, means: 15.610). (a) The Senior Procurement Executive for all Central Office activities.

515-9 515.7002 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

515.7002 Procedures. (c) FAR 52.215-1(c)(3) applies to samples received after (a) Unsolicited samples. The reference to the time set for receipt of offers. FAR 14.404-2(d) in FAR 14.202-4(g) does not apply. Use the following when contracting by negotiation: “However, qualifications in the proposal that are at variance with the Government’s requirements, constitute deficiencies. Resolve these as provided in FAR 15.306." (b) Solicitation requirements. (1)Use the clause at FAR 52.214-20. The second sentence in paragraph (c) of the clause does not apply. Substitute a sentence substantially as follows: “Failure of the bid samples to conform to all the required characteristics listed in the solicitation constitutes a deficiency in the proposal (see FAR 15.306).” (2) In addition to listing subjective characteristics that you cannot adequately describe in the specification, you may list and evaluate objective characteristics. To include objective characteristics, you must determine that examination of such characteristics is essential to the acquisition of an acceptable product. Base your determination on past experience or other valid considerations.

515-10 Appendix 515A—Source Selection Procedures Appendix 515A—Source Selection Procedures

[This Appendix will replace GSA Order, Source Selection Procedures (APD P 2800.2). The source selection procedures are being updated based on the FAR Part 15 rewrite.]

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515A-2 AMENDMENT 2010–03 AUGUST 16, 2010

PART 516—TYPES OF CONTRACTS

Sec. Subpart 516.2—Fixed Price Contracts Subpart 516.5—Indefinite-Delivery Contracts 516.203 Fixed-price contracts with economic price 516.505 Task-order and delivery-order ombudsman. adjustment (EPA). 516.506 Solicitation provisions and contract clauses. 516.203-2 Application. Subpart 516.6—Time-and-Materials, Labor- 516.203-3 Limitations. Hour, and Letter Contracts 516.203-4 Contract clauses. 516.603 Letter contracts. Subpart 516.4—Incentive Contracts 516.403 [Reserved] 516.603-70 Additional limitations on the use of letter 516.403-2 Fixed-price incentive contracts. contracts for architect-engineer (A-E) 516.405 [Reserved] services under the PBS Design Excellence 516.405-1 Cost-reimbursement incentive contracts. Program.

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516-ii AMENDMENT 2010–03 AUGUST 16, 2010

PART 516—TYPES OF CONTRACTS 516.203-4

PART 516—TYPES OF CONTRACTS

Subpart 516.2—Fixed Price Contracts 516.203-3 Limitations. (a) When including an economic price adjustment clause, the contracting officer shall document, in the contract file, the 516.203 Fixed-price contracts with economic price determination required by FAR 16.203-3. adjustment (EPA). (b) The contracting director must approve any of the following actions: 516.203-2 Application. (1) If an economic price adjustment clause provides for (a) Changes to a Government contract price that result price increases during the first 12 months of a multiyear con- from a change in the actual cost of labor based on Department tract, a determination to include an economic price adjust- of Labor wage determinations are addressed in FAR Subparts ment clause in a solicitation or contract of one year or less is 22.4 and 22.10. needed. (b) Changes to a Government contract price that result (2) The use in a contract of any economic price adjust- from a change in designated indicators should be processed as ment clause that was not included in the initial solicitation. follows: This includes any clause that provides for price adjustment (1) The contracting officer shall evaluate the reason- during the first 12 months of a multiyear contract. ableness of the proposed market indicator. The indicator (c) The contracting director may raise the price ceiling (the should: aggregate of permitted price increases during a 12-month (i) Be used only when general economic factors period) during the contract period when both of the following make the estimating of future costs unpredictable within a conditions are met: fixed-price contract; (1) A supplier requests that the ceiling be raised. (ii) Be considered before using an EPA including (2) Analysis of current market conditions reveals that volatile labor and/or material cost and contractual length; most suppliers of similar supplies or services are affected. If (iii) Be relevant to the service or product solicited; the price ceiling is raised, the contracting officer must modify (iv) Have an established history; the contract to reflect the revised ceiling. (v) Be published regularly; (vi) Be reasonably available in the future; and 516.203-4 Contract clauses. (vii) Should not provide for an adjustment beyond (a) Special Order Program Contracts. In multiyear solic- the original contract period of performance, including itations and contracts, after making the determination options. The start date for the adjustment may be the begin- required by FAR 16.203-3, use 552.216-71, Economic Price ning of the contract or a later time, as appropriate, based on Adjustment—Special Order Program Contracts, or a clause the projected rate of expenditures. prepared as authorized in paragraph (a)(3) of this subsection. (2) Selection of the indicators to be used and determi- (1) If the contract includes one or more options to nation of how they will be applied are negotiable and must be extend the term of the contract, use the clause with its Alter- determined prior to award. For example, a broad-based mar- nate I or a clause substantially the same as 552.216-71 with its ket indicator, such as that issued by the Bureau of Labor Sta- Alternate I suitably modified. tistics, can be applied uniformly to all categories if the (2) In a contract requiring a minimum adjustment contractor routinely applies across the board wage increases. before the price adjustment mechanism is effectuated, use the If a contractor’s wage changes vary by skills, the economic basic clause with Alternate II or with Alternate I and Alternate price adjustment should be based on specific matched catego- II. ries. (3) If the Producer Price Index is not an appropriate (3) The contracting officer and the contractor shall indicator for price adjustment, modify the clause to use an agree on the economic price adjustment prior to the comple- alternate indicator for adjusting prices. Similarly, if other tion of negotiations. The contracting officer shall document aspects of 552.216-71 are not appropriate, use an alternate the file. clause following established procedures. (c) If, during the course of the contract, the contractor pro- (b) Adjustments based on cost indexes of labor or material. poses a change in price adjustment methods, the contracting (1) If the contracting officer decides to provide for officer should require appropriate consideration from the con- adjustments based on cost indexes of labor or material, pre- tractor for any lowering of the contractor’s risk. pare a clause that defines each of the following elements: (i) The type of labor and/or material subject to adjustment;

516-1 AMENDMENT 2010–03 AUGUST 16, 2010

516.403 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

(ii) The labor rates, including any fringe benefits (c) If any corrective action is needed after reviewing com- and/or unit prices of materials that may be increased or plaints from contractors, the GSA Ombudsman shall provide decreased; a written determination of such action to the contracting offi- (iii) The index(es) that will be used to measure cer. changes in price levels and the base period or reference point (d) Contracting officers shall be notified via the contractor from which changes will be measured; and of any complaints submitted to the GSA Ombudsman (see (iv) The period during which the price(s) will be sub- clause 552.216-74). ject to adjustment. 516.506 Solicitation provisions and contract clauses. (2) The contracting director must approve use of this (a) In solicitations and contracts for Special Order Pro- clause. gram items, when the contract authorizes FAS and other activities to issue delivery or task orders, insert the clause at Subpart 516.4—Incentive Contracts 552.216-72, Placement of Orders. If only FAS will issue delivery or task orders, insert the clause with its Alternate I. 516.403 [Reserved] (b) In solicitations and contracts for GSA awarded IDIQ contracts, insert clause 552.216-74, Task-Order and Deliv- 516.403-2 Fixed-price incentive contracts. ery-Order Ombudsman. The formula specified in FAR 16.403-2(a)(1)(iii) does not (c) If the clause at 552.216-72 is prescribed, insert the pro- apply for the life of the contract. Instead, it is used to fix the vision at 552.216-73, Ordering Information, in solicitations firm target profit for the contract. In order to provide an for Special Order Program items and in other FAS Program incentive consistent with the circumstances, the formula solicitations. should reflect the relative risk involved in establishing an incentive arrangement where cost and pricing information were not sufficient to permit the negotiation of firm targets at Subpart 516.6—Time-and-Materials, the outset. Labor-Hour, and Letter Contracts 516.405 [Reserved] 516.603 Letter contracts. 516.405-1 Cost-reimbursement incentive contracts. 516.603-70 Additional limitations on the use of letter Appropriate weight shall be given to basic acquisition contracts for architect-engineer (A-E) services under objectives in negotiating the range of fee and the fee adjust- the PBS Design Excellence Program. ment formula. For example— (a) Requirement for a price proposal. The proposed A-E (a) In an initial product development contract, it may be must provide a price proposal for the non-design effort before appropriate to provide for relatively small adjustments in fee the award of a letter contract. In accordance with FAR tied to the cost incentive feature, but provide for significant 52.216-25, a complete price proposal is required before adjustments if the contractor meets or surpasses performance definitization. targets; and (b) Contents of each letter contract. The contracting offi- (b) In subsequent development and test contracts, it may cer must include the following information in the letter con- be appropriate to negotiate an incentive formula tied primar- tract: ily to the contractor’s success in controlling costs. (1) The scope. The scope of the letter contract must authorize only the A-E to perform those services that are independent of the design effort (for example, feasibility studies, Subpart 516.5—Indefinite-Delivery existing facility surveys or site investigation, etc.). The A-E Contracts shall not begin any design effort before the letter contract is definitized for the entire scope of the project. 516.505 Task-order and delivery-order ombudsman. (2) A definitization schedule. Include dates for each of (a) The GSA competition advocate serves as the Depart- the following: mental ombudsman for task and delivery order contracts in (i) Submission of the design fee proposal. accordance with FAR 16.505(b)(6). (ii) Start of negotiations. (b) The GSA Ombudsman shall review and resolve com- (iii) Definitization. This date must be no later than plaints from contractors concerning all task and delivery 120 days after the date of the letter contract. order actions. (3) The letter contract must comply with FAR 16.6.

516-2 AMENDMENT 2010–03 AUGUST 16, 2010

PART 516—TYPES OF CONTRACTS 516.603-70 (c) Unilateral price decision. If the contracting officer items plus the six percent statutory fee limitatoin for the proj- issues a unilateral price decision, the maximum contract ect. amount must not exceed a reasonable price for the excludable

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516-4 PART 517—SPECIAL CONTRACTING METHODS

Sec. Subpart 517.1—Multiyear Contracting Subpart 517.2—Options 517.101 Authority. 517.200 Scope of subpart. 517.109 Contract clauses. 517.202 Use of options. 517.203 Solicitations. 517.204 Contracts. 517.207 Exercise of options. 517.208 Solicitation provisions and contract clauses.

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517-ii PART 517—SPECIAL CONTRACTING METHODS 517.204

PART 517—SPECIAL CONTRACTING METHODS

Subpart 517.1—Multiyear Contracting (2) An option is normally in the Government’s interest in the following circumstances: 517.101 Authority. (i) You anticipate a need for additional supplies or (a) In addition to the multiyear authority described in services during the contract term. FAR 17.101, GSA is authorized to enter into contracts for (ii) Multiyear contracting authority is not available periods not to exceed: or its use is inappropriate and you anticipate a need for addi- (1) Five years for the inspection, maintenance, and tional supplies or services beyond the initial contract term. repair of fixed building equipment in federally owned build- (iii) There is a need for continuity of supply or ser- ings (40 U.S.C. 490(a)(14)). vice support. (2) Ten years for public utility services (iv) Funds are not available for the entirety of the (40 U.S.C. 481(a)(3)). Government’s needs, but are likely to become available (3) Five years for contracts awarded under the Informa- during the contract term. tion Technology Fund (40 U.S.C. 757(c)). (v) The initial contract will be used to evaluate the (b) You may award contracts under the authority of para- performance of an emerging small business. graph (a)(1) or paragraph (a)(2) of this section without a can- (3) Do not use an option if the market price is likely to cellation clause. change substantially and an economic price adjustment clause inadequately protects the Government’s interest. 517.109 Contract clauses. (b) Construction. For limitations on the use of options, see Use of FAR 52.217-2, Cancellation Under Multi-year 536.213 and 536.270. Contracts, is optional in multiyear contracts authorized by 40 U.S.C. 490(a)(14) for maintenance and repair of fixed equipment in federally-owned buildings and services and 517.203 Solicitations. 40 U.S.C. 481(a)(3) for public utility services. A solicitation that includes an option to extend should inform offerors that the contract could result in a long term contractual relationship subject to both of the following con- Subpart 517.2—Options ditions: (a) Continuing need by GSA. 517.200 Scope of subpart. (b) Level of contract performance that at least meets GSA’s (a) This subpart applies to all GSA contracts for supplies quality performance expectations. and services, including: (1) Services involving construction, alteration, or repair 517.204 Contracts. (including dredging, excavating, and painting) of buildings, (a) Information technology contracts. Notwithstanding bridges, roads, or other kinds of real property. FAR 17.204(e), the 5 year limitations apply also to informa- (2) Architect-engineer services. tion technology contracts unless a longer period is authorized (b) If a requirement in this subpart is inconsistent with by statute. FAR 17.2, this subpart takes precedence. (b) Requests to exceed 5-year limitation. A request to exceed the 5-year limitation specified in FAR 17.204(e) must 517.202 Use of options. provide all the following information: (a) Supplies or services. (1) You should use options when (1) Clearly explain the contract(s) and organization(s) they meet one or more of the following objectives: covered by the request. (i) Reduce procurement lead time and associated (2) Support the need for and reasonableness of the costs. extension. Consider factors such as the following: (ii) Ensure continuity of contract support. (i) The results of market research. (iii) Improve overall contractor performance. (ii) Stability of the requirement(s). (iv) Facilitate longer term contractual relationships (iii) Benefits to the Government. with those contractors that continually meet or exceed quality (iv) Use of a performance-based contracting performance expectations. approach. (v) Availability of funds to cover estimated cancellation costs as well as costs for the first contract period. (vi) Customary commercial practice.

517-1 517.207 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

(vii) Mechanisms to adjust for economic fluctua- 517.208 Solicitation provisions and contract clauses. tions. (a) For solicitations under FSS’s Stock or Special Order (c) Approval authority. Requests to exceed the 5-year lim- Program, insert a provision substantially the same as the pro- itations specified in FAR 17.204(e) must be approved by: vision at 552.217-70, Evaluation of Options, if both of the fol- (1) The head of the contracting activity for individual lowing conditions apply: contracts. (1) The solicitation contains an option to extend the (2) GSA’s Senior Procurement Executive for classes of term of the contract. contracts. (2) The contract will be fixed price and contain an eco- 517.207 Exercise of options. nomic price adjustment clause. Before exercising an option, you must: (b) Insert the provision at 552.217-71, Notice Regarding (a) Synopsize it unless you meet of the following condi- Option(s), or a similar provision, in solicitations that include tions: an option for increased quantities of supplies or services or an (1) The option was evaluated as part of the original option to extend. competition. (2) The contract action meets an exception in FAR 5.202. (b) Conclude that the contractor’s performance under the contract met or exceeded the Government’s expectation for quality performance, unless another circumstance justifies an extended contractual relationship. (c) Determine that the option price is fair and reasonable.

517-2 PART 518—[RESERVED]

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518-ii GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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PART 519—SMALL BUSINESS PROGRAMS

Sec. 519.001 Definitions. Subpart 519.7—The Small Business Subcontracting Program Subpart 519.2—Policies 519.700-70 Additional responsibilities. 519.201 General policy. 519.702 [Reserved] 519.202 Specific policies. 519.705 Responsibilities of the contracting officer 519.202-1 Encouraging small business participation in under the subcontracting assistance program. acquisitions. 519.705-2 Determining the need for a subcontracting 519.202-2 Locating small business sources. plan. Subpart 519.3—Determination of Small 519.705-3 Preparing the solicitation. Business Status for Small Business Programs 519.705-4 Reviewing the subcontracting plan. 519.302 Protesting a small business representation. 519.705-5 Awards involving subcontracting plans. 519.305 Protesting a representation of disadvantaged 519.705-6 Postaward responsibilities of the contracting business status. officer. 519.306 Protesting a firm’s status as a HUBZone 519.705-7 Liquidated damages. small business concern. 519.706 Responsibilities of the cognizant 519.307 Protesting a firm’s status as a Service- administrative contracting officer. Disabled Veteran-Owned small business 519.708 Contract clauses. concern. 519.708-70 Solicitation provisions. 519.308 Protesting a firm's status as an Economically Subpart 519.8—Contracting With the Small Disadvantaged Women-Owned Small Business Administration (The 8(a) Program) Business (EDWOSB) concern or Women- 519.803 Selecting acquisitions for the 8(a) program. Owned Small Business (WOSB)) concern 519.803-70 Contracting officer evaluation of eligible under the WOSB Program. recommendations for 8(a) set-aside(s). Subpart 519.4—Cooperation With the Small 519.803-71 Withdrawing or modifying 8(a) set-asides. Business Administration 519.870 Direct 8(a) contracting. 519.870-1 Authority and applicability. Subpart 519.5—Set-asides for Small Business 519.870-8 Contract clauses. 519.502 Setting aside acquisitions. 519.502-1 Requirements for setting aside acquisitions. Subpart 519.10—[Reserved] 519.502-70 Review of non-set-aside determinations. Subpart 519.11—[Reserved] 519.503 Setting aside a class of acquisitions for small business. Subpart 519.12—Small Disadvantaged Business 519.506 Withdrawing or modifying small business Participation Program set-asides. 519.1201 General. 519.508 Solicitation provisions and contract clauses. 519.1202 Evaluation factor or subfactor. 519.1202-2 Applicability Subpart 519.6—Certificates of Competency and 519.1202-4 Procedures. Determinations of Responsibility 519.1203 Incentive subcontracting with small 519.602 Procedures. disadvantaged business concerns. 519.602-3 Resolving differences between the agency and the Small Business Administration. Subpart 519.13—[Reserved] Subpart 519.14—[Reserved] Subpart 519.70—GSA Mentor-Protégé Program 519.7001 Scope of subpart. 519.7002 Definitions. 519.7003 General Policy. 519.7004 Incentives for prime contractors. 519.7005 Measurement of program success.

519-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 519.7006 Mentor firms. 519.7007 Protégé firms. 519.7008 Selection of protégé firms. 519.7009 Application process. 519.7010 Agreement contents. 519.7011 Application review. 519.7012 Developmental assistance. 519.7013 Obligation. 519.7014 Internal controls. 519.7015 Reports. 519.7016 Program review. 519.7017 Contract clauses. Appendix 519A—Small Business Subcontracting Plan Outline (Model) Appendix 519B—Subcontracting Plan Evaluation Checklist

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PART 519—SMALL BUSINESS PROGRAMS 519.306

PART 519—SMALL BUSINESS PROGRAMS

519.001 Definitions. SBTA, and then Senior Procurement Executive. The SBTA “Office of Small Business Utilization staff” as used in this will coordinate for review by the SBA PCR as necessary, and subpart means the staff with responsibility for supporting required concurrence of the AAOSBU. small business activities. In Central Office, this is the Office (2) Consolidated acquisitions require special attention. of Small Business Utilization, (OSBU) and the Small Busi- The contracting officer shall consult with the appropriate ness Technical Advisors (SBTAs). In the Regions, this staff is Office of Acquisition Management. a separate office (e.g., Small Business Utilization Centers (3) For all consolidated acquisitions, GSA shall con- (SBUCs). duct market research; identify potential alternative contract- Subpart 519.2—Policies ing approaches that involve lesser degrees of consolidation; issue a written determination in support of the consolidation; 519.201 General policy. identify negative impacts on small businesses; and ensure that (a) The Associate Administrator, Office of Small Business steps will be taken to include small business concerns in the Utilization (AAOSBU) is the Director of Small and Disad- acquisition strategy. vantaged Business Utilization in GSA. (b) The Office of Small Business Utilization, (OSBU) 519.202-2 Locating small business sources. appoints Small Business Technical Advisors (SBTAs), in (a) The contracting officer shall confer with the appropri- writing. Each Central Office Service and each Region has at ate SBTA when he or she needs help to identify additional least one SBTA. All references to SBTA in this part refer to small business, veteran-owned small business, service-dis- the SBTA designated to support his/her service or region, abled veteran-owned small business, Historically Underuti- whichever is applicable. lized Business Zone (HUBZone) small business, small disadvantaged business, and women-owned small business 519.202 Specific policies. concern sources to solicit for a requirement. The SBTA will coordinate with the SBA PCR. 519.202-1 Encouraging small business participation in (b) The SBTA should query “Dynamic Small Business acquisitions. Search,” at http://dsbs.sba.gov. (a) The acquisition planner is required to obtain signature of the SBTA or Small Business Specialist (SBS) assigned to Subpart 519.3—Determination of Small the specific region, service or central office staff office on any Business Status for Small Business Programs acquisition plans that: (1) Requires submission of a GSA Form 2689, Small 519.302 Protesting a small business representation. Business Analysis Record, under GSAM 519.502-70. If SBA determines that an offeror is not a small business (2) Involves contract bundling (see FAR 19.202-1(e) concern, and there is evidence that the offeror knowingly mis- and paragraph (b)(2) of this section); or represented itself as such, contracting activities must refer the (3) Is at or above the dollar threshold identified in FAR matter to the Inspector General and should also refer the mat- 7.104(d)(2). ter to the Suspension and Debarment Official. (b) Bundled acquisitions. (1) If the planner and contracting officer have failed to 519.305 Protesting a representation of disadvantaged recognize that the acquisition is bundled, the SBTA or SBS business status. shall notify the AAOSBU. If SBA determines that an offeror is not a disadvantaged (2) When bundling is contemplated (see FAR 7.107), small business concern, and there is evidence that the offeror coordination with the SBTA and the AAOSBU is required. knowingly misrepresented itself as such, contracting activi- (i) Use the GSA Form 2689 to obtain signature of ties must refer the matter to the Inspector General and should the SBTA and the Small Business Administration (SBA) Pro- also refer the matter to the Suspension and Debarment Offi- curement Center Representative (PCR). The SBTA will coor- cial. dinate with the AAOSBU (see FAR 19.202-1(e)). (ii) When substantial bundling is contemplated the 519.306 Protesting a firm’s status as a HUBZone small acquisition planner shall use the GSA Form 2689 to also coor- business concern. dinate with the AAOSBU (see FAR 7.107(e) and If SBA determines that an offeror is not a HUBZone small 19.202-1(e)). business concern, and there is evidence that the offeror know- (c) Consolidated acquisitions. ingly misrepresented itself as such, contracting activities must (1) All consolidated acquisitions require review and approval from the Head of Contracting Activity (HCA),

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519.307 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL refer the matter to the Inspector General and should also refer original requirement have become available, a contracting the matter to the Suspension and Debarment Official. officer may discontinue setting aside a continuing requirement (see FAR 8.002 and 8.003). The contracting officer 519.307 Protesting a firm’s status as a Service-Disabled shall document the determination to discontinue setting aside Veteran-Owned small business concern. a continuing requirement (see 519.502-70). If SBA determines that an offeror is not a service-disabled veteran-owned small business concern, and there is evidence 519.502-70 Review of non-set-aside determinations. that the offeror knowingly misrepresented itself as such, con- (a) GSA Form 2689, Small Business Analysis Record. tracting activities must refer the matter to the Inspector Gen- The GSA Form 2689 is used to record evidence that consid- eral and should also refer the matter to the Suspension and eration has been given to small business, service-disabled vet- Debarment Official. eran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business; to 519.308 Protesting a firm's status as an Economically document that small businesses received maximum practica- Disadvantaged Women-Owned Small Business ble opportunity to participate in a proposed acquisition; and, (EDWOSB) concern or Women-Owned Small Business for instances of contract bundling (including substantial bun- (WOSB)) concern eligible under the WOSB Program. dling). If SBA determines that an offeror is not a women-owned (b) The GSA Form 2689 may be used in place of a “Memo small business or economically disadvantaged to File” when documenting the requirement for market women-owned small business concern, and there is evidence research and as a tool to assure maximum practicable small that the offeror knowingly misrepresented itself as such, con- business opportunity. tracting activities must refer the matter to the Inspector Gen- (c) The GSA Form 2689 is not required for acquisitions eral and should also refer the matter to the Suspension and with mandatory sources such as Federal Prison Industries, Debarment Official. Inc. and AbilityOne.

Subpart 519.4—Cooperation With the Small Acquisition at or below the Simplified Acquisition Business Administration Threshold (d) The GSA Form 2689 may also be used in place of a The AAOSBU is the focal point for interfacing with SBA. “Memo to File” for unrestricted acquisitions with a dollar Refer issues relating to small business programs through the value expected to exceed the micro-purchase threshold, but designated SBTA. not over the simplified acquisition threshold (SAT), if a determination is made that there is not a reasonable expectation of Subpart 519.5—Set-asides for Small obtaining offers from two or more responsible small business Business concerns that have competitive market price, quality, and delivery. The GSA Form 2689 does not require SBTA or SBA PCR review or signature for these acquisitions. 519.502 Setting aside acquisitions. (e) The GSA Form 2689 is not required for acquisitions at or below the Simplified Acquisition Threshold. 519.502-1 Requirements for setting aside acquisitions. (a) The contracting officer may make awards under the Acquisition expected to exceed the Simplified 8(a) Business Development Program (see FAR 19.8), or set Acquisition Threshold aside for the Historically Underutilized Business Zone (HUB- (f) The GSA Form 2689 is required for acquisitions Zone) Program (see FAR 19.13, Women-Owned Small Busi- expected to exceed the Simplified Acquisition Threshold ness (WOSB) Program (see FAR 19.15), or Service-Disabled (SAT) when: Veteran-Owned Small Business (SDVOSB) Procurement (1) A determination is made to set-aside for small busi- Program (see FAR 19.14). ness but not one of the small business programs specified in (b) Once a contracting activity acquires a product or ser- FAR 19.203 (8(a), HUBZone, WOSB, or SDVOSB) (SBA vice successfully on the basis of a set-aside, the activity must PCR may review; however, signature is not required); acquire all future requirements for that product or service (2) A determination is made to utilize full and open using set-aside procedures. If the contracting officer deter- competition; or mines that he or she no longer can reasonably expect to (3) Contract Bundling is contemplated (see FAR receive offers from at least two responsible small business 2.101). concerns and make awards at fair market prices, use the pro- (g) The GSA Form 2689 is required for orders against cedures in FAR 19.506 to withdraw or modify a set-aside. Multiple Award Schedule contracts (see FAR 38.101(e)), When market research reveals that any supplies or services orders placed under Indefinite-Delivery Contracts (see FAR from mandatory sources, such as Federal Prison Industries, 16.5), or Blanket Purchase Agreements under Multiple Award Inc. and AbilityOne, that were not available at the time of the Schedule contracts (see FAR 8.404) when:

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PART 519—SMALL BUSINESS PROGRAMS 519.502-70 (1) The acquisition is expected to equal or exceed the sources sought Federal Business Opportunity notice, PWS, dollar threshold identified in FAR 7.104(d)(2) and is not SOW, J&A etc). set-aside for small business; or (i) Contracting officer shall record his or her decision on (2) Contract Bundling is contemplated (see FAR GSA Form 2689. Submit the form to the SBTA for review. 2.101). (j) GSA Form 2689 Requirement Conditions. The follow- (h) Include all pertinent documents with the GSA Form ing chart is a reference to determine when the GSA Form 2689 to support the proposed acquisition strategy (i.e., 2689 is required for completion and submission. Dynamic Small Business Search results, responses to a

Threshold/Contract GSA Form 2689 and Submission Rationale Vehicle to the SBTA/SBA (1) Under the simplified acquisition threshold Not Required GSAM 519.502-70(d) (SAT) The GSA Form 2689 may be used in place of a “Memo to File” for unrestricted acquisitions to exceed the micro-purchase threshold, but not over SAT. The GSA Form 2689 does not require SBTA or SBA PCR review or signature for these acquisitions. (2) Acquisitions from mandatory sources such Not Required FAR 8.002(a)(1)(iv) (Supplies) and FAR as AbilityOne 8.002(a)(2)(i) (Services) FAR 19 set-aside procedures are not applicable. (3) Order/BPA against Multiple Award Required When GSAM 519.502-70(g) Schedule Applicable FAR 8.405-5(a)(1)(i) and (see 8 and 9 of this FAR 8.405-5(a)(1)(ii) chart) Set-aside is discretionary (4) Order against Indefinite-Delivery Contract Required When FAR 16.505(b)(2)(i)(F) Applicable Set-aside is discretionary (see 8 and 9 of this chart) (5) Over SAT and set-aside for 8(a), Not Required GSAM 519.502-70(f) and FAR 19.203(a) HUBZone, WOSB, or SDVOSB The GSA Form 2689 not required when an acquisition is set aside for 8(a), HUBZone, WOSB, or SDVOSB. There is no order of precedence among these programs. (6) Over SAT and set aside for small business, Required (SBA FAR 19.501(e) and FAR 19.203(c) but NOT set-aside for 8(a), HUBZone, PCR may review; WOSB, or SDVOSB For acquisitions above the simplified acquisi- however, signature tion threshold, the contracting officer shall first is not required) consider an acquisition for the small business socioeconomic contracting programs before considering a small business set-aside. (7) Over SAT and not set-aside (full and open Required GSAM 519.502-70(f) competition) If not to set-aside for small business, socioeconomic programs; or if contract bundling is contemplated. (8) (8)Acquisition meets established threshold Required GSAM 519.202-1 and FAR 7.104 for coordination with the SBS/SBTA and is not set-aside. Coordinate with SBTA and SBA for acquisitions expected to equal or exceed the established dollar threshold referenced in FAR 7.104(d)(2). (9) When contract bundling is contemplated. Required GSAM 519.202-1 and FAR 19.202-1

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519.503 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (k) Reviews and timeframes. a whole FSC set aside for exclusive small business participation on more than a one-time basis. If the item or group of items constitute only a small portion of an FSC, this definition If… Then… still applies. (1) The acquisition meets any one The SBTA provides a copy of (b) Determinations. If the contracting officer has procure- of the following conditions: the GSA Form 2689 to the (i) It will be a Multiple Award SBA representative for ment responsibility for the class of items or services involved, Schedule solicitation (see review. The SBTA and the prepare the determination required by FAR 19.503. The FAR 38.1) or an Indefinite SBA representative must determination can apply to either a total or partial set-aside. Delivery solicitation (see complete their review within FAR 16.5). 5 workdays after the SBTA 519.506 Withdrawing or modifying small business (ii) The estimated value does receives theForm, or request not exceed $50 million, an extension from the set-asides. including options. contracting officer. If the contracting officer and the SBTA disagree over the (iii) The contract will cover withdrawal or modification of a set-aside, the SBTA must only one region or notify the AAOSBU at the same time the matter is referred to designated locations in one the SBA PCR. region (at any dollar value). (2) The acquisition, excluding The SBTA provides a copy of 519.508 Solicitation provisions and contract clauses. Multiple Award Schedule the GSA Form 2689 to the Insert 552.219-70, Allocation of Orders—Partially contracts, meets one of the AAOSBU for review and Set-Aside Items, in solicitations and requirements type supply following conditions: comment on the decision. contracts that are partially set aside for small business. (i) The estimated value exceeds After the AAOSBU review, $50 million (including the SBTA submits the GSA options) and contract Form 2689 to the SBA Subpart 519.6—Certificates of Competency performance will occur in representative for review. All and Determinations of Responsibility two or more regions. reviews and comments must (ii) Based on political be completed within 10 sensitivity or importance to workdays after the SBTA 519.602 Procedures. GSA, the Associate receives the Form, or the Administrator for the Office SBTA must request a time 519.602-3 Resolving differences between the agency and of Small Business extension from the contracting the Small Business Administration. Utilization designates the officer. acquisition for review. (a) Within 5 business days after requesting the SBA Area (iii) The aquisition meets the Office to refer an intention to issue a Certificate of Compe- definition of a Bundled tency to SBA Headquarters for review, the contracting officer Contract FAR 7.107 and shall forward the information in paragraphs (a)(1) and (a)(2) FAR 2.101. of this subsection to the AAOSBU through your designated (l) Disagreements. If a reviewing official disagrees with SBTA. This period may be extended by mutual agreement. the contracting officer’s decision not to set-aside an acquisi- (1) Copies of all correspondence between GSA and tion, the SBTA must provide the contracting officer the ratio- SBA concerning the case. Include the initial referral notice of nale for the disagreement or provide the contracting officer nonresponsibility. with additional small business sources that are interested in (2) Copies of all technical documents sent to SBA (for and capable of fulfilling the requirement. Review and con- example, the solicitation, preaward surveys, or any abstract of sider any information provided by the SBTA before making a offers). Include any new information and a justification of the decision. contracting officer's decision to continue the appeal. (m) Resolving disagreements. The HCA, as delegated, in (b) After considering all the facts and conferring with the the applicable Central Office and/or Regional Service contracting officer, the AAOSBU will decide whether or not resolves disagreements between the contracting officer and to file a formal appeal. Before deciding whether or not to the SBTA. To resolve disagreements with the SBA represen- appeal, the AAOSBU must notify the contracting officer. tative, see FAR 19.505. (c) For decisions on cases over $25,000,000, the AAOSBU shall confer with the contracting activity before 519.503 Setting aside a class of acquisitions for small responding to SBA regarding either of the options in FAR business. 19.602-3(b)(1)(i) and (ii). (a) Definition. A class set-aside is an item (or service), a Subpart 519.7—The Small Business group of related items under a Federal Supply Class (FSC), or Subcontracting Program

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PART 519—SMALL BUSINESS PROGRAMS 519.705-3 519.700-70 Additional responsibilities. (2) Include justification documenting the rationale In addition to FAR 19.705 responsibilities, the contracting behind a determination of no subcontracting opportunities. officer's preaward responsibilities include: The contracting officer may use the justification provided by (a) Developing target goals for sealed bid solicitations the apparent successful offeror when practicable. (3) Obtain AAOSBU concurrence on the determination (b) Following FAR 15.306, conducting discussions with prior to contract award. individual offerors, as appropriate, concerning the subcontracting plans submitted for a negotiated solicitation. 519.705-3 Preparing the solicitation. (a) If an acquisition, excluding any multiple award sched- 519.702 [Reserved] ule contract, will cover two or more Regions and is estimated to exceed $50 million (including options): 519.705 Responsibilities of the contracting officer under (1) In addition to the SBA PCR, the contracting officer the subcontracting assistance program. shall provide the SBTA and OSBU a reasonable period of time (approximately 10 days) to review any solicitation 519.705-2 Determining the need for a subcontracting requiring submission of a subcontracting plan and to submit plan. advisory findings before issuing the solicitation. The con- (a) When the contracting officer calculates the applicable tracting officer shall ensure that evaluation criteria contained threshold, consider the actual or estimated value of the con- in the solicitation do not unnecessarily limit subcontracting tract for the entire term of the contract, including any option opportunities for small, HUBZone small, small disadvan- period(s). This also applies to schedule contracts and other taged, women-owned small, veteran-owned, and service-dis- indefinite delivery type contracts. Consider the estimated abled veteran-owned small business concerns. value of all orders expected to be placed during the term plus (2) For a negotiated acquisition, if the contracting offi- all options. cer believes that the acquisition provides substantial subcon- (b) FAR 19.705-2(d) permits the contracting officer to tracting opportunities, consider including the offeror’s require submission of subcontracting plans with initial offers subcontracting plan as an evaluation factor for award. This under a negotiated acquisition. The contracting officer must may be most appropriate in acquisitions when the contracting require all offerors (other than small business concerns) to officer expects individual plans or master plans. The contract- submit subcontracting plans with their initial offers when a ing officer should consult with his or her SBTA or regional negotiated acquisition meets all conditions: SBUC to obtain any needed assistance with developing sub- (1) The contracting officer anticipates receiving indi- contracting plan evaluation criteria before incorporating the vidual subcontracting plans (not commercial plans). plan into the solicitation as an evaluation factor. (2) The contracting officer will award on the basis of trade-offs among cost or price and technical and/or manage- Target goals in sealed bidding ment factors under FAR 15.101-1. (b) Unrealistic target goals tend to inhibit competition or (3) The acquisition is not a commercial item acquisi- increase acquisition costs if goals are too high. Target goals tion. that offer no challenge to potential contractors reflect poorly (4) The acquisition offers more than minimal subcon- on GSA’s commitment to ensure maximum practicable use of tracting opportunities. small, HUBZone small, small disadvantaged, women-owned (5) An offeror’s subcontracting plan is identified as an small, veteran-owned, and service-disabled veteran-owned evaluation factor in the solicitation. small business concerns as subcontractors. (c) Nothing in paragraph (b) above limits the contracting (c) In establishing target goals for sealed bid solicitations, officer’s ability to request subcontracting plans with initial the contracting officer should avoid using mechanical formu- offers under other negotiated acquisitions when he or she las or similar approaches that may be considered arbitrary. decides such action is appropriate under FAR 19.705-2(d). Reviewing historical performance by contractors performing For example, such action may be appropriate for multiple similar work is valid, but the contracting officer should con- award schedules where GSA may have responsibility for sider each solicitation independently in terms of the potential negotiating commercial plans. for subcontracting. Use as many information sources as prac- (d) Notify the AAOSBU after receipt of offers if the con- tical, including the contracting officer’s own knowledge of tracting officer determines that an apparent successful the supplies or services. Factors to consider in setting targets offeror’s proposal has no subcontracting opportunities. include: (1) Coordinate the notice through the contracting offi- (1) Manufacturing processes involved. cer's SBTA. (2) Availability and location of potential subcontractors.

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519.705-4 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (3) The basis for establishing subcontracting relation- (1) Remember that a positive goal is required to estab- ships. lish a gauge for measuring results and to provide an incentive (4) The diversity in prevailing economic conditions in for continuing efforts to increase the dollar value of subcon- the place of contract performance. tracts placed with small, HUBZone small, small disadvan- (d) If the contracting officer cannot establish realistic tar- taged, women-owned small, veteran-owned, and get goals, do not state specific targets in the solicitation. service-disabled veteran-owned small business concerns. (1) Establishing realistic target goals is likely to be a Carefully scrutinize any subcontracting category (e.g., small problem in contracting for supplies because the place of con- business, HUBZone small business, etc.) where the offeror tract performance may not be known prior to contract award. does not specify a goal and accept it only after assuring that (2) Even if the contracting officer can predict the area no subcontracting opportunities exist. If any category with no of contract performance because a particular industry is con- goal is accepted, the contracting officer must: centrated there, the diversity of manufacturing processes may (i) Document the file explaining why the goal was affect the amount of subcontracting and how subcontracting accepted; and relationships are established. For example, some manufactur- (ii) Ensure the subcontracting plan includes an ers may use formal teaming arrangements or long term rela- assurance that the contractor will make every effort to con- tionships versus nonrepetitive purchase orders. tinue seeking subcontracting opportunities in the category that lacks a goal. 519.705-4 Reviewing the subcontracting plan. (2) One measure of the adequacy of a subcontracting (a) The contracting officer should provide offerors a model plan is that it provides a challenge to the offeror and then subcontracting plan when determined appropriate, e.g., when builds upon previous achievements in subsequent contracts. it may facilitate evaluation or negotiation. The contracting (3) Include in the contract file a basis for determining officer may use the model plan developed by the Office of the subcontracting plan’s acceptability. Small Business Utilization (E) in Appendix 519A. Include (d) A contracting officer cannot tell the offeror what its the following notice on the transmittal, if providing a model goals must be. The contracting officer may tell the offeror in response to a single request, or in the solicitation, if includ- what GSA’s national goals are. Ensure that an offeror’s sub- ing it as an attachment: contracting plan reflects realistic goals and provides the maximum opportunity practicable to small, HUBZone small, Notice to Offerors: “GSA provides this model plan as a tool. The contracting officer must adapt this model plan to fit small disadvantaged, women-owned small, veteran-owned, the subcontracting situation. The plan is NOT a and service-disabled veteran-owned small business concerns fill-in-the-blank form and the contracting officer must remove to participate as subcontractors. If necessary, obtain informa- instructional language. This model does not establish mini- tion from the offeror to substantiate the offeror’s proposed mum requirements for an acceptable plan. The model reflects goals, past performance with respect to subcontracting, and objectives GSA encourages contractors to adopt. GSA expects offerors to thoroughly review the requirements set forth in the proposed good faith effort. This information may include FAR 19.704, Subcontracting Plan Requirements and FAR the names of proposed subcontractors and other such data. Clause 52.219-9, Small Business Subcontracting Plan before (e) When a contracting officer receives a subcontracting submitting their subcontracting plans.” plan with initial offers, provide an opportunity for the SBTA (b) Performance under other contracts is an indicator of an to review the subcontracting plans of those offers in the com- offeror’s understanding of the reasons for the law and benefits petitive range. Allow the SBTA 5 workdays for review. Con- of the program. sider the SBTA’s comments in developing a negotiation (1) If an offeror prepared a subcontracting plan for strategy. another contract, the contracting officer should contact the contracting officer responsible for administering the earlier Negotiating Goals and Other Aspects of Plans plan to determine if the offeror met the plan’s objectives and (f) For complex or large dollar value procurements, when submitted required reports in a timely manner. an offeror proposes miniscule or minimally acceptable goals (2) The contracting officer shall consider overall com- for small, HUBZone small, small disadvantaged, pliance in the evaluation, not just whether or not the offeror women-owned small, veteran-owned, and service-disabled met the goals established in the plan. veteran-owned small business concerns, the contracting offi- (3) Submission of timely reports is an indication the cer shall ensure that the offeror has included all subcontracts offeror takes its responsibilities seriously. that contribute to contract performance (see FAR (c) The contracting officer shall use the Subcontracting 52.219-9(d)(1)). Plan Evaluation Checklist at Appendix 519B and GSAM (g) The contracting officer shall develop a strategy for 519.7 to evaluate an offeror's subcontracting plan. negotiating the subcontracting plan and goals just as you would for negotiating a contract. Be forceful in negotiating

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PART 519—SMALL BUSINESS PROGRAMS 519.705-5 the subcontracting plan and, whenever possible, offer recom- tracts awarded during the company’s same fiscal year and mendations for subcontracting potential with small, HUB- incorporating the previously approved commercial plan will Zone small, small disadvantaged, women-owned small, only require the submission of the Summary Subcontract veteran-owned, and service-disabled veteran-owned small Report submitted at the end of the Government’s fiscal year. business concerns. The contracting officer should suggest (k) If the commercial plan was approved by another organizations the offeror may contact to identify potential agency, the first GSA contracting officer entering into a con- sources. For example, offerors may contact any of the follow- tract with the company during the company’s same fiscal year ing: in which the plan was approved, requires the contractor to (1) Local SBA offices. These can provide an offeror submit the SSR report and monitors receipt of the report. GSA assistance in accessing the System for Award Management requires no other monitoring or evaluation of this plan. (SAM) (www.sam.gov) database to conduct market research and confirm the eligibility for SBA’s procurement preference 519.705-5 Awards involving subcontracting plans. programs. (a) Subcontracting plans requiring SBTA and SBA PCR (2) Department of Commerce, Minority Business review. Development Agencies (MBDAs) at http://www.mbda.gov. (1) For each contract that requires a subcontracting (3) GSA SBUCs and SBTAs, as well as OSBU. plan, the contracting officer will submit electronically the (4) State, county, and city government minority busi- apparent successful offeror’s subcontracting plan to the ness offices. SBTA who will coordinate review by the SBA PCR. When (5) Small, minority, women-owned, and veteran busi- the contracting officer makes multiple awards under a solici- ness associations at www.gsa.gov/smallbusiness. tation, electronically submit the subcontracting plans of all (6) Local chambers of commerce. apparent successful offerors. (7) Trade associations, professional organizations, and (i) Except as noted in paragraph (b) of this section, Procurement Technical Assistance Centers. provide the SBTA an electronic copy of the plan at least 5 (8) Department of Veterans Affairs for assistance in workdays before the anticipated award date. identifying Service Disabled Veteran-Owned Small (ii) Consider any recommendations the SBTA or Businesses (SDVOSBs) and Veteran-Owned Small SBA PCR provides about whether to accept or reject a sub- Businesses (VOSBs) at www.vetbiz.gov. contracting plan. In the case of an unresolved disagreement, (9) Dynamic Small Business Search (DSBS) at http:// notify the AAOSBU and consider any subsequent advice the dsbs.sba.gov. AAOSBU provides. Document the final decision in the con- (h) In developing a negotiation strategy, the contracting tract file. officer shall consider whether the offeror’s plan is realistic (iii) If the contracting officer does not receive and does more than merely restate the elements required by review comments from the SBTA within 5 workdays, the con- FAR clause 52.219-9 and shall question aspects of the plan tracting officer shall document the file and continue with the that do not appear to be realistic or do not demonstrate a seri- award process (see FAR 19.705-5(a)(3)). ous attempt to address requirements. (b) Subcontracting plans requiring AAOSBU review. (1) The AAOSBU (through the contracting officer’s Commercial plans designated SBTA or Regional SBUC) will review the SBTA’s (i) Contracting officers shall obtain from the contractor and SBA PCR's recommendations for contracts that meet copies of any commercial plan for the company’s current fis- either of these conditions: cal year and approval document from another GSA contract- (i) Contract performance will occur in two or more ing activity or another Federal agency. Incorporate these Regions and the estimated value of the acquisition exceeds documents into the contract. $50 million (including options), excluding multiple award (j) If GSA is the first agency to enter into a contract with a schedule contracts. company during the company’s fiscal year, the contracting (ii) Based on political sensitivity or importance to officer must approve the commercial plan on behalf of the GSA, the AAOSBU designates the procurement for review. Federal Government, acknowledge receipt of the Summary (2) The contracting officer shall provide the SBTA an Subcontract Report (SSR), accept or reject the SSR in the electronic copy of the plan at least 10 days before the antici- Electronic Subcontracting Reporting System (eSRS), and pated award date. The SBTA and SBA PCR have 5 workdays evaluate compliance with the approved commercial plan. If to review and comment on the plan, and the AAOSBU contract administration is delegated, the Administrative Con- (through the contracting officer’s designated SBTA or tracting Officer (ACO) generally is assigned responsibility Regional SBUC) has 5 workdays to review their recommen- for accepting or rejecting the SSR and evaluating compliance dations and respond. All reviews must be completed in 10 with the approved commercial plan. Subsequent GSA con- workdays unless the contracting officer grants an extension.

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519.705-5 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (3) The contracting officer shall consider any recom- Use the Summary Subcontract Report (SSR) to report total mendations the SBTA, SBA PCR, or AAOSBU provides subcontracting activity under all of your GSA contracts. Sub- about whether to accept or reject a subcontracting plan. Doc- mit the report annually for the period October 1-September 30 (the Government fiscalyear). The report is due on or before ument the final decision in the contract file. October 30th of each year. A new reporting cycle begins Octo- (4) If the contracting officer does not receive review ber 1st of each year. Include the Contracting Officer (CO), comments from the SBTA (inclusive of AAOSBU review) Administrative Contracting Officer (ACO), the Small Business within 10 workdays, the contracting officer shall document Administration (SBA) Commercial Market Representative the file and continue with the award process (see FAR (CMR), the Small Business Technical Advisor (SBTA), and GSA's Subcontracting Plan Program Manager in the email dis- 19.705-5(a)(3)). tribution when submitting the ISR and SSR via eSRS. (c) Notification letter for individual subcontracting plans. (1) The contracting officer shall approve the subcon- [Insert address of contracting office administering the contract], with a copy to: [insert address of SBTA in Region or Central tracting plan as part of the award. After approval of an indi- Office service where contract was awarded]. vidual subcontracting plan, using FORMAT A in paragraph (c) of this section, the contracting officer shall electronically (d) Notification letter for commercial plans. send a notification letter to the contractor confirming the sub- (1) The contracting officer shall approve the commer- contracting plan effective dates and when a new or updated cial plan as part of the award. After approval of a commercial plan will be required. The contracting officer shall also plan, using FORMAT B in paragraph (d) of this section, elec- inform the contractor of the reporting requirements and due tronically send a notification letter to the contractor informing dates for submitting their Individual Subcontract Report them of requirements and due dates for submitting the SSR (ISR) and Summary Subcontract Report (SSR) through the via eSRS and confirm the subcontracting plan effective dates eSRS. and when a new or updated plan will be required. (2) The contracting officer shall send the letter electron- (2) Send the letter with the award package or as soon as ically with the award package or as soon as practicable after practicable after award. award. FORMAT B FORMAT A Name Address Name City, State, Zip Code Address City, State, Zip Code Re: Approved Subcontracting Plan and Required Reports for Contract Re: Approved Subcontracting Plan and Required Reports for Contract No. : No. : Dear : Dear : Your individual subcontracting plan submitted for the sub- Your commercial plan, submitted in connection with the ject contract has been approved for the base period [insert MM/ subject contract has been approved for the period of [insert DD/YY through MM/DD/YY] with goals that are subject to MM/DD/YY through MM/DD/YY], by [insert name, address, revision for each remaining option period (if any). and telephone number of approving official]. You must submit your Summary Subcontract Report (SSR) via eSRS. The SSR You must submit subcontracting reports through the Elec- is an annual report due on or before October 30th of each year. tronic Subcontracting Reporting System (www.esrs.gov) using The reporting period is October 1-September 30, i.e., the Gov- the Individual Summary Report (semi-annually) and the Sum- ernment fiscal year. The report should summarize subcontract- mary Subcontract Report (annually). ing activity under all contracts awarded during the current fiscal year that are covered by this commercial plan. Use the Individual Summary Report (ISR) to report cumu- If at any time during contract performance you are unable lative subcontracting activity under this contract. Submit the to identify capable small, HUBZone small, small disadvan- report semiannually by April 30 for the reporting period Octo- taged, women-owned small, veteran-owned small and ser- ber 1-March 31 and by October 30 for the reporting period vice-disabled veteran-owned small business concerns, please April 1-September 30. A separate report is required at contract contact the Office of Small Business Utilization by telephone completion. If requested by the Contracting Officer, you must at (202) 501-1021. furnish the name and size status of your subcontractor(s), and In addition, please include the SBA Commercial Market the dollar amount of the subcontract(s). Representative (CMR) in the email distribution on the SSR in eSRS, [insert email address of contracting office administering the contract]. Sincerely, Contracting Officer.

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PART 519—SMALL BUSINESS PROGRAMS 519.706 519.705-6 Postaward responsibilities of the contracting (c) Funds withheld from payments. If funds to collect liq- officer. uidated damages are withheld from payments due, the funds In addition to responsibilities described in FAR 19.705-6, may be returned to the applicable GSA account along with the contracting officer must give the SBA Area Director, other funds that were obligated but not expended. If a com- SBTA and OSBU a copy of the notice of award and the suc- mercial plan is involved, or if all payments have been made cessful offeror's subcontracting plan within five work days of under a contract with an individual contract plan, instruct the contract award or contract modification when applicable. The contractor to submit a check to GSA. The GSA Office of notice of award must contain all the following: Finance will transfer the funds to the Treasury Department for (a) Contractor’s name, address, and phone number. deposit in the general receipts account. (b) Subcontracting plan administrator’s name, address, (d) The contracting officer shall submit to the SBTA his or and phone number. her final decision assessing liquidated damages. (c) Contract number. (d) Place of performance. 519.706 Responsibilities of the cognizant administrative (e) Dollar amount of contract award. contracting officer. (f) Period of contract performance. (a) If an ACO administers a contract with an individual (g) Description of items/services (including FPDS Prod- subcontracting plan, the ACO must also monitor receipt of uct/Service Code). and accept or reject the ISRs in eSRS. (h) Contracting Officer’s name, address, and phone num- (b) On all contracts with a subcontracting plan (individual ber. or commercial), the ACO must monitor receipt of the SSRs. (i) Administrative contracting office address and phone ACO must monitor receipt of the SSR in eSRS, and the, Con- number. tracting Officers will review the reports to ensure they are (j) Type of plan and dates that plan will cover. submitted timely and accurately. (k) Approved goals stated both as percentages of total sub- (c) Contracting officers shall review reports for progress in contracting planned and in dollars. meeting subcontracting goals by comparing the applicable (l) A notation, “Awarded under the Energy Policy Act report with the approved plan. If percentage goals are not met, of 1992”, if the contract will be used to measure GSA the contracting officer shall require the contractor to explain achievements under Section 3021 of the Energy Policy Act the shortfall in the “Remarks” block of the subcontracting of 1992. report. The ACO may also require the contractor to submit evidence of its outreach efforts to locate and provide subcon- 519.705-7 Liquidated damages. tracting opportunities to small business, HUBZone small (a) Initial assessment. The contracting officer shall pro- business, small disadvantaged business, women-owned vide the SBTA an information copy of his or her initial assess- small, veteran-owned small, and service-disabled vet- ment that the contractor did not make a good faith effort to eran-owned small business concerns. comply with the plan. (d) If the ISR or SSR has not been received by the due date, (b) Final decision. Before making a final decision, the the contracting officer shall contact the contractor and request contracting officer shall consider all pertinent available infor- that the report be submitted immediately. For contracts with mation including the contractor’s response, if any, to the con- individual subcontracting plans, the contracting officer shall tracting officer’s notification letter required by FAR 19.705-7 pay particular attention to the final ISR required at contract that the contractor did not comply with the plan. Document completion. Contracting officers shall issue to contractors the contracting officer’s decision in a “final decision”, which who do not respond to the first notice a second notice by cer- is appealable by the contractor under the “Disputes” clause of tified mail indicating that: the contract. Provide the SBTA a copy of the contracting offi- (1) The named report has not been received. cer’s final decision assessing liquidated damages. In addition (2) The contractor’s failure to submit the report is a to the FAR provisions, include in the final decision letter: material breach of its contract (see FAR 52.219-9, Small (1) A description of the contractor’s failure. Business Subcontracting Plan). (2) Reference to the appropriate contract terms. (3) If the report is not received within 10 days from the (3) A statement of the factual areas of agreement and date of the notice, the ACO will consider withholding pay- disagreement. ments until the report is received or terminating the contract (4) A statement of the contracting officer’s decision for default. To ensure that the facts support a termination for with supporting rationale. default, the notice shall provide the contractor with the oppor- (5) A demand for liquidated damages. tunity to show cause why the contract should not be termi- (6) An explanation of the contractor’s appeal rights. nated for default.

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519.708 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Note: These statements do not apply to leases of real prop- must acquire all future requirements for that product or ser- erty, unless the terms of the lease expressly provide for with- vice using 8(a) set-aside procedures. holding of payment or termination under this circumstance. (1) However, the availability of Federal Prison Indus- (4) Failure to submit the report may affect the contrac- tries, Inc. and Nonprofit Agencies Employing People Who tor’s ability to receive future awards from GSA (see FAR Are Blind or Severely Disabled (AbilityOne), and other man- 9.104-3(b) and willful failure to perform or a history of failure datory sources, which may not have existed at the time of the to perform may result in debarment from future contracting original requirement are sufficient reason to discontinue set- with the Government for a period of time (see FAR ting aside a continuing requirement. 9.406-2(b)). (2) If the contracting officer determines that acquiring (5) The ISR and SSR shall be submitted through eSRS. the product or service as an 8(a) set-aside is no longer in the Government’s best interest, use the procedures in FAR 19.506 519.708 Contract clauses. to withdraw a repetitive set-aside. 519.708-70 Solicitation provisions. 519.803-71 Withdrawing or modifying 8(a) set-asides. Insert the following provisions as directed: If the contracting officer and the SBTA disagree over the (a) 552.219-71, Notice to Offerors of Subcontracting Plan withdrawal or modification of a set-aside, the SBTA must Requirements, on the cover page of solicitations containing notify the AAOSBU at the same time the matter is referred to the clause at FAR 52.219-9, Small Business Subcontracting the SBA PCR. Plan. (b) 552.219-72, Preparation, Submission, and Negotiation 519.870 Direct 8(a) contracting. of Subcontracting Plans, in solicitations requiring submission of the subcontracting plan with initial offers. 519.870-1 Authority and applicability. (c) 552.219-73, Goals for Subcontracting Plan as follows: (a) In accordance with FAR 19.800(f), GSA obtained a (1) Use the basic provision in sealed bid solicitations delegation from SBA permitting direct 8(a) contracting as containing FAR 52.219-9 if you are able to establish realistic documented through GSA’s Partnership Agreement. The cur- target goals. rent Partnership Agreement is located on the GSA internal (2) Use Alternate I in: website at https://insite.gsa.gov/portal/category/529822. The (i) Sealed bid solicitations if you cannot establish Partnership Agreement includes the current terms and condi- target goals. tions. (ii) Negotiated solicitations that include (b) This authority applies to all 8(a) acquisitions con- FAR 52.219-9, but do not include 552.219-72. ducted by GSA. It does not apply to the multiple award schedule program. Subpart 519.8—Contracting With the Small 519.870-8 Contract clauses. Business Administration (The 8(a) Program) (a) Insert the following clauses in solicitations, contracts, and orders issued under the MOU: 519.803 Selecting acquisitions for the 8(a) program. (1) Insert the clause at 552.219-74, Section 8(a) Direct Award. 519.803-70 Contracting officer evaluation of (2) Insert the clause at FAR 52.219-14, Limitation on recommendations for 8(a) set-aside(s). Subcontracting. (a) If the contracting officer disagrees with a recommen- (3) Insert the clause at FAR 52.219-18, Notification of dation by the AAOSBU or the SBTA to set aside a procure- Competition Limited to Eligible 8(a) Concerns. Substitute the ment for award under the 8(a) program, discuss the matter paragraph below for paragraph (c) of the clause. Add the word with the official who made the recommendation. “Deviation” at the end of the clause title. (b) If the contracting officer decides not to award the con- “(c) Any award resulting from this solicitation will tract under the 8(a) program, forward a copy of the documen- be made directly by the Contracting Officer to the successful tation required by FAR 19.202-1(e)(4) to the SBTA within 10 8(a) offeror selected through the evaluation criteria set forth working days. in this solicitation.” (c) Once a contracting activity acquires a product or ser- (b) Do not use the clauses at FAR 52.219-11, Special vice successfully on the basis of an 8(a) set-aside, the activity 8(a) Contract Conditions, FAR 52.219-12, Special 8(a) Subcontract Conditions, or FAR 52.219-17, Section 8(a) Award.

519-10 PART 519—SMALL BUSINESS PROGRAMS 519.7002 Subpart 519.10—[Reserved] Subpart 519.13—[Reserved]

Subpart 519.11—[Reserved] Subpart 519.14—[Reserved]

Subpart 519.12—Small Disadvantaged Subpart 519.70—GSA Mentor-Protégé Business Participation Program Program

519.1201 General. 519.7001 Scope of subpart. A solicitation may separately contain source selection The GSA Mentor-Protégé Program is designed to encour- evaluation factors or subfactors for small and women-owned age and motivate GSA prime contractors to assist small busi- small business concerns. However, any factor or subfactor for nesses concerns, small disadvantaged businesses concerns, SDB concerns must comply with FAR 19.12 and this subpart. women-owned small businesses concerns, veteran-owned 519.1202 Evaluation factor or subfactor. small business concerns, service-disabled veteran-owned small businesses concerns, and HUBZone small businesses 519.1202-2 Applicability concerns, and enhance their capability of performing success- In addition to the exceptions in FAR 19.1202-2, do not fully on GSA contracts and subcontracts, foster the establish- evaluate the extent of participation of SDB concerns in per- ment of long-term business relationships between these small formance of multiple award schedule contracts when all fair business entities and GSA prime contractors, and increase the and reasonable offers from responsible sources are accepted. overall number of small business entities that receive GSA contract and subcontract awards. 519.1202-4 Procedures. An offeror may receive credit under the evaluation factor 519.7002 Definitions. only for proposed SDB participation by a prime contractor, The definitions of small business concern, small disadvan- joint venture partner, teaming arrangement member, or sub- taged business concern, HUBZone small business concern, contractor in the authorized North American Industry Classi- women-owned small business concern, veteran-owned small fication System (NAICS) Industry Subsectors. business concern, and service-disabled veteran-owned small business concern are the same as found in FAR 2.101. Also 519.1203 Incentive subcontracting with small see 13 CFR 121, 124, 125 and 126. disadvantaged business concerns. (a) “Mentor” as used in the GSA Mentor-Protégé Program, (a) To include monetary incentives in a contract under is a prime contractor that elects, on a specific GSA contract, FAR 19.1203, you must have funds available for the incen- to promote and develop small business subcontractors by pro- tives and obligate these at the time of contract award. viding developmental assistance designed to enhance the (b) Do not provide for monetary incentives under business success of the protégé. FAR 19.1203 in a contract that includes an award fee. (b) “Mentor-Protégé Program Manager” means an employee in the Office of Small Business Utilization (OSBU) (E) designated by the Associate Administrator of OSBU to manage the Mentor-Protégé Program. (c) “Protégé” as used in the GSA Mentor-Protégé Program is a small business concern that is the recipient of developmental assistance pursuant to a mentor-protégé arrangement on a specific GSA contract.

519-11 519.7003 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

519.7003 General Policy. (1) Contracting officers may evaluate proposals with (a) A large business prime contractor that meets the subcontracting plans containing Mentor-Protégé Agreements requirements at section 519.7006, and is approved as a mentor more favorably than proposals with subcontracting plans that firm by the Mentor-Protégé Program Manager, may enter into do not include Mentor-Protégé Agreements; and an Agreement with a small business concern, small disadvan- (2) Contracting officers may assess the prime contrac- taged business concern, women-owned small business con- tor's compliance with the subcontracting plans submitted in cern, veteran-owned small business concern, service-disabled previous contracts as a factor in evaluating past performance veteran-owned small business concern or HUBZone small under certain circumstances (see FAR 15.304(c)(3) and business concern that meets the requirements for being a 15.305(a)(2)(v)) and determining contractor responsibility protégé (see 519.7007) in order to provide appropriate devel- FAR section 19.705-5(a)(1). opmental assistance to enhance the capabilities of the protégé (d) OSBU Mentoring Award. A non-monetary award may to perform successfully as a subcontractor and supplier. be presented annually to the mentoring firm providing the (b) A small business prime contractor that is capable of most effective developmental support of a protégé. The Men- providing developmental assistance to protégés, may also be tor-Protégé Program Manager will recommend an award win- approved as a mentor. ner to the Administrator of GSA. (c) An active mentor-protégé arrangement requires the (e) OSBU Mentor-Protégé Annual Conference. At the protégé to either be a current or newly selected subcontractor conclusion of each year in the Mentor-Protégé Program, men- under the mentor’s prime contract with GSA. tor firms will be invited to brief contracting officers, program (d) A small business concern’s status as a protégé under leaders, office directors, and other guests on their experience a GSA contract shall not have an effect on its ability to seek and progress under the Program. Participation is voluntary. other prime contracts or subcontracts. (e) Potential Mentors may submit an application for admittance to the Mentor-Protégé Program at any time as long 519.7005 Measurement of program success. as the requirements at section 519.7006 are met. The overall success of the GSA Mentor-Protégé Program (f) The determination of affiliation is a function of the encompassing all participating mentors and protégés will be SBA. measured by the extent to which it results in: (a) An increase in the number, dollar value, and percentage 519.7004 Incentives for prime contractors. of subcontracts awarded to protégés by mentor firms under (a) Under the Small Business Act, 15 U.S.C. 637(d)(4)(E), GSA contracts since the date of entry into the Program. The the GSA is authorized to provide appropriate incentives to baseline that demonstrates an increase is determined by com- prime contractors in order to encourage subcontracting oppor- paring the number and total dollar amount of subcontract tunities for small business concerns consistent with the effi- awards made to the identified protégé firm(s) during the two cient and economical performance of the contract. This preceding fiscal years (if any) that are listed in application; authority is limited to negotiated procurements, including the (b) An increase in the number and dollar value of contract GSA Multiple Award Schedule contracts and the GSA Gov- and subcontract awards (including percentage of subcontract ernmentwide Acquisition Contracts. It does not include awards) to protégé firms since the date of the protégé’s entry orders under any GSA contracts. into the Program (under GSA contracts and contracts awarded (b) Costs incurred by a mentor to provide developmental by other Federal agencies); assistance, as described in section 519.7012 to fulfill the terms (c) An increase in the number and dollar value of subcon- of their agreement(s) with a protégé firm(s), are not reimburs- tracts awarded to a protégé firm by its mentor firm; and able as a direct cost under a GSA contract. If GSA is the men- (d) An increase in subcontracting with protégé firms in tor’s responsible audit agency under FAR 42.703-1, GSA will industry categories where they have not traditionally partici- consider these costs in determining indirect cost rates. If GSA pated within the mentor firm’s activity (i.e., the protégé is is not the responsible audit agency, mentors are encouraged to expanding its field of expertise or is increasing its opportuni- enter into an advance agreement with their responsible audit ties in areas where it has not traditionally performed). agency on the treatment of such costs when determining indi- (e) Assessments of the semi-annual reports submitted by rect cost rates. the mentors and “Lessons Learned” evaluation submitted by (c) In addition to paragraph (b) of this section, contracting the mentors and protégés to the GSA Mentor-Protégé Pro- officers may give mentors evaluation credit during the source gram Manager. selection process for subcontracts awarded under their subcontracting plans pursuant to their Mentor-Protégé Agree- ments. (See FAR 15.101-1). Therefore:

519-12 PART 519—SMALL BUSINESS PROGRAMS 519.7009

519.7006 Mentor firms. 519.7008 Selection of protégé firms. (a) Mentors must be: (a) Mentor firms will be solely responsible for selecting (1) A large business prime contractor that is currently protégé firms. Mentors are encouraged to select from a broad performing under an approved subcontracting plan as base of small business concerns including small disadvan- required by FAR 19.7 - Small business mentors are exempted; taged business concerns, women-owned small business con- or cerns, veteran-owned small business concerns, (2) A small business prime contractor that can provide service-disabled veteran-owned small business concerns, and developmental assistance to enhance the capabilities of HUBZone small business concerns. A protégé must be either protégés to perform as contractors, subcontractors, and sup- a current subcontractor or a newly selected subcontractor for pliers; the prime contractor’s GSA contract. (b) Must be eligible (not listed in the “Excluded Parties (b) Mentor firms may have more than one protégé. GSA List System”) for U.S. Government contracts and not reserves the right to limit the number of protégés participating excluded from the Mentor-Protégé Program under section under each mentor firm. 519.7014(b); (c) The selection of protégé firms by mentor firms is not (c) Must be able to provide developmental assistance that protestable, except for a protest regarding the size or eligibil- will enhance the ability of protégés to perform as contractors ity status of an entity selected by a mentor to be a protégé. and subcontractors; and Such protests shall be handled in accordance with FAR (d) Must provide semi-annual reports detailing the assis- 19.703(b). The contracting officer shall notify the Office of tance provided and the cost incurred in supporting protégés. Small Business Utilization (OSBU) of the protest.

519.7007 Protégé firms. 519.7009 Application process. (a) For selection as a protégé, a firm must be: (a) Prime contractors interested in becoming a mentor firm (1) A small business concern, small disadvantaged must apply in writing by submitting the GSA Form 3695 to business concern, veteran-owned small business concern, ser- the GSA Mentor-Protégé Program Manager, at GSA Office of vice-disabled veteran-owned small business concern, HUB- Small Business Utilization (E), Washington, DC 20405. The Zone small business concern, or women-owned small Application shall include the Mentor-Protégé Agreement and business concern; will be evaluated for approval based on the extent to which the (2) Small for the NAICS code the prime contractor/ company plans to provide developmental assistance. mentor assigns to the subcontract; and (b) The application must contain: (3) Eligible (not listed in the “Excluded Parties List (1) A statement that the mentor firm is currently per- System”) for U.S. Government contracts and not excluded forming under at least one active approved subcontracting from the Mentor-Protégé Program under section 519.7014(b). plan (small business exempted) and the firm is eligible, as of (b) A protégé firm may self-represent to a mentor firm that the date of Application, for the award of Federal contracts; it meets the requirements set forth in paragraph (a) of this sec- (2) The number of proposed protégé arrangements; tion. Mentors may check the Central Contractor Registration (3) Data on all current GSA contracts, and subcontracts (CCR) at www.ccr.gov to verify that the self-representation of including the contract/subcontract number(s), type of con- the potential protégé meets the specified small business and tract(s), period of performance (including options), contract/ socioeconomic category eligibility requirements (see FAR subcontract value(s) including options, technical program 19.703(b) and (d)). HUBZone and small disadvantaged busi- effort(s) (program title), name of GSA Project Manager or ness status eligibility and documentation requirements are Contracting Officer’s Representative (including contact determined according to 13 CFR Parts 124 and 126. information), name of contracting officer(s) and contact infor- (c) A protégé firm must not have another formal, active mation, and awarding GSA installation; mentor-protégé relationship under GSA’s Mentor-Protégé (4) Data on total number and dollar value of subcon- Program but may have an active mentor-protégé relationship tracts awarded under GSA prime contracts within the past 2 under another agency’s program. years and the number and dollar value of such subcontracts awarded to entities who are proposed protégés;

519-13 519.7010 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

(5) Information on the proposed types of developmental (j) Plan for accomplishing contract work should the Men- assistance. For each proposed mentor-protégé relationship tor-Protégé Agreement be terminated or a party excluded include information on the company’s ability to provide under 519.7014(b). The mentor’s prime contract with GSA developmental assistance to the identified protégé firm and continues even if the Mentor-Protégé Agreement or the Men- how that assistance will potentially increase subcontracting tor-Protégé Program is discontinued. opportunities for the protégé firm, including subcontracting (k) The protégé must agree to provide input into the mentor opportunities in industry categories where these entities are firm’s semi-annual reports (see 519.7015). The protégé must not dominant in the company’s current subcontractor base; submit a “Lessons Learned” evaluation along with the mentor and firm at the conclusion of the Mentor-Protégé agreement. (6) Agreement information as listed in 519.7010. (1) Other terms and conditions as specified by the Men- tor-Protégé Manager on a case-by-case basis. 519.7010 Agreement contents. The contents of the Agreement must contain: 519.7011 Application review. (a) Names, addresses (including facsimile, e-mail, and (a) The Mentor-Protégé Program Manager will review the homepage) and telephone numbers of mentor and protégé information specified in section 519.7009(b) and 519.7010 to firms and the name, telephone number, and position title establish the Mentor’s and Protégé’s eligibility and to ensure within both firms of the person who will oversee the Agree- all necessary information is included. If the application ment. relates to a specific contract, then the Mentor-Protégé Pro- (b) An eligibility statement from the protégé stating that it gram Manager will consult with the applicable contracting is a small business, its primary NAICS code, and when appli- officer regarding the adequacy of the proposed Agreement, as cable the type of small business (small disadvantaged busi- appropriate. The Mentor-Protégé Program Manager will ness concern, HUBZone small business concern, complete its review no later than 30 days after receipt of the women-owned small business concern, veteran-owned small application. The contracting officer must provide feedback to business concern, or service-disabled veteran-owned small the Program Manager no later than 10 days after receipt of the business concern). application. (c) A description of the type of developmental assistance (b) After the Mentor-Protégé Program Manager completes that will be provided by the mentor firm to the protégé firm its review and provides written approval, the Mentor may exe- (see 519.7012). cute the Agreement and implement the developmental assis- (d) Milestones for providing the identified developmental tance as provided under the Agreement. The Mentor-Protégé assistance. Program Manager will provide a copy of the Mentor-Protégé (e) Factors to assess the protégé firm’s developmental Agreement to the GSA contracting officer for any GSA con- progress under the Program. tracts affected by the Agreement. (f) The anticipated dollar value and type of subcontracts (c) The Agreement defines the relationship between the that may be awarded to the protégé firm consistent with the Mentor and the Protégé firms only. The Agreement itself does extent and nature of mentor firm’s business, and the period of not create any privity of contract or contractual relationship time over which they may be awarded. between the Mentor and GSA nor the Protégé and GSA. (g) Program participation term: State the period of time (d) If the Agreement is disapproved, the Mentor may pro- over which the developmental assistance will be performed. vide additional information for reconsideration. The Men- (h) Mentor termination procedures: Describe the proce- tor-Protégé Program Manager will complete the review of any dures applicable to the mentor firm when notifying the supplemental information no later than 30 days after its Protégé firm, in writing and at least 30 days in advance, of the receipt. Upon finding deficiencies that GSA considers cor- mentor firm’s intent to voluntarily withdraw its participation rectable, the Mentor-Protégé Program Manager will notify the in the Program, or to terminate the Agreement. Mentor and Protégé and request correction of the deficiencies (i) Protégé termination procedures: Describe the proce- to be provided within 15 days. dures applicable to the protégé firm when notifying the mentor firm, in writing at least 30 days in advance, of the protégé firm’s intent to terminate the Mentor-Protégé Agreement.

519-14 519.7012 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

519.7012 Developmental assistance. (2) GSA may rescind approval of an existing Men- The forms of developmental assistance a mentor can pro- tor-Protégé Agreement if it determines that such action is in vide to a protégé include: GSA’s best interest. The rescission shall be in writing and sent (a) Management guidance relating to— to the Mentor and protégé after approval by the Director of (1) Financial management; OSBU. Rescission of an Agreement does not change the (2) Organizational management; terms of any subcontract between the Mentor and the Protégé. (3) Overall business management/planning; and (3) Exclusion from the Program does not constitute a (4) Business development. termination of the subcontract between the mentor and the (b) Engineering and other technical assistance. protégé. (c) Loans. (4) (d) Rent-free use of facilities and/or equipment. (e) Temporary assignment of personnel to the protégé for 519.7015 Reports. purpose of training. (a) Semi-annual reports shall be submitted by the mentor (f) Any other types of developmental assistance approved to the GSA Mentor-Protégé Program manager to include by the GSA Mentor-Protégé Program Manager. information as outlined in section 552.219-76(c). (b) Protégés must agree to provide input into the mentor 519.7013 Obligation. firm’s semi-annual reports detailing the assistance provided (a) The mentor or protégé may terminate the Agreement in and goals achieved since agreement inception. However, for accordance with 519.7010. The mentor will notify the Men- cost reimbursable contracts, costs associated with the prepa- tor-Protégé Program Manager and the contracting officer, in ration of these reports are unallowable costs under these Gov- writing, at least 30 days in advance of the mentor firm’s intent ernment contracts and will not be reimbursed by the to voluntarily withdraw from the Program or to terminate the Government. Agreement, or upon receipt of a protégé’s notice to withdraw (c) The GSA contracting officer, or if applicable the tech- from the Program. nical program manager, shall include an assessment of the (b) Mentor and protégé firms will submit a “Lessons prime contractor’s (mentor’s) performance in the Mentor-Pro Learned” evaluation to the GSA Mentor-Protégé Program tégé Program in a quarterly “Strengths and Weaknesses” eval- Manager at the conclusion or termination of each Men- uation report. A copy of this assessment will be provided to tor-Protégé Agreement or withdrawal from the Men- the Mentor-Protégé Program Manager and to the mentor and tor-Protégé program. protégé.

519.7014 Internal controls. (a) The GSA Mentor-Protégé Program Manager will man- 519.7016 Program review. age the Program. Internal controls will be established by the At the conclusion of each year in the Mentor-Protégé Pro- Mentor-Protégé Program Manager to achieve the stated Pro- gram (anniversary date of the Mentor-Protégé Program), the gram objectives (by serving as checks and balances against prime contractor and protégé, as appropriate, will formally undesired actions or consequences) such as: brief the GSA Mentor-Protégé Program Manager, the techni- (1) Reviewing and evaluating mentor Applications for cal program manager, and the contracting officer regarding realism, validity and accuracy of provided information; Mentor-Protégé Program accomplishments pertaining to the (2) Monitoring each Mentor-Protégé Agreement by approved Agreement. reviewing semi-annual progress reports submitted by mentors and protégés on protégé development to measure protégé 519.7017 Contract clauses. progress against the master plan contained in the approved (a) The contracting officer shall insert the clause at Agreement; 552.219-75, GSA Mentor-Protégé Program, in all unre- (3) Monitoring milestones in the Agreement (see stricted solicitations (not set aside) and contracts that exceed 519.7010); and the simplified acquisition threshold that offer subcontracting (4) Evaluating “Lessons Learned” submitted by the opportunities or in the case of a small business, that can offer Mentor and the Protégé as required by section 519.7013 to developmental assistance to a small business protégé. improve the GSA Mentor-Protégé Program. (b) The contracting officer shall insert the clause at (b) (1) GSA has the authority to exclude mentor or protégé 552.219-76, Mentor Requirements and Evaluation, in con- firms from participating in the GSA Program. tracts anticipated to exceed the simplified acquisition threshold where the prime contractor has signed a Mentor-Protégé Agreement with GSA.

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519-16 CHANGE 54 MARCH 26, 2012

Appendix 519A—Small Business Subcontracting Plan Outline (Model) Appendix 519A—Small Business Subcontracting Plan Outline (Model)

Small Business Subcontracting Plan Outline submitted within 30 days after the end of the Government’s (COVER PAGE) fiscal year.

Notice to Offerors: GSA provides this model plan as a tool. You ______INDIVIDUAL CONTRACT PLAN: Covers the must adapt this model plan to fit your subcontracting situation. The entire contract period, applies to a specific contract, and has plan is NOT a fill-in-the-blank form and you must remove instruc- goals that are based on the offeror’s planned subcontracting tional language. This model does not establish minimum require- (and purchasing) in support of the specific contract, except ments for an acceptable plan. The model reflects objectives GSA that indirect costs incurred for common or joint purposes may encourages contractors to adopt. GSA expects offerors to thoroughly review the requirements set forth in FAR 19.704, Subcon- be allocated on a prorated basis to the contract. For contracts tracting Plan Requirements and FAR clause 52.219-9, Small with option periods, the plan will include separate goals and Business Subcontracting Plan before submitting their subcontracting estimated value (or sales) for the base period with separate plans. goals and estimated value for each option period. Per FAR 52.219-9(c) this type of plan must separately address subcon- Definitions of Types of Plans: tracting with small business, veteran-owned small business, ______COMMERCIAL PLAN: Covers the offeror’s fiscal service-disabled veteran-owned small business, HUBZone year and applies to the entire production of commercial items small business concerns, small disadvantaged business sold by either the entire company or a portion thereof (e.g., (including ANCs and Indian Tribes), and women-owned division, plant, or product line.) Note that this type of plan small business concerns, with a separate part for the basic shall relate to the offeror’s planned subcontracting generally, contract and separate parts for each option (if any). The plan for both commercial and government business, rather than shall be included in and made a part of the resultant contract. solely to the government contract. Per FAR 19.704(d) and The subcontracting plan shall be negotiated within the time clause 52.219-9(g), this is the preferred type of plan for con- specified by the Contracting Officer. Failure to submit and tractors furnishing commercial items. Once a contractor’s negotiate the subcontracting plan shall make the offeror inel- commercial plan has been approved, the Government shall igible for award of a contract. The Contractor shall submit the not require another subcontracting plan from the same con- Individual Subcontract Report (ISR), and the Summary Sub- tractor while the plan remains in effect, as long as the product contract Report (SSR) using the Electronic Subcontracting or service being provided by the contractor continues to meet Reporting System (eSRS) (http://www.esrs.gov), following the definition of a commercial item. The contractor shall— the instructions in the eSRS and in accordance with FAR (1) Submit the commercial plan to either the first contracting clause 52.219-9. officer awarding a contract subject to the plan during the con- ______MASTER PLAN: Contains all the required ele- tractor’s fiscal year, or, if the contractor has ongoing contracts ments of an individual contract plan, except goals, and may with commercial plans, to the contracting officer responsible be incorporated into individual contract plans, provided the for the contract with the latest completion date. The contract- master plan has been approved. A master plan on a plant or ing officer shall negotiate the commercial plan for the Gov- division-wide basis that contains all the elements, except ernment. The approved commercial plan shall remain in goals, may be incorporated by reference as a part of the sub- effect during the contractor’s fiscal year for all Government contracting plan required of the offeror by the clause contracts in effect during that period; (2) Submit a new com- 52.219-9; provided (1) The master plan has been approved; mercial plan, 30 working days before the end of the Contrac- (2) The offeror ensures that the master plan is updated as nec- tor’s fiscal year, to the contracting officer responsible for the essary and provides copies of the approved master plan, uncompleted Government contract with the latest completion including evidence of its approval, to the Contracting Officer; date. The contractor must provide to each contracting officer and (3) Goals and any deviations from the master plan responsible for an ongoing contract subject to the plan, the deemed necessary by the Contracting Officer to satisfy the identity of the contracting officer that will be negotiating the requirements of this contract are set forth in the individual new plan; (3) When the new commercial plan is approved, subcontracting plan. A contract may have no more than one provide a copy of the approved plan to each contracting offi- plan. When a modification meets the criteria in FAR 19.702 cer responsible for an ongoing contract that is subject to the for a plan, or an option is exercised, the goals associated with plan; and (4) Comply with the reporting requirements stated the modification or option shall be added to those in the exist- in paragraph (a)(10) of this section by submitting one SSR in ing subcontracting plan. The failure of the Contractor or sub- eSRS, for all contracts covered by its commercial plan. This contractor to comply in good faith with the clause at FAR report will be acknowledged or rejected in eSRS by the con- 52.219-8 or an approved plan required by FAR 52.219-9 shall tracting officer who approved the plan. The report shall be be a material breach of the contract. The Contractor shall sub-

519A-1 CHANGE 54 MARCH 26, 2012

Appendix 519A GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL mit the Individual Subcontract Report (ISR), and the Sum- egory. All percents for each category will be expressed as a mary Subcontract Report (SSR) using the Electronic percentage of the total subcontracting dollars to all concerns Subcontracting Reporting System (eSRS) (http:// (both large and small)*. www.esrs.gov), following the instructions in the eSRS and • The Small business dollar amount must include all in accordance with FAR clause 52.219-9. sub-group category amounts; i.e., HUBZone, SDB, WOSB, VOSB, SDVOSB (plus any “other small” businesses that do GSA SUBCONTRACTING GOALS not fall within one of these specified subgroups). Again note (How to do the math tips) that Alaskan Native Corporations (ANCs) and Indian tribes Subcontracting goals are subject to change, based on recent will be included in the SDB and total small amounts. achievement levels and as negotiated with the Small Busi- * Only the large plus all small should equal the total in both ness Administration (SBA). SBA is responsible for the Fed- dollars and percents. Do not add together subgroups to reach eral Government Goaling Program and their website at the total Small figure, as the same dollars can be double and www.sba.gov includes details and background on the goal- triple counted for each group as applicable to the company ing process. receiving the order. • Total estimated subcontracting dollars (or spend) planned to all types of business concerns must be provided, then separately state the dollars that will be subcontracted to each cat- GSA Goal (FY Sample Dollars 2010-11 Total dollars to be subcontracted $1,000,000 100% (to both Large and Small Business) *To Large Businesses $700,000* *70% *To all Small Businesses (includes HUBZone Small, $300,000* *30% Small Disadvantaged, Women-Owned Small, Veteran-Owned Small, Service-Disabled Veteran-Owned Small, and Other Small Business Concerns) To HUBZone Small Businesses $30,000 3% To Small Disadvantaged Businesses $50,000 5% ToWomen-Owned Small Businesses $50,000 5% To Veteran-Owned Small Businesses (includes $30,000 3% SDVOSB below in this total) To Service-Disabled Veteran-Owned Small Businesses $30,000 3%

NOTE: The total $300,000 to all Small businesses already PLEASE REMOVE THE COVER PAGES BEFORE includes each subgroup (HUBZone, SDB, ANCs, WOSB, VOSB, SUBMITTING THE SUBCONTRACTING PLAN and SDVOSB), plus other small businesses that are only small and TO GSA do not fall into a specified category.

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Appendix 519A—Small Business Subcontracting Plan Outline (Model) [INSERT COMPANY NAME] percentages of total planned subcontracting dollars, for the use of small business concerns as subcontractors; and (2) A SMALL BUSINESS SUBCONTRACTING PLAN statement of total dollars planned to be subcontracted for an OUTLINE (MODEL) individual contract plan; or the offeror’s total projected sales, expressed in dollars, and the total value of projected subcon- I. IDENTIFICATION DATA: tracts to support the sales for a commercial plan. FAR Address: 19.704(a)(1) requires separate percentage goals for using small business (including Alaskan Native Corporations Date (ANCs) and Indian tribes), veteran-owned small business, Prepared: service-disabled veteran-owned small business, HUBZone Description of Supplies/Services: small business, small disadvantaged business (including Solicitation Number: (Completed for Individual Plans; N/A ANCs and Indian tribes) and women-owned small business for commercial plans) concerns as subcontractors; and (3) A statement of the total Contract Number: (Completed for Individual Plans during dollars planned to be subcontracted and a statement of the option period; N/A for commercial plans) total dollars planned to be subcontracted to small business (including ANCs and Indian tribes), veteran-owned small If submitting an Individual Contract Plan, insert dates business, service-disabled veteran-owned small business, below for the contract duration, if known (or insert N/A if HUBZone small business, small disadvantaged business the contract does not include specified option period). (including ANCs and Indian tribes) and women-owned small business concerns. Commercial plans will always reflect Individual Plan Period: Base: (Date of Award thru ?? annual company-wide goals. Individual plans will reflect years) Option 1: (1 year, 5 years, etc.) Option 2: (1 year, 5 contract-specific goals and shall contain separate state- years, etc.) Option 3: (1 year, 5 years, etc.) Option 4: (1 ments and goals for the basic contract (period) and sepa- year, 5 years, etc.) rately for each option (period). Note that dollars and percentages to large and total small businesses (all inclu- Estimated Contract Value (Provide separate estimate for sive) must equal the total subcontracted to all categories in base contract period and each option) both dollars and percentages. EACH CONTRACTOR IS Base Period: $______Option Period 1: $______EXPECTED TO OFFER THE MAXIMUM PRACTICA- Option Period 2: $______Option Period 3: $______BLE OPPORTUNITIES TO EACH TYPE OF SMALL Option Period 4: $______(if applicable/Not used for MAS) BUSINESS CONCERN CONSISTENT WITH THEIR BEST FAITH EFFORTS AND SUPPORTED BY THEIR Place of Performance: ______REPORTS AND RECORDS. DUNS Number: (under the contract awarded or pending award) If submitting a Commercial Plan, insert dates below: COMPLETE FORMAT BELOW IF SUBMITTING AN INDI- Commercial Plan Period: (insert fiscal year for contractor/offeror) VIDUAL PLAN and note that a separate part is required for Projected annual sales (Company-wide): $______the base contract period and for each option period, if any. (Please remove this section and following page if submitting II.TYPE OF PLAN - FAR 19.701 (For definitions, see a commercial plan.) Cover Page and FAR clause 52.219-9): [Company Name] provides the following separate dollar and percentage goals, which are a percentage of the total subcon- _____Commercial Plan tracting dollars for each business category: _____Individual Plan

_____Master Plan (incorporated into Individual Plan)

III. GOALS: A. The FAR clause at 52.219-9(d) states that the subcontracting plan shall include (1) Goals, expressed in terms of

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Appendix 519A GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

BASE GOALS are expressed in dollars and percentages of the total dollars planned to be subcontracted. PLANNED SUBCONTRACTING TO: DOLLARS PERCENT 1. Total Dollars to be Subcontracted (2 + 3 = 1) large and all small 100% businesses must equal total amount to be subcontracted (both $ and %) 2. Large Businesses (Other than Small) 3. All Small Businesses (including ANCs & Indian tribes) 4. Veteran-Owned Small Businesses (VOSB) 5. Service-Disabled Veteran-Owned Small Businesses (SDVOSB) 6. HUBZone Small Business (HUBZone) 7. Small Disadvantaged Businesses (SDB) (including ANCs & Indian tribes) 8. Women-Owned Small Businesses (WOSB) If applicable: 1st OPTION GOALS are expressed in dollars and percentages of the total dollars planned to be subcontracted. PLANNED SUBCONTRACTING TO: DOLLARS PERCENT 1. Total Dollars to be Subcontracted (2 + 3 = 1) large and all small 100% businesses must equal total amount to be subcontracted (both $ and %) 2. Large Businesses (Other than Small) 3. All Small Businesses (including ANCs & Indian tribes) 4. Veteran-Owned Small Businesses (VOSB) 5. Service-Disabled Veteran-Owned Small Businesses (SDVOSB) 6. HUBZone Small Business (HUBZone) 7. Small Disadvantaged Businesses (SDB) (including ANCs & Indian tribes) 8. Women-Owned Small Businesses (WOSB) If applicable: 2nd OPTION GOALS are expressed in dollars and percentages of the total dollars planned to be subcontracted. PLANNED SUBCONTRACTING TO: DOLLARS PERCENT 1. Total Dollars to be Subcontracted (2 + 3 = 1) large and all small 100% businesses must equal total amount to be subcontracted (both $ and %) 2. Large Businesses (Other than Small) 3. All Small Businesses (including ANCs & Indian tribes) 4. Veteran-Owned Small Businesses (VOSB) 5. Service-Disabled Veteran-Owned Small Businesses (SDVOSB) 6. HUBZone Small Business (HUBZone) 7. Small Disadvantaged Businesses (SDB) (including ANCs & Indian tribes) 8. Women-Owned Small Businesses (WOSB)

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Appendix 519A—Small Business Subcontracting Plan Outline (Model) If applicable: 3rd OPTION GOALS are expressed in dollars and percentages of the total dollars planned to be subcontracted. PLANNED SUBCONTRACTING TO: DOLLARS PERCENT 1. Total Dollars to be Subcontracted (2 + 3 = 1) large and all small 100% businesses must equal total amount to be subcontracted (both $ and %) 2. Large Businesses (Other than Small) 3. All Small Businesses (including ANCs & Indian tribes) 4. Veteran-Owned Small Businesses (VOSB) 5. Service-Disabled Veteran-Owned Small Businesses (SDVOSB) 6. HUBZone Small Business (HUBZone) 7. Small Disadvantaged Businesses (SDB) (including ANCs & Indian tribes) 8. Women-Owned Small Businesses (WOSB) If applicable: (LEAVE BLANK FOR MAS) 4th OPTION GOALS are expressed in dollars and percentages of the total dollars planned to be subcontracted. PLANNED SUBCONTRACTING TO: DOLLARS PERCENT 1. Total Dollars to be Subcontracted (2 + 3 = 1) large and all small 100% businesses must equal total amount to be subcontracted (both $ and %) 2. Large Businesses (Other than Small) 3. All Small Businesses (including ANCs & Indian tribes) 4. Veteran-Owned Small Businesses (VOSB) 5. Service-Disabled Veteran-Owned Small Businesses (SDVOSB) 6. HUBZone Small Business (HUBZone) 7. Small Disadvantaged Businesses (SDB) (including ANCs & Indian tribes) 8. Women-Owned Small Businesses (WOSB)

COMPLETE FORMAT BELOW IF SUBMITTING A Annual Commercial Purchases/Spend: $____ =__ % of Total COMMERCIAL PLAN (please remove this page/section if 6. Total dollars planned to be subcontracted to HUBZone small submitting an individual plan). business concerns: 1. Estimated total dollars planned to be subcontracted to all types Annual Commercial Purchases/Spend: $____ =__ % of Total of concerns (generally for both commercial and government business, in support of commercial items sold during company 7. Total dollars planned to be subcontracted to small disadvan- fiscal year): taged business concerns (including ANCs and Indian tribes): Annual Commercial Purchases/Spend: $______= 100% Annual Commercial Purchases/Spend: $____ =__ % of Total subcontracted 8. Total dollars planned to be subcontracted to women-owned 2. Total dollars planned to be subcontracted to large business con- small business concerns: cerns (or classified as other than small): Annual Commercial Purchases/Spend: $____ =__ % of Total Annual Commercial Purchases/Spend: $____ =__ % of Total B. FAR 19.704(a)(3) and the clause at 52.219-9(d)(3) 3. Total dollars planned to be subcontracted to all small business requires a description of the principal types of supplies and concerns (including ANCs and Indian tribes), VOSB, SDVOSB, services to be subcontracted and an identification of types HUBZone, SDB (including ANCs and Indian tribes), and WOSB planned for subcontracting to SB (including ANCs and Indian small business concerns: tribes),VOSB, SDVOSB, HUBZone, SDB (including ANCs Annual Commercial Purchases/Spend: $____ =__ % of Total and Indian tribes), and WOSB concerns. Check all that apply 4. Total dollars planned to be subcontracted to veteran-owned below, ensuring that at least one item is indicated for each small business concerns (including service-disabled vet- column. If assistance is needed to locate small business eran-owned small businesses): sources, contact your local Small Business Administration Annual Commercial Purchases/Spend: $____ =__ % of Total Commercial Market Representative via www.sba.gov/ localresources, or access the Central Contractor Registration 5. Total dollars planned to be subcontracted to service-disabled (CCR) Dynamic Small Business Search database at veteran-owned small business concerns (subset of VOSB above and cannot be higher than #4 above): www.ccr.gov. You may also post solicitations for small busi-

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Appendix 519A GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL ness opportunities on SBA’s SUB-Net at https:// [Company Name] identifies potential subcontractors using the eweb1.sba.gov/subnet/search/index.cfm. following source lists and organizations: ______The principal types of supplies and/or services that [Com- ______pany Name] anticipates to be subcontracted and the identifi- ______cation of the type of business concern planned are as follows: ______Business Category or Size ______

Supplies/ E. FAR 19.704(a)(6) and clause 52.219-9(d)(6) require a Services Large Small VOSB SDVOSB HUBZone SDB WOSB statement as to whether or not the offeror included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with SB (including ANCs and Indian tribes), VOSB, SDVOSB, HUBZone, SDB (including ANCs and Indian tribes), and WOSB concerns. NOTE: indirect costs represent the expenses of doing business that are NOT easily identified with a specific project (i.e. contract or grant) but are generally recognized as ordinary ATTACH ADDITIONAL SHEETS IF NECESSARY (OR REMOVE LINES and necessary for the general operation of the contractor’s IF NOT NEEDED) organization and the conduct of activities it performs. Types C. FAR 19.704(a)(4) and the clause at 52.219-9(d)(4) of indirect costs include overhead (e.g., facility/utility & sup- require a description of the method used to develop the sub- plies cost), general and administrative (G&A), and fringe contracting goals. Explain or state the basis for establishing benefits (e.g., services or benefits provided to employees your proposed goals (i.e. based on historical data and expe- such as health insurance, payroll taxes, pension contribu- rience, market research, etc.); and provide justification for tion, etc). any low goal(s). Indirect costs _____HAVE BEEN (or) _____HAVE NOT BEEN included in the dollar and percentage subcontracting [Company Name] used the following method to develop the sub- goals stated above. contracting goals: If indirect costs HAVE been included, the method used to determine the ______proportionate share of indirect costs to be incurred with small business ______concerns was as follows: ______IV. PROGRAM ADMINISTRATOR: D. FAR 19.704(a)(5) and clause 52.219-9(d)(5) require a FAR 19.704(a)(7) and clause 52.219-9(d)(7) require the name of description of the method used to identify potential sources an individual employed by the offeror who will administer the for solicitation purposes (e.g., existing company source lists, offeror’s subcontracting program, and a description of the duties of the Central Contractor Registration database (CCR), veter- the individual. Please add the contact information for this person ans service organizations, the National Minority Purchasing (telephone number, fax number and/or email address), in case of Council Vendor Information Service, the Research and Infor- questions and provide an alternate point of contact if applicable. mation Division of the Minority Business Development Name:______Agency in the Department of Commerce, or small, HUBZone, Title/Position:______small disadvantaged, and women-owned small business trade associations). A firm may rely on the information contained Address:______in CCR as an accurate representation of a concern’s size and City/State/Zip Code:______ownership characteristics for the purposes of maintaining SB, Telephone number:______VOSB, SDVOSB, HUBZone, SDB, and WOSB source list. Use Fax Number:______of CCR as its source list does not relieve a firm of its respon- Email Address:______sibilities (e.g., outreach, assistance, counseling, or publiciz- Alternate POC with contact information:______ing subcontracting opportunities) in this clause.

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Appendix 519A—Small Business Subcontracting Plan Outline (Model)

Duties: In accordance with clause 52.219-9(d)(11)(e), in order to 15. Directly or indirectly counsel SB, VOSB, SDVOSB, HUB- effectively implement this plan to the extent consistent with effi- Zone, SDB and WOSB concerns on subcontracting opportunities cient contract performance, the contractor shall perform the fol- and how to prepare bids to the company. lowing functions: 16. Conduct or arrange training for purchasing personnel regard- 1. Assist SB, VOSB, SDVOSB, HUBZone, SDB and WOSB ing the intent and impact of Section 8(d) of the Small Business concerns by arranging solicitations, time for the preparation of Act on purchasing procedures. bids, quantities, specifications, and delivery schedules so as to facilitate the participation by such concerns. Where the Contrac- 17. Develop and maintain an incentive program for buyers that tor’s lists of potential SB, VOSB, SDVOSB, HUBZone, SDB support the subcontracting program. and WOSB subcontractors are excessively long, reasonable 18. Monitor the company’s performance and make any adjust- effort shall be made to give all such small business concerns an ments necessary to achieve the subcontract plan goals. opportunity to compete over a period of time. 19. Prepare and submit timely reports. 2. Provide adequate and timely consideration of the potentialities of SB, VOSB, SDVOSB, HUBZone, SDB and WOSB concerns 20. Coordinate the company’s activities during compliance in all “make-or-buy” decisions. reviews by Federal agencies. 3. Counsel and discuss subcontracting opportunities with repre- IF YOUR PROGRAM ADMINISTRATOR WILL PERFORM sentatives of SB, VOSB, SDVOSB, HUBZone, SDB and WOSB ADDITIONAL SUBCONTRACTING DUTIES NOT SHOWN firms. ABOVE, PLEASE IDENTIFY THEM HERE: 4. Confirm that a subcontractor representing itself as a HUBZone 21. Additional Duties: small business concern is identified as a certified HUBZone small business concern by accessing the Central Contractor Reg- ______istration (CCR) database or by contacting SBA. ______5. Provide notice to subcontractors concerning penalties and rem- ______edies for misrepresentations of business status as SB, VOSB, ______SDVOSB, HUBZone, SDB and WOSB for the purpose of obtaining a subcontract that is to be included as part or all of a goal con- V. EQUITABLE OPPORTUNITY: tained in the Contractor’s subcontracting plan. 6. Develop and promote company/division policy statements that FAR 19.704(a)(8) and clause 52.219-9(d)(8) require a description of demonstrate the company’s/division’s support for awarding con- the efforts the offeror will make to assure that SB, VOSB, SDVOSB, tracts and subcontracts to SB, VOSB, SDVOSB, HUBZone, HUBZone, SDB and WOSB concerns have an equitable opportunity SDB and WOSB concerns. to compete for subcontracts. 7. Develop and maintain bidders’ lists of SB, VOSB, SDVOSB, [Company Name] will make every effort to ensure that all small HUBZone, SDB and WOSB concerns from all possible sources. business concerns have an equitable opportunity to compete for subcontracts. These efforts may include one or more of the following 8. Ensure periodic rotation of potential subcontractors on bidders’ lists. activities: (please indicate which of the following apply or adapt list to fit your company’s efforts). 9. Ensure that SB, VOSB, SDVOSB, HUBZone, SDB and WOSB concerns are included on the bidders’ list for every sub- A. Outreach efforts to obtain sources: contract solicitation for products and services they are capable of ___Contacting minority and small business trade associations. providing. ___Contacting business development organizations. 10. Ensure that subcontract procurement “packages” are designed to permit the maximum possible participation of SB, ___Requesting sources from the Central Contractor Registration (CCR), Dynamic Small Business Search, which integrated data VOSB, SDVOSB, HUBZone, SDB and WOSB concerns. from the SBA PRO-Net database. 11. Review subcontract solicitations to remove statements, ___Attending small and minority business trade fairs and pro- clauses, etc., which might tend to restrict or prohibit SB, VOSB, curement conferences. SDVOSB, HUBZone, SDB and WOSB concerns. B. Internal efforts to guide and encourage purchasing personnel: 12. Ensure that the subcontract bid proposal review board docu- ___Presenting workshops, seminars and training programs. ments its reasons for not selecting any low bids submitted by SB, VOSB, SDVOSB, HUBZone, SDB and WOSB concerns. ___Establishing, maintaining and using small, hubzone small, small disadvantaged, women-owned small, veteran-owned 13. Oversee the establishment and maintenance of contract and small, and service-disabled veteran-owned small business source subcontract award records. lists, guides, and other data for soliciting subcontracts. 14. Attend or arrange for the attendance of company counselors ___Monitoring activities to evaluate compliance with the sub- at Business Opportunity Workshops, Minority Business Enter- contracting plan. prise Seminars, Trade Fairs, etc.

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Appendix 519A GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

C. Other Additional efforts: (Please describe below.)

______Submit Reports ______to eSRS with ______Calendar Date email address ______Period Report Due Due for: Contracting VI. ASSURANCES OF CLAUSE INCLUSION AND 10/01–03/31 ISR 04/30 Officer /SBTA FLOW DOWN: Contracting FAR 19.704(a)(9) and clause 52.219-9(d)(9) require assurances that 04/01–09/30 ISR 10/30 Officer /SBTA the offeror will include the clause at 52.219-8, Utilization of Small Contracting Business Concerns (see 19.708(a)), in all subcontracts that offer further subcontracting opportunities, and that the offeror will require all 10/01–09/30 SSR 10/30 Officer /SBTA subcontractors (except small business concerns) that receive subcontracts in excess of $650,000 ($1,500,000 for construction) to adopt a The eSRS web-based reporting requirement instructions can be plan that complies with the requirements of this clause (see found in the attachment to subcontracting plan taken from FAR 19.708(b)). clause 52-219-9. [Company Name] agrees to include the FAR Clause 52.219-8, “Uti- VIII. RECORDKEEPING: lization of Small Business Concerns” in all subcontracts that offer further subcontracting opportunities, and will require all subcontrac- FAR 19.704(a)(11) and clause 52.219-9(d)(11) require a description tors (except small business concerns) that receive subcontracts in of the types of records that will be maintained concerning procedures excess of $650,000 ($1,500,000 for construction) to adopt a plan that that have been adopted to comply with the requirements and goals in complies with the requirements of the clause at 52.219-9, Small the plan, including establishing source lists; and a description of the Business Subcontracting Plan. efforts to locate SB (including ANCs and Indian tribes), VOSB, SDVOSB, HUBZone, SDB (including ANCs and Indian tribes), and VII. REPORTING AND COOPERATION: WOSB concerns and award subcontracts to them. FAR 19.704(a)(10) and clause 52.219-9(d)(10) require assurances [Company Name] will maintain records concerning procedures that that the offeror will do the following: have been adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of efforts [Company Name] agrees to: to locate SB (including ANCs and Indian tribes), VOSB, SDVOSB, (10)(i) Cooperate in any studies or surveys as may be required; HUBZone, SDB (including ANCs and Indian tribes), and WOSB concerns and award subcontracts to them. The records shall include (ii) Submit periodic reports so that the Government can deter- at least the following (on a plant-wide or company-wide basis, unless mine the extent of compliance by the offeror with the subcon- otherwise indicated): tracting plan; 1. Source lists (e.g., CCR), guides, and other data that identify SB (iii) Submit the Individual Subcontract Report (ISR), and the Summary Subcontract Report (SSR) using the Electronic Sub- (including ANCs and Indian tribes), VOSB, SDVOSB, HUBZone, contracting Reporting System (eSRS) (http://www.esrs.gov), fol- SDB (including ANCs and Indian tribes), and WOSB concerns. lowing the instructions in the eSRS; 2. Organizations contacted in an attempt to locate sources that are SB (iv) Ensure that its subcontractors with subcontracting plans (including ANCs and Indian tribes), VOSB, SDVOSB, HUBZone, agree to submit the ISR and/or the SSR using the eSRS; SDB (including ANCs and Indian tribes), and WOSB concerns. (v) Provide its prime contract number and its DUNS number and 3. Records on each subcontract solicitation resulting in an award of the e-mail address of the Government or Contractor official more than $150,000, indicating: responsible for acknowledging or rejecting the reports, to all first-tier subcontractors with subcontracting plans so they can (A) Whether small business concerns were solicited and, if not, enter this information into the eSRS when submitting their why not; reports; and (B) Whether veteran-owned small business concerns were solic- (vi) Require that each subcontractor with a subcontracting plan ited and, if not, why not; provide the prime contract number and its own DUNS number, (C) Whether service-disabled veteran-owned small business con- and the e-mail address of the Government or Contractor official cerns were solicited and, if not, why not; responsible for acknowledging or rejecting the reports, to its subcontractors with subcontracting plans. (D) Whether HUBZone small business concerns were solicited and, if not, why not; Reports are to be submitted within 30 days after the close of each calendar period as indicated in the following chart: (E) Whether small disadvantaged business concerns were solicited and, if not, why not;

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Appendix 519A—Small Business Subcontracting Plan Outline (Model)

(F) Whether women-owned small business concerns were solic- X. DESCRIPTION OF GOOD FAITH EFFORT (Also ited and, if not, why not; and refer to 13 CFR 125.3(d), Determination of Good Faith Effort) (G) If applicable, the reason award was not made to a small busi- In order to demonstrate your compliance with a good faith ness concern. effort to achieve the small business subcontracting goals, out- 4. Records of any outreach efforts to contact: line the steps below that your company plans to take. (A) Trade associations; [Company Name] will take the following steps to demonstrate com- (B) Business development organizations; pliance with a good faith effort in achieving small business subcontracting goals: (C) Conferences and trade fairs to locate small, HUBZone small, small disadvantaged, and women-owned small business sources; ______and ______(D) Veterans service organizations. ______5. Records of internal guidance and encouragement provided to buyers through: The above requirements will be negotiated with the contracting officer prior to approval. The contracting officer must ensure per FAR (A) Workshops, seminars, training, etc.; and 19.705-5(a)(5) that an acceptable plan is incorporated into and made (B) Monitoring performance to evaluate compliance with the a material part of the contract. program's requirements. SIGNATURE REQUIRED: Plan must be signed and dated by a 6. On a contract-by-contract basis, records to support award data company official. submitted by the offeror to the Government, including the name, This subcontracting plan was SUBMITTED by: address, and business size of each subcontractor. Contractors having commercial plans need not comply with this requirement. Signature:______7. Other records to support your compliance with the subcontracting Typed Name:______plan: (Please describe below.) Company Title:______Date signed:______Government Contracting Officer APPROVAL: ______Signature:______Printed Name:______IX. STATUTORY REQUIREMENTS (Found at FAR Agency:______19.702) Date signed:______

î Any contractor receiving a contract for more than the simplified REPORTING INSTRUCTIONS FOR acquisition threshold must agree in the contract that SB (including ANCs and Indian tribes), VOSB, SDVOSB, HUBZone, SDB CONTRACTORS (including ANCs and Indian tribes), and WOSB concerns will Electronic Subcontracting Reporting System web-based reporting have the maximum practicable opportunity to participate in con- requirements found at FAR clause 52.219-9(l): tract performance consistent with its efficient performance. The Contractor shall submit ISRs and SSRs using the web-based î It is further the policy of the United States that its prime con- eSRS at http://www.esrs.gov. Purchases from a corporation, com- tractors establish procedures to ensure the timely payment of pany, or subdivision that is an affiliate of the prime Contractor or amounts due pursuant to the terms of their subcontracts with SB (including ANCs and Indian tribes), VOSB, SDVOSB, HUB- subcontractor are not included in these reports. Subcontract award Zone, SDB (including ANCs and Indian tribes), and WOSB con- data reported by prime Contractors and subcontractors shall be lim- cerns. ited to awards made to their immediate next-tier subcontractors. Credit cannot be taken for awards made to lower tier subcontractors, î See 19.702(a)(1) for requirements that are imposed in negoti- unless the Contractor or subcontractor has been designated to receive ated acquisitions, and (a)(2) for requirements that are imposed in a small business or small disadvantaged business credit from an sealed bidding acquisitions. ANC or Indian tribe. î As stated in 15 U.S.C. 637(d)(8), any contractor or subcontractor failing to comply in good faith with the requirements of the (1) ISR. This report is not required for commercial plans. The report subcontracting plan is in material breach of its contract. Further, is required for each contract containing an individual subcontract 15 U.S.C. 637(d)(4)(F) directs that a contractor’s failure to make plan and shall be submitted to the Administrative Contracting Offi- a good faith effort to comply with the requirements of the sub- cer (ACO) or Contracting Officer, if no ACO is assigned. contracting plan shall result in the imposition of liquidated damages (see 19.702(c) and 19.705-7).

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Appendix 519A GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

(i) The report shall be submitted semi-annually during contract per- (E) Subcontract awards that are related to work for more than one formance for the periods ending March 31 and September 30. A executive agency shall be appropriately allocated. report is also required for each contract within 30 days of contract (F) The authority to acknowledge or reject SSRs in eSRS, includ- completion. Reports are due 30 days after the close of each reporting ing SSRs submitted by subcontractors with subcontracting plans, period, unless otherwise directed by the Contracting Officer. Reports resides with the Government agency awarding the prime con- are required when due, regardless of whether there has been any sub- tracts. contracting activity since the inception of the contract or the previous (ii) Reports submitted under a commercial plan— reporting period. (ii) When a subcontracting plan contains separate goals for the basic (A) The report shall include all subcontract awards under the commercial plan in effect during the Government's fiscal year. contract and each option, as prescribed by FAR 19.704(c), the dollar goal inserted on this report shall be the sum of the base period (B) The report shall be submitted annually, within thirty days through the current option; for example, for a report submitted after after the end of the Government's fiscal year. the second option is exercised, the dollar goal would be the sum of (C) If a Contractor has a commercial plan and is performing work the goals for the basic contract, the first option, and the second for more than one executive agency, the Contractor shall specify option. the percentage of dollars attributable to each agency from which (iii) The authority to acknowledge receipt or reject the ISR resides— contracts for commercial items were received. (D) The authority to acknowledge or reject SSRs for commercial (A) In the case of the prime Contractor, with the Contracting Offi- plans resides with the Contracting Officer who approved the cer; and commercial plan. (B) In the case of a subcontract with a subcontracting plan, with (iii) All reports submitted at the close of each fiscal year (both indi- the entity that awarded the subcontract. vidual and commercial plans) shall include a Year-End Supplemen- (2) SSR. (i) Reports submitted under individual contract plans— tary Report for Small Disadvantaged Businesses. The report shall include subcontract awards, in whole dollars, to small disadvantaged (A) This report encompasses all subcontracting under prime contracts and subcontracts with the awarding agency, regardless of business concerns by North American Industry Classification Sys- the dollar value of the subcontracts. tem (NAICS) Industry Subsector. If the data are not available when the year-end SSR is submitted, the prime Contractor and/or subcon- (B) The report may be submitted on a corporate, company or sub- tractor shall submit the Year-End Supplementary Report for Small division (e.g., plant or division operating as a separate profit cen- Disadvantaged Businesses within 90 days of submitting the year-end ter) basis, unless otherwise directed by the agency. SSR. For a commercial plan, the Contractor may obtain from each (C) If a prime Contractor and/or subcontractor is performing of its subcontractors a predominant NAICS Industry Subsector and work for more than one executive agency, a separate report shall report all awards to that subcontractor under its predominant NAICS be submitted to each executive agency covering only that Industry Subsector. agency’s contracts, provided at least one of that agency’s contracts is over $650,000 (over $1,500,000 for construction of a Contracting Officer (insert e-mail addresses) public facility) and contains a subcontracting plan. For DoD, a Small Business Technical Advisor (email address for specific consolidated report shall be submitted for all contracts awarded office/service/agency) by military departments/agencies and/or subcontracts awarded Subcontracting Manager, Office ([email protected] or by DoD prime Contractors. However, for construction and of Small Business Utilization applicable alternate related maintenance and repair, a separate report shall be submit- agency) ted for each DoD component. Small Business Administration (D) For DoD and NASA, the report shall be submitted Representative (found at semi-annually for the six months ending March 31 and the twelve www.sba.gov and enter business months ending September 30. For civilian agencies, except zip code to find local resources/ NASA, it shall be submitted annually for the twelve month period POC for contractor’s location ending September 30. Reports are due 30 days after the close of each reporting period.

519A-10 CHANGE 54 MARCH 26, 2012

Appendix 519B—Subcontracting Plan Evaluation Checklist Appendix 519B—Subcontracting Plan Evaluation Checklist CHECKLIST FOR REVIEW OF SUBCONTRACTING PLAN

1. POINTSOF CONTACT, ADDRESS WITH ROOM NUMBER & SYMBOL PHONE & FAX 2. ADMINISTRATIVE CONTRACTING OFFICE, ADDRESS, PHONE & FAX NUMBERS NUMBERS NAME: Address: Prepared by: ______Phone: ______FAX: ______GSA, (Insert Service & Symbol) Telephone: FAX:

PCO is: ______Phone: ______FAX: ______3. SOLICITATION NUMBER 4. CONTRACT NUMBER 5. CONTRACTOR NAME, ADDRESS, DUNS NUMBER, AND CONTACT INFORMATION 6. SUBCONTRACTING PLAN ADMINISTRATOR NAME, ADDRESS, & CONTACT INFORMATION Phone: FAX: Phone: FAX: DUNS No.: E-Mail: E-Mail: 7. PLACE OF PERFORMANCE ( If different from No. 5 ) 8. TYPE OF CONTRACT q SEALED BID or q NEGOTIATED q SCHEDULE or q NON-SCHEDULE 9. a. CONTRACT PERIOD OR OPTION PERIOD 9. b. DATE OF AWARD AND DATE OF OPTION 10. ESTIMATED CONTRACT VALUE (EACH PERIOD) OR ESTIMATE ANNUAL SALES FOR THIS CONTRACT THRU $

11. DESCRIPTION OF PRODUCTS OR SERVICES

12. TYPE OF SUBCONTRACTING PLAN BEING SUBMITTED COMPANY-WIDE PLAN FOR COMMERCIAL ITEMS

p INDIVIDUAL CONTRACT PLAN p INDIVIDUAL INCORPORATING MASTER PLAN p COVERS ANNUAL PERIOD THRU 13. CHECKLIST

PCO/ACO SBTA SBA/PCR ACCEPTABLE ACCEPTABLE ACCEPTABLE Dollar PROPOSED TARGET GOALS ESTABLISHED Percent Amount Yes No Yes No Yes No (1) TOTAL SUBCONTRACTING PLANNED (To large & all small business concerns) 100 (2)(a) TO ALL SMALL BUSINESSES (Includes ANCs or Indian Tribes, veteran-owned small, service-disabled veteran-owned small, HUBZone small, small disadvantaged, and women-owned small concerns) (2)(b) TO VETERAN-OWNED SMALL BUSINESS (VOSB) Percent of Total (2)(c) TO SERVICE-DISABLED VETERAN-OWNED SMALL (SDVOSB) Percent of Total and subset of VOSB (2)(d) TO HUBZONE SMALL BUSINESS (HUBZone) Percent of Total (2)(e) TO SMALL DISADVANTAGED BUSINESS (SDB Includes ANCs or Indian Tribes) Percent of Total (2)(f) TO WOMEN-OWNED SMALL BUSINESS (WOSB) Percent of Total

(3) DESCRIPTION OF PRINCIPAL TYPES OF SUPPLIES AND SERVICES TO BE SUBCONTRACTED, AND IDENTIFICATION OF TYPES PLANNED FOR SUBCONTRACTING TO EACH BUSINESS CATEGORY (i.e. SMALL, VOSB, SDVOSB, HUBZ, SDB, and WOSB CONCERNS); (4) DESCRIPTION OF METHOD USED TO DEVELOP GOALS; (5) DESCRIPTION OF METHOD USED TO IDENTIFY POTENTIAL SOURCES FOR SOLICITATION PURPOSES; (6) STATEMENT AS TO WHETHER OR NOT THE OFFEROR INCLUDED INDIRECT COSTS IN ESTABLISHING SUBK GOALS AND DESCRIPTION OF METHOD USED TO DETERMINE THE PROPORTIONATE SHARE OF INDIRECT COSTS TO BE INCURRED WITH EACH BUSINESS CONCERN; (7) NAME OF INDIVIDUAL WHO WILL ADMINISTER THE OFFEROR’S SUBCONTRACTING PROGRAM AND A DESCRIPTION OF THEIR DUTIES; (Include phone & fax numbers and email address of contact for further questions.) (8) DESCRIPTION OF EFFORTS THE OFFEROR WILL MAKE TO ASSURE EQUITABLE OPPORTUNITY TO COMPETE FOR SUBCONTRACTS; (9) FLOW DOWN ASSURANCE THAT THE OFFEROR WILL INCLUDE FAR CLAUSE 52.219-8 IN ALL SUBCONTRACTS THAT OFFER FURTHER SUBCONTRACTING OPPORTUNITIES; AND ASSURANCE THAT THE OFFEROR WILL REQUIRE ALL SUBCONTRACTORS (except SB concerns) THAT RECEIVE SUBCONTRACTS IN EXCESS OF $650,000 ($1.5 M for construction) TO ADOPT A PLAN THAT COMPLIES WITH THE REQUIREMENTS OF THE CLAUSE 52.219-9. (10) ASSURANCE THAT THE OFFEROR WILL: COOPERATE IN STUDIES OR SURVEYS; SUBMIT PERIODIC REPORTS; SUBMIT INDIVIDUAL (ISR) & SUMMARY REPORTS (SSR) USING THE eSRS; ENSURE THAT SUBCONTRACTORS WITH PLANS AGREE TO SUBMIT THE ISR/SSR USING THE eSRS; PROVIDE ITS PRIME CONTRACT NUMBER AND DUNS NUMBER AND EMAIL ADDRESS OF OFFICIALS RESPONSIBLE, ETC. (11) DESCRIPTION OF THE TYPES OF RECORDS THAT WILL BE MAINTAINED CONCERNING PROCEDURES ADOPTED TO COMPLY, AND A DESCRIPTION OF THE OFFEROR’S EFFORTS TO LOCATE VARIOUS SMALL BUSINESS CONCERNS AND AWARD SUBCONTRACTS TO THEM

519B-1 CHANGE 54 MARCH 26, 2012

Appendix 519B GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

REMARKS. PCO/ACO COMMENTS (i.e. original contract award, first plan or first govt. SBTA contract, annual commercial update or riding previously approved plan (copy attached), option renewal, change in business size from small to large, etc.)

REVIEWED BY ï PCO/ACO SBTA SBA/PCR

(Signatures and Dates) DATE: DATE: DATE:

519B-2 PART 520—[RESERVED]

520-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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520-ii PART 521—[RESERVED]

521-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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521-ii AMENDMENT 2008–01 AUGUST 8, 2008

PART 522—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

Sec. 522.001 Definition. Subpart 522.8—Equal Employment Opportunity Subpart 522.1—Basic Labor Policies 522.803 Responsibilities. 522.101 Labor relations. 522.804 Affirmative action programs. 522.101-1 General. 522.804-1 Nonconstruction. 522.101-3 Reporting labor disputes. 522.804-2 Construction. 522.103 Overtime. 522.805 Procedures. 522.103-4 Approvals. 522.807 Exemptions. 522.103-5 Contract clauses. Subpart 522.10—Service Contract Act of 1965, Subpart 522.3—Contract Work Hours and As Amended Safety Standards Act 522.1003 Applicability. 522.302 Liquidated damages and overtime pay. 522.1003-3 Statutory exemptions. Subpart 522.4—Labor Standards for Contracts 522.1003-4 Administrative limitations, variations, Involving Construction tolerances, and exemptions. 522.404 Davis-Bacon Act wage determinations. 522.1003-7 Questions concerning applicability of the 522.404-6 Modifications of wage determinations. Act. 522.406 Administration and enforcement. 522.406-6 Payrolls and statements. 522.1021 Requests for hearing. 522.406-7 [Reserved] Subpart 522.13—Special Disabled Veterans, 522.406-8 Investigations. Veterans of the Vietnam Era, and Other Eligible 522.406-9 Withholding from or suspension of contract Veterans payments. 522.1305 Waivers. 522.406-10 Disposition of disputes concerning 522.1308 Complaint procedures. construction contract labor standards enforcement. Subpart 522.14—Employment of Workers With 522.406-11 Contract terminations. Disabilities 522.406-13 Semiannual enforcement reports. 522.1403 Waivers. 522.1406 Complaint procedures. Subpart 522.6—Walsh-Healey Public Contracts Act Subpart 522.15—Prohibition of Acquisition of 522.608 Procedures. Products Produced by Forced or Indentured Child Labor 522.1503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor.

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522-ii AMENDMENT 2008–01 AUGUST 8, 2008

PART 522—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS 522.302

PART 522—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

522.001 Definition. 522.103-5 Contract clauses. “Agency labor advisor,” as used in this part, means the Insert FAR 52.222-1, Notice to the Government of Labor Director of the Contract Policy Division (VPC) within the Disputes, in solicitations and contracts for DX rated orders Office of the Chief Acquisition Officer (OCAO). under the Defense Priorities and Allocations System (DPAS). Information on the DPAS can be found at FAR Subpart 11.6, Subpart 522.1—Basic Labor Policies Priorities and Allocations.

522.101 Labor relations. Subpart 522.3—Contract Work Hours and Safety Standards Act 522.101-1 General. The Office of General Counsel (OGC) and the agency 522.302 Liquidated damages and overtime pay. labor advisor shall— (a) Contracting officer’s responsibilities. (1) Provide (a) Serve as the GSA points of contact on all contractor instructions to the appropriate Finance Office whether to labor relations matters; withhold funds from contract payments pending final admin- (b) Initiate contact on contractor labor relations matters istrative determination. with national offices of labor organizations, Government (2) Notify the Finance Office of your final decision to departments, agencies or other governmental organizations. assess liquidated damages. Contracting offices shall notify OGC and the agency labor (3) After final decision, provide instructions to either advisor when they are contacted by such external organiza- immediately release to the contractor any funds in excess of tions; the amount specified in your decision or initiate the collection (c) Serve as a clearinghouse for information on labor laws of additional funds (see paragraph (c) of this section). applicable to Government acquisitions; and (4) Advise the contractor in writing of any decision to (d) Respond to questions involving FAR Part 22, Applica- withhold funds, including the reasons for the withholding, tion of Labor Laws to Government Acquisitions, or other con- and the amount held to satisfy the contractor’s liability for tractor labor relations matters concerning GSA acquisition unpaid wages and liquidated damages. Coordinate all written programs. OGC determines the agency’s legal position. communications with the contractor, including the notification of dispute resolution procedures under the Department of Labor’s regulations at 29 CFR Parts 4 through 8, with the 522.101-3 Reporting labor disputes. Office of Regional Counsel. Written reports of contractor labor disputes shall be sub- (b) Procedures for the collection of liquidated damages. mitted to the agency labor advisor as soon as the circum- (1) Initiate collection action by either: stances surrounding a labor dispute are identified. Include in (i) Withholding funds from payments due on the the report a description of the following: the nature of the contract. labor dispute; location of the dispute and contracts affected; (ii) Issuing a demand for payment, if no funds were the potential or actual impact of the dispute on GSA opera- withheld or the amount withheld was less than the liquidated tions or programs; and any actions taken to reduce the impact. damages. The agency labor advisor will notify other GSA contracting (2) Indicate in the demand letter the intent to offset offices that may be affected, and will determine further from the contractor’s other Government contracts if payment actions to be taken. is not made. (3) Provide the Finance Office with a: 522.103 Overtime. (i) Copy of the demand letter. (ii) Request that it initiate collection action under 522.103-4 Approvals. 41 CFR Part 105-55, Collection of Claims Owed the United The contracting officer is the “agency approving official” States, if payment is not made in accordance with the demand under FAR 22.103-4. letter. (c) Consult the GSA Delegations of Authority Manual, ADM P 5450.39C, to determine who the agency head is for purposes of FAR 22.302(c) (Chapters 13(2)(f) and 17(5)(a)).

522-1 AMENDMENT 2008–01 AUGUST 8, 2008

522.404 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL labor advisor, Office of the Chief Acquisition Officer. The Subpart 522.4—Labor Standards for report must identify the service submitting the report and the Contracts Involving Construction name, phone number, and email address of the official responsible for preparing the report. 522.404 Davis-Bacon Act wage determinations. (b) Central Office Contracting Offices outside of FAS and PBS must submit the reports directly to the agency labor advi- 522.404-6 Modifications of wage determinations. sor. Each report must identify the contracting office and the The contracting director shall serve as the agency head for name, phone number, and e-mail address of the official purposes of requesting extensions under FAR 22.404-6(b)(6). responsible for preparing the report. 522.406 Administration and enforcement. (c) The reports from the FAS and PBS and Central Office Contracting Offices must be submitted to the agency labor 522.406-6 Payrolls and statements. advisor within 15 calendar days after the end of the reporting Weekly payrolls and statements of compliance with periods. The ALA will consolidate the reports and submit an respect to payment of wages are not required from a prime official agency report to the: contractor or a subcontractor that personally performs work. U.S. Department of Labor (DOL) 522.406-7 [Reserved] Wage and Hour Division Office of Enforcement Policy 522.406-8 Investigations. Government Contracts Team (a) If a compliance check uncovers information of possible Room S3018 violations, the contracting officer shall consult with OGC 200 Constitution Avenue, N.W. and, if warranted, submit a request to the appropriate Office Washington, DC 20210 of the Inspector General Field Office under FAR 22.406-8(a). E-Mail Address: [email protected]. (b) The contracting officer shall consult the GSA Delega- tions of Authority Manual, ADM P 5450.39C, (Chapters (d) The official agency report shall include only the com- 13(2)(f) and 17(5)(a)), to determine who the agency head is pliance or enforcement of the labor standards requirements for purposes of FAR 22.406-8(d). for the time periods specified in FAR 22.406-13, and identify the responsible agency official, title, address, phone number, 522.406-9 Withholding from or suspension of contract and email address. The report shall be submitted to DOL payments. within 30 calendar days after the end of the reporting periods Contracting officers shall follow the procedures in using the following instructions and format: 522.302 in order to assess liquidated damages.

522.406-10 Disposition of disputes concerning SEMI-ANNUAL ENFORCEMENT REPORT construction contract labor standards enforcement. Submit the information required by FAR 22.406-10(d) to FY ____ the Administrator, Wage and Hour Division, Department of 1. Enter the beginning and ending dates of the period Labor and submit a copy to the agency labor advisor. covered by the semiannual report. ______

522.406-11 Contract terminations. 2. Enter the total number of prime contracts awarded When a contract or subcontract is terminated for labor subject to Davis-Bacon Act or the Contract Work standards violations, the contracting officer shall submit the Hours and Safety Standards Act awarded during the report required by FAR 22.406-11 to the Administrator, Wage period covered by this report. ______and Hour Division, Department of Labor and submit a copy 3. Enter the total dollar value of the contracts listed on to the agency labor advisor. line 2. ______

522.406-13 Semiannual enforcement reports. 4. Enter the total number of contractors/subcontractors (a) PBS and FAS shall report through the Commissioners against whom complaints were received. the semiannual enforcement reports required by FAR ______22.406-13, in the format described in paragraph (d) of this 5. Enter the total number of investigations completed. section. The Commissioner will consolidate the regional and ______central office information and submit the report to the agency

522-2 AMENDMENT 2008–01 AUGUST 8, 2008

PART 522—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS 522.807

6. Enter the total number of contractors/subcontractors 522.804 Affirmative action programs. found in violation as a result of the investigations reported on line 5.______522.804-1 Nonconstruction. 7. Enter the total amount of back wages determined (a) The requirements of FAR 22.804 also apply to each due employees by contractors/subcontractors under contractor and subcontractor with 50 or more employees that the: either: (1) Serves as a depository of Government funds; or a) Davis-Bacon Act (prevailing wage violations). (2) Is a financial institution serving as an issuing and ______paying agent for U.S. savings bonds and savings notes. (b) The contractors, subcontractors, and financial institu- b) Contract Work Hours and Safety Standards Act tions described in 522.804-1(a) must develop a written affir- (overtime violations). ______mative action compliance program for each of its 8. Enter the total amount of back wages paid employ- establishments regardless of the contract or holding value, in ees by contractors/subcontractors reported on line 6, accordance with 41 CFR 60-1.40. for the: 522.804-2 Construction. a) Davis-Bacon Act (prevailing wage violations). Goals for the employment of minorities and women in the ______construction industry are established by the Director, Office b) Contract Work Hours and Safety Standards Act of Federal Contract Compliance Programs (OFCCP), Depart- (overtime violations). ______ment of Labor. The current goal for the utilization of women 9. Enter the total number of employees paid wage res- is 6.9%, regardless of the location of the Federal contract. titution as reported on line 8, under the Davis-Bacon This goal was extended indefinitely by the Department of Act and/or Contract Work Hours and Safety Standards Labor in 1980. The current goals for minority participation Act. ______vary by location and are listed in Appendix E of DOL’s “Technical Assistance Guide for Federal Construction Con- 10. Enter the amount of liquidated damages assessed as tractors.” This guide can be accessed at http://www.dol.gov/ a result of violations under the Contract Work Hours esa/ofccp/TAguides/ctaguide.htm. and Safety Standards Act. ______

Remarks: (Enter any explanation or comment consid- 522.805 Procedures. ered necessary for proper understanding of the report.) (a) To determine whether the contract meets the threshold in FAR 22.805(a), contracting officers shall include the value Subpart 522.6—Walsh-Healey Public of the basic contract plus priced options. A contract modifica- Contracts Act tion exercising a priced option is not a contract award under FAR 22.805(a)(1)(ii) and does not require a preaward clear- 522.608 Procedures. ance. Before notifying or furnishing information to DOL under (b) Contracting officers shall submit preaward clearance FAR 22.608(b), coordinate with legal counsel. requests directly to the appropriate OFCCP regional office. A list of these offices can be found at http://www.dol.gov/esa/ Subpart 522.8—Equal Employment contacts/ofccp/ofcpkeyp.htm. Opportunity (c) The EEO poster required by FAR 22.805(b) can be found at: http://www.dol.gov/esa/regs/compliance/posters/ 522.803 Responsibilities. pdf/eeopost.pdf. In addition to providing this poster to each Contracting officers should submit questions on the appli- non-exempt contractor, the contracting officer shall advise cability of EO 11246 and implementing regulations to contractors to complete the Employer Information Report assigned legal counsel. (EEO-1) at http://www.eeoc.gov/eeo1survey/index.html.

522.807 Exemptions. The agency labor advisor submits a request for exemption.

522-3 CHANGE 22 AUGUST 8, 2008

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Subpart 522.10—Service Contract Act Subpart 522.14—Employment of Workers of 1965, As Amended With Disabilities

522.1003 Applicability. 522.1403 Waivers. Submit each waiver request to the agency labor advisor. 522.1003-3 Statutory exemptions. The agency labor advisor forwards the request to the appro- The Service Contract Act of 1965, as amended, applies to priate office for concurrence and approval. local office relocation moves if transportation costs are inci- dental to the principal purpose of the contract. Such contracts 522.1406 Complaint procedures. do not meet the statutory exemption cited in After consultation with OGC, forward complaints to the FAR 22.1003-3(c). cognizant OFCCP office, with a copy to the agency labor advisor and the appropriate Office of Inspector General Field 522.1003-4 Administrative limitations, variations, Office. tolerances, and exemptions. Contracting officers shall coordinate with assigned legal Subpart 522.15—Prohibition of Acquisition counsel before submitting a request under FAR 22.1003-4(a) of Products Produced by Forced or to the agency labor advisor. Indentured Child Labor 522.1003-7 Questions concerning applicability of the Act. 522.1503 Procedures for acquiring end products on the The contracting officer may submit a question regarding List of Products Requiring Contractor Certification as the applicability of the Act to assigned legal counsel. If the to Forced or Indentured Child Labor. question cannot be answered, the agency labor advisor will Refer matters for investigation under FAR 22.1503(e) to forward it to the Administrator, Wage and Hour Division. the appropriate Office of Inspector General Field Office.

522.1021 Requests for hearing. Contracting Officers who are considering requesting a substantial variance should coordinate with assigned legal counsel and the agency labor advisor. The agency labor advisor submits any request.

Subpart 522.13—Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans

522.1305 Waivers. Submit each waiver request to the agency labor advisor. The agency labor advisor forwards the request to the appropriate office for concurrence and approval.

522.1308 Complaint procedures. After consultation with OGC, the contracting officer shall forward complaints to the cognizant Department of Labor office, with a copy to the agency labor advisor and the appropriate Office of Inspector General Field Office.

522-4 CHANGE 65 JUNE 24, 2015

PART 523—ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE Sec. Subpart 523.1—Sustainable Acquisition Policy Subpart 523.3—Hazardous Material 523.101 General. Identification and Material Safety Data 523.102 Definitions. 523.303 Contract clauses. 523.103 Applicability. 523.370 Solicitation provision. 523.104 Procedures. Subpart 523.4—Use of Recovered Materials and 523.105 Sustainability Exceptions. Biobased Products 523.106 Compliance Monitoring and Reporting. 523.403 [Removed] 523.404 Agency affirmative procurement programs.

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523-ii CHANGE 65 JUNE 24, 2015

PART 523—ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE 523.104

PART 523—ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

Subpart 523.1—Sustainable Acquisition 523.104(a)(1) due to significant impact on cost, schedule, or Policy performance, the contracting officer must document the exception used and supporting rationale as detailed in GSAM 523.101 General. 523.105. FAR Part 23 requires GSA to purchase sustainable prod- (b) Award Procedures. Review GSAM 504.606(b) for ucts and services. This subpart outlines the specific steps the instructions on GSA FPDS sustainability coding. The GSA contracting officer or designated acquisition team member FPDS Sustainability Code Guidelines provides instructions must take throughout all procurements to comply with this on reporting sustainability data for individual procurements requirement. In accordance with GSAM 523.404, this Sub- in FPDS and can be found at http://insite.gsa.gov/sustainable- part contains the GSA affirmative procurement program. acquisition. (c) Post-Award Procedures. 523.102 Definitions. (1) Receipt of Sustainable Products and Services. “Green Procurement Compilation” means a public website (i) The contracting officer must take reasonable that identifies Federal sustainable acquisition requirements steps to validate any required sustainable products and/or ser- and provides other guidance for the purchase of sustainable vices were received. Review the best available evidence of products and services. A link to this website can be found at compliance such as manufacturer product documentation, http://insite.gsa.gov/sustainableacquisition. design submittals, and federal or third party ecolabels. Utilize “Sustainable Facilities Tool” means a free, interactive random sampling techniques when reviewing documents/evi- website that helps the public identify and implement dence to limit the time required for review. Staff/Service cost-effective green building and procurement strategies. A Offices may prioritize which products and/or services to link to this website can be found at http://insite.gsa.gov/sus- focus on when performing compliance reviews. tainableacquisition. (ii) The contracting officer must note any discrepancies with sustainable acquisition requirements in the contract 523.103 Applicability. and take the appropriate corrective action. For best practices This policy applies to contract actions executed by GSA in verifying evidence of compliance, review the Verification personnel, whether in support of GSA operations or on behalf Guide for Purchasers of Sustainable Products at http:// of another agency. insite.gsa.gov/sustainableacquisition. (2) Contractor Sustainability Reports. The contracting 523.104 Procedures. officer must confirm that any required sustainability reports (a) Pre-Award Procedures. are submitted by the contractor. (1) Market Research. Use the Green Procurement Com- (i) Biobased Report. For service or construction pilation to determine whether the intended contract action contracts that include FAR Clause 52.223-2, the contractor must include sustainable requirements in accordance with must provide annual information on the USDA-designated FAR Part 23. biobased products (BioPreferred products) purchased each (2) Statement of Work/Solicitation. fiscal year by submitting a report in the System for Award (i) If the procurement has sustainable requirements, Management. If this reporting is required by the contract, the confirm that all applicable provisions and clauses are contracting officer must take the following steps: included in the solicitation and that the statement of work or (A) Review the reports submitted by the contrac- specification contains the minimum sustainable require- tor in SAM for reasonableness. ments. (B) Report any non-compliance by the contractor (ii) When developing the statement of work or spec- within the “Other Areas” portion of the CPARS evaluation ification, consider including procedures for verifying compli- form. ance with sustainable requirements. Review the Verification (ii) Recycled Content Report. Guide for Purchasers of Sustainable Products at http:// (A) FAR Clause 52.223-9 requires the contractor insite.gsa.gov/sustainableacquisition for additional informa- to submit a report to the contracting officer that estimates the tion. percentage of the total recovered material content for the (iii) If a procurement cannot comply with the mini- Environmental Protection Agency’s Comprehensive Procure- mum sustainable requirements as outlined in GSAM ment Guidelines (CPG) designated products delivered and/or

523-1 CHANGE 65 JUNE 24, 2015

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL used in contract performance. Only include this clause when This review will utilize existing GSA databases and processes a contract meets both of the following criteria: to the maximum extent practicable in order to limit manual (1) The contract requires (CPG) products that data collection. These reviews will focus on ensuring that are not commercial off-the-shelf items; and GSA requires and receives sustainable products and services (2) The value of the contract is over $150,000. in all applicable acquisitions. (B) If this reporting is required by the contract, (b) Determining Compliance. See the GSA Sustainable the contracting officer must– Acquisition Review Criteria document at http:// (1) Review the report submitted by the con- insite.gsa.gov/sustainableacquisition for the specific criteria tractor for reasonableness. that will be used to determine compliance with sustainable (2) Report any non-compliance by the con- acquisition reviews. tractor within “Other Areas” portion of the CPARS evaluation form. Subpart 523.3—Hazardous Material Identification and Material Safety Data 523.105 Sustainability Exceptions. (a) Allowable Exceptions. An exception for acquiring sus- 523.303 Contract clauses. tainable products or services is available if any of the follow- (a) Insert 552.223-70, Hazardous Substances, in solicita- ing conditions exist: tions and contracts for packaged items subject to the Federal (1) Product or service cannot be acquired competitively Hazardous Substances Act and the Hazardous Materials within a reasonable performance schedule. Transportation Act. (2) Product or service cannot be acquired that meets (b) Insert 552.223-71, Nonconforming Hazardous Materi- reasonable performance requirements. als, in solicitations and contracts for supplies that contain haz- (3) Product or service cannot be acquired at a reason- ardous materials. able price. (c) Insert 552.223-73, Preservation, Packaging, Packing, (i) The price shall be deemed unreasonable when the Marking, and Labeling of Hazardous Materials (HAZMAT) total life cycle costs are significantly higher for the sustain- for Shipments, in solicitations and contracts for packaged able product or service versus the non-sustainable product or items containing hazardous materials. service. Life cycle costs are determined by combining the initial costs of a product or service with any additional costs or 523.370 Solicitation provision. revenues generated from that product or service during its Insert 552.223-72, Hazardous Material Information, in any entire life. solicitation that provides for delivery of hazardous materials (ii) For more information on conducting a life cycle on an f.o.b. origin basis. cost analysis (LCCA), review the FEMP LCCA Guidance at http://insite.gsa.gov/sustainableacquisition. Subpart 523.4—Use of Recovered Materials (4) A specific statutory exemption applies. and Biobased Products (b) Documentation Process. If at any point during the acquisition the contracting officer determines that a contract 523.403 [Removed] action cannot comply with the sustainable requirements outlined in GSAM 523.104(a)(1) due to an allowable exception, 523.404 Agency affirmative procurement programs. the contracting officer must document within the contract file GSA’s affirmative procurement program is located within the exception being used under GSAM 523.105(a) and pro- Subpart 523.1, Sustainable Acquisition Policy. vide supporting rationale for using the exception. The exception can be documented in the Environmental and Energy Conservation Objectives section of the acquisition plan under FAR 7.105(b)(17) or in a separate memorandum that is included in the Acquisition Plan section of the contract file.

523.106 Compliance Monitoring and Reporting. (a) Review Process. GSA Office of Acquisition Policy is responsible for monitoring and reporting sustainable acquisition activity to the GSA Chief Sustainability Officer in support of the agency’s semiannual status report to Office of Management and Budget. This semiannual audit covers only applicable contract actions as defined in GSAM 523.103.

523-2 CHANGE 65 JUNE 24, 2015

Appendix 523A—[Removed] Appendix 523A—[Removed]

Appendix 523B—[Removed]

Appendix 523C—[Removed]

Appendix 523D—[Removed]

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523D-2 PART 524—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

Sec. Subpart 524.1—Protection of Individual Privacy Subpart 524.2—Freedom of Information Act 524.103 Procedures. 524.203 Policy.

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524-ii CHANGE 20 MAY 30, 2008

PART 524—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION 524.203 PART 524—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

Subpart 524.1—Protection of Individual provide for the maintenance of a system of records pursuant Privacy to OMB Circular A-130, Appendix 1.

524.103 Procedures. Subpart 524.2—Freedom of Information Act (a) See 41 CFR part 105-64, GSA Order, Privacy Act Pro- gram (CPO 1878.1), and Privacy Act Program information 524.203 Policy. available on Insite, when contracting for the design, develop- (a) See 41 CFR 105-60 and GSA FOIA procedures avail- ment, or operation of a system of records on individuals. able on Insite, for requirements on making records available (b) The Office of the Chief Acquisition Officer (OCAO) under FOIA. will review every two years a random sample of contracts that (b) The contracting officer shall notify the appropriate FOIA officer of the request.

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524-2 AMENDMENT 2009–04 JULY 6, 2009

PART 525—FOREIGN ACQUISITION

Sec. Subpart 525.1—Buy American Act—Supplies Subpart 525.10—Additional Foreign Acquisition 525.103 Exceptions Regulations 525.1070 Purchases Using Department of Defense Subpart 525.2—Buy American Act— (DoD) Appropriated Funds. Construction Materials 525.202 Exceptions. 525.206 Noncompliance.

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525-ii AMENDMENT 2009–04 JULY 6, 2009

PART 525—FOREIGN ACQUISITION 525.1070

PART 525—FOREIGN ACQUISITION

Subpart 525.1—Buy American Act— Subpart 525.2—Buy American Act— Supplies Construction Materials

525.103 Exceptions 525.202 Exceptions. (a) Public Interest. The HCA is authorized to make the (a) Public Interest. The HCA is authorized to make the determination required by FAR 25.103(a). The HCA may not determination required by FAR 25.202(a)(1). The HCA may redelegate this authority. not redelegate this authority. (b) Class Determination. FAR 25.103(b)(1)(i) does not (b) Nonavailability. For the determination under allow for class determinations to be made at the agency level. FAR 25.202(a)(2): (c) Class Determination - Notice of Availability. Regard- If the estimated cost of Then… ing FAR 25.103(b)(1)(iii)(C), documentation supporting materials… removal of an item from the list of Nonavailable Articles at (1) Exceeds $100,000. Only the HCA may make the FAR 25.104 should be submitted by the contracting officer to determination. The HCA may the Senior Procurement Executive (SPE) in the Office of the not redelegate this authority. Chief Acquisition Officer. The SPE will determine whether (2) Does not exceed $100,000. The HCA may redelegate the documentation should be forwarded to the Civilian authority to make the Agency Acquisition Council (CAAC). determination. (d) Individual Determinations—Nonavailability. For the one-time, single procurement determination required by FAR 525.206 Noncompliance. 25.103(b)(2)(i): Regarding potentially fraudulent noncompliance under FAR 25.206(c)(4), refer the matter to the appropriate Office of If the estimated value of the Then… supplies… Inspector General Office. (1) Exceeds $100,000. Only the HCA may make the determination. The HCA may not redelegate this authority. (2) Does not exceed $100,000. The HCA may redelegate authority to make the Subpart 525.10—Additional Foreign determination. Acquisition Regulations

(e) Individual Determinations—Notice of Nonavailability. 525.1070 Purchases Using Department of Defense (DoD) Regarding When the contracting officer considers that Appropriated Funds. non-availability of an item will affect future acquisitions (see (a) The Berry Amendment, 10 U.S.C. 2533a, applies FAR 25.103(b)(2)(ii)), documentation supporting the addi- domestic-source requirements to certain food, clothing, fab- tion of articles to the list of Nonavailable Articles at FAR rics, specialty metals, and hand or measuring tools when pur- 25.104 should be submitted by the contracting officer to the chased with DoD appropriated funds. The Berry SPE. The SPE will determine whether the documentation Amendment, as applicable to purchases using DoD appropri- should be forwarded to the CAAC. ated funds, is implemented at DFARS Subpart 225.70 and in clauses prescribed there. (b) GSA acquisition personnel are responsible for reviewing requests for purchases using DoD appropriated funds to ensure that all special funding and procurement requirements, e.g., Berry Amendment applicability, have been disclosed to GSA.

(Change 30) 525-1 525.1070 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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525-2 PART 526—OTHER SOCIOECONOMIC PROGRAMS

Sec. [RESERVED]

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526-ii GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS This page intentionally left blank. PART 527—PATENTS, DATA, AND COPYRIGHTS

Sec. Subpart 527.4—Rights in Data and Copyrights 527.409 Solicitation provisions and contract clauses.

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527-ii PART 527—PATENTS, DATA, AND COPYRIGHTS 527.409

PART 527—PATENTS, DATA, AND COPYRIGHTS

Subpart 527.4—Rights in Data and (a) Insert 552.227-70, Government Rights (Unlimited), instead of FAR 52.227-17, Rights in Data-Special Works, in Copyrights contracts, except if 552.227-71 is prescribed. (b) If the Government requires sole property rights and 527.409 Solicitation provisions and contract clauses. exclusive control over the design and data, insert 552.227-71, Architect-engineer services and construction contracts Drawings and Other Data to Become Property of Govern- involving architect-engineer services. Insert the following in ment, instead of FAR 52.227-17. solicitations and contracts for architect-engineer services and construction contracts involving architect-engineer services:

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527-2 AMENDMENT 2009–02 MAY 14, 2009

PART 528—BONDS AND INSURANCE

Sec. Subpart 528.1—Bonds and Other Financial Subpart 528.2—Sureties and Other Security for Protections Bonds 528.101 Bid guarantees. 528.202 Acceptability of corporate sureties. 528.101-1 Policy on use. 528.202-70 Acceptability of bonds and sureties. 528.102 Performance and payment bonds and 528.203 Acceptability of individual sureties. alternative payment protections for 528.203-7 Exclusion of individual sureties. construction contracts. 528.204 Alternatives in lieu of corporate or individual 528.102-1 General. sureties. 528.103 Performance and payment bonds for other Subpart 528.3—Insurance than construction contracts. 528.301 Policy. 528.103-2 Performance bonds. 528.310 Contract clause for work on a Government 528.103-3 Payment bonds. installation. 528.106 Administration. 528.311 Solicitation provision and contract clause on 528.106-6 Furnishing information. liability insurance under cost-reimbursement contracts. 528.311-1 Contract clause.

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528-ii AMENDMENT 2009–02 MAY 14, 2009

PART 528—BONDS AND INSURANCE 528.203-7

PART 528—BONDS AND INSURANCE

Subpart 528.1—Bonds and Other Financial (b) Consider the circumstances and determine the penal Protections amount of the payment bond on a case-by-case basis.

528.101 Bid guarantees. 528.106 Administration.

528.101-1 Policy on use. 528.106-6 Furnishing information. (a) Construction contracts. The contracting officer shall The HCA or designee performs the functions outlined in require bid guarantees for contracts awarded under FAR 28.106-6(c). Section 8(a) of the Small Business Act, as amended Subpart 528.2—Sureties and Other Security (15 U.S.C. 637(a)). for Bonds (b) Building service contracts. The contracting officer shall require bid guarantees for building service contracts 528.202 Acceptability of corporate sureties. over $100,000 if it is determined under 528.103-2 that a per- Corporate surety bonds must be manually signed by the formance bond is essential to protect the Government’s inter- Attorney-in-Fact or officer of the surety company and the cor- est. porate seal affixed. The contracting officer may waive failure (c) All other contracts. Refer to FAR 28.101 for guidance of the surety to affix the corporate seal as a minor informality. on the use of bid guarantees. (See B-184120, July 2, 1975, 75-2 CPD 9.) 528.102 Performance and payment bonds and alternative 528.202-70 Acceptability of bonds and sureties. payment protections for construction contracts. Verify the acceptability of the surety on a bond by placing the words “Acceptability of Bond Verified,” and sign imme- 528.102-1 General. diately thereunder, on the bond or on a properly identified The performance and payment bond requirements in FAR attachment. Retain the bond with the original of the contract. 28.102-1 apply to contracts awarded under Section 8(a) of the The contracting officer may use the Notice to Proceed to Small Business Act. notify the contractor that the bond(s) has been accepted. 528.103 Performance and payment bonds for other than 528.203 Acceptability of individual sureties. construction contracts. Refer evidence of possible criminal or fraudulent activities by an individual surety first to the Assistant Inspector General 528.103-2 Performance bonds. for Investigations or to the appropriate Regional Special (a) The contracting officer shall not require performance Agent in Charge. The Office of Inspector General may con- bonds for building service contracts unless a written determi- duct an investigation and, when appropriate, refer the matter nation is made explaining why the bond is essential to protect to the Senior Procurement Executive. Include in referrals the the Government’s interest and justifying the additional cost of information required by 528.203-7. the bonding requirement. (b) The contracting officer shall require a performance 528.203-7 Exclusion of individual sureties. bond for building service contracts awarded under Section (a) The Senior Procurement Executive or designee 8(a) of the Small Business Act as amended (15 U.S.C. excludes individuals from acting as a surety on bonds under 637(a)). The contracting officer shall not require a perfor- FAR 28.203-7. mance bond for building service contracts awarded to work- (b) Include the following, as a minimum, in referrals for shops for the blind or other severely handicapped under the consideration of exclusion: Javits-Wagner-O’Day Act, as amended (41 U.S.C. 46-48c). (1) The basis for exclusion (see FAR 28.203-7(b)). (c) Consider the circumstances and determine the penal (2) A statement of facts. amount of the performance bond on a case-by-case basis. (3) Copies of supporting documentary evidence. (4) The individuals’ names and current or last known 528.103-3 Payment bonds. home and or business addresses, including zip codes. (a) The contracting officer may require payment bonds for (5) A statement of GSA’s history with such individuals, other than construction contracts if the contracting director if any. determines, under FAR 28.103-3, that such a requirement is in the Government’s interest.

528-1 AMENDMENT 2009–02 MAY 14, 2009

528.204 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (6) A statement concerning any known active or poten- 528.310 Contract clause for work on a Government tial criminal investigations or court proceedings. installation. (c) In accordance with GSA Order ADM 5000.4A Legal Insert the clause at 552.228-5, Government as Additional Services, legal review shall be obtained for the proposed Insured, in each solicitation and contract that meets all the fol- exclusion. lowing conditions: (a) The contract amount is expected to exceed the simpli- 528.204 Alternatives in lieu of corporate or individual fied acquisition threshold; and sureties. (b) The contract will require work to be performed on Gov- Security deposited instead of corporate or individual sure- ernment property. ties on bonds must be safeguarded immediately after they are received, as provided in procedures issued by the Office of the 528.311 Solicitation provision and contract clause on Chief Financial Officer (see GSA Order, Accounts Receiv- liability insurance under cost-reimbursement able Policy Handbook (CFO P 4253.1)). United States bonds contracts. or notes received in the District of Columbia must be deposited with the Treasurer of the United States, as provided in 528.311-1 Contract clause. FAR 28.204-1. Use the clause at FAR 52.228-7, Insurance–Liability to Subpart 528.3—Insurance Third Persons, in solicitations and contracts, other than those for construction and those for architect-engineer services, 528.301 Policy. when a cost-reimbursement contract is contemplated, unless Insurance requirements must be adequate, just, and reason- the head of the contracting activity waives the requirement for able. They should be predicated on potential loss or damage, use of the clause. not necessarily on the value of the contract.

528-2 CHANGE 33, JUNE 15, 2009

PART 529—TAXES

Sec. Subpart 529.1—General Subpart 529.4—Contract Clauses 529.101 Policy. 529.401 Domestic contracts. 529.401-70 Purchases at or under the simplified Subpart 529.3—State and Local Taxes acquisition threshold. 529.302 Application of State and local taxes to the 529.401-71 Contracts for supplies and services usable by Government. the DC Government.

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529-ii CHANGE 33, JUNE 15, 2009

PART 529—TAXES 529.401-71

PART 529—TAXES

Exemption Information” in the search tool and then select Subpart 529.1—General “Tax Exemption Information” from the results list for point of contact information and GSA’s tax exemption number. 529.101 Policy. Subpart 529.4—Contract Clauses Action may not be taken on any matters involving taxes on Federal purchases or contracts without obtaining legal review. 529.401 Domestic contracts. See ADM 5000.4A for the requirement to obtain legal review by the Office of General Counsel (OGC) for agency actions. 529.401-70 Purchases at or under the simplified See FAR 29.101 (b) through (d) for the type of tax-related acquisition threshold. issues that require legal review. Insert 552.229-70, Federal, State, and Local Taxes, in purchases and contracts estimated to exceed the micropurchase Subpart 529.3—State and Local Taxes threshold, but not the simplified acquisition threshold.

529.302 Application of State and local taxes to the 529.401-71 Contracts for supplies and services usable by Government. the DC Government. If it has been determined that evidence of tax exemption is Insert 552.229-71, Federal Excise Tax—DC Government, required, contracting officers shall follow the guidance as out- in solicitations and contracts that permit the District of lined on GSA Insite. Contracting officers shall input “Tax Columbia Government to place orders.

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529-2 PART 530—COST ACCOUNTING STANDARDS ADMINISTRATION

Sec. Subpart 530.2—Subpart 530.2 CAS Program Requirements 530.201-5 Waiver.

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530-ii PART 530—COST ACCOUNTING STANDARDS ADMINISTRATION 530.201-5 PART 530—COST ACCOUNTING STANDARDS ADMINISTRATION

Subpart 530.2—Subpart 530.2 CAS Program Requirements

530.201-5 Waiver. Submit waiver requests to the Senior Procurement Execu- tive.

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530-2 PART 531—CONTRACT COST PRINCIPLES AND PROCEDURES

Sec. Subpart 531.1—Applicability 531.101 Objectives.

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531-ii PART 531—CONTRACT COST PRINCIPLES AND PROCEDURES 531.101 PART 531—CONTRACT COST PRINCIPLES AND PROCEDURES

Subpart 531.1—Applicability

531.101 Objectives. The Senior Procurement Executive is the designee under FAR 31.101.

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531-2 AMENDMENT 2012–01 MARCH 12, 2012

PART 532—CONTRACT FINANCING

Sec. Subpart 532.1—Non-Commercial Item Purchase Subpart 532.8—Assignment of Claims Financing 532.805 Procedure. 532.111 Contract clauses for non-commercial 532.806 Contract clauses. purchases. Subpart 532.9—Prompt Payment 532.112 Payment of subcontractors under contracts for non-commercial items. 5532.904 Determining payment due dates. 532.112-1 Subcontractor assertions of nonpayment. 532.905 Payment documentation and process. 532.905-70 Final payment—construction and building Subpart 532.4—Advance Payments for Non- service contracts. Commercial Items 532.908 Contract clauses. 532.402 General. Subpart 532.11—Electronic Funds Transfer 532.407 Interest. Subpart 532.70—Authorizing Payment by Subpart 532.5—Progress Payments Based on Government Charge Card Costs 532.501 General. 532.7002 Solicitation requirements. 532.501-2 Unusual progress payments. 532.7003 Contract clause. 532.502 Preaward matters. Subpart 532.71—[Reserved] 532.502-2 Contract finance office clearance. 532.503-5 Administration of progress payments. Subpart 532.72—Payments Under Contracts 532.503-6 Suspension or reduction of payments. Subject to Audit 532.503-9 Liquidation rates—alternate method. 532.7201 General. 532.7202 Submission and processing of invoices or Subpart 532.6—Contract Debts vouchers. 532.606 Debt determination and collection. 532.7203 Action upon receipt of an audit report. 532.7204 Suspension and disapproval of amounts claimed. Subpart 532.7—Contract Funding 532.700 Scope of subpart. 532.702 Policy. 532.703 Contract funding requirements.

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532-ii AMENDMENT 2009–13 NOVEMBER 25, 2009

PART 532—CONTRACT FINANCING 532.606

PART 532—CONTRACT FINANCING

532.502 Preaward matters. Subpart 532.1—Non-Commercial Item Purchase Financing 532.502-2 Contract finance office clearance. Before providing for progress payments based on costs, 532.111 Contract clauses for non-commercial purchases. the contracting officer shall request the Office of the Chief For contracts that include the clause at FAR 52.232-5, Pay- Financial Officer to provide advice and assistance about a ments Under Fixed-Price Construction Contracts, the con- contractor’s financial condition and the adequacy of its tracting officer shall provide the contractor with GSA Form accounting system and controls. 2419, Certification of Progress Payments Under Fixed-Price Construction Contracts, to be used to make the certification 532.503-5 Administration of progress payments. required by FAR 52.232-5(c). The contracting officer shall ensure that the contract finance office provides to the contracting office: 532.112 Payment of subcontractors under contracts for (a) The date and amount of each progress payment to a non-commercial items. contractor; and (b) Written recommendations if findings warrant action by 532.112-1 Subcontractor assertions of nonpayment. the Government. If the contracting officer determines under FAR 32.112-1 that a contractor’s certification of payment is inaccurate in 532.503-6 Suspension or reduction of payments. any material respect, the contracting officer shall report the The HCA must approve any action recommended under matter to the Office of Inspector General. FAR 32.503-6. Upon approval, the contracting officer shall request the contract finance office to suspend or reduce payments.

Subpart 532.4—Advance Payments for 532.503-9 Liquidation rates—alternate method. Reduction of the liquidation rates specified in Non-Commercial Items paragraph (b) of FAR 52.232-16 may be made only with the contracting officer’s approval after coordination with the con- 532.402 General. tract finance office. Upon approval, the contracting officer The contracting officer shall prepare the findings and shall request the finance office to reduce the rate. determinations required by FAR 32.402(e) in coordination with the contract finance office. The HCA approves the find- Subpart 532.6—Contract Debts ings, determinations and authorization for advance payments. 532.606 Debt determination and collection. 532.407 Interest. (a) The contract finance office is responsible for the The contract finance office will give the contracting officer administration of debt collection pursuant to GSA directives, the interest rate to be charged on the unliquidated balance of currently found in the Accounting Operations—Accounts advance payments. Receivable and Credit and Finance Operations, and Related Activities Handbook (PFM P 4253.1). Subpart 532.5—Progress Payments Based on (b) If the contracting officer determines that a debt in Costs excess of $100 is delinquent, he/she shall notify the applicable finance office for collection in accordance with the Debt 532.501 General. Collection Improvement Act of 1996, and possibly forward the information to the Department of the Treasury’s Financial 532.501-2 Unusual progress payments. Management Service for administrative offset and cross-ser- The HCA must approve or disapprove requests for vicing. “unusual” progress payments. (c) If the contractor appeals the demand for payment pursuant to the Disputes clause of its contract, the contracting officer shall advise the Finance Office whether to suspend collection efforts pending resolution of the dispute.

(Change 41) 532-1 AMENDMENT 2009–13 NOVEMBER 25, 2009

532.700 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Subpart 532.7—Contract Funding Subpart 532.9—Prompt Payment

532.700 Scope of subpart. GSA fiscal regulations are in the Budget Administration Handbook (CFO 4251.4), Accounting Classification Hand- 532.904 Determining payment due dates. book (CFO P 4240.1), and Accounting Operations—Voucher Payment due dates for construction contracts are addressed Examination Payment Handbook (CFO P 4252.1). at FAR 32.904(d). The following procedures apply to construction and building service contracts: 532.702 Policy. (a) The amount of final payment must include, as appropri- GSA’s contract funding policies are in compliance with the ate, deductions to cover any of the following: full funding policy at Part 2, Section 31.6, OMB-C A-11, pub- (1) Liquidated damages for late completion. lished June 26, 2008. (2) Liquidated damages for labor violations. (3) Amounts withheld for improper payment of labor 532.703 Contract funding requirements. wages. (a) “Severable services” means services that are continu- (4) The amount of unilateral change orders covering ing and ongoing in nature—such as help-desk support, main- defects and omissions. tenance, or janitorial services—for which benefit is received (5) The agreed-upon dollar amount in a Deficiency each time the service is rendered. Report, which is included in all applicable Operation and (b) “Non-severable services” means work that results in a Maintenance (O&M) service contracts. final product or end-item and for which benefit is received (b) When the contract is for the performance of building only when the entire project is complete, such as systems services, the contracting officer shall include the clause at design, building conversion, or environmental study. 552.232-72, Final Payment Under Building Services Con- (c) Contracts for severable services may cross fiscal years tracts. as long as the period of performance (excluding options) is no (c) When the contract is for the performance of building more than 12 months. Contracts for goods or non-severable services, the contracting officer shall include the clause at services are not similarly limited. 552.232-72, Final Payment Under Building Services Con- tracts.

532.905 Payment documentation and process. Subpart 532.8—Assignment of Claims For contracts of the type shown in 532.7201(a)(1) through (4): (a) Contractors are to submit invoices or vouchers to the 532.805 Procedure. contracting officer for approval. Invoices must be annotated (a) When acknowledging receipt of the notice of assign- with the date of receipt, as required by FAR 32.905. That date ment, the contracting officer shall notify the contractor that all will be used to determine interest penalties for late payments. future invoices or other requests for payment under the con- The contracting officer or designee must review the process- tract must specify the name and address of the assignee and ing of invoices or vouchers before payment to determine if the include a notation that payments due thereunder have been items and amounts claimed are consistent with the contract duly assigned. The contracting officer must send a copy of the terms and represent prudent business transactions. The con- acknowledgment to the contract finance office. tracting officer must ensure that these payments are commen- (b) When payments under requirements or indefinite surate with physical and technical progress under the contract. quantity contracts that are for the sole use of GSA have been If the contractor has not deducted questionable amounts from assigned, the contracting officer shall provide all GSA offices the invoice or amounts required to be withheld, the contract- that will place orders against the contract the name and ing officer must make the required deduction, except as pro- address of the assignee that will receive amounts due under vided in 532.7203. Subject to 532.7201, the contracting the contract. The notification should also state that the con- officer must note approval of any payment on (or attached to) tracting officer requested the contractor to specify the name the invoice or voucher submitted by the contractor and for- and address of the assignee on future invoices. ward the invoice or voucher to the appropriate contract 532.806 Contract clauses. finance office for retention after certification and scheduling Insert the clause at 552.232-23, Assignment of Claims, in for payment by a disbursing office. solicitations and requirements or indefinite quantity contracts (b) See GSAM 532.7203 for the handling of audit findings. under which more than one agency may place orders.

532-2 (Change 41) AMENDMENT 2012–01 MARCH 12, 2012

PART 532—CONTRACT FINANCING 532.7003

532.905-70 Final payment—construction and building (2) If the contract is for commercial items and will service contracts. include FAR 52.212-4, use the clause with its Alternate II. If The following procedures apply to construction and build- the contract is not for commercial items, use the clause at ing service contracts: 552.232-25, Prompt Payment, instead of FAR 52.232-25. (a) The Government shall pay the final amount due the Contractor under this contract after the documentation in the Subpart 532.11—Electronic Funds Transfer payment clauses of the contract is submitted. This includes the final release prescribed for construction at FAR 52.232-5, [Reserved] and for building services at GSAR 552.232-72. (b) Contracting officers may not process the final payment Subpart 532.70—Authorizing Payment by on construction or building service contracts until the contrac- Government Charge Card tor submits a properly executed GSA Form 1142, Release of Claims, except as provided in paragraph (c) of this section (c) In cases where, after 60 days from the initial attempt, the contracting officer is unable to obtain a release of claims 532.7002 Solicitation requirements. from the contractor, the final payment may be processed with (a) In solicitations for supplies and services, except FSS the approval of assigned legal counsel. schedule solicitations, request offerors to indicate if they will (d) The amount of final payment must include, as appro- accept payment by Governmentwide commercial purchase priate, deductions to cover any of the following: card. Identify the card brand(s) under the GSA SmartPay pro- (1) Liquidated damages for late completion. gram that may be used to make payments under the contract, (2) Liquidated damages for labor violations. on the cover page or in Section L of the solicitation. (3) Amount withheld for improper payment of labor (b) For FSS schedule contracts, identify the card brand(s) wages. under the GSA SmartPay program that may be used to make (4) The amount of unilateral change orders covering payments under the contract in the contract award letter. defects and omissions. (c) For orders placed by GSA, you may authorize payment by Governmentwide commercial purchase card only for 532.908 Contract clauses. orders that do not exceed $100,000 (see GSA Order, Guidance (a) GSA has a FAR deviation that allows this agency to use on Use of the Credit Card for Purchases (CFO 4200.1)). the clause at 552.232-1, Payments, in lieu of the clause at FAR (d) Consider requesting offerors to designate different lev- 52.232-1, Payments. els for which they may accept payment by Governmentwide (b) General. Before exercising the authority to modify the commercial purchase card, for example: date for constructive acceptance or constructive approval of “If awarded a contract under this solicitation, the offeror progress payments in paragraph (a)(5)(i) of the clause at FAR agrees to accept payment by Governmentwide commercial 52.232-25, Prompt Payment, the contracting officer must prepurchase card for orders of: pare a written justification explaining why a longer period is necessary. An official one level above the contracting officer $2,500 or less $25,000 or less must approve the justification. The time needed should be $50,000 or less $100,000 or less” determined on a case-by-case basis, but the specified constructive acceptance period shall not exceed 30 days. (c) Stock, Special Order, and Schedules Programs. 532.7003 Contract clause. (1) GSA has obtained a FAR Deviation to authorize For indefinite-delivery, indefinite-quantity (IDIQ) con- payment within 10 days of receipt of a proper invoice. The tracts other than Schedules, insert the clause at 552.232-77, authority applies only to: Payment By Government Charge Card, if the contract will (i) Orders placed by GSA under the referenced pro- provide for payment by Government charge card as an alter- grams; native method of payment for orders. For Schedule contracts (ii) That include FAR 52.232-33, Mandatory Infor- that provide for payment using the Government charge card, mation for Electronic Funds Transfer Payment; and use the clause(s) prescribed at Part 538. (iii) For which the order is placed, and the contractor submits invoices, using EDI in accordance with the Trading Subpart 532.71—[Reserved] Partner Agreement.

532-3 532.7201 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Subpart 532.72—Payments Under Contracts If the contractor has not deducted questionable amounts from Subject to Audit the invoice or amounts required to be withheld, the contracting officer is responsible for making the required deduction, 532.7201 General. except as provided in 532.7203. (a) The contracting officer should not approve an initial (b) Subject to 532.7201, the contracting officer should invoice or voucher before having consulted with the Assistant note approval of any payment on (or attached to) the invoice Inspector General for Auditing or the Field Audit Office or voucher submitted by the contractor, then forward the regarding cost or other supporting data as required under: invoice or voucher to the appropriate contract finance office (1) Cost-reimbursement type contracts. for retention after certification and scheduling for payment by (2) The cost-reimbursement portion of fixed-price type a disbursing office. contracts. (3) Time and materials or labor-hour contracts. 532.7203 Action upon receipt of an audit report. (4) Fixed-price contracts providing for any of the fol- Audit reports will be furnished to the contracting officer lowing: and Field Audit Office, with a copy to the appropriate contract (i) Progress payments based on costs. finance office. Upon receipt of an audit report, pursuant to (ii) Advance payments. contract terms, the contracting officer is responsible for deter- (iii) Guaranteed loans. mining the allowability of all costs covered by audit. While (iv) Cost-based Incentives or redetermination. the auditor’s recommendations should be given full consider- (b) Except for fixed-price contracts with redetermination ation, the contracting officer must make an independent busi- where no price revision (upward or downward) is to be made, ness judgment before taking any action based on the audit the contracting officer shall not approve the final payment report. If there is doubt or question about the auditor’s recom- invoice or voucher for contracts specified in 532.7201(a) or mendations, the contracting officer is required to follow the the final payment or settlement of other contracts subject to audit resolution procedures in GSA Order ADM P 2030.2C, audit prior to: Audit Resolution and Followup System, Chapter 4, paragraph (1) Receipt and review of the contract audit report; or 3. (2) Consultation with the Assistant Inspector General for Auditing or the Field Audit Office if no audit is to be con- 532.7204 Suspension and disapproval of amounts ducted. claimed. (a) The contracting officer shall notify the appropriate 532.7202 Submission and processing of invoices or contract finance office in writing when amounts claimed for vouchers. payment are— (a) Contractors should be required to submit invoices or (1) Suspended; vouchers to the contracting officer. The date on which the (2) Disapproved as not being allowable according to contracting officer receives the invoice or voucher will be contract terms; or used to determine interest penalties for late payments. The (3) Not allocable to the contract. contracting officer, or designee, must review the processing (b) The contracting officer’s notice forms the basis for the of invoices or vouchers before payment to determine if the contract finance office to issue GSA Form 533, Administra- items and amounts claimed are consistent with the contract tive Difference Statement. Finance will attach a copy of GSA terms and represent prudent business transactions. The con- Form 533 to each copy of the invoice or voucher from which tracting officer must ensure that these payments are commen- the deduction has been made, and will include an explanation surate with physical and technical progress under the contract. of the deduction.

532-4 (Change 53) AMENDMENT 2008-03 JANUARY 8, 2009

PART 533—PROTESTS, DISPUTES, AND APPEALS

Sec. Subpart 533.1—Protests Subpart 533.2—Disputes and Appeals 533.101 Definitions. 533.209 Suspected fraudulent claims. 533.102 General. 533.211 Contracting officer’s decision. 533.103 Protests to the agency. 533.212 Contracting officer’s duties when an appeal 533.103-1 Filing a protest. is filed. 533.103-2 Deciding a protest. 533.212-1 General. 533.212-2 Procedures when an appeal is filed. 533.104 Protests to GAO. 533.212-3 Preservation of Evidence. 533.105 Court of Federal Claims Protests. 533.212-4 Settlement. 533.214 Alternative dispute resolution (ADR).

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533-iii GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

533-iv AMENDMENT 2008–03 JANUARY 8, 2009

PART 533—PROTESTS, DISPUTES, AND APPEALS 533.103-2

PART 533—PROTESTS, DISPUTES, AND APPEALS

Subpart 533.1—Protests (4) State whether the protester chooses to have the contracting officer or the Agency Protest Official decide the pro- 533.101 Definitions. test. If the protest does not include the protester's choice, then “Agency Protest Official for GSA” means the Central the contracting officer will decide the protest (see paragraph Office official in the Office of the Chief Acquisition Officer (a) of this subsection). (OCAO) designated to independently review and decide pro- (e) The following procedures apply to information submit- curement protests filed with GSA when the protester requests ted in support of or in response to an agency protest: an agency review by other than the contracting officer. (1) GSA procedures do not provide for any discovery. “Deciding official” means the person chosen by the pro- (2) The deciding official has discretion to request addi- tester to decide the agency protest; it may be either the con- tional information from either the agency or the protester, tracting officer or the Agency Protest Official for GSA. orally or in writing, as may be necessary to render a timely decision on the protest. However, protests are normally 533.102 General. decided on the basis of information initially provided by the Unless otherwise authorized by the Office of General protester and the agency. Counsel (OGC), OGC contacts anyone outside of GSA (3) To the extent permitted by law and regulations, the involved in protests of GSA contract actions filed with the parties may exchange relevant information. Comptroller General or in a Federal court. (4) The agency must make a written response to the protest within ten days unless another date is set by the deciding 533.103 Protests to the agency. official. (5) The agency must also provide the protester with a 533.103-1 Filing a protest. copy of the response on the same day it files the protest (a) Any protester filing an agency protest has the choice of response with the deciding official. If the agency believes it requesting either that the contracting officer or the Agency needs to redact or withhold any information in the response Protest Official decide the protest. If the protest is silent on from the protester, it should identify and provide the informa- this matter, the contracting officer will decide the protest. If tion to the deciding official for in camera review. a party requests a review at a level above the contracting offi- (f) A protester may represent itself or be represented by cer, the Agency Protest Official will decide the protest. The legal counsel. GSA will not reimburse the protester for any decision by the Agency Protest Official for GSA is an alter- legal fees related to the agency protest. native to a decision by the contracting officer on a protest. (g) GSA may dismiss or stay proceedings on an agency The Agency Protest Official for GSA will not consider an protest if a protest on the same or similar basis is filed with a appeal of the contracting officer’s decision on an agency pro- protest forum outside of GSA. test. (b) If an agency protest is filed, the deciding official uses 533.103-2 Deciding a protest. the procedures in FAR 33.103 and this section to resolve the (a) When the Agency Protest Official is the deciding offi- protest. The deciding official will provide a fair and quick cial: review of any protest filed with the agency. (1) The contracting officer must ensure that the Agency (c) The filing timeframes in FAR 33.103(e) apply. An Protest Official and assigned legal counsel receive a copy of agency protest is filed when the complete protest is received the materials served on the contracting officer within one at the location the solicitation designates for serving protests. business day after the filing date. GSA’s hours of operation are 8 a.m. to 4:30 p.m. Protests (2) The Agency Protest Official must conduct a sched- delivered after 4:30 p.m. will be considered received and filed uling conference with the protester and assigned agency legal the following business day. counsel as soon as practicable after the protest is filed. The (d) The protest must meet all the following conditions: scheduling conference will establish the Agency Protest Offi- (1) Include the information required by FAR cial's plan to develop an appropriate record to assist his/her 33.103(d)(2). decision making. The Agency Protest Official, in his/her dis- (2) Indicate that it is a protest to the agency. cretion, may ask the parties to participate in an oral presenta- (3) Be filed in writing with the contracting officer. tion and/or to submit other written material related to the protest issues. In the event the Agency Protest Official deems it necessary to have an oral presentation following submission of the agency’s written response, it should be limited to

533-1 AMENDMENT 2008–03 JANUARY 8, 2009

533.104 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL resolving remaining issues of material fact necessary for res- (i) Formally request a Statement of Fact and Position olution of the protest, as identified in advance by the Agency and compilation of documents (see FAR 33.104(a)(3)) from Protest Official. In such a case, the Agency Protest Official the contracting officer; will determine whether a further written response from both (ii) Notify the contracting officer of the designated parties is required following the oral conference. Other par- protest counsel (the GSA attorney responsible for handling ties (e.g., representatives of the program office) may attend at the case); the discretion of the Agency Protest Official. (iii) Provide GAO with the name, title, and tele- (3) If the Agency Protest Official sustains a protest, the phone number of one or more GSA officials who may be con- contracting officer must, within thirty (30) days after receiv- tacted by GAO regarding the protest. ing the protest decision, fully implement the recommended (3) If the contracting activity receives a protest before relief. being informed of it by OGC, he/she must immediately for- (b) Conferences and presentations may take place either ward it to OGC. by telephone or in person. (4) The designated protest counsel is responsible for (c) If GSA receives an agency protest before contract preparing a report to GAO, based upon the Contracting Offi- award, the contracting officer shall not make award unless the cer’s Statement of Fact and Position. HCA makes a determination to proceed under FAR (5) The Contracting Officer’s Statement of Fact and 33.103(f)(1). Similarly, if GSA receives an agency protest Position shall be reviewed by designated protest counsel and within ten (10) days after award or within five (5) days after the contracting director. a debriefing date offered to the protester under a timely (6) The Contracting Officer’s Statement of Fact and debriefing request under FAR 15.505 or 15.506, whichever is Position and the compilation of documents under FAR later, the contracting officer must suspend contract perfor- 33.104(a)(3)(ii) are due to the designated protest counsel mance unless the HCA makes a determination to proceed within 10 business days after receipt of the protest by the con- under FAR 33.103(f)(3). Any stay of award or suspension of tracting officer. The time period may be reduced if the GAO performance remains in effect until the protest is decided, dis- so decides. If the contracting officer cannot complete the missed, or withdrawn. Statement of Fact and Position and the compilation of docu- (d) The deciding official must obtain legal review of all ments within the time, the contracting officer must promptly draft protest decisions as required by GSA Order, Legal Ser- telephone the designated protest counsel with the reason for vices (ADM 5000.4A). the delay. The designated protest counsel has the discretion (e) The decision of the deciding official must be in writing, to authorize or disapprove the request; if the extension would dated, and include the following information: delay submission of GSA’s report to GAO beyond 30 days (1) Whether the protest was denied, sustained, or dis- from receipt of the protest, the designated protest counsel missed; and must first consult with GAO. (2) The rationale for the decision. (7) Once the Statement of Fact and Position has been (f) If the deciding official sustains the protest, relief may sent to the designated protest counsel, the contracting officer consist of any of the following recommendations: and Regional Counsel are responsible for promptly informing (1) Terminating the contract. the designated protest counsel of any later developments that (2) Recompeting the requirement. may affect the case. (3) Amending the solicitation. (8) The contracting officer is responsible for informing (4) Refraining from exercising contract options. all interested parties that a GAO protest has been filed. (See (5) Reevaluating the offers or bids and awarding a con- FAR 33.104(a)(2).) This should be done in writing using a tract consistent with statute, regulation, and the terms of the method that provides evidence of receipt. solicitation. (b) Competition in Contracting Act (CICA) stay overrides. (6) Other action determined appropriate by the deciding GSA requires the contracting officer to prepare the written official. determination and findings (D&F) under FAR 33.104(b) and (c) and obtain the concurrence of the Associate General Counsel (and Regional Counsel if a regional procurement) 533.104 Protests to GAO. before submitting the D&F for the HCA’s approval and sig- (a) General procedures. (1)The expeditious and timely nature. Once the D&F is signed, the designated protest coun- handling of Government Accountability Office (GAO) pro- sel must inform GAO of the findings and intention to award, tests is a GSA priority. or authorize contract performance, before GSA can actually (2) As soon as GAO receives a protest filed against take the intended action. Copies of the decision must be dis- GSA, it informs the GSA Office of General Counsel (OGC). tributed in accordance with FAR 33.104(d). OGC will —

533-2 AMENDMENT 2008–03 JANUARY 8, 2009

PART 533—PROTESTS, DISPUTES, AND APPEALS 533.212-2 (c) Content of Report to GAO. (1) All reports. In addition to the requirements of FAR 33.104(a)(3), the GSA report con- Subpart 533.2—Disputes and Appeals tains all the following: (i) GAO protest number (GAO case file number). 533.209 Suspected fraudulent claims. (ii) Solicitation or contract number. In GSA, the agency official responsible for investigating (iii) Full corporate name of the protesting organiza- fraud is the Office of Inspector General. tion and other firms involved. (iv) Statement indicating if the protest was filed 533.211 Contracting officer’s decision. before or after award. The contracting officer’s written decision must include the (2) Report for protest after award. If the protest is filed paragraph at FAR 33.211(a)(4)(v). The contracting officer after award, the report also includes: shall state in the decision that a contractor’s notice of appeal (i) Identity of the awardee. to the Civilian Board of Contract Appeals (CBCA) should (ii) Date of award. include a copy of the contracting officer’s decision. (iii) Contract number. (iv) Date and time of bid opening (including a state- 533.212 Contracting officer’s duties when an appeal is ment if the date of bid opening was extended by amend- filed. ments). (v) Total number of offerors. 533.212-1 General. (vi) Complete chronological statement of all rele- (a) The contractor may elect to appeal the contracting offi- vant events and administrative actions taken (including rea- cer’s decision by filing a notice of appeal with the Civilian sons and authority for the actions taken). Board of Contract Appeals (CBCA) or by filing suit in the (vii) Other relevant documents believed helpful in United States Court of Federal Claims (COFC). In cases determining the validity of the protest. This evidence should brought before the CBCA, GSA is represented by the GSA be referenced and identified within the text of the position Office of General Counsel (OGC). In cases brought before the statement, alphabetically or numerically, e.g., Tab A, Exhibit COFC, GSA is represented by the Department of Justice 1, etc. (DOJ), with the assistance of OGC. (d) Notice to GAO. OGC concurs on the HCA’s report to (b) When a case is brought before the CBCA or the COFC, the Comptroller General if GSA has decided not to comply OGC will notify the contracting officer of the designated liti- with GAO’s recommendation. gation counsel (the GSA attorney responsible for handling the case). The contracting officer shall provide assistance to des- 533.105 Court of Federal Claims Protests. ignated litigation counsel as specified in this section or as oth- (a) Upon receipt of either a copy of a protest filed in the erwise requested by designated litigation counsel. Court of Federal Claims (COFC) or a telephone call from the (c) Notwithstanding the filing of an appeal, the contracting Department of Justice (DOJ) advising of the filing of a COFC officer retains existing authorities with respect to the admin- protest, the contracting officer shall immediately notify and/ istration of the contract. However, the contracting officer is or send a copy of any filed documents received to OGC. not authorized to represent GSA before the CBCA or the (b) OGC is responsible for communicating and coordi- COFC or to an attorney representing the contractor. If the con- nating with DOJ regarding defense of any COFC protest. The tracting officer is contacted by an attorney for the contractor, contracting officer shall provide information and support as the contractor’s attorney must be referred to GSA’s desig- directed by OGC, including compilation of necessary docu- nated litigation counsel. ments and other materials. (d) If a contractor appeals a decision that has been deemed to be denied in accordance with the Contract Disputes Act (CDA), the CBCA or COFC may require the contracting officer to issue a decision in accordance with the CDA at 41 U.S.C. §605.

533.212-2 Procedures when an appeal is filed. (a) Timeliness. If the contracting officer believes that the appeal is untimely filed, either at the CBCA or COFC, the contracting officer shall immediately transmit to designated litigation counsel copies of documentary evidence related to timeliness, including a copy of the final decision and certified mail receipt.

533-3 AMENDMENT 2008–03 JANUARY 8, 2009

533.212-3 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (b) CBCA Appeal File. (ii) A copy of the claim and the contracting officer’s (1) When an appeal is filed before the CBCA, the con- decision; tracting officer shall prepare the file of documentary exhibits (iii) Copies of documents related to the dispute, required in the Board’s Rules of Procedure at http:// including copies of documents referenced in the claim or con- www.cbca.gsa.gov, in accordance with the Board’s rules gov- tracting officer’s decision; erning the Appeal File. (iv) Name and contact information for GSA and (2) Generally, the Appeal File shall include all docu- other personnel involved in the dispute. ments referenced in and supporting the agency’s position, (d) Answer to Complaint. When an appeal is filed at the including, the contract, the claim, and the contracting offi- CBCA or COFC, the contractor is required to file a formal cer’s decision. pleading called a Complaint, which sets forth the allegations (3) The contracting officer should consult with the of fact upon which the claim is based. The Government, counsel to obtain general assistance in preparing the Appeal except for the situation discussed below, is obligated to File, and consult with designated litigation counsel to deter- respond to the Complaint by admitting, denying, or otherwise mine requirements specific to the appeal, including possible responding to the contractor’s allegations in a formal pleading electronic submission of the Appeal File. If the contract is called the Answer. The contracting officer shall assist desig- voluminous and the dispute pertains only to a discrete portion nated litigation counsel in the drafting of the Answer by of the contract, the contracting officer should consult with advising whether the contractor’s allegations of fact should be designated litigation counsel to determine whether inclusion admitted or denied. If a response to an allegation in the com- of a portion of the contract is acceptable. plaint requires information in the possession of other GSA (4) In preparing the Appeal File, the contracting officer personnel, the contracting officer shall conduct sufficient must adhere to the following particular requirements: research reasonably necessary in order to form a belief as to (i) The exhibits must be placed in a 3-ring binder(s), the truth of the allegation. If the information necessary to with numbered tabbed division sheets separating each exhibit. form a belief as to the truth of the allegation is not in GSA’s (ii) The exhibits must be assembled in chronological possession, the contracting officer shall so advise designated order, with the oldest exhibit coming first. litigation counsel. In some cases, the Government may (iii) If a multi-page exhibit lacks internal pagination, respond to the Complaint by filing a motion to dismiss in lieu page numbering must be added, by hand, label, stamp or other of filing an Answer. Designated litigation counsel will advise means. the contracting officer if a motion to dismiss will be filed. (iv) An index must be prepared including a brief (e) Discovery. After the complaint and answer are filed description of each exhibit, the date of the exhibit, and the tab with the CBCA or COFC, each party will usually commence number corresponding to the exhibit. discovery. The contracting officer shall assist designated liti- (5) The contracting officer shall submit the proposed gation counsel in responding to all discovery requests, includ- Appeal File, together with an electronic version of the index, ing providing information in response to interrogatories, to designated litigation counsel within 20 days of receiving identifying and locating requested documents, and assisting notice of appeal, or shorter, if notified that accelerated proce- with production of witnesses for depositions. dures apply. Should the volume of exhibits or other factors require additional time for preparation of the Appeal File, the 533.212-3 Preservation of Evidence. contracting officer should immediately notify designated liti- When an appeal is filed, the contracting officer is required gation counsel in order that an extension may be obtained. to ensure that evidence in his or her control related to a dispute (6) After designated litigation counsel has reviewed the is preserved. In addition to physical documentation, such evi- proposed Appeal File and index, the contracting officer shall dence includes electronic data stored on agency computer make revisions as requested. Unless otherwise requested, the systems. The contracting officer shall assist designated liti- contracting officer shall produce five copies of the Appeal gation counsel with preservation of evidence by identifying File and transmit four copies to designated litigation counsel. relevant files containing physical documentation, including (c) COFC Litigation Report. not only the contract file but files containing information (1) When a case is filed at the COFC, the agency is related to the dispute that are maintained by other GSA orga- required to furnish a litigation report to DOJ. The contracting nizations. The contracting officer shall also assist designated officer shall furnish all necessary information to designated litigation counsel in identifying other GSA personnel whose litigation counsel for preparation of the litigation report. electronic data, including email, word processing documents, (2) At a minimum, the information to be furnished shall spreadsheets, and other electronic files may include informa- include— tion relating to the dispute. (i) A narrative of the factual background underlying the dispute;

533-4 AMENDMENT 2008–03 JANUARY 8, 2009

PART 533—PROTESTS, DISPUTES, AND APPEALS 533.214 533.212-4 Settlement. 533.214 Alternative dispute resolution (ADR). Notwithstanding the contracting officer’s claim of settle- It is GSA’s policy to use ADR to effect the prompt, effi- ment authority, the contracting officer is not authorized to set- cient and just resolution of disputes. The contracting officer tle a case brought before the CBCA or COFC. Only OGC may should refer to GSA Order CSL P 5050.1A, Using Alternative authorize settlement of a case before the CBCA or concur on Dispute Resolution Techniques, and consult with designated behalf of GSA to the settlement of a case before the COFC, litigation counsel on the use of ADR. subject to internal OGC approval requirements. The contracting officer shall provide requested assistance to designated litigation counsel in the negotiation, review, and approval of settlements.

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SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING This page intentionally left blank. CHANGE 19 FEBRUARY 6, 2008

PART 534—MAJOR SYSTEM ACQUISITION

Sec. Subpart 534.2—Earned Value Management Systems. 534.201 Policy. 534.201-70 Procedures. 534.202 Integrated Baseline Reviews (IBR).

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534-ii CHANGE 19 FEBRUARY 6, 2008

534.201 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL PART 534—MAJOR SYSTEM ACQUISITION

Subpart 534.2—Earned Value Management (4) EVMS System Acceptance Guide. Systems. (5) Program Managers’ Guide to the Integrated Base- line Review Process. 534.201 Policy. (6) Integrating Risk Management with Earned Value (a) Policy. This Subpart provides policies and procedures Management. for incorporating an Earned Value Management System (e) The Guides can be found at http://www.ndia.org/evm. (EVMS) (see FAR 2.101) in GSA contracts, for the exclusive use of GSA, pursuant to OMB Circular A-11, Part 7. It is a 534.201-70 Procedures. results-based tool that can also provide for the preclusion of (a) General. Major acquisitions are designated by agency possible problems or concerns during the project. planners in coordination with OMB. All major acquisitions (b) Definition of major acquisition. OMB Circular A-11, should have a complete and approved acquisition plan, a per- Part 7, Capital Planning Guide Supplement, refers to the defi- formance-based work statement, and a performance-based nition of “major acquisition” as a capital project that requires management system. The contracting officer should coordi- special management attention because of its: (1) importance nate with the program manager to determine whether the pro- to an agency’s mission; (2) high development, operating, or gram has been designated a major acquisition and, if so, to maintenance costs; (3) high risk; (4) high return; or (5) signif- ensure that the following have been adequately addressed in icant role in the administration of an agency’s programs, order to apply EVMS properly. finances, property, or other resources. (b) Adequate funding. Before proceeding with the procure- (c) Applicability. It is GSA policy to define major acquisi- ment, the contracting officer should verify that the program tion for the purposes of EVMS as follows: budget contains sufficient funding to conduct required EVMS (1) GSA acquisitions valued at $20 million or more. reviews and the Integrated Baseline Review (IBR) (see FAR Cost-reimbursement or incentive contracts and orders (see 34.202 and appropriate NDIA Guide). FAR subparts 16.3 and 16.4) shall require a formally vali- (c) Contract work breakdown structure. The program dated EVMS (in accordance with ANSI/EIA-748-A Earned manager is responsible for preparing the Contract Work Value Management System Acceptance Guide (see Breakdown Structure (CWBS) to be included in the work 534.201(d) below)). EVMS requirements shall be included in statement. The reporting of progress, performance, and engi- commercial and non-commercial contracts, MAS orders, and neering evaluations, as well as financial data and variance GWAC orders when the requirements entail developmental or analysis, is based on the CWBS. modernization work, as defined by OMB’s definition of (d) Requirements Package language. When a proposed Developmental/Modernization/Enhancement in A-11, Part 7. acquisition meets the requirements for EVM applicability, the Firm-fixed price, time-and-materials, and labor hour con- requirements package must address the Contract Work Break- tracts and orders that are solely for commercial items or ser- down Structure (CWBS) and the performance schedule, and vices, as defined at FAR 2.101, should not normally include it must include in the work statement the requirement for EVMS. EVMS. Sample language is provided below and should be (2) GSA acquisitions valued at less than $20 million. modified to fit particular program requirements. EVMS requirements apply for contracts and orders of any (1) EVMS statement for work statement. type valued at less than $20 million if the program manager “The Contractor must utilize an EVMS for planning, controlling, and contracting officer determine that EVMS is needed in that and integrating project scope, schedule, and resources. The Con- instance. This rationale shall be documented in the acquisi- tractor must provide documentation that its EVMS is compliant tion plan for the procurement. with the Standard. If the Contractor proposes to use an EVMS or similar system that is not compliant, the Contractor must submit (d) Industry Guides. Earned Value Management is based with its proposal a comprehensive plan to develop and implement upon the application of an international standard, ANSI/ a compliant EVMS.” EIA-748-A (June 2007). Specific EVMS Guides approved for (2) Contract Work Breakdown Structure (CWBS). The use by industry and U.S. Government for implementation of program manager is responsible for preparing a preliminary various aspects of ANSI/EIA-748-A are maintained by the CWBS that is compatible with the Program Work Breakdown National Defense Industrial Association (NDIA). These Structure (PWBS) and for including the CWBS in the require- Guides include: ments package. When determining the appropriate reporting (1) EVMS Application Guide. level, the program manager should extend the CWBS only to (2) EVMS Surveillance Guide. the level that allows visibility into those high-cost, high-risk, (3) EVMS Intent Guide. or specific areas critical to the success of the program. The

534-1 CHANGE 19 FEBRUARY 6, 2008

534.202 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL CWBS should not specify an excessive number of lower-level “The Contractor must establish a performance schedule that elements because it may impinge on the contractor’s normal describes in sufficient detail the sequence of events needed to method of operations or result in excessive reporting. Sample accomplish the requirements of the contract. The performance schedule must also reflect congruent CWBS elements. The Con- CWBS language follows: tractor must ensure the performance schedule portrays an inte- “The Contractor must extend the preliminary CWBS specified in grated schedule plan to meet the milestones and delivery the solicitation to meaningful management or product-oriented requirements of the contract. The performance schedule also lower levels that reflect the way it does business. The Contractor must identify the program’s critical path. The performance must prepare and deliver a CWBS Index and Dictionary. The schedule is to be constructed using a software tool compatible Contractor has complete flexibility in extending the CWBS, but with standard scheduling software. The Contractor must submit it must ensure that the CWBS is reconcilable with the Program the performance schedule at the post-award conference and an WBS and that reporting of progress, performance, and engineer- updated version monthly in program status reviews.” ing evaluations, as well as financial data and variance analysis, is (e) Acquisition planning. See FAR 7.105(b)(3) and (b)(10) based on the CWBS. The CWBS must be extended to the neces- for required acquisition planning for EVMS. sary level to support development of a logical and efficient sequence of tasks designed to accomplish the effort described in (f) Reporting. Contractors are required to submit EVM the Contract.” reports on a monthly basis. These reporting requirements shall be included as contract data deliverables. The work (3) Performance Schedule. To ensure that the manage- statement should require the contractor to use appropriately ment control system is integrated, the program manager is tailored value information as the basis for preparing the required to define requirements in the work statement for a monthly EVM reports and to integrate and present cost, schedule showing the sequence of events and the critical path schedule, and technical performance reviews. for program milestones or deliverables. Offerors should be required to use this schedule in preparing their proposals, and 534.202 Integrated Baseline Reviews (IBR). the performance schedule will ultimately result in an Inte- GSA policy prohibits the conduct of pre-award Integrated grated Master Schedule after completion of the IBR. Sample Baseline Reviews (IBR). Therefore, when an Integrated work statement language follows: Baseline Review is conducted, it shall be conducted after award.

534-2 PART 535—RESEARCH AND DEVELOPMENT CONTRACTING

[RESERVED]

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535-ii PART 536—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

Sec. Subpart 536.1—General Subpart 536.5—Contract Clauses 536.101 Applicability. 536.570 Supplemental provisions and clauses. 536.102 Definitions. 536.570-1 Definitions. 536.570-2 Authorities and limitations. Subpart 536.2—Special Aspects of Contracting 536.570-3 Specialist. for Construction 536.570-4 Basis of award—construction contract. 536.201 Evaluation of contractor performance. 536.570-5 Working hours. 536.202 Specifications. 536.570-6 Use of premises. 536.203 Government estimate of construction cost. 536.570-7 Measurements. 536.204 Disclosure of the magnitude of construction 536.570-8 Specifications and drawings. projects. 536.570-9 Shop drawings, coordination drawings, and 536.213 Special procedures for sealed bidding in schedules. construction contracting. 536.570-10 Samples. 536.213-3 Invitations for bids. 536.570-11 Heat. 536.213-370 Bids that include alternates. 536.570-12 Use of equipment by the Government. 536.213-371 Bids that include options. 536.570-13 Subcontracts. 536.213-372 Bids that include both alternates and options. 536.570-14 Requirement for a project labor agreement. 536.270 Exercise of options. 536.271 Project labor agreements. Subpart 536.6—Architect-Engineer Services 536.602 Selection of firms for architect-engineer contracts. 536.602-1 Selection criteria. 536.602-2 Evaluation boards. 536.602-3 Evaluation board functions.

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536-ii PART 536—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS 536.213-370

PART 536—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

(b) Before releasing a solicitation amendment that may Subpart 536.1—General affect price, a revised Government estimate must be provided. (c) You may disclose cost figures in the Government esti- 536.101 Applicability. mate during negotiation, but only to the extent considered If a requirement in this part is inconsistent with a require- necessary for arriving at a fair and reasonable price. The over- ment in another GSAR part, this part takes precedence. all amount of the Government estimate cannot be disclosed before award. After award, you may reveal the independent 536.102 Definitions. Government estimated price, upon request, to those firms or “Construction activity” means the organizational level of individuals who submitted proposals. the agency that has authority and responsibility for the archi- (d) Use the Government estimate to evaluate offers, as a tectural, engineering, and other technical or administrative guide in conducting contract negotiations or negotiations of aspects of design and construction. contract modifications, and as a tool for determining the rea- “Statutory cost limitations” means the cost limits included sonableness of prices. in the agency’s statutory authorization or annual appropriations act (by law). 536.204 Disclosure of the magnitude of construction Subpart 536.2—Special Aspects of projects. Contracting for Construction For construction projects over $10,000,000, show the magnitude in ranges having increments of $10,000,000 (e.g., $25,000,000 to $35,000,000). You may use a multiple 536.201 Evaluation of contractor performance. of $10,000,000 (e.g., $70,000,000 to $100,000,000), but the (a) The construction activity must prepare the perfor- lower figure must be at least half of the higher figure. mance report required by FAR 36.201(a). (b) Each Regional construction activity must establish an 536.213 Special procedures for sealed bidding in evaluation report file. The file may be either automated or construction contracting. manual. It must implement procedures for all the following: (1) Maintaining alphabetically the evaluation reports. 536.213-3 Invitations for bids. (2) Cross referencing all names under which a contractor does business with GSA. 536.213-370 Bids that include alternates. (3) Ensuring that fully qualified personnel with knowl- (a) The base bid must include all features essential to a edge of the contractor’s performance prepare and review the sound and adequate building design. If it appears that funds evaluation reports. available for a project may be insufficient to include all desired features in the base bid, you may issue a solicitation 536.202 Specifications. for a base bid and include one or more alternates in the order Under the Resource Conservation and Recovery Act of priority. Use alternates only if they are clearly justified and of 1976 (RCRA), 42 U.S.C. 6962, the Environmental Protec- involve substantial amounts of work in relation to the base tion Agency issued rules in 40 CFR part 247 allowing the use bid. Their use must be limited and should involve only “add” of certain waste by-products as substitutes for energy-inten- alternates. sive raw materials. These by-products are known as recovered (b) Before opening bids that include alternates, determine, materials. EPA’s rules state that agencies should use construc- and record in the contract file, the amount of funds available tion products containing recovered materials to the maximum for the project. The amount recorded must be announced at the extent feasible if technical specifications allow their alterna- beginning of the bid opening. The amount is the controlling tive use. RCRA does not require the use of products contain- factor in determining the low bidder. This amount may be ing recovered materials if they will not meet performance increased later when determining the alternate items to award requirements or their use would be unsatisfactory for techni- to the low bidder if the following condition is met: the award cal reasons. amount of the base bid plus the combination of alternate items does not exceed the amount offered for the base bid and the 536.203 Government estimate of construction cost. same combination of alternate items by any other responsible (a) A copy of the independent Government estimate must bidder whose bid conforms to the solicitation. This require- be submitted to you before the date and time for bid opening ment prevents the displacement of the low bidder by manipu- or the date for receipt of proposals. (See paragraphs (b) and lating the alternates to be used. (c).)

536-1 536.213-371 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

536.213-371 Bids that include options. (c) Before opening bids that include both alternates and (a) Subject to the limitations in (c) below, you may include options, determine, and record in the contract file, the amount options in contracts if it is in the Government’s interest. of funds available for the project (i.e., for the base bid and (b) The appropriate use of options may include, but is not alternate work). The amount recorded must be announced at limited to, any of the following: the beginning of the bid opening. This amount may be (1) If additional work is anticipated but funds are not increased later when determining the alternate items to be expected to be available at the time of award, and it would not awarded to the low bidder if the following condition is met: be practicable to award a separate contract or to permit an the award amount of the base bid and evaluated options plus additional contractor to work on the same site. the alternate items does not exceed the amount offered for the (2) If fixed building equipment, e.g. elevators or esca- base bid, the evaluated options, and the same combination of lators, will be installed under the construction contract and it alternate items by any other responsible bidder whose bid is advantageous to have the installer of the equipment main- conforms to the solicitation. tain and service the equipment during the warranty period. (c) You must not use options under any of the following 536.270 Exercise of options. conditions: (a) If exercising an option, notify the contractor, in writing, (1) The prospective option represents known firm within the time period specified in the contract. requirements for which funds are available unless competi- (b) Exercise options only after determining that all the fol- tion for the option quantity is impracticable once the initial lowing conditions exist: contract is awarded. (1) Funds are available. (2) The contractor will incur undue risks; e.g., the price (2) The requirement covered by the option fulfills an or availability of necessary materials or labor is not reason- existing Government need. ably foreseeable. (3) Exercising the option is the most advantageous (d) Solicitations containing option provisions must state method of satisfying the Government’s need, price and other the period within which the options may be exercised. factors considered. (e) Solicitations must state whether the basis of award is (c) Before exercising an option, you must determine that inclusive or exclusive of the options. Before issuing a solici- the action complies with the option’s terms and this section’s tation that includes evaluated options, you must determine requirements. Include your written determination in the con- that there is reasonable certainty that funds will be made avail- tract file. able to permit exercise of the option. (d) The contract modification, or other written document which notifies the contractor of the exercise of the option, 536.213-372 Bids that include both alternates and must cite the option clause as authority. If exercising an options. unpriced or unevaluated option, cite the statutory authority (a) Solicitations may include both alternates and options if permitting the use of other than full and open competition (see the conditions in 536.213-370, Bids that include alternates, FAR 6.302 and 517.207). and 536.213-371, Bids that include options, are satisfied. In these solicitations, the low bidder for purposes of award is the 536.271 Project labor agreements. responsible bidder offering the lowest aggregate price for the (a) Authority. This subpart implements the Presidential base bid and the alternates, in the order of priority listed in the memorandum of June 5, 1997, on using project labor agree- solicitation, that provide the most work features within the ments (PLAs) on Federal construction projects. The Presiden- funds available at bid opening, plus all options designated to tial memorandum authorizes executive departments and be evaluated. agencies to require PLAs on large and significant construction (b) The basis of award may require the evaluation of projects for facilities to be owned by a Federal department or options associated with alternates if the related alternate is agency. selected. (b) Applicability. These policies and procedures apply to all GSA activities authorized to award contracts for construction of facilities to be owned by a Federal department or agency. You may use a PLA in leasehold arrangements, Fed- erally funded projects, and other appropriate circumstances.

536-2 PART 536—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS 536.271

(c) Definitions. (e) Procedures .(1) As part of procurement planning for “Construction” means construction, alteration, or repair construction projects with a total estimated cost to the Federal (including dredging, excavating, and painting) of buildings, Government of more than $5 million, you may consider structures, or other real property. The terms buildings, struc- requiring a PLA. tures, or other real property are defined further in Federal (2) To require a PLA, you must determine whether use Acquisition Regulation (FAR) 36.102. of a PLA will advance the Government’s procurement inter- “Labor organization” means a labor organization ests in all the following areas: engaged in an industry affecting commerce, and any agent of (i) Cost, efficiency, and quality. such an organization, and includes any organization of any (ii) Promoting labor-management stability. kind, and any agency, or employee representation committee, (iii) Promoting compliance with applicable legal group, association, or plan so engaged in which employees requirements governing safety and health, equal employment participate and which exists for the purpose, in whole or in opportunity, labor and employment standards, and other mat- part, of dealing with employers concerning grievances, labor ters. disputes, wages, rates of pay, hours, or other terms or condi- (3) In making the determination required by tions of employment, and any conference, general committee, paragraph (b) of this section, consult with the agency project joint or system board, or joint council so engaged which is or program manager and obtain guidance from the Agency subordinate to a national or international labor organization Labor Advisor and assigned legal counsel. You should con- (42 U.S.C. 2000e(d)). sider the following factors: “Large and significant project” means a Federal con- (i) Whether past experience with construction proj- struction project with a total cost to the Federal Government ects in the location where the project will be performed indi- of more than $5 million. cates that a PLA will be effective. “Project Labor Agreement” (PLA) means an agreement (ii) Whether delays in performance of the construc- between the contractor, subcontractors, and the union(s) rep- tion contract would have significant adverse impact on the resenting workers. Under a PLA, the contractor and subcon- mission of the agency or operation of the installation or facil- tractors on a project and the union(s) agree on terms and ity. conditions of employment for the project, establishing a (iii) Whether any law applies to the specific con- framework for labor-management cooperation to advance the struction project that would impede use of a PLA. Government's procurement interest in cost, efficiency, and (iv) Whether the labor organizations in the area can quality. provide a reliable source of skilled, experienced building (d) Policy. (1) You may, on a project-by-project basis, use trades workers in all crafts needed on the job site for the proj- a PLA on a large and significant project when both of the fol- ect’s duration (taking into consideration other major construc- lowing conditions apply: tion work in the area). (i) A PLA will advance the Government’s procure- (v) Whether the Government can benefit from uni- ment interests. form work rules and working conditions and established pro- (ii) No laws that apply to the specific construction cedures for resolving labor disputes, no strike/no lock-out project preclude the use of the PLA. protections. (2) Do not require any contractor to enter into a PLA (vi) Whether the Government can benefit from with any particular labor organization. increased stability and labor peace that derives from greater (3) The use of a PLA is not intended to create any right labor-management cooperation. or benefit, substantive or procedural, enforceable by a nonfed- (vii) Whether the requirements for a PLA will unrea- eral party against the United States, its departments, and agen- sonably restrict competition. cies, its officers or employees, or any other person. (viii) Other relevant information. (4) Document the rationale supporting your decision to require a PLA in the contract file. (5) Provide the following information to the Agency Labor Advisor (GSA Acquisition Policy Division (MVP)): (i) A brief description of the project. (ii) The estimated cost. (iii) A copy of the document supporting your decision to require a PLA. (iv) A copy of the solicitation.

536-3 536.570 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Subpart 536.5—Contract Clauses 536.570-6 Use of premises. Insert 552.236-75, Use of Premises, in solicitations and 536.570 Supplemental provisions and clauses. contracts if construction, dismantling, demolition, or removal of improvements is contemplated. 536.570-1 Definitions. Insert 552.236-70, Definitions, in solicitations and con- 536.570-7 Measurements. tracts if construction, dismantling, demolition, or removal of Insert 552.236-76, Measurements, in solicitations and con- improvements is contemplated. tracts if construction, dismantling, demolition, or removal of improvements is contemplated. 536.570-2 Authorities and limitations. Insert 552.236-71, Authorities and Limitations, in solicita- 536.570-8 Specifications and drawings. tions and contracts if construction, dismantling, demolition, Insert the clause at 552.236-77, Specifications and Draw- or removal of improvements is contemplated and the contract ings, in solicitations and contracts if construction, disman- amount is expected to exceed the simplified acquisition tling, demolition, or removal of improvements is threshold. contemplated and the contract amount is expected to exceed the simplified acquisition threshold. 536.570-3 Specialist. Insert , Specialist, in solicitations and contracts for con- 536.570-9 Shop drawings, coordination drawings, and struction if the technical sections of the contract require schedules. unusual experience or specialized facilities for adequate con- Insert the clause at 552.236-78, Shop Drawings, Coordina- tract performance. tion Drawings, and Schedules, in solicitations and contracts if construction is contemplated and the contract amount is 536.570-4 Basis of award—construction contract. expected to exceed the simplified acquisition threshold. (a) Insert a provision substantially the same as 552.236-73, Basis of Award—Construction Contract, in solicitations for 536.570-10 Samples. fixed-price construction contracts except if any of the follow- Insert the clause at 552.236-79, Samples, in solicitations ing conditions apply: and contracts for construction if the technical sections of the (1) The solicitation requires the submission of a contract require the submission and approval of samples. lump-sum bid only. (2) The solicitation is for an indefinite quantity con- 536.570-11 Heat. tract. Insert the clause at 552.236-80, Heat, in solicitations and (3) The contract amount is not expected to exceed the contracts if construction, dismantling, demolition, or removal simplified acquisition threshold. of improvements is contemplated. (b) Instructions for use. 536.570-12 Use of equipment by the Government. Insert the clause at 552.236-81, Use of Equipment by the If the solicitation requests the Then use the… Government, in contracts requiring heating and air-condition- submission of a… ing of existing buildings if it may be necessary for the Gov- (1) Base bid and unit prices Basic provision ernment to operate all or part of the equipment before final (2) Base bid and options Provision with its Alternate I. acceptance of the contract. (3) Base bid and alternates Provision with its Alternate II (4) Base bid, alternates, and Provision with its Alternate III 536.570-13 Subcontracts. options Insert 552.236-82, Subcontracts, in solicitations and contracts for construction if the contract amount is expected to 536.570-5 Working hours. exceed the simplified acquisition threshold. Insert 552.236-74, Working Hours, in solicitations and contracts if construction, dismantling, demolition, or removal of improvements is contemplated and the contract amount is 536.570-14 Requirement for a project labor agreement. expected to exceed the simplified acquisition threshold. Insert a clause substantially the same as 552.236-83, Requirement for a Project Labor Agreement, in solicitations and contracts that will require a project labor agreement.

536-4 PART 536—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS 536.602-3 Professionals who are private sector practitioners of architec- Subpart 536.6—Architect-Engineer Services ture, engineering or related design professions. (c) Evaluation boards must not exceed five (5) voting 536.602 Selection of firms for architect-engineer members. If fewer, the board must have an odd number of vot- contracts. ing members. The voting members of the evaluation board shall include: 536.602-1 Selection criteria. (1) One (1) highly qualified architect or a related design (a) FAR 36.602-1 requires that agencies include “location professional employed by GSA. in the general geographical area of the project and knowledge (2) One (1) highly qualified engineer employed by of locality of the project” as one of several selection criteria. GSA. (1) Do not use this evaluation factor as a minimum (3) One (1) representative of the Chief Architect of qualification requirement for determining whether a firm is GSA. eligible to compete for a proposed project. (4) For new construction and prospectus level modern- (2) This factor must not exceed 5 percent of the total ization projects, one (1) private sector practitioner of architec- weight of all evaluation criteria. In order to receive the maxi- ture designated from the GSA National Register of Peer mum score for this factor, the architect-engineer firm(s) must Professionals. For other types of projects this slot may be demonstrate that at least 35 percent of the architect-engineer filled by another GSA design professional. contract services (based on the total contract price) will be (5) One (1) representative of the client organization(s), accomplished within the geographical boundaries established at the client’s option. GSA’s policy is to afford the client orga- for the project. nization(s) the opportunity to participate in the architect-engi- (3) Under an approved class deviation from neer selection process. Although not mandatory, GSA FAR 36.602-1(a)(5), this factor does not apply to projects that strongly recommends that this voting member be a highly the Chief Architect of GSA determines have national signifi- qualified design professional. cance. (d) A maximum of two (2) non-voting advisors may par- (b) The public announcement (Commerce Business Daily ticipate in all activities of the evaluation board except voting. notice) for a proposed project should identify the general geo- The client organization(s) may have only one (1) non-voting graphical area of the project by either: advisor to the board. The GSA may also have one non-voting (1) A radius in miles or other appropriate unit of mea- advisor. sure. (e) Other than you and the individuals appointed under (2) The Standard Metropolitan Statistical Area, paragraphs (c) and (d) of this subsection, there must be no county(ies), state(s) surrounding the project, or other appro- other advisors, or participants in the official activities of the priate geographic boundaries. board. (c) Architect-engineer selections under the Design Excel- (f) The selection authority officially appoints the evalua- lence Program must apply the geographical evaluation criteria tion board members. For new construction and prospectus in the second phase. level modernization projects, the selection authority must (d) The public announcement (Commerce Business Daily obtain the concurrence of the Chief Architect of GSA on the notice) must provide the number of calendar days the archi- appointment of board members. tect-engineer of record has to establish a production capability (g) Each board member (voting and non-voting) must sign within the general geographical area of the project. You may a “Conflict of Interest Acknowledgement and Nondisclosure allow the architect-engineer of record up to 45 calendar days Agreement” (Figure 515-1) before the activities of the board after contract award to establish this production capability. commence. No person may serve as a board member if that person or any member of that person’s family has any direct 536.602-2 Evaluation boards. financial or employment interest in any of the firms being (a) Architect-engineer evaluation board members must be evaluated. The board member is responsible for identifying experts in the fields of architecture, engineering or related any possible conflict of interest once you identify the compet- design professions, such as landscape architecture, urban ing architect-engineer firms. You determine whether to dis- design and interior design, except as provided in qualify the member from the board. 536.602-2(c)(5). Board members must also collectively have expertise in construction, government, and related acquisition 536.602-3 Evaluation board functions. matters. (a) The evaluation board performs the functions described (b) The majority of board members must be GSA employ- in FAR 36.602-3. ees. Other members may include other Federal agency (b) Evaluation board members who are private sector employees or members of the GSA National Register of Peer design professionals from the GSA National Register of Peer

536-5 536.602-3 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Professionals may participate in all activities of the board, (2) The Chairperson of the board must maintain the including deliberations and voting. However, they must pro- integrity of the evaluation process and ensure that the final vide their individual and independent evaluation of each com- selection report is prepared and submitted to the selection peting architect-engineer firm to you. authority. (c) Evaluation boards recommend, in order of preference, (3) The selection authority concurs with the recommen- the most highly qualified architect-engineer firms for the spe- dations from the evaluation board which lists in order of pref- cific project to the selection authority. erence the most highly qualified firms. If the selection (1) Each board member is responsible individually for authority does not concur with the recommendation from the evaluating and rating the qualifications of each firm being evaluation board, the selection authority must provide for the considered following the established evaluation criteria. contract file a written explanation of the reason.

536-6 AMENDMENT 2009–03 JUNE 4, 2009

PART 537—SERVICE CONTRACTING

Sec. Subpart 537.1—Service Contracts—General Subpart 537.2—Advisory and Assistance 537.101 Definitions. Services 537.102-70 Application of performance-based 537.201 Definitions. acquisition (PBA) policy for leases and 537.204 Guidelines for determining availability of leasehold interests in real property. personnel. 537.106 Funding and term of service contracts. 537.270 Contract clause. 537.110 Solicitation provisions and contract clauses. Subpart 537.6—Performance-based Acquisition 537.601 General.

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537-ii CHANGE 59 OCTOBER 21, 2014

PART 537—SERVICE CONTRACTING 537.204

PART 537—SERVICE CONTRACTING

Subpart 537.1—Service Contracts—General Subpart 537.2—Advisory and Assistance Services 537.101 Definitions. “Contracts for building services” means contracts for ser- 537.201 Definitions. vices relating to the operation and maintenance of a building As used in this subpart— (e.g., janitorial, window washing, snow removal, trash Evaluation or analysis of a proposal means proposal eval- removal, lawn and grounds care), inspection, maintenance, uation as described in FAR 15.305. It includes: Cost or price repair or replacement of building systems or equipment (e.g., evaluation using cost or price analysis, as defined in FAR elevators, air-conditioning, heating systems, and protection or 15.404. guard service). Proposal means a proposal submitted for an initial contract award. (See FAR 37.203(d)). It does not include proposals 537.102-70 Application of performance-based submitted after contract award, such as value engineering pro- acquisition (PBA) policy for leases and leasehold posals, proposals related to contract modifications, claims, or interests in real property. other contract administration actions. GSA contracting activities are not required to use PBA Readily available means that employees with the requisite methods for leases and leasehold interests in real property. training and capability are employed by the agency, capable of However, contracting activities are not precluded from using handling additional work relating to other duties as assigned PBA methods when contracting for leases or leasehold inter- by management, and that the travel and other costs associated ests in real property if using PBA best meets the Govern- with using covered personnel does not exceed the projected ment’s needs. cost of a contract for evaluation and analysis services. Requisite training and capability means training and capa- 537.106 Funding and term of service contracts. bility necessary to successfully perform the task or contract at 517.101 identifies GSA-specific statutory authority for issue in the time and in the manner required. It may include multiyear contracts for certain services. relevant experience, recent performance of work of similar size and scope, specific training and other factors that the con- 537.110 Solicitation provisions and contract clauses. tracting officer determines are necessary to the successful per- Contracts for Building Services formance of the task or contract at issue. The following provision and clauses apply to contracts for building services: 537.204 Guidelines for determining availability of (a) If the contract is expected to exceed the simplified personnel. acquisition threshold and it is not initiated with Ability One (a) Authority. The contracting officer is authorized to make under the Javits-Wagner-O'Day Act insert 552.237-71, Qual- the determinations required by FAR 37.204 unless the HCA ifications of Employees, in the solicitation and contract. If designates another agency official. needed, use supplemental provisions or clauses to describe (b) Policy. The contracting officer, or the HCA’s designee, specific requirements for employees performing work on the must make the determination whether GSA personnel with contract. the requisite training and capabilities are readily available to (b) Insert 552.237-72, Prohibition Regarding “Quasi-Mil- perform the evaluation or analysis before issuing a solicita- itary Armed Forces,” in solicitations and contracts for guard tion which includes evaluation and analysis services (see FAR service. 37.205). (c) Identifying qualified personnel. The contracting officer, or the HCA’s designee, must base the determination on information received in response to a survey conducted as follows: (1) If the estimated cost of evaluation and analysis services to be obtained under a contract or order is less than the micropurchase threshold, the administrative cost and time associated with conducting the search and other costs, such as travel, will likely exceed the cost of providing the services under the contract or order. In this case, the survey need only include the appropriate Assistant Commissioner, Assistant

537-1 AMENDMENT 2009–03 JUNE 4, 2009

537.270 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Regional Administrator, or designee within the contracting (f) Indefinite delivery contracts for evaluation and analy- organization at the location where the services are to be per- sis services. You may issue an indefinite delivery contract for formed. evaluation and analysis services if there is a reasonable expec- (2) If the estimated cost of the evaluation and analysis tation that there will be occasions when personnel with the services to be obtained under a contract or order is expected requisite training and capabilities will not be readily available to exceed the micropurchase threshold, the survey must to perform the evaluation and analysis services covered by the include all of the following: contract. (i) The appropriate Assistant Commissioner, Assis- (1) Before issuing a solicitation for an indefinite deliv- tant Regional Administrator, or designee at the location where ery contract, the appropriate agency official should first the services are to be performed, and managers within other assess the ability of the Federal Supply Schedule Program to GSA Regions and Central Office of the contracting organiza- support the need and consider manpower and workload pro- tion. jections over the proposed contract period. This should help (ii) Other Federal agencies that are reasonably avoid unnecessarily incurring the cost of soliciting offers and expected to have covered personnel with the requisite training awarding a contract. Document the acquisition file accord- and capability at the location where the services are to be per- ingly. formed. (2) The appropriate agency official should establish (d) Decisions on availability of personnel. The contracting procedures for making determinations regarding particular officer, or the HCA’s designee, should request that decisions evaluations before orders are placed under the contract. on availability be made by a management official at a level 537.270 Contract clause. higher than the employee’s immediate supervisor. Insert the clause at 552.237-73, Restriction on Disclosure (e) Documentation. The determination required by FAR of Information, in solicitations and contracts for proposal 37.204 may be incorporated in the acquisition plan or made a evaluation and analysis services. part of another document prepared in the normal course of a procurement action. The file should, at a minimum, describe: (1) Who was surveyed and a summary of the responses Subpart 537.6—Performance-based received; Acquisition (2) The circumstances requiring the use of outside evaluators; 537.601 General. (3) Actions GSA will take to avoid organizational or GSA Contracting Activities are encouraged to use the other conflicts of interest under FAR 9.5; and Seven Steps to Performance–Based Acquisition (PBA) (4) The competitive relationship between prospective Guide. This guide may be accessed at http:// offerors, including proposed subcontractors, and the prospec- www.acquisition.gov/comp/seven_steps/home.html. tive evaluator(s).

537-2 (Change 29) AMENDMENT 2007–01 FEBRUARY 1, 2007

PART 538—FEDERAL SUPPLY SCHEDULE CONTRACTING

Sec. Subpart 538.2—Establishing and Administering Subpart 538.71—Recovery Purchasing Federal Supply Schedules 538.7100 Scope of subpart. 538.270 Evaluation of multiple award schedule 538.7101 Definitions. (MAS) offers. 538.7102 General. 538.271 MAS contract awards. 538.7103 Policy. 538.272 MAS price reductions. 538.7104 Solicitation provisions and contract clauses. Subpart 538.70—Cooperative Purchasing 538.7000 Scope of subpart. 538.7001 Definitions. 538.273 Contract clauses. 538.7002 General. 538.7003 Policy. 538.7004 Solicitation provisions and contract clauses.

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538-ii (Amendment 2007-01) PART 538—FEDERAL SUPPLY SCHEDULE CONTRACTING 538.272

PART 538—FEDERAL SUPPLY SCHEDULE CONTRACTING

Subpart 538.2—Establishing and (d) You may award a contract containing pricing which is less favorable than the best price the offeror extends to any Administering Federal Supply Schedules commercial customer for similar purchases if you make a determination that both of the following conditions exist: 538.270 Evaluation of multiple award schedule (MAS) (1) The prices offered to the Government are fair and offers. reasonable, even though comparable discounts were not nego- (a) The Government will seek to obtain the offeror’s best tiated. price (the best price given to the most favored customer). (2) Award is otherwise in the best interest of the Gov- However, the Government recognizes that the terms and con- ernment. ditions of commercial sales vary and there may be legitimate reasons why the best price is not achieved. 538.271 MAS contract awards. (b) Establish negotiation objectives based on a review of (a) MAS awards will be for commercial items as defined in relevant data and determine price reasonableness. FAR 2.101. Negotiate contracts as a discount from estab- (c) When establishing negotiation objectives and deter- lished catalog prices. mining price reasonableness, compare the terms and condi- (b) Before awarding any MAS contract, determine that the tions of the MAS solicitation with the terms and conditions of offered prices are fair and reasonable (see FAR Subpart 15.4 agreements with the offeror’s commercial customers. When and 538.270). Document the negotiation and your determina- determining the Government’s price negotiation objectives, tion using FAR 15.406-3 as guidance. consider the following factors: (c) State clearly in the award document the price/discount (1) Aggregate volume of anticipated purchases. relationship between the Government and the identified com- (2) The purchase of a minimum quantity or a pattern of mercial customer (or category of customers) on which the historic purchases. award is predicated. (3) Prices taking into consideration any combination of discounts and concessions offered to commercial customers. 538.272 MAS price reductions. (4) Length of the contract period. (a) Section 552.238-75, Price Reductions, requires the (5) Warranties, training, and/or maintenance included contractor to maintain during the contract period the negoti- in the purchase price or provided at additional cost to the prod- ated price/discount relationship (and/or term and condition uct prices. relationship) between the eligible ordering activities and the (6) Ordering and delivery practices. offeror’s customer or category of customers on which the con- (7) Any other relevant information, including differ- tract award was predicated (see 538.271(c)). If a change ences between the MAS solicitation and commercial terms occurs in the contractor’s commercial pricing or discount and conditions that may warrant differentials between the arrangement applicable to the identified commercial customer offer and the discounts offered to the most favored commer- (or category of customers) that results in a less advantageous cial customer(s). For example, an offeror may incur more relationship between the eligible ordering activities and this expense selling to the Government than to the customer who customer or category of customers, the change constitutes a receives the offeror’s best price, or the customer (e.g., dealer, “price reduction.” distributor, original equipment manufacturer, other reseller) (b) Make sure that the contractor understands the require- who receives the best price may perform certain value-added ments of section 552.238-75 and agrees to report to you all functions for the offeror that the Government does not per- price reductions as provided for in the clause. form. In such cases, some reduction in the discount given to the Government may be appropriate. If the best price is not offered to the Government, you should ask the offeror to identify and explain the reason for any differences. Do not require offerors to provide detailed cost breakdowns.

(Change 56) 538-1 CHANGE 56 APRIL 14, 2014

538.273 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

538.273 Contract clauses. 538.7001 Definitions. (a) Multiple award schedules. Insert in solicitations and “Ordering activity” (also called “ordering agency” and contracts: “ordering office”) means an eligible ordering activity (see (1) 552.238-70, Identification of Electronic Office 552.238-78) authorized to place orders under Federal Supply Equipment Providing Accessibility for the Handicapped, if Schedule contracts. you include electronic office equipment items. “Schedule 70,” as used in this subpart, means Schedule 70 (2) 552.238-71, Submission and Distribution of Autho- information technology contracts, and Consolidated Products rized FSS Schedule Pricelists. and Services Schedule contracts containing information tech- (i) Use Alternate I, in solicitations and contracts nology SINs. The Consolidated Products and Services Sched- for— ule is a compilation of multiple individual Federal Supply (A) Federal Supply Schedule 70; Schedules; therefore, only the SINs that fall under Schedule (B) The Consolidated Schedule contracts con- 70 of the Consolidated Products and Services Schedule will taining information technology Special Item Numbers; apply to Cooperative Purchasing. No other Schedules, or (C) Federal Supply Schedule 84; and SINs, containing information technology outside of Schedule (D) Federal Supply Schedules for recovery pur- 70 SINs, and Consolidated Products and Services Schedule chasing (see 538.7102), use Alternate I. contracts containing Schedule 70 SINs, will apply. (ii) If GSA is not prepared to accept electronic sub- “Schedule 84” means the Federal Supply Schedule for missions for a particular schedule delete— alarm and signal systems, facility management systems, fire- (A) The paragraph identifier “(i)” in (b)(1) and fighting and rescue equipment, law enforcement and security the word “and” at the end of paragraph (b)(1)(i); and equipment, marine craft and related equipment, special pur- (B) Paragraphs (b)(1)(ii) and (b)(3). pose clothing, and related services (as contained in Federal (3) 552.238-72, Identification of Products that have Supply Classification Code Group 84 or any amended or sub- Environmental Attributes. sequent version of that Federal supply classification group). (4) 552.238-73, Cancellation. “State and local government entities,” as used in this sub- (b) Multiple and single award schedules. Insert in solicita- part, means the states of the United States, counties, munici- tions and contracts: palities, cities, towns, townships, tribal governments, public (1) 552.238-74, Industrial Funding Fee and Sales authorities (including public or Indian housing agencies under Reporting. the United States Housing Act of 1937), school districts, col- (2) 552.238-75, Price Reductions. Use Alternate I in leges and other institutions of higher education, council of solicitations and contracts for— governments (incorporated or not), regional or interstate gov- (i) Federal Supply Schedule 70; ernment entities, or any agency or instrumentality of the pre- (ii) The Consolidated Schedule containing informa- ceding entities (including any local educational agency or tion technology Special Item Numbers; institution of higher education), and including legislative and (iii) Federal Supply Schedule 84; and judicial departments. The term does not include contractors (iv) Federal Supply Schedules for recovery purchas- of, or grantees of, State or local governments. ing (see 538.7102). (1) “Local educational agency” has the meaning given (3) 552.238-81, Modifications (Federal Supply Sched- that term in section 8013 of the Elementary and Secondary ule). Use Alternate I for Federal Supply Schedules that only Education Act of 1965 (20 U.S.C. 7713). accept electronic modifications. (2) “Institution of higher education” has the meaning given that term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)). Subpart 538.70—Cooperative Purchasing (3) “Tribal government” means— (i) The governing body of any Indian tribe, band, 538.7000 Scope of subpart. nation, or other organized group or community located in the This subpart prescribes policies and procedures that imple- continental United States (excluding the State of Alaska) that ment statutory provisions authorizing non-federal organiza- is recognized as eligible for the special programs and services tions to use— provided by the United States to Indians because of their sta- (a) Federal Supply Schedule 70; tus as Indians; and (b) The Consolidated Schedule contracts containing infor- (ii) Any Alaska Native regional or village corpora- mation technology Special Item Numbers (SINs); and tion established pursuant to the Alaska Native Claims Settle- (c) Federal Supply Schedule 84. ment Act (43 U.S.C. 1601 et seq.).

538-2 AMENDMENT 2008-02 SEPTEMBER 19, 2008

PART 538—FEDERAL SUPPLY SCHEDULE CONTRACTING 538.7003

538.7002 General. 538.7003 Policy. (a) 40 U.S.C. 501, (the Act) authorizes the Administrator Preparing solicitations when schedules are open to eligi- of General Services to procure and supply personal property ble non-federal entities. When opening Schedule 70, the Con- and nonpersonal services for the use of Executive agencies. solidated Schedule containing information technology SINs, Under 40 U.S.C. 502, the goods and services available to and Schedule 84, for use by eligible non-federal entities, the executive agencies are also available to mixed ownership contracting officer must make minor modifications to certain Government corporations, establishments within the legisla- Federal Acquisition Regulation and GSAM provisions and tive or judicial branches of Government (excepting the Sen- clauses in order to make clear distinctions between the rights ate, House of Representatives, Architect of the Capitol, and and responsibilities of the U.S. Government in its manage- any activities under the direction of the Architect of the Cap- ment and regulatory capacity pursuant to which it awards itol), the District of Columbia, and Qualified Non-profit schedule contracts and fulfills associated Federal require- Agencies. ments versus the rights and responsibilities of eligible order- (b) Section 211 of the E-Government Act of 2002 amends ing activities placing orders to fulfill agency needs. 40 U.S.C. 502 to authorize the Administrator of General Ser- Accordingly, the contracting officer is authorized to modify vices to provide for use of certain Federal Supply Schedules the following FAR provisions/clauses to delete “Govern- of the GSA by a State or local government, which includes ment” or similar language referring to the U.S. Government any State, local, regional, or tribal government, or any instru- and substitute “ordering activity” or similar language when mentality thereof (including any local educational agency or preparing solicitations and contracts to be awarded under institution of higher education). Schedule 70, and the Consolidated Schedule containing infor- (c) Pub. L. 110-248, The Local Preparedness Acquisition mation technology SINs, and Schedule 84. When such Act, authorizes the Administrator of General Services to pro- changes are made, the word “(DEVIATION)” shall be added vide for the use by state or local governments of Federal Sup- at the end of the title of the provision or clause. These clauses ply Schedules of the General Services Administration (GSA) include but are not limited to: for alarm and signal systems, facility management systems, (a) 52.212-4, Contract Terms and Conditions—Commer- firefighting and rescue equipment, law enforcement and secu- cial Items. rity equipment, marine craft and related equipment, special (b) 52.216-18, Ordering. purpose clothing, and related services (as contained in Sched- (c) 52.216-19, Order Limitations. ule 84). (d) 52.229-1, State and Local Taxes. (d) State and local governments are authorized to procure (e) 52.229-3, Federal, State, and Local Taxes. from Schedule 70 contracts, Consolidated Schedule contracts (f) 52.232-7, Payments Under Time-and-Materials and containing information technology SINs, and Schedule 84 Labor-Hour Contracts. contracts. A listing of the participating contractors and SINs (g) 52.232-17, Interest. for the products and services that are available through Sched- (h) 52.232-19, Availability of Funds for the Next Fiscal ule 70 contracts, the Consolidated Schedule contracts contain- Year. ing information technology SINs, and Schedule 84 contracts, (i) 52.232-34, Payment by Electronic Funds Transfer— is available in GSA’s Schedules e-Library at www.gsa.gov/ Other than Central Contractor Registration. elibrary. Click on Schedules e-Library, and under Coopera- (j) 52.232-36, Payment by Third Party. tive Purchasing, click on “View authorized vendors.” The (k) 52.237-3, Continuity of Services. contractors and the products and services available for Coop- (l) 52.246-4, Inspection of Services-Fixed Price. erative Purchasing will be labeled with the Cooperative Pur- (m) 52.246-6, Inspection—Time-and-Material and Labor- chasing icon. Hour. (n) 52.247-34, F.O.B. Destination. (o) 52.247-38, F.O.B. Inland Carrier Point of Exportation.

538-3 AMENDMENT 2008-02 SEPTEMBER 19, 2008

538.7004 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

538.7004 Solicitation provisions and contract clauses. (a) The contracting officer shall insert the clause at 552.238-77, Definition (Federal Supply Schedules), in solic- Subpart 538.71—Recovery Purchasing itations and contracts for— (1) Schedule 70; 538.7100 Scope of subpart. (2) The Consolidated Schedule containing information This subpart prescribes policies and procedures to imple- technology SINs; and ment the John Warner National Defense Authorization Act for (3) Schedule 84. Fiscal Year 2007 (Public Law 109-364) authorizing non-fed- (b) The contracting officer shall insert the clause at eral organizations to use Federal Supply Schedule contracts to 552.238-78, Scope of Contract (Eligible Ordering Activities), purchase products and services to be used for recovery from in solicitations and contracts for— major disasters, terrorism or nuclear, biological, chemical, or (1) Schedule 70; and radiological attack. (2) The Consolidated Schedule containing information 538.7101 Definitions. technology SINs; and The definitions in subsection 538.7001 shall apply for pur- (3) Schedule 84. poses of this subpart. (c) The contracting officer shall insert the clause at 538.7102 General. 552.238-79, Use of Federal Supply Schedule Contracts by (a) Section 833 of the John Warner National Defense Certain Entities—Cooperative Purchasing, in solicitations Authorization Act for Fiscal Year 2007 (Public Law 109-364) and contracts for— amends 40 U.S.C. 502 to authorize the Administrator of Gen- (1) Schedule 70; eral Services to provide to State and local governments the use (2) The Consolidated Schedule containing information of Federal Supply Schedules of the GSA for purchase of prod- technology SINs; and ucts and services to be used to facilitate recovery from a major (3) Schedule 84. disaster declared by the President under the Robert T. Stafford (d) See 552.101-70 for authorized FAR deviations. Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) or to facilitate recovery from terrorism or nuclear, biological, chemical, or radiological attack. Section 833 requires the Secretary of Homeland Security to determine which products and services qualify before the Administrator provides for the use of the Federal Supply Schedules. Use of Federal supply schedules by State and local governments is voluntary. Agreement of a schedule contractor to offer recovery purchasing under the contract and acceptance of any order for recovery purchasing from a state or local government is voluntary. (b) State and local governments are authorized to use Fed- eral Supply Schedules to procure products and services determined by the Secretary of Homeland Security to be used to facilitate recovery from major disasters, terrorism, or nuclear, biological, chemical, or radiological attack. A listing of the Federal Supply Schedules for the products and services is available in GSA’s Schedules e-Library at web site http:// www.gsaelibrary.gsa.gov. Click on the link, “Disaster Recov- ery Purchasing, State and Local.” The participating contractors and the products and services available for recovery purchasing will be labeled with the Disaster Recovery Pur- chasing ICON.

538-4 PART 538—FEDERAL SUPPLY SCHEDULE CONTRACTING 538.7104

(c) State and local governments that wish to use the Fed- 538.7104 Solicitation provisions and contract clauses. eral Supply Schedules to facilitate recovery from major disas- (a) The contracting officer shall insert the clause at ters or attacks are responsible for ensuring that only 552.238-76, Definition (Federal Supply Schedules)–Recov- authorized representatives of their governments place orders ery Purchasing, in Federal Supply Schedule solicitations and against these schedules and that procured products and ser- contracts which contain products and services determined by vices are used only for the purposes authorized by Section 833 the Secretary of Homeland Security to facilitate recovery of Public Law 109-364. from major disasters, terrorism, or nuclear, biological, chem- 538.7103 Policy. ical, or radiological attack. Preparing solicitations when schedules are open to eligi- (b) The contracting officer shall insert the clause at ble non-federal entities. When opening the Federal Supply 552.238-78, Scope of Contract (Eligible Ordering Activities), Schedules for products and services determined by the Secre- with Alternate I in Federal Supply Schedule solicitations and tary of Homeland Security, for use by eligible non-federal contracts which contain products and services determined by entities, the contracting officer must make minor modifica- the Secretary of Homeland Security to facilitate recovery tions to certain Federal Acquisition Regulation (FAR) and from major disasters, terrorism, or nuclear, biological, chem- GSAM provisions and clauses in order to make clear distinc- ical, or radiological attack. tions between the rights and responsibilities of the U.S. Gov- (c) The contracting officer shall insert the clause at ernment in its management and regulatory capacity pursuant 552.238-80, Use of Federal Supply Schedule Contracts by to which it awards schedule contracts and fulfills associated Certain Entities–Recovery Purchasing, in Federal Supply Federal requirements versus the rights and responsibilities of Schedule solicitations and contracts which contain products eligible ordering activities placing orders to fulfill agency and services determined by the Secretary of Homeland Secu- needs. Accordingly, the contracting officer is authorized to rity that facilitate recovery from major disasters, terrorism, or modify the following FAR provisions/clauses to delete “Gov- nuclear, biological, chemical, or radiological attack. ernment” or similar language referring to the U.S. Govern- (d) See 552.101-70 for authorized Federal Acquisition ment and substitute “ordering activity” or similar language Regulation deviations. when preparing solicitations and contracts to be awarded under the Federal Supply Schedules for products and services determined by the Secretary of Homeland Security. When such changes are made, the word “(DEVIATION)” shall be added at the end of the title of the provision or clause. These clauses include but are not limited to— (a) 52.212-4, Contract Terms and Conditions–Com- mercial Items. (b) 52.216-18, Ordering. (c) 52.216-19, Order Limitations. (d) 52.229-1, State and Local Taxes. (e) 52.229-3, Federal, State, and Local Taxes. (f) 52.232-7, Payments Under Time-and-Materials and Labor-Hour Contracts. (g) 52.232-17, Interest. (h) 52.232-19, Availability of Funds for the Next Fiscal Year. (i) 52.232-34, Payment by Electronic Funds Trans- fer–Other than Central Contractor Registration. (j) 52.232-36, Payment by Third Party. (k) 52.237-3, Continuity of Services. (l) 52.246-4, Inspection of Services-Fixed Price. (m) 52.246-6, Inspection-Time-and-Material and Labor-Hour. (n) 52.247-34, F.O.B. Destination. (o) 52.247-38, F.O.B. Inland Carrier Point of Expor- tation.

(Amendment 2008–02) 538-5 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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538-6 AMENDMENT 2011–02 JUNE 15, 2011

PART 539—ACQUISITION OF INFORMATION TECHNOLOGY

Sec. 539.001 Applicability. Subpart 539.70—Additional Requirements for Purchases Not in Support of National Security Systems 539.7000 Scope of subpart. 539.7001 Policy. 539.7002 Solicitation provisions and contract clauses.

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539-ii AMENDMENT 2011–02 JUNE 15, 2011

PART 539—ACQUISITION OF INFORMATION TECHNOLOGY 539.7002

PART 539—ACQUISITION OF INFORMATION TECHNOLOGY

539.001 Applicability. (c) Contracting activities shall coordinate with requiring In accordance with FAR 39.001, this part does not apply to activities and program officials to ensure that the solicitation acquisitions of information technology supplies, services and documents include the appropriate information security systems in support of national security systems, but see requirements. The information security requirements must be GSAM Subpart 507.70, Additional Requirements for Pur- sufficiently detailed to enable service providers to fully under- chases in Support of National Security Systems involving stand the information security regulations, mandates, and Weapons Systems. requirements that they will be subject to under the contract or Subpart 539.70—Additional Requirements task order. for Purchases Not in Support of National (d) GSA’s Office of the Senior Agency Information Secu- Security Systems rity Officer issued CIO IT Security Procedural Guide 09-48, “Security Language for Information Technology Acquisitions Efforts,” to provide IT security standards, policies and report- 539.7000 Scope of subpart. ing requirements that shall be inserted in all solicitations and This subpart prescribes acquisition policies and procedures contracts or task orders where an information system is confor use in acquiring information technology supplies, services tractor owned and operated on behalf of the Federal Govern- and systems not in support of national security systems, as ment. The guide can be accessed at http://www.gsa.gov/ defined by FAR part 39. portal/category/25690.

539.7001 Policy. (a) GSA must provide information security for the infor- 539.7002 Solicitation provisions and contract clauses. mation and information systems that support the operations (a) The contracting officer shall insert the provision at and assets of the agency, including those provided or managed 552.239-70, Information Technology Security Plan and Secu- by another agency, contractor, or other source. Section rity Authorization, in solicitations that include information 3544(a)(1)(A)(ii) of the Federal Information Security Man- technology supplies, services or systems in which the contrac- agement Act (FISMA) describes Federal agency security tor will have physical or electronic access to government responsibilities as including “information systems used or information that directly supports the mission of GSA. operated by an agency or by a contractor of an agency or other (b) The contracting officer shall insert the clause at organization on behalf of an agency.” 552.239-71, Security Requirements for Unclassified Informa- (b) Employees responsible for or procuring information tion Technology Resources, in solicitations and contracts con- technology supplies, services and systems shall possess the taining the provision at 552.239-70. The provision and clause appropriate security clearance associated with the level of shall not be inserted in solicitations and contracts for personal security classification related to the acquisition. They include, services with individuals. but are not limited to contracting officers, contract specialists, project/program managers, and contracting officer representatives.

539-1 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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539-2 PART 540—[RESERVED]

540-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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540-ii AMENDMENT 2010–04 SEPTEMBER 13, 2010

PART 541—ACQUISITION OF UTILITY SERVICES

Sec. Subpart 541.1—General Subpart 541.4—Administration 541.100 Scope of part. 541.401 Monthly and annual review. 541.101 Definitions. Subpart 541.5—Solicitation Provisions and Subpart 541.2—Acquiring Utility Services Contract Clauses 541.201 Policy. 541.501 Solicitation provision and contract clauses. 541.202 Procedures. 541.202-1 Procedures for acquisition planning for deregulated utility supplies. 541.204 GSA areawide contracts. 541.206 Interagency agreements format.

541-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

541-ii AMENDMENT 2010-04 SEPTEMBER 13, 2010

PART 541—ACQUISITION OF UTILITY SERVICES 541.401 PART 541—ACQUISITION OF UTILITY SERVICES

Subpart 541.1—General Contract data shall be entered into FPDS for each obligation action (including orders issued for obligation purposes only) 541.100 Scope of part. for the initial contract action and all annual funding modifica- (a) This part applies to the acquisition of utility services tions. from regulated utilities with the exception of section 541.202-1, which covers acquisition planning for deregulated 541.202-1 Procedures for acquisition planning for utilities. deregulated utility supplies. (b) Acquisitions from deregulated suppliers for natural gas Acquisition plans are not required for delivery orders and/or electricity shall use the competitive policies and pro- under deregulated (competitive) acquisitions for natural gas cedures as prescribed in GSAM Part 512. and/or electricity when all of the following criteria are met: (a) The basic contract was entered into pursuant to a writ- 541.101 Definitions. ten acquisition plan. As used in this part— (b) The delivery address (including the associated account “Independent regulatory body” means the Federal Energy number) of the order is listed in the requirements type con- Regulatory Commission, a state-wide agency, or an agency tract. with less than state-wide jurisdiction when operating pursuant (c) The order is issued only as a funding mechanism for the to state authority that has the power to fix, establish, or control location awarded in the basic contract. the rates and services of utility suppliers. “Local regulated utility” means a utility controlled by a 541.204 GSA areawide contracts. body that regulates a utility which is owned or operated by the The existence of a GSA areawide contract for the required same entity that created the regulatory body, e.g., a municipal service and location does not necessarily mean that the sub- utility. ject utility provider is the only source capable of meeting the “Tariff regulated utility” means a utility regulated by an requirement (see FAR 41.202(a) and 41.204(c)(1)). When independent regulatory body. market research and acquisition planning support ordering the entire requirement under an area-wide contract, the contract- Subpart 541.2—Acquiring Utility Services ing officer may do so, but shall utilize the annual reviews required by FAR 41.401 to determine the feasibility of later 541.201 Policy. entering into a competitive contract for a portion of the (a) GSA purchases utility services in a manner that is con- requirement. sistent with the regulations, rulings and franchise or service territories. Rates are established by independent regulatory 541.206 Interagency agreements format. bodies. These Tariff rates: When acquiring utility services for another agency the fol- (1) Are considered “prices set by law or regulation”; lowing format shall be used in accordance with 40 U.S.C. 501 and (b) which clearly delineates the roles and responsibilities of (2) Are sufficient to set prices without obtaining cost or the servicing and requesting agencies. (See http:// pricing data (see FAR 15.403-1(c) (2)). www.gsa.gov/energy_library).

541.202 Procedures. Subpart 541.4—Administration (a) Contracting officers shall perform market research and create acquisition plans in accordance with FAR 41.202 (a), 541.401 Monthly and annual review. (b), and (e). (a) Monthly reviews. As an alternative to the requirements (b) Acquisition plans for utility acquisitions over the sim- outlined in FAR 41.401, which requires monthly reviews of plified acquisition threshold are required for separate con- all invoices with annual values exceeding the simplified tracts and orders against GSA areawide contracts; this does acquisition threshold, the Comptroller General decision, not apply to the basic areawide contract. B-227682.2, August 16, 1989, 68 Comp. Gen. 618 (GAO) (c) Task/delivery orders may be issued as orders against authorized GSA to use an alternative methodology to meet established contracts for the term of the contract and shall not this requirement. The GAO decision allows for the use of sta- exceed ten years, in accordance with FAR 41.103 (a) and 40 tistical sampling techniques to pay and audit utility invoices. U.S.C. 501. The orders shall be incrementally funded on an Specifically, the GAO decision requires analysis and review annual basis for consistency with the bona fide needs rule. of any problems discovered through 3% random sampling,

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GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

15% out-of-tolerance reports and historical data of utility invoices. Contract files shall include documentation of any corrective actions taken. (b) Annual reviews. In addition to the requirements of FAR 41.401, the Public Buildings Service (PBS) will provide further guidance for conducting annual reviews. Subpart 541.5—Solicitation Provisions and Contract Clauses

541.501 Solicitation provision and contract clauses. In addition to the solicitation terms, provisions and contract clauses at FAR 41.501(c), the contracting officer shall include the following clauses— (a) 552.241-70, Availability of Funds for the Next Fiscal Year or Quarter. As prescribed in 541.501, insert the clause 552.241-70, Availability of Funds for the Next Fiscal Year or Quarter, instead of FAR 52.232-19, in all utility acquisitions; and (b) 552.241-71, Disputes (Utility Contracts). As prescribed in 541.501, insert clause 552.241-71, Disputes (Util- ity Contracts), in solicitations and contracts for utility services subject to the jurisdiction and regulation of a utility rate commission.

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PART 542—CONTRACT ADMINISTRATION AND AUDIT SERVICES

Sec. 542.001 Definitions. Subpart 542.12—Novation and Change-of-Name Agreements Subpart 542.1—Contract Audit Services 542.1203 Processing agreements. 542.102 Assignment of contract audit services. Subpart 542.15—Contractor Performance Subpart 542.2—Contract Administration Information Services 542.1503 Procedures. 542.202 Assignment of contract administration. Subpart 542.70—Audit of Contractor’s Records Subpart 542.3—Contract Administration Office 542.7001 General. Functions 542.7002 Purpose of audit. 542.302 Contract administration functions. 542.7003 Additional internal controls. 542.7004 Releasing or withholding of audit reports. Subpart 542.11—Production Surveillance and Reporting 542.1107 Contract clause.

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542-ii AMENDMENT 2008–05 FEBRUARY 9, 2009

PART 542—CONTRACT ADMINISTRATION AND AUDIT SERVICES 542.302

PART 542—CONTRACT ADMINISTRATION AND AUDIT SERVICES

542.001 Definitions. tracting officer (except see 543.202 for construction con- “Contract administration” means Government actions tracts). taken after contract award to obtain compliance with such (e) If the contracting officer delegates contract administra- contract requirements as timely delivery of supplies or ser- tion to an ACO or designates a contracting officer’s technical vices, acceptance, payment, and closing of the contract. These representative (COTR) or contracting officer’s representative actions include technical, financial, audit, legal, administra- (COR), then provide the contractor with the name of the ACO tive, and managerial services in support of the contracting and any representative and identify the functions each is officer. It may include additional tasks requested or needed by authorized to perform. the contracting activity including support in the pre-award (f) The contracting officer may provide or make available phase of contracting. to the ACO a complete copy of the contract file. The contracting officer may provide each COR and COTR with the contract file information they need to perform their duties Subpart 542.1—Contract Audit Services (g) The contracting officer may delegate to an ACO functions other than those listed in FAR 42.302 and 542.302(b) 542.102 Assignment of contract audit services. after obtaining approval from the Senior Procurement Exec- (a) The contracting officer shall request all audit services utive. The contracting officer may submit requests through through the Assistant Inspector General for Auditing or the the HCA. If approved, the contracting officer should follow Regional Inspector General for Auditing, as appropriate. FAR 42.202(c). (b) The contracting officer must follow the procedures set out in GSA Order, Audit Resolution and Follow-Up System Subpart 542.3—Contract Administration (ADM P 2030.2C), for handling contract audit reports. Office Functions

Subpart 542.2—Contract Administration 542.302 Contract administration functions. Services (a) Assignment of contract administration office functions is the process whereby identified functions, duties, or respon- 542.202 Assignment of contract administration. sibilities related to the administration of contracts are (a) Assignment of contract administration is the process assigned to a contract administration office (CAO) or an whereby identified functions, duties, or responsibilities administrative contracting officer (ACO) within a contracting related to the administration of contracts are assigned to either office. a contract administration office (CAO) or an administrative (b) Usually, the CO or the ACO in the contracting office contracting officer (ACO) within a contracting office. performs these activities (but see paragraphs (c)-(g) of this (b) Each contracting director must establish procedures section). that ensure that qualified personnel perform contract admin- (c) If it is more efficient, management may establish a sep- istration activities in an effective manner. Usually, the PCO or arate CAO. Consider each of the following: the ACO in the contracting office performs these activities (1) The nature and complexity of the contract. (but see paragraphs (c)–(g) of this section). (2) The need to perform contract administration at or (c) If it is more efficient, management may establish a sep- near the contractor’s facility or the place of performance. arate CAO. Consider each of the following: (3) The availability of resources. (1) The nature and complexity of the contract. (d) The contracting officer may designate one or more rep- (2) The need to perform contract administration at or resentatives to perform specified functions such as quality near the contractor’s facility or the place of performance. assurance, production, price analysis, finance and various (3) The availability of resources. engineering and technical specialties. The contracting offi- (d) The contracting officer may designate one or more rep- cer’s representative (COR or COTR) may not enter into or resentatives to perform specified functions such as quality modify a contract or otherwise perform functions reserved for assurance, production, price analysis, finance and various a contracting officer (except see 543.202). However, the engineering and technical specialties. The contracting offi- authority to issue in-scope change orders not exceeding cer’s representatives (CORs) may not enter into or modify a $25,000 may be delegated to a COTR assigned to construc- contract or otherwise perform functions reserved for a con- tion contracts. See 543.202 and 501.603-2(d). (e) If the contracting officer delegates contract administration to an ACO or designates a contracting officer’s technical

542-1 AMENDMENT 2008–05 FEBRUARY 9, 2009

542.1107 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL representative (COTR) or contracting officer’s representative Subpart 542.15—Contractor Performance (COR), then the contracting officer must provide the contrac- Information tor with the name of the ACO and any representative and identify the functions each is authorized to perform. 542.1503 Procedures. (f) The contracting officer shall provide or make available (a) Heads of Services. (1) Consistent with FAR 42.1500 to the ACO a complete copy of the contract file and provide and this Subpart, the Head of each Service must take all the each COR and COTR with the contract file information following actions: needed to perform assigned duties. (i) Establish mechanisms for systematically collect- (g) ACO functions other than those listed in FAR 42.302 ing and maintaining positive and negative information on may be delegated if the Senior Procurement Executive contractor performance. approves. Such requests must be submitted through the HCA. (ii) Identify pertinent performance data elements for If approved, follow FAR 42.202(c). collection. (iii) Ensure that contractor performance information Subpart 542.11—Production Surveillance is readily available to contracting officials and other individ- and Reporting uals with procurement-related responsibilities. (iv) Clearly identify the officials responsible for collecting, disseminating, and applying this information in the 542.1107 Contract clause. acquisition process. The contracting officer shall insert 552.242-70, Status (2) The system for collecting contractor performance Report of Orders and Shipments, in solicitations and indefi- data should include, as appropriate: nite quantity and requirements contracts for Stock or Special (i) Timeliness of delivery or performance (for exam- Order Program items. The clause may be used in indefi- ple: Adherence to contract delivery schedules; resolution of nite-delivery definite-quantity contracts for Stock or Special delays, number of “show cause” letters and “cure notices” Order Program items when close monitoring is necessary issued, number of delinquent deliveries, number of contract because numerous shipments are involved. extensions resulting from contractor-caused delays, and/or timely submission or performance or required tests). Subpart 542.12—Novation and (ii) Conformance of product or service to contract Change-of-Name Agreements requirements (for example: Quality of workmanship, reliability, adequacy of correction of defects, number of safety 542.1203 Processing agreements. defects, number of product rejections, results of laboratory Contracting officers should process agreements as soon as tests, number and extent of warranty problems). a complete package has been received from the contractor. If (iii) Customer comments (for example: Number and the proposed successor is a large business and the contract quality of positive comments, number and nature of com- was originally awarded under a small business set-aside, the plaints, and adequacy of resolving customer complaints). contracting officer shall— (iv) Terminations for default. (a) Notify and solicit comments from the SBTA (see FAR (v) On-the-job safety performance record, including 42.1203(b) and (c)); and the number of lost or restricted workdays due to occupational (b) Not recognize the proposed successor if— injuries in comparison to the national average. (1) The conclusion is that the transaction is intended to (vi) Adequacy of contractor’s quality assurance sys- circumvent the requirements and objectives of the small busi- tem. ness program; or (vii) Compliance with other key contract provisions (2) If a MAS contract is involved and other MAS small (for example: Subcontracting program, labor standards, business contracts exist for the same special item number(s); safety standards, and reporting requirements). and (viii) Exhibiting customer-oriented behavior. (c) Cancel the set-aside items if a MAS contract is (ix) Other performance elements identified by the involved and the contract has both set-aside and non-set-aside Service. special item numbers, then process the novation request for (b) Senior Procurement Executive. The Senior Procure- the non-set-aside items. ment Executive is responsible for ensuring the evaluation of each Service’s system for collecting and applying contract performance information for compliance with the FAR and GSAM. (c) Contracting directors. The contracting director shall review and consider any disagreement between GSA and the

542-2 AMENDMENT 2008–05 FEBRUARY 9, 2009

PART 542—CONTRACT ADMINISTRATION AND AUDIT SERVICES 542.7004 contractor regarding GSA’s evaluation of the contractor. (c) Contractor’s compliance with contractual obligations Based on the review, the contracting director makes the final concerning progress payments, advance payments, guaran- determination on the performance evaluation. teed loans, cash return provisions, and price adjustments. (d) Contracting officers. (1) The contracting officer shall (d) Reasonableness of a contractor’s termination settle- promptly provide a copy of the contracting director’s final ment proposals. determination to the contractor. (2) When responding to another department or agency 542.7003 Additional internal controls. request for past performance information, the contracting (a) The contracting officer should not rely solely on con- officer shall include a copy of any related contractor com- tractual audit rights. The contracting officer should establish ments and contracting director’s final determination. internal controls or procedures for any flexible or variable features of these contracts: Subpart 542.70—Audit of Contractor’s (1) Cost-reimbursement. Records (2) Time-and-materials or labor-hour. (3) Requirements or indefinite-quantity. 542.7001 General. For example, for a time-and-materials or labor-hour con- The OIG Office of Audits audits a contractor’s records if tract performed at a Government facility or elsewhere, the required by law, regulation, or sound business judgment. contracting officer should provide for the review of time These audits include periodic or special request audits neces- records. The contracting officer should provide for this sary to determine a contractor’s financial condition, adequacy review even if the contractor is subject to supervision by Gov- of its accounting system, and integrity and reliability. The ernment personnel. contracting officer should coordinate with technical special- (b) The contracting officer should establish these internal ists, finance and audit personnel to achieve the maximum controls or procedures prior to the commencement of contract benefits from these audits. performance. Use any reasonable and reliable method or procedure that will enable the Government to determine the cor- 542.7002 Purpose of audit. rectness of the charges for such matters as the time spent on The contracting officer may obtain from audits advice or the job and materials or supplies received. If needed, obtain recommendations on the: assistance from the Assistant Inspector General for Auditing (a) Propriety of amounts paid, or to be paid, by GSA to a or the Regional OIG Audit Office. contractor when such amounts are based on a cost or time determination or on variable features related to the results of 542.7004 Releasing or withholding of audit reports. the contractor’s operations. The Freedom of Information Act requires the disclosure of (b) Adequacy of a contractor’s measures to safeguard Government records subject to certain exceptions. The con- Government property in its custody or under its control. tracting officer should consult with both the Assistant Inspec- tor General for Auditing and the GSA Office of General Counsel before releasing or withholding a contract audit report.

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542-4 AMENDMENT 2008–04 JANUARY 9, 2009

PART 543—CONTRACT MODIFICATIONS

Sec. Subpart 543.1—General Subpart 543.2—Change Orders 543.202 Authority to issue change orders. 543.170 Changes in designated subcontractors, 543.205 Contract clauses. inspection and/or production points.

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543-ii AMENDMENT 2008–04 JANUARY 9, 2009

PART 543—CONTRACT MODIFICATIONS 543.205

PART 543—CONTRACT MODIFICATIONS

Subpart 543.1—General (b) Additional restrictions. The Contracting Officer should provide the following instruction to the COR as part of the written authorization: (1) For any single change order, the COR may perform 543.170 Changes in designated subcontractors, some or all of these actions: inspection and/or production points. (i) Determining the need for a change. (a) Before executing a contract modification authorizing (ii) Preparing the Government’s cost estimate. changes in either a designated subcontractor or inspection or (iii) Conducting negotiations. production point, the contracting officer must consider the (iv) Issuing the change order. impact of the change on the contractor’s ability to satisfy con- (v) Inspecting the work. tract requirements. Employ the same standards that were used (2) For an unpriced change order, if the COR personally to determine that the contractor was responsible (see FAR 9.1 performs all the actions in paragraph (1) of this section, the and GSAM 509.1). change order must be reviewed by a designated official before (b) The modification must identify the nature of the issuance or definitization. change and the effective date. In establishing an effective (c) Review change orders. For unpriced change orders date, consider the time necessary for affected offices to take when the COR personally performs all actions, the contract- required actions. ing officer must either personally review each change order or designate a capable official to perform the review. Consider Subpart 543.2—Change Orders designating the COR’s immediate supervisor or a higher-level official within the organization. Avoid designating more than 543.202 Authority to issue change orders. one official to review change orders issued under an individ- This section applies to construction contracts. ual contract. (a) COR authority. The contracting officer may authorize (d) Coordination of change orders. Issue change orders a warranted COR to issue change orders. Authorization must only after coordination, as appropriate, with quality control, be in writing, on a contract-by-contract basis, and must iden- finance, audit or other technical personnel. tify any limitations. For example, identify dollar limitations or specify that authority is only valid in emergency situations. 543.205 Contract clauses. The contracting officer shall insert 552.243-71, Equitable Adjustments, in solicitations and contracts containing FAR 52.243-4, Changes.

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543-2 PART 544—SUBCONTRACTING POLICIES AND PROCEDURES

[RESERVED]

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544-ii PART 545—GOVERNMENT PROPERTY

[RESERVED]

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545-ii AMENDMENT 2009–08 JUNE 1, 2009

PART 546—QUALITY ASSURANCE

Sec. Subpart 546.3—Contract Clauses Subpart 546.7—Warranties 546.302 Fixed-price supply contracts. 546.302-70 Source inspection by Quality Approved 546.705 Limitations. Manufacturer for fixed-price supply 546.708 Warranties of data. contracts. 546.302-71 Source inspection. 546.710 Contract clause. 546.302-72 Destination Inspection. 546.312 Construction contracts.

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546-ii AMENDMENT 2009–08 JUNE 1, 2009

PART 546—QUALITY ASSURANCE 546.710

PART 546—QUALITY ASSURANCE

Subpart 546.3—Contract Clauses 546.302-71 Source inspection. For solicitations and contracts issued by FAS, if Govern- ment personnel at the source will perform inspection, insert 546.302 Fixed-price supply contracts. 552.246-71, Source Inspection by Government. 546.302-70 Source inspection by Quality Approved 546.302-72 Destination Inspection. Manufacturer for fixed-price supply contracts. The contracting officer shall include the clause at (a) For solicitations issued and contracts awarded by FAS 552.246-78, Inspection at Destination (JULY 2009) in supply that will exceed the simplified acquisition threshold and contracts that require inspection at destination. include the clause at 52.246-2, Inspection of Supplies– Fixed-Price: (1) The contracting officer shall insert the clause at 546.312 Construction contracts. 552.246-70, Source Inspection by Quality Approved Manu- Insert the clause at 552.246-72, Final Inspection and Tests, facturer, in solicitations and contracts that provide for source in solicitations and contracts for construction that include inspection for the Stock and Special Order Programs. FAR 52.246-12, Inspection of Construction. (2) The contracting officer may authorize inspection and testing at manufacturing plants or other facilities located outside the United States, Puerto Rico, or the U.S. Virgin Islands, under paragraph (a)(1) of the clause at 552.246-70 Subpart 546.7—Warranties under any of the circumstances listed below after coordinating the authorization with QVOC and documenting the authorization in the file. (i) Inspection services are available from another 546.705 Limitations. Federal agency with primary inspection responsibility in the The contracting director must approve the use of warran- geographic area. ties in cost reimbursement contracts, except those in (ii) An inspection interchange agreement exists with FAR clauses 52.246-3 and 52.246-8. another agency for inspection at a contractor’s plant. 546.708 Warranties of data. (iii) Other considerations will ensure more econom- (a) The contracting officer shall use warranties of data only ical and effective inspection consistent with the Government’s when both of the following conditions are applicable: interest. (1) Use of a warranty is in the Government’s interest (b) When the estimated value of the acquisition is below and is documented; and the simplified acquisition threshold and will include the (2) The contracting director concurs with the decision. clause at 52.246-2, Inspection of Supplies—Fixed-Price, (b) The contracting officer shall consult with the technical insert the clause at 552.246-70, Source Inspection by Quality or specification manager responsible for developing any war- Approved Manufacturer only: ranties of data. (1) In solicitations and contracts that support the Wild- fire program. 546.710 Contract clause. (2) In contracts when a pattern of acquisitions demon- The Contracting officer shall insert the clause at strates an ongoing relationship with the contractor. 552.246-77, Additional Contract Warranty Provisions for Supplies of a Noncomplex Nature, when using the clause at 52.246-17 in solicitations and contracts.

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546-2 AMENDMENT 2009–06 JUNE 29, 2009

PART 547—[RESERVED]

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547-ii PART 548—VALUE ENGINEERING

Sec. Subpart 548.1—Policies and Procedures 548.101 General.

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548-ii PART 548—VALUE ENGINEERING 548.101 PART 548—VALUE ENGINEERING

Subpart 548.1—Policies and Procedures

548.101 General. GSA Order, GSA Value Engineering Program (ADM 8030.1C) provides guidance on using value engineering.

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548-2 AMENDMENT 2009–05 JUNE 8, 2009

PART 549—TERMINATION OF CONTRACTS

Sec. Subpart 549.1—General Principles Subpart 549.4—Termination for Default 549.111 Review of proposed settlements. 549.402 Termination of fixed–price contracts for default. 549.402-6 Repurchase against contractor’s account. 549.402-7 Other damages. Subpart 549.5—[Reserved]

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549-ii AMENDMENT 2009–05 JUNE 8, 2009

PART 549—TERMINATION OF CONTRACTS 549.402-7

PART 549—TERMINATION OF CONTRACTS

Subpart 549.1—General Principles documentation in the contract file to support the Govern- ment’s position that the additional administrative costs were 549.111 Review of proposed settlements. a direct result of the default. The contracting officer shall pro- The HCA may establish procedures for the review and vide a summary of the additional administrative costs in the approval of settlement agreements at a level above the con- demand letter. tracting officer. (b) Administrative costs include, but are not limited to, the following: Subpart 549.4—Termination for Default (1) Salaries and fringe benefits paid to Government employees who perform work as a result of the default. 549.402 Termination of fixed–price contracts for default. (2) Preaward survey expenses incurred by qualifying reprocurement contractors. 549.402-6 Repurchase against contractor’s account. (3) Printing and distribution costs of the reprocurement The contracting officer shall— solicitation and repurchase contract. (a) Place a brief explanation for the repurchase in the con- (4) Travel and per diem. tract file. (c) For administrative labor costs, record each of the fol- (b) If practical, use the original contract terms, conditions, lowing: and specification for the repurchase. Whether or not the orig- (1) Name, position, and organization of each employee inal terms are used, obtain the advice of assigned legal coun- performing work activities as a consequence of the default. sel before issuing a solicitation for similar supplies or work (2) Date(s) of work and time(s) spent by each employee (services and construction). on the repurchase. (c) If the reprocurement is delayed, protect the Govern- (3) Description of specific tasks performed (for exam- ment’s rights to recover reprocurement costs by documenting ple, solicitation preparation or clerical). the file to explain the circumstances of the delay. (4) Hourly rate of pay (straight time or overtime). (5) Applicable fringe benefits. 549.402-7 Other damages. (6) Explanation of how the time spent by the employees (a) Even if the repurchase price does not exceed the price during the reprocurement would have been used on other of the terminated supplies or work (services and construc- projects but for the default. tion), the contracting officer shall include administrative costs (d) For other incurred administrative costs, the contracting incurred for the repurchase when determining the final pur- officer shall include travel vouchers, invoices, printing requi- chase price. The contracting officer shall include all repro- sitions, and other appropriate evidence of expenditures. curement costs in a single demand letter (see FAR Subpart 549.5—[Reserved] 49.402-6(c)). The contracting officer shall include detailed

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549-2 PART 550—EXTRAORDINARY CONTRACTUAL ACTIONS

Sec. 550.001 Definitions.

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550-ii PART 550—EXTRAORDINARY CONTRACTUAL ACTIONS 550.001 PART 550—EXTRAORDINARY CONTRACTUAL ACTIONS

550.001 Definitions. “Approving authority,” as used in FAR Part 50, means GSA’s Administrator.

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550-2 PART 551—USE OF GOVERNMENT SOURCES BY CONTRACTORS

[RESERVED]

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551-ii GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Sec. 552.000 Scope of part. 552.211-94 Time of Delivery. 552.212-4 Contract Terms and Conditions— Subpart 552.1—Instructions for Using Commercial Items. Provisions and Clauses 552.212-70 [Reserved] 552.101-70 Using Part 552. 552.212-71 Contract Terms and Conditions Applicable 552.102 Incorporating provisions and clauses. to GSA Acquisition of Commercial Items. 552.103 Identification of provisions and clauses. 552.212-72 Contract Terms and Conditions Required to 552.104 Procedures for modifying and completing Implement Statutes or Executive Orders provisions and clauses. Applicable to GSA Acquisition of 552.105 Procedures for using alternates. Commercial Items. 552.107-70 Provisions and clauses prescribed in 552.212-73 [Reserved] Subpart 552.1. 552.214-70 “All or None” Bids. Subpart 552.2—Text of Provisions and Clauses 552.214-71 [Reserved] 552.200 Scope of subpart. 552.214-72 Bid Sample Requirements. 552.203-5 [Reserved] 552.215-70 Examination of Records by GSA. 552.203-70 [Reserved] 552.215-71 Examination of Records by GSA (Multiple 552.203-71 Restriction on Advertising. Award Schedule). 552.204 [Reserved] 552.215-72 Price Adjustment—Failure to Provide 552.204-9 Personal Identity Verification Requirements. Accurate Information. 552.211-8 [Reserved] 552.216-70 Economic Price Adjustment—FSS Multiple 552.211-70 [Reserved] Award Schedule Contracts. 552.211-71 [Reserved] 552.216-71 Economic Price Adjustment—Special Order 552.211-72 Reference to Specifications in Drawings. Program Contracts. 552.211-73 Marking. 552.216-72 Placement of Orders. 552.211-74 [Reserved] 552.216-73 Ordering Information. 552.211-75 Preservation, Packaging and Packing. 552.216-74 Task-Order and Delivery-Order 552.211-76 Charges for Packaging , Packing, and Ombudsman. Marking. 552.217-70 Evaluation of Options. 552.211-77 Packing List. 552.217-71 Notice Regarding Option(s). 552.211-78 [Reserved] 552.219-70 Allocation of Orders—Partially Set-aside 552.211-79 Acceptable Age of Supplies. Items. 552.211-80 Age on Delivery. 552.219-71 Notice to Offerors of Subcontracting Plan 552.211-81 Time of Shipment. Requirements. 552.211-82 [Reserved] 552.219-72 Preparation, Submission, and Negotiation of 552.211-83 Availability for Inspection, Testing, and Subcontracting Plans. Shipment/Delivery. 552.219-73 Goals for Subcontracting Plan. 552.211-84 [Reserved] 552.219-74 Section 8(a) Direct Award. 552.211-85 Consistent Pack and Package Requirements. 552.219-75 GSA Mentor-Protégé Program. 552.211-86 Maximum Weight per Shipping Container. 552.219-76 Mentor Requirements and Evaluation. 552.211-87 Export Packing. 552.223-70 Hazardous Substances. 552.211-88 Vehicle Export Preparation. 552.223-71 Nonconforming Hazardous Materials. 552.211-89 Non-Manufactured Wood Packaging 552.223-72 Hazardous Material Information. Material for Export. 552.223-73 Preservation, Packaging, Packing, Marking, 552.211-90 Small Parts. and Labeling of Hazardous Materials 552.211-91 Vehicle Decals, Stickers, and Data Plates. (HAZMAT) For Shipments. 552.211-92 Radio Frequency Identification (RFID) 552.227-70 Government Rights (Unlimited). Using Passive Tags. 552.211-93 [Reserved]

552-i CHANGE 59 OCTOBER 21, 2014

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 552.227-71 Drawings and Other Data to Become by Certain Entities—Cooperative Property of Government. Purchasing. 552.228-5 Government as Additional Insured. 552.238-80 Use of Federal Supply Schedule Contracts 552.229-70 Federal, State, and Local Taxes. by Certain Entities–Recovery Purchasing. 552.229-71 Federal Excise Tax—DC Government. 552.238-81 Modification (Federal Supply Schedule). 552.232-1 Payments. 552.239 [Reserved] 552.232-23 Assignment of Claims. 552.239-70 Information Technology Security Plan and 552.232-25 Prompt Payment. Security Authorization. 552.232-70 [Reserved] 552.239-71 Security Requirements for Unclassified 552.232-71 [Reserved] Information Technology Resources. 552.232-72 Final Payment Under Building Services 552.240 [Reserved] Contracts. 552.241 [Reserved] 552.232-73 [Reserved] 552.241-70 Availability of Funds for the Next Fiscal 552.232-74 [Reserved] Year or Quarter. 552.232-75 [Reserved] 552.241-71 Disputes (Utility Contracts). 552.232-76 [Reserved] 552.242-70 Status Report of Orders and Shipments. 552.232-77 Payment By Government Charge Card. 552.243-71 Equitable Adjustments. 552.236-70 Definitions. 552.246-70 Source Inspection by Quality Approved 552.236-71 Authorities and Limitations. Manufacturer. 552.236-72 Specialist. 552.246-71 Source Inspection by Government. 552.236-73 Basis of Award—Construction Contract. 552.246-72 Final Inspection and Tests. 552.236-74 Working hours. 552.246-77 Additional Contract Warranty Provisions for 552.236-75 Use of Premises. Supplies of a Noncomplex Nature. 552.236-76 Measurements. 552.246-78 Inspection at Destination. 552.236-77 Specifications and Drawings. 552.252-5 Authorized Deviations in Provisions. 552.236-78 Shop Drawings, Coordination Drawings, and 552.252-6 Authorized Deviations in Clauses. Schedules. 552.270-1 Instructions to Offerors—Acquisition of 552.236-79 Samples. Leasehold Interests in Real Property. 552.236-80 Heat. 552.270-2 Historic Preference. 552.236-81 Use of Equipment by the Government. 552.270-3 Parties to Execute Lease. 552.236-82 Subcontracts. 552.270-4 Definitions. 552.236-83 Requirement for a Project Labor Agreement. 552.270-5 Subletting and Assignment. 552.237-70 [Reserved] 552.270-6 Maintenance of Building and Premises— 552.237-71 Qualifications of Employees. Right of Entry. 552.237-72 Prohibition Regarding “Quasi-Military 552.270-7 Fire and Casualty Damage. Armed Forces.” 552.270-8 Compliance with Applicable Law. 552.237-73 Restriction on Disclosure of Information. 552.270-9 Inspection—Right of Entry. 552.238-70 Identification of Electronic Office 552.270-10 Failure in Performance. Equipment Providing Accessibility for the 552.270-11 Successors Bound. Handicapped. 552.270-12 Alterations. 552.238-71 Submission and Distribution of Authorized 552.270-13 Proposals for Adjustment. FSS Schedule Pricelists. 552.270-14 Changes. 552.238-72 Identification of Products that have 552.270-15 Liquidated Damages. Environmental Attributes. 552.270-16 Adjustment for Vacant Premises. 552.238-73 Cancellation. 552.270-17 Delivery and Condition. 552.238-74 Industrial Funding Fee and Sales Reporting. 552.270-18 Default in Delivery—Time Extensions. 552.238-75 Price Reductions. 552.270-19 Progressive Occupancy. 552.238-76 Definition (Federal Supply Schedules)— 552.270-20 Payment. Recovery Purchasing. 552.270-21 Effect of Acceptance and Occupancy. 552.238-77 Definition (Federal Supply Schedules). 552.270-22 Default by Lessor During the Term. 552.238-78 Scope of Contract (Eligible Ordering 552.270-23 Subordination, Nondisturbance and Activities). Attornment. 552.238-79 Use of Federal Supply Schedule Contracts 552.270-24 Statement of Lease.

552-ii GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 552.270-25 Substitution of Tenant Agency. Subpart 552.3—Provision and Clause Matrixes 552.270-26 No Waiver. 552.300 Scope of subpart. 552.270-27 Integrated Agreement. 552.270-28 Mutuality of Obligation. 552.270-29 Acceptance of Space. 552.270-30 Price Adjustment for Illegal or Improper Activity. 552.270-31 Prompt Payment. 552.270-32 Covenant Against Contingent Fees.

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552-iv PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.107-70

PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

552.000 Scope of part. 552.102 Incorporating provisions and clauses. This part provides the text of provisions and clauses which You may incorporate clauses prescribed in the GSAR for are unique to GSA or supplement the FAR. solicitations and contracts by reference.

Subpart 552.1—Instructions for Using 552.103 Identification of provisions and clauses. Provisions and Clauses Deviations. If the GSAR prescribes a class deviation from a FAR clause, identify the clause by the GSAR citation 552.101-70 Using Part 552. (e.g., 552.232-8 PROMPT PAYMENT DISCOUNT (NOV 1987) (a) Definition. “Clause,” as used in this subpart, means (DEVIATION FAR 52.232-8)). provision or clause as defined in FAR w52.101(a). (b) Numbering. (1) Clauses which are “substantially” the 552.104 Procedures for modifying and completing same as FAR clauses and clauses to be used instead of provisions and clauses. FAR clauses are identified as follows: (a) The procedures in FAR 52.104 apply when you modify (i) The clause has the same title as a clause in the or complete a GSAR provision or clause. Provisions and FAR. clauses shall not be modified unless the GSAR authorizes (ii) The number 5 precedes the clause. their modification. (iii) The clause appears under the same subsection (b) You do not need to identify modifications of clauses number and caption as in the FAR. which result from negotiations unless you issue an amend- (2) Supplemental clauses are numbered in the same ment to the solicitation. manner as the FAR, except: (c) In general, you should modify FAR or GSAR clauses (i) The chapter number precedes the clause. only for individual cases. If a contracting activity develops a (ii) The subsection numbers begin with 70. modification for repeated use, furnish a copy to the Office of (iii) The clauses are sequentially numbered, GSA Acquisition Policy (MV) for potential inclusion in the e.g., 552.232-70, 552.232-71, etc. GSAR.

(c) Matrixes. Matrixes provide a guide to locating clauses. 552.105 Procedures for using alternates. Matrixes are included for: The procedures in FAR 52.105 apply to GSAR Part 552. (1) Simplified acquisitions. (2) Supply, service, construction, and architect-engi- 552.107-70 Provisions and clauses prescribed in neer solicitations and contracts. Subpart 552.1. (3) FAR and GSAR clauses for utility contracts (a) Insert the provision at 552.252-5, Authorized Devia- (sole-supplier-regulated rates). tions in Provisions, in solicitations that include any FAR or (4) Leases of real property.\ GSAR clause with an authorized deviation. You must use this (d) Individuals drafting solicitations must research perti- provision in lieu of the FAR provision at 52.252-5. nent regulations or make other determinations to ensure that: (b) Insert the clause at 552.252-6, Authorized Deviations (1) The clauses selected fit the procurement. in Clauses, in solicitations and contracts that include any (2) There are no restrictions on their use. FAR or GSAR clause with an authorized deviation. You must (3) When one clause depends on the use of another use this clause in lieu of the FAR clause at 52.252-6. clause, the solicitation includes all necessary clauses.

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552-2 CHANGE 55 OCTOBER 1, 2012

PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.211-73 Subpart 552.2—Text of Provisions and 552.211-8 [Reserved] Clauses 552.211-70 [Reserved] 552.200 Scope of subpart. This subpart sets forth the text of all GSAR provisions and 552.211-71 [Reserved] clauses. It also cross-references the location in the GSAR that prescribes the use of each provision and clause. 552.211-72 Reference to Specifications in Drawings. As prescribed in 511.204(a), insert the following clause: 552.203-5 [Reserved] REFERENCES TO SPECIFICATIONS IN D RAWINGS (FEB 1996) 552.203-70 [Reserved] If military or other drawings are made a part of this con- 552.203-71 Restriction on Advertising. tract, any reference in the drawings to Federal specifications As prescribed in 503.570-2, insert the following clause: or standards will be considered to be a reference to the date of such Federal specification or standard identified in the con- RESTRICTION ON ADVERTISING (SEP 1999) tract. If the date of the Federal specification or standard is not The Contractor shall not refer to this contract in commer- identified in the contract, the edition, including revisions cial advertising or similar promotions in such a manner as to thereto, in effect on the date the solicitation is issued will state or imply that the product or service provided is endorsed apply. or preferred by the White House, the Executive Office of the President, or any other element of the Federal Government, or (End of clause) is considered by these entities to be superior to other products or services. Any advertisement by the Contractor, including 552.211-73 Marking. price-off coupons, that refers to a military resale activity shall As prescribed in 511.204(b)(1), insert the following clause: contain the following statement: “This advertisement is nei- MARKING (FEB 1996) ther paid for nor sponsored, in whole or in part, by any element of the United States Government.” (a) General requirements. Interior packages, if any, and exterior shipping containers shall be marked as specified else- 552.204 [Reserved] where in the contract. Additional marking requirements may be specified on delivery orders issued under the contract. If not 552.204-9 Personal Identity Verification Requirements. otherwise specified, interior packages and exterior shipping containers shall be marked in accordance with the following As prescribed in 504.1303, insert the following clause: standards: PERSONAL IDENTITY VERIFICATION REQUIRMENTS (OCT 2012) (1) Deliveries to civilian activities. Supplies shall be (a) The contractor shall comply with GSA personal iden- marked in accordance with Federal Standard 123, edition in tity verification requirements, identified at http:// effect on the date of issuance of the solicitation. www.gsa.gov/hspd12, if contractor employees require access (2) Deliveries to military activities. Supplies shall be to GSA controlled facilities or information systems to per- marked in accordance with Military Standard 129, edition in form contract requirements. effect on the date of issuance of the solicitation. (b) The Contractor shall insert this clause in all subcon- (b) Improperly marked material. When Government tracts when the subcontractor is required to have access to a inspection and acceptance are at destination, and delivered GSA-controlled facility or access to a GSA-controlled infor- supplies are not marked in accordance with contract require- mation system. ments, the Government has the right, without prior notice to the Contractor, to perform the required marking, by contract or (End of clause) otherwise, and charge the Contractor therefore at the rate specified elsewhere in this contract. This right is not exclusive, and is in addition to other rights or remedies provided for in this contract.

(End of clause)

(Change 55) 552-3 552.211-74 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 552.211-74 [Reserved] 552.211-77 Packing List. As prescribed in 511.204(c) insert the following clause: 552.211-75 Preservation, Packaging and Packing. PACKING LIST (FEB 1996) As prescribed in 511.204(b)(2), insert the following clause: (a) A packing list or other suitable shipping document shall PRESERVATION, PACKAGING, AND PACKING (FEB 1996) accompany each shipment and shall indicate: Unless otherwise specified, all items shall be preserved, (1) Name and address of the consignor; packaged, and packed in accordance with normal commercial (2) Name and complete address of the consignee; practices, as defined in the applicable commodity specifica- (3) Government order or requisition number; tion. Packaging and packing shall comply with the require- (4) Government bill of lading number covering the ments of the Uniform Freight Classification and the National shipment (if any); and Motor Freight Classification (issue in effect at time of ship- (5) Description of the material shipped, including item ment) and each shipping container of each item in a shipment number, quantity, number of containers, and package number shall be of uniform size and content, except for residual quan- (if any). tities. Where special or unusual packing is specified in an (b) When payment will be made by Government commer- order, but not specifically provided for by the contract, such cial credit card, in addition to the information in (a) above, the packing details must be the subject of an agreement inde- packing list or shipping document shall include: pendently arrived at between the ordering agency and the Con- (1) Cardholder name and telephone number and tractor. (2) The term “Credit Card.”

(End of clause) (End of clause)

Alternate I (May 2003). As prescribed at 511.204(b)(2), Alternate I (May 2003). As prescribed at 511.204(2), sub- insert the following sentence in place of the last sentence of the stitute the following paragraphs (a)(3) and (b) for (a)(3) and clause: (b) of the basic clause: Where special or unusual packing is specified in an order, (a) (3) Ordering activity order or requisition number; but not specifically provided for by the contract, such packing (b) When payment will be made by Ordering activity com- details must be the subject of an agreement independently mercial credit card, in addition to the information in (a) above, arrived at between the ordering activity and the Contractor. the packing list or shipping document shall include: (1) Cardholder name and telephone number; and 552.211-76 Charges for Packaging , Packing, and (2) The term “Credit Card.” Marking. As prescribed in 511.204(b)(3), insert a clause substan- 552.211-78 [Reserved] tially as follows: 552.211-79 Acceptable Age of Supplies. CHARGES FOR PACKAGING, PACKING, AND MARKING As prescribed in 511.404(a)(1), insert the following clause: (JAN 2010) If supplies shipped to a GSA wholesale distribution center ACCEPTABLE AGE OF SUPPLIES (FEB 1996) are not packaged, packed and marked in accordance with con- The supplies furnished under this contract shall not be more tract requirements, the Government has the right, without than months old, beginning with the first full month prior notice to the Contractor, to perform the required repack- after the date of manufacture marked on the container. For the aging/repacking/remarking, by contract or otherwise, and purpose of this clause, supplies shall be considered to be fur- charge the Contractor therefore at the rate of $ * per nished (1) when they are offered to the Government for man-hour or fraction thereof. The Contractor will also be inspection and testing, or (2) on the date of shipment if ship- charged for material costs, if incurred. This right is not exclu- ment is authorized to be made without prior inspection by the sive, and is in addition to other rights or remedies provided for Government. If the age of the supplies furnished under this in this contract. contract is greater than the specified period, the Government may exercise its right to reject the supplies. (End of clause) (End of clause) *The rate to be inserted in the above clause shall be determined by the Commissioner, Federal Acquisition Service, or a Alternate I (Feb 1996). For items having a limited designee. shelf-life, the sentence below should be substituted for the first sentence of the basic clause when authorized:

552-4 (Change 55) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.211-86 The supplies furnished under this contract shall not be more (b) Failure to make supplies available for inspection and than days old, beginning with the date of manufacture testing or to [Insert “ship” or “deliver”] as required by this (month, day, year) marked on the container. clause may result in termination of this contract for default.

552.211-80 Age on Delivery. (End of clause) As prescribed in 511.404(a)(2) insert the following clause: AGE ON DELIVERY (FEB 1996) Alternate I (Feb 1996). If the contract is for stock items, the Contracting Officer shall insert “shipped” or “ship” in the Included in the description of each shelf-life item is a state- basic clause, add the following paragraph (b) and redesignate ment regarding the “age on delivery.” The age of the item(s) paragraph (b) of the basic clause as paragraph (c). shall not exceed the number of months shown in the item (b) If notice of approval and release by the Government description, counted from the first day of the month after the inspector or authorization to ship without Government inspec- month of manufacture to the date of delivery to the specified tion is received before * calendar days after receipt of delivery point(s). If the age of the supplies delivered under this the [Insert “Notice of Award” or “order”], receipt of such contract is greater than the number of months shown, the Gov- notice shall be deemed to be received on the * calendar ernment may exercise its right to reject the supplies. day after receipt of [Insert “Notice of Award” or “order”]. Shipments shall not be made before the * calendar day (End of clause) after receipt of the [Insert “Notice of Award” or “order”] unless authorized in writing by the Contracting Officer. 552.211-81 Time of Shipment. *Entries are normally the same number of days specified As prescribed in 511.404(b), insert the following clause: for availability. TIME OF SHIPMENT (FEB 1996) Shipment is required within calendar days after 552.211-84 [Reserved] receipt of order. 552.211-85 Consistent Pack and Package Requirements. (End of clause) As prescribed in 511.204(b)(5), insert the following clause: CONSISTENT PACK AND PACKAGE REQUIREMENTS Alternate I (Feb 1996). If the contract will require ship- (JAN 2010) ment more than 45 calendar days after receipt of the order, the The Contractor is advised that the Government will, where following paragraph should be added to the basic clause. possible, order in full shipping containers and/or unitized Each delivery order will specify that shipment is required loads. If volume warrants, the Government may also order in no later than the number of days shown above. If such order truckload or carload quantities provided such quantities do also states that “Early Shipment is Precluded,” the Contractor not exceed the maximum order limitation of this contract. agrees to make shipment no sooner than calendar days When the number of items per unit container, intermediate after receipt of order. Earlier shipments may result in nonac- container and/or shipping container is not specified for an ceptance of the supplies at the delivery point at the time of item, the offeror will state, in the spaces provided in the arrival. schedule of items, the number of items to be provided in each (The second number to be inserted should be 15 calendar container. The quantities which are accepted at the time of days less than the first number.) award shall remain in effect throughout the term of the contract unless the Contracting Officer approves in writing a 552.211-82 [Reserved] request by the Contractor to change the package quantities. Requests for changes shall be directed to the Contracting 552.211-83 Availability for Inspection, Testing, and Officer or Administrative Contracting Officer, whichever is Shipment/Delivery. applicable. As prescribed in 511.404(c), insert the following clause: AVAILABILITY FOR INSPECTION, TESTING, AND SHIPMENT/ (End of clause) DELIVERY (FEB 1996) 552.211-86 Maximum Weight per Shipping Container. (a) The Government requires that the supplies be made As prescribed in 511.204(b)(6) available for inspection and testing within * calendar , insert the following clause: days after receipt of [Insert “Notice of Award” or “order”], and be [Insert “shipped” or “delivered”] within MAXIMUM WEIGHT PER SHIPPING CONTAINER (JAN 2010) * calendar days after receipt of (1) notice of approval In no instance shall the weight of a shipping container and and release by the Government inspector or (2) authorization its contents exceed 23 kilograms (51 pounds), except when to ship without Government inspection. caused by—

(Change 55) 552-5 552.211-87 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (1) The weight of a single item within the shipping con- IPPC Country: Countries of the European Union (EU) or tainer; any other country endorsing the International Plant Protection (2) A prescribed quantity per pack for an item per shipping Convention (IPPC) “Guidelines for Regulating Wood Pack- container; or aging Material in International Trade,” approved March 15, (3) A definite weight limitation set forth in the purchase 2002. A listing of countries participating in the IPPC is found description. at http://www.aphis.usda.gov/import_export/plants/ plant_exports/wpm/country/index.shtml. (End of clause) Non-manufactured wood, is also called solid wood and defined as wood packing other than that comprised wholly of 552.211-87 Export Packing. wood-based products such as plywood, particle board, ori- As prescribed in 511.204(b)(7), insert the following ented strand board, veneer, wood wool, and similar materials, clause: which has been created using glue, heat and pressure or a combination thereof. EXPORT PACKING (JAN 2010) Packaged material, and solid wood packing material (a) Offerors are requested to quote, in the pricelist accom- (SWPM), for purposes of this clause, is defined as each sepa- panying their offer (or by separate attachment), additional rate and distinct material that by itself or in combination with charges or net prices covering delivery of the items furnished other materials forms the container providing a means of pro- with commercial or military export packing. Military export tecting and handling a product. This includes, but is not lim- packing, if offered, shall be in accordance with ited to, pallets, dunnage, crating, packing blocks, drums, load Mil-Std-2073-1 Level A or B as specified. If commercial boards, pallet collars, and skids. export packing is offered, the offer or pricelist shall include (b) Non-manufactured wood pallets and other non-manu- detailed specifications describing the packing to be furnished factured wood packaging material used to pack items for at the price quoted. delivery to or through IPPC countries must be marked and (b) Ordering activities will not be obligated to utilize the properly treated in accordance with IPPC guidelines. Contractor’s services for export packing accepted under this (c) This requirement applies whether the shipment is direct solicitation, and they may obtain such services elsewhere if to the end user or through a Government designated consoli- desired. However, the Contractor shall furnish items export dation point. Packaging that does not conform to IPPC guide- packed when such packing is specified on the purchase order. lines will be refused entry, destroyed or treated prior to entry. (d) For Department of Defense distribution facilities or (End of clause) freight consolidation points, all non-manufactured wood pallets or packaging material with a probability of entering coun- 552.211-88 Vehicle Export Preparation. tries endorsing the IPPC Guidelines must be treated and As prescribed in 511.204(b)(8), insert the following marked in accordance with DLAD 47.305-1 (available at clause: http://www.dla.mil/j-3/j-3311/DLAD/rev5.htm), and VEHICLE EXPORT PREPARATION (JAN 2010) MIL-STD-2073-1, Standard Practice for Military Packaging (and any future revision). Vehicles shall be prepared for export on wheels, unboxed, (e) Pallets and packing material shipped to FAS distribu- unless otherwise specified in the Schedule of Items. All parts tion facilities designated for possible delivery to the countries and equipment easily removable (subject to pilferage) shall be endorsing the IPPC Guidelines will comply with DLAD enclosed in a box substantially secured to the vehicle (inside 47.305-1, and MIL-STD-2073-1. body if feasible) in such a manner as to minimize the possi- (f) Delays in delivery caused by non-complying pallets or bility of loss or damage while in transit to ultimate destina- wood package material will not be considered as beyond the tion. control of the Contractor. Any applicable Government expense incurred as a result of the Contractor’s failure to pro- (End of clause) vide appropriate pallets or package material shall be reimbursed by the Contractor. Expenses may include the 552.211-89 Non-Manufactured Wood Packaging applicable cost for repackaging, handling and return shipping, Material for Export. or the destruction of solid wood packaging material. As prescribed in 511.204(b)(4), insert the following clause: (End of clause) NON-MANUFACTURED WOOD PACKAGING MATERIAL FOR EXPORT (JAN 2010) (a) Definitions:

552-6 (Change 55) CHANGE 63 MAY 20, 2015

PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.212-4 552.211-90 Small Parts. 552.211-93 [Reserved] As prescribed in 511.204(b)(9), insert the following clause: 552.211-94 Time of Delivery. SMALL PARTS (JAN 2010) As prescribed at 511.404(d), insert the following clause: All small parts required to be furnished with machines TIME OF D ELIVERY (JAN 2010) covered by contracts resulting from this solicitation shall be An “X” mark in the left hand block shall be considered a packed in envelopes, sealed, identified with part numbers and mandatory requirement to be fulfilled by the contractor. quantity on outside of envelopes. Larger parts must be individually tagged and identified with part number on face of The Contractor will ship contract item(s) to the Federal tag. Acquisition Service (FAS) stocking points identified in the delivery order at its discretion in order to maintain the required stock levels within the minimum and maximum (End of clause) requirements provided in the weekly status report. Delivery is required to be made at destination within 552.211-91 Vehicle Decals, Stickers, and Data Plates. *______* calendar days after receipt of order for As prescribed in 511.204(b)(10), insert the following deliveries to a GSA facility. clause: Orders under this contract may require direct delivery to other agencies. Orders for direct delivery must be shipped VEHICLE DECALS, STICKERS, AND DATA PLATES and delivered within the time specified in blocks below. (JAN 2010) Shipment must be made with *______* days after Unless otherwise specified, caution plates/decals shall be receipt of order. conspicuously installed for all equipment requiring such In addition to block above the Contractor must also ensure notices. Vehicles for civil agencies shall be provided with the that delivery will be made within *______* days manufacturer’s current warranty legend imprinted on decal- after receipt of order. comania, and applied in a visible area of the engine compart- ment. In addition, a decal or sticker shall provide at least the (End of clause) following information: contract number; purchase order number; date of delivery, month and year; and the warranty time, 552.212-4 Contract Terms and Conditions—Commercial in month and miles. Items. Alternate II (FAR Deviation) (Nov 2009). When a com- (End of clause) mercial item contract is contemplated and the contract will include the clause at FAR 52.212-4, insert this Alternate II 552.211-92 Radio Frequency Identification (RFID) Using instead of subparagraph (g)(2) of the FAR clause. Passive Tags. (g)(2) The due date for making invoice payments by the As prescribed in 511.204(b)(11), insert the following designated payment office is the later of the following two clause: events: (i) The 10th day after the designated billing office receives RADIO FREQUENCY IDENTIFICATION (RFID) USING a proper invoice from the Contractor. If the designated billing PASSIVE TAGS (JAN 2010) office fails to annotate the invoice with the date of receipt at Radio Frequency Identification shall be required on all the time of receipt, the invoice payment due date shall be the non-bulk shipments to the Defense Logistics Agency (DLA) 10th day after the date of the Contractor’s invoice; provided or Department of Defense (DoD) destinations. Shipments the Contractor submitted a proper invoice and no disagree- shall be tagged in accordance with 48 CFR clause ment exists over quantity, quality, or Contractor compliance with contract requirements. 252.211-7006. Shipments to GSA Distribution Centers with th final destinations to DLA and DoD shall be in compliance to (ii) The 10 day after Government acceptance of supplies delivered or services performed by the Contractor. 48 CFR 252.211-7006. Copies may be obtained from http:// www.access.gpo.gov/nara/cfr/cfr-table-search.html.

(End of clause)

552-7 CHANGE 64 JUNE 24, 2015

552.212-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 552.212-70 [Reserved] (b) Clauses. 552.203-71 Restriction on Advertising 552.212-71 Contract Terms and Conditions Applicable to GSA Acquisition of Commercial Items. 552.211-73 Marking As prescribed in 512.301(a)(1), insert the following clause: 552.215-70 Examination of Records by GSA CONTRACT TERMS AND CONDITIONS A PPLICABLE TO 552.215-71 Examination of Records by GSA GSA ACQUISITION OF COMMERCIAL ITEMS (OCT 2014) (Multiple Award Schedule) (a) The Contractor agrees to comply with any clause that 552.215-72 Price Adjustment—Failure to is incorporated herein by reference to implement agency pol- Provide Accurate Information icy applicable to acquisition of commercial items or compo- 552.219-70 Allocation of Orders—Partially nents. The clause in effect based on the applicable regulation Set-Aside Items cited on the date the solicitation is issued applies unless oth- 552.228-70 Workers’ Compensation Laws erwise stated herein. The clauses in paragraph (b) of this sec- 552.229-70 Federal, State, and Local Taxes tion are incorporated by reference: 552.232-8 Discounts for Prompt Payment [The Contracting Officer should check the clauses that apply or delete the clauses that do not apply from the list. The 552.232-23 Assignment of Claims Contracting Officer may add the date of the clause if desired 552.232-71 Adjusting Payments for clarity.] 552.232-72 Final Payment 552.232-73 Availability of Funds 552.232-78 Payment Information 552.237-71 Qualifications of Employees 552.238-71 Submission and Distribution of Authorized FSS Schedule Price List 552.238-74 Industrial Funding Fee and Sales Reporting 552.238-75 Price Reductions 552.242-70 Status Report of Orders and Shipments 552.243-72 Modifications (Multiple Award Schedule) 552.246-73 Warranty—Multiple Award Schedule 552.246-76 Warranty of Pesticides

(End of clause)

552.212-72 Contract Terms and Conditions Required to Implement Statutes or Executive Orders Applicable to GSA Acquisition of Commercial Items.

As prescribed in 512.301(a)(2), insert the following clause:

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERS APPLICABLE TO GSA ACQUISITION OF COMMERCIAL ITEMS (JUN 2015)

The Contractor agrees to comply with any provision or clause that is incorporated herein by reference to implement provisions of law or Executive Orders applicable to acquisition of commercial items or components. The provision or

552-8 CHANGE 64 JUNE 24, 2015

PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.214-72 clause in effect based on the applicable regulation cited on the 552.214-71 [Reserved] date the solicitation is issued applies unless otherwise stated herein. The following provisions and clauses are incorporated 552.214-72 Bid Sample Requirements. by reference: As prescribed in 514.202-4(a)(3), insert the following pro- [The contracting officer should either check the provisions vision: and clauses that apply or delete the provisions and clauses BID SAMPLE REQUIREMENTS (OCT 2009) that do not apply from the list. The contracting officer may add the date of the provision or clause if desired for clarity.] This provision supplements FAR 52.214-20, which is (a) Provisions. incorporated by reference. Samples shall be from the production of the manufacturer whose products will be supplied 552.223-72 Hazardous Material Information under resultant contracts. (a) Two bid samples are required for each of the following (b) Clauses. items in this solicitation: 552.223-70 Hazardous Substances 552.223-71 Nonconforming Hazardous Material (b) Two representative samples shall be submitted for each 552.223-73 Preservation, Packaging, Packing, of the following items upon which a bid is submitted: Marking, and Labeling of Hazardous Materials (HAZMAT) Items Acceptable Representative Samples for Shipments. 552.238-70 Identification of Electronic Office Equipment Providing Accessibility for the Handicapped 552.238-72 Identification of Products that have NOTE: Bidders that propose to furnish an item or group of items Environmental Attributes from more than one manufacturer or production point must submit two samples from the production of each manufacturer or production (End of clause) point. (c) Samples will be evaluated to determine compliance 552.212-73 [Reserved] with all characteristics listed below: 552.214-70 “All or None” Bids. Subjective Characteristics Objective Characteristics As prescribed in 514.201-6, insert the following provision: “ALL OR NONE” BIDS (OCT 2009) (a) The Government reserves the right to evaluate bids and make awards on an “all or none” basis as provided below. (d) Forward samples addressed to the Sample Room indi- (b) A bid submitted on an “all or none” or similar basis will cated below. Except for samples delivered by U.S. Mail, be evaluated as follows: The lowest acceptable bid exclusive deliveries will be accepted between the hours of of the “all or none” bid will be selected with respect to each Mondays through Fridays, official holidays item (or group of items when the solicitation provides for excluded. aggregate awards) and the total cost of all items thus deter- CAUTION: USE PROPER ADDRESS FOR METHOD mined shall be compared with the total of the lowest accept- OF SHIPMENT SELECTED. able “all or none” bid. Award will be made to result in the lowest total cost to the Government. Mail and Parcel Post Freight or Express

[Insert Address of Bid Sample [Insert address of Bid Sample (End of provision) Room] Room]

(e) Contracting Officer insert address.

552-9 552.215-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL tract. This authority shall expire 3 years after final payment. The basic contract and each option shall be treated as separate contracts for purposes of applying this clause.

(End of clause)

(End of provision) 552.215-72 Price Adjustment—Failure to Provide Accurate Information. 552.215-70 Examination of Records by GSA. As prescribed in 515.408(d), insert the following clause: As prescribed in 514.201-7(b) and 515.209-70(a) insert the PRICE ADJUSTMENT—FAILURE TO PROVIDE following clause: ACCURATE INFORMATION (AUG 1997) EXAMINATION OF ECORDS BY EB R GSA (F 1996) (a) The Government, at its election, may reduce the price The Contractor agrees that the Administrator of General of this contract or contract modification if the Contracting Services or any duly authorized representatives shall, until the Officer determines after award of this contract or contract expiration of 3 years after final payment under this contract, modification that the price negotiated was increased by a sig- or of the time periods for the particular records specified in nificant amount because the Contractor failed to: Subpart 4.7 of the Federal Acquisition Regulation (1) Provide information required by this solicitation/ (48 CFR 4.7), whichever expires earlier, have access to and the right to examine any books, documents, papers, and contract or otherwise requested by the Government; or records of the Contractor involving transactions related to this (2) Submit information that was current, accurate, and contract or compliance with any clauses thereunder. The Con- complete; or tractor further agrees to include in all its subcontracts hereun- (3) Disclose changes in the Contractor’s commercial der a provision to the effect that the subcontractor agrees that pricelist(s), discounts or discounting policies which occurred the Administrator of General Services or any authorized rep- after the original submission and prior to the completion of resentatives shall, until the expiration of 3 years after final negotiations. payment under the subcontract, or of the time periods for the (b) The Government will consider information submitted particular records specified in Subpart 4.7 of the Federal to be current, accurate and complete if the data is current, Acquisition Regulation (48 CFR 4.7), whichever expires ear- accurate and complete as of 14 calendar days prior to the date lier, have access to and the right to examine any books, doc- it is submitted. uments, papers, and records of such subcontractor involving transactions related to the subcontract or compliance with any (c) If any reduction in the contract price under this clause clauses thereunder. The term “subcontract” as used in this reduces the price for items for which payment was made prior clause excludes (a) purchase orders not exceeding $100,000 to the date of the modification reflecting the price reduction, and (b) subcontracts or purchase orders for public utility ser- the Contractor shall be liable to and shall pay the United vices at rates established for uniform applicability to the gen- States— eral public. (1) The amount of the overpayment; and (2) Simple interest on the amount of such overpayment (End of clause) to be computed from the date(s) of overpayment to the Con- tractor to the date the Government is repaid by the Contractor 552.215-71 Examination of Records by GSA (Multiple at the applicable underpayment rate effective each quarter Award Schedule). prescribed by the Secretary of Treasury under As prescribed in 515.209-70(c) insert the following clause: 26 U.S.C. 6621(a)(2). EXAMINATION OF RECORDS BY GSA (d) Failure to agree on the amount of the decrease shall be (MULTIPLE AWARD SCHEDULE) (JUL 2003) resolved as a dispute. (e) In addition to the remedy in paragraph (a) The Contractor agrees that the Administrator of General of this Services or any duly authorized representative shall have clause, the Government may terminate this contract for access to and the right to examine any books, documents, default. The rights and remedies of the Government specified papers and records of the Contractor involving transactions herein are not exclusive, and are in addition to any other rights related to this contract for overbillings, billing errors, compli- and remedies provided by law or under this contract. ance with the Price Reduction clause and compliance with the Industrial Funding Fee and Sales Reporting clause of this con- (End of clause)

552-10 (Change 60) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.216-70 552.216-70 Economic Price Adjustment—FSS Multiple (c) The aggregate of the increases in any contract unit price Award Schedule Contracts. under this clause shall not exceed * percent of the orig- As prescribed in 516.203-4(a), insert the following clause: inal contract unit price. The Government reserves the right to ECONOMIC PRICE ADJUSTMENT—FSS MULTIPLE AWARD raise this ceiling where changes in market conditions during SCHEDULE CONTRACTS (SEP 1999) the contract period support an increase. (d) The following material shall be submitted with the Price adjustments include price increases and price request for a price increase: decreases. Adjustments will be considered as follows: (1) A copy of the commercial catalog/pricelist showing (a) Contractors shall submit price decreases anytime the price increase and the effective date for commercial cus- during the contract period in which they occur. Price tomers. decreases will be handled in accordance with the provisions (2) Commercial Sales Practice format regarding the of the Price Reduction Clause. Contractor’s commercial pricing practice relating to the reis- (b) Contractors may request price increases under the fol- sued or modified catalog/pricelist, or a certification that no lowing conditions: change has occurred in the data since completion of the initial (1) Increases resulting from a reissue or other modifica- negotiation or a subsequent submission. tion of the Contractor’s commercial catalog/pricelist that was (3) Documentation supporting the reasonableness of used as the basis for the contract award. the price increase. (2) Only three increases will be considered during the (e) The Government reserves the right to exercise one of contract period. the following options: (3) Increases are requested after the first 30 days of the (1) Accept the Contractor’s price increases as requested contract period and prior to the last 60 days of the contract when all conditions of (b), (c), and (d) of this clause are sat- period. isfied; (4) At least 30 days elapse between requested increases.

(Change 60) 552-11 552.216-71 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (2) Negotiate more favorable discounts from the new the trend established by an appropriate index such as the Pro- commercial prices when the total increase requested is not ducer Prices and Price Index. A ceiling of more than supported; or, 10 percent must be approved by the Contracting Director. (3) Remove the product(s) from contract involved pursuant to the Cancellation Clause of this contract, when the 552.216-71 Economic Price Adjustment—Special Order increase requested is not supported. Program Contracts. (f) The contract modification reflecting the price adjust- As prescribed in 516.203-4(a), insert the following clause: ment shall be signed by the Government and made effective ECONOMIC PRICE ADJUSTMENT—SPECIAL ORDER upon receipt of notification from the Contractor that the new PROGRAM CONTRACTS (AUG 2010) catalog/pricelist has been mailed to the addressees previously furnished by the Contracting Officer, provided that in no (a) “Producer Price Index” (PPI), as used in this clause, event shall such price adjustment be effective prior to the means the originally released index, not seasonally adjusted, effective date of the commercial price increases. The published by the Bureau of Labor Statistics, U.S. Department increased contract prices shall apply to delivery orders issued of Labor (Labor) for product code found under to the Contractor on or after the effective date of the contract Table . modification. (b) During the term of the contract, the award price may be adjusted once during each 12-month period upward or down- (End of clause) ward. However, if an upward adjustment, a maximum of * percent shall apply. Any price adjustment for the *Insert the percent appropriate at the time the solicitation product code shall be based upon the percentage change in the is issued. This percentage should normally be 10 percent, PPI released in the month prior to the initial month of the con- unless based on a trend established by an appropriate index tract period specified in the solicitation for sealed bidding or such as the Producer Prices and Price Index during the most the month prior to award in negotiation (the base index) and recent 6-month period indicates that a different percentage is the PPI released 12 months later (the updated index). The for- more appropriate. Any ceiling other than 10 percent must be mula for determining the Adjusted Contract Price (ACP) approved by the contracting director. applicable to shipments for the balance of the contract period Alternate I (Sep 1999). As prescribed by 516.203-4(a)(2), is— substitute the following for paragraphs (b) and (c) of the Updated Index ACP = ------ Award Price clause: Base Index (b) Contractors may request price increases to be effective (c) If the PPI is not available for the month of the base on or after the first 12 months of the contract period providing index or the updated index, the month with the most recently all of the following conditions are met: published PPI prior to the month determining the base index (1) Increases resulting from a reissue or other modifica- or updated index shall be used. tion of the Contractor’s commercial catalog/pricelist that was (d) If a product code is discontinued, the Government and used as the basis for the contract award. the Contractor will mutually agree to substitute a similar (2) No more than three increases will be considered product code. If Labor designates an index with a new title during each succeeding 12-month period of the contract.(For and/or code number as continuous with the product code succeeding contract periods of less than 12 months, up to specified above, the new index shall be used. three increases will be considered subject to the other condi- (e) Unless the Contractor’s written request for a price tions of this paragraph (b)). adjustment resulting from the application of the formula in (3) Increases are requested before the last 60 days of the paragraph (b) of this clause is received by the Contracting contract period. Officer within 30 calendar days of the release of the updated (4) At least 30 days elapse between requested index, the Contractor shall have waived its right to an upward increases. price adjustment for the balance of the contract. Alternatively, (c) any contract period during which price increases will the Contracting Officer will unilaterally adjust the award be considered, the aggregate of the increases during any price downward when appropriate using the updated index 12-month period shall not exceed * percent of the con- defined in paragraph (b) of this clause. tract unit price in effect at the end of the preceding 12-month (f) Price adjustments shall be effective upon execution of period. The Government reserves the right to raise the ceiling a contract modification by the Government or on the 31st— when market conditions during the contract period support day following the release of the updated index, whichever is such a change. later, shall indicate the updated index and percent of change *Insert the percentage appropriate at the time the solicitation is issued. This percentage should be determined based on

552-12 (Change 55) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.216-72 as well as the ACP, and shall not apply to delivery orders (g) No price adjustment will be made unless the percent- issued before the effective date. age change in the PPI is at least * percent. The Contracting Officer should insert a lower percent than (End of clause) the maximum percentage stated in paragraph (b) of the cla- suse. Alternate I (Aug 2010). As prescribed in 516.203-4(a)(1) and (2), substitute the following paragraphs (b), (e), and (f) 552.216-72 Placement of Orders. for paragraphs (b), (e), and (f) of the basic clause: As prescribed in 516.506(a), insert the following clause: (b) Once during each 12-month period, the contract price PLACEMENT OF ORDERS (AUG 2010) may be adjusted upward or downward a maximum of * percent. (a) Delivery orders (orders) will be placed by: (1) For the first option period, any price adjustment for [Contracting Officer insert names of Federal agencies] the product code shall be based upon the percentage change (b) Orders may be placed through Electronic Data Inter- in the PPI released in the month prior to the initial month of change (EDI) or mailed in paper form. EDI orders shall be the contract period specified in the solicitation for sealed bid- placed using the American National Standards Institute ding or the month prior to award in negotiation (the base (ANSI) X12 Standard for Electronic Data Interchange (EDI) index) and the PPI released in the third month before comple- format. tion of the initial contract period stated in the solicitation (the (c) If the Contractor agrees, General Services Administra- updated index). This initial contract period may be less than tion’s Federal Acquisition Service (FAS) will place all orders 12 months. The formula for determining the Adjusted Con- by EDI using computer-to-computer EDI. If com- tract Price (ACP) applicable to shipments during the first puter-to-computer EDI is not possible, FAS will use an alter- option period is— native EDI method allowing the Contractor to receive orders by facsimile transmission. Subject to the Contractor’s agree- Updated Index ACP = ------ Award Price ment, other agencies may place orders by EDI. Base Index (d) When computer-to-computer EDI procedures will be (2) For any subsequent option period, the price adjust- used to place orders, the Contractor shall enter into one or ment shall be the percentage change between the previously more Trading Partner Agreements (TPA) with each Federal updated index (the new base index) and the PPI released agency placing orders electronically in order to ensure mutual 12 months later (the most recent updated index). This per- understanding by the parties of certain electronic transaction centage shall be applied to the Current Contract Price (CCP). conventions and to recognize the rights and responsibilities of The formula for determining the ACP applicable to shipments the parties as they apply to this method of placing orders. The for the subsequent option period(s) is— TPA must identify, among other things, the third party provider(s) through which electronic orders are placed, the trans- Most Recent Updated Index ACP = ------ CCP action sets used, security procedures, and guidelines for New Base Index implementation. Federal agencies may obtain a sample for- (e) Unless the Contractor’s written request for a price mat to customize as needed from the office specified in para- adjustment resulting from the application of the formulas in graph (g) of this clause. paragraphs (b)(1) or (2) of this clause is received by the Con- (e) The Contractor shall be responsible for providing its tracting Officer within 30 calendar days of the date of the own hardware and software necessary to transmit and receive Government’s preliminary written notice of its intent to exer- data electronically. Additionally, each party to the TPA shall cise the option, the Contractors shall have waived its right to be responsible for the costs associated with its use of third an upward price adjustment for that option period. Alterna- party provider services. tively, the Contracting Officer in its written notice shall exer- (f) Nothing in the TPA will invalidate any part of this con- cise the option at the CCP or at a reduced price when tract between the Contractor and the General Services appropriate using the formulas in paragraphs (b)(1) or (2) of Administration. All terms and conditions of this contract that this clause. otherwise would be applicable to a mailed order shall apply to (f) Price adjustments shall be effected by execution of a the electronic order. contract modification by the Government indicating the most (g) The basic content and format of the TPA will be pro- recent updated index and percent of change and shall apply to vided by: General Services Administration, Office of the delivery orders placed on or after the first day of the option Chief Information Officer (QI), 2100 Crystal Drive, Arling- period. ton, VA 22202, Telephone: (703) 605-9444. Alternate II (Aug 2010). As prescribed in 516.203-4(a)(2), add the following paragraph (g) to the basic clause. (End of clause)

(Change 55) 552-13 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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552-14 (Change 55) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.216-74 Alternate I (Aug 2010). As prescribed in 516.506(a), sub- ber(s) for facsimile transmission equipment where orders stitute the following paragraphs (a), (b), (c), and (d) for para- should be forwarded. graphs (a), (b), (c), and (d) of the basic clause: (a) All delivery orders (orders) under this contract will be placed by the General Services Administration’s Federal Acquisition Service (FAS). The Contractor is not authorized to accept orders from any other agency. Violation of this (d) For mailed orders, the offeror is requested to include restriction may result in termination of the contract pursuant the postal mailing address(es) where paper form orders to the default clause of this contract. should be mailed. (b) All orders shall be placed by Electronic Data Inter- change (EDI) using the American National Standards Insti- tute (ANSI) X12 Standard for Electronic Data Interchange (EDI) format. (c) If the Contractor agrees, transmission will be com- (e) Offerors marketing through dealers are requested to puter-to-computer EDI. If computer-to-computer EDI is not indicate below whether those dealers will be participating in possible, FAS will use an alternative EDI method allowing the the proposed contract. Contractor to receive orders by facsimile transmission. YES ? NO ? (d) When computer-to-computer EDI procedures will be If “yes” is checked, ordering information to be inserted used to place orders, the Contractor shall enter into a Trading above shall reflect that in addition to offeror’s name, address, Partner Agreement (TPA) with FAS in order to ensure mutual and facsimile transmission telephone number, orders can be understanding by the parties of certain electronic transaction addressed to the offeror’s name, c/o nearest local dealer. In conventions and to recognize the rights and responsibilities of this event, two copies of a list of participating dealers shall the parties as they apply to this method of placing orders. The accompany this offer, and shall also be included in Contrac- TPA must identify, among other things, the third party pro- tor’s Federal Supply Schedule pricelist. vider(s) through which electronic orders are placed, the transaction sets used, security procedures, and guidelines for (End of provision) implementation. Alternate I (Sep 1999). As prescribed in 516.506(c), delete paragraph (d) of the basic provision. 552.216-73 Ordering Information. As prescribed in 516.506(c), insert the following provision: 552.216-74 Task-Order and Delivery-Order ORDERING INFORMATION (AUG 2010) Ombudsman. (a) In accordance with the Placement of Orders clause of As prescribed in 516.506(b), insert the following provi- this solicitation, the offeror elects to receive orders placed by sion: GSA’s Federal Acquisition Service (FAS) by either ? facsimile TASK-ORDER AND DELIVERY-ORDER OMBUDSMAN transmission or ? computer-to-computer Electronic Data (AUG 2010) Interchange (EDI). GSA has designated a Task-Order and Delivery-Order (b) An offeror electing to receive computer-to-computer Ombudsman who will review complaints from contractors EDI is requested to indicate below the name, address, and and ensure that they are afforded a fair opportunity for con- telephone number of the representative to be contacted sideration in the award of task or delivery orders under Indef- regarding establishment of an EDI interface. inite Delivery/Indefinite Quantity (ID/IQ) contracts, consisten with the procedures in the contract. Written complaints shall be submitted to the Ombudsman, with a copy to the Contracting Officer. In the case that the contractor is not satisfied with the res- (c) An offeror electing to receive orders by facsimile trans- olution of the complaint by the GSA Task-Order and Deliv- mission is requested to indicate below the telephone num- ery-Order Ombudsman, the contractor may follow the procedures outlined in subpart 33.1. The GSA Ombudsman is the Director, Office of Acquisi- tion Integrity located at: General Services Administration (GSA), Office of Governmentwide Policy (OGP), Office of

(Change 55) 552-15 552.217-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Acquisition Policy (MV), Acquisition Integrity Division award on the corresponding non-set-aside portion, the Gov- (MVA), 1800 F Street, NW., Room 4014, Washington, D.C. ernment will divide the requirements to be ordered between 20405, Telephone: (202) 219-3454, Fax: (202) 219-3615, the two Contractors with the objective of achieving, as nearly E-mail: [email protected]. as possible, a 50/50 division of the total value of orders placed after the award of the set-aside portion. In no case will this 552.217-70 Evaluation of Options. division vary by more than a 60/40 division (with either the As prescribed in 517.208(a), insert the following provi- non-set-aside or set-aside Contractor receiving the larger por- sion: tion) from the time of the award of the set-aside portion. EVALUATION OF OPTIONS (AUG 1990) (a) The Government will evaluate offers for award pur- (End of clause) poses by determining the lowest base period price. When option year pricing is based on a formula (e.g., changes in the 552.219-71 Notice to Offerors of Subcontracting Plan Producer Price Index or other common standard); option year Requirements. pricing is automatically considered when evaluating the base As prescribed in 519.708-70(a), insert the following pro- year price, as any change in price will be uniformly related to vision: changes in market conditions. All options are therefore con- NOTICE TO OFFERORS OF SUBCONTRACTING sidered to be evaluated. Evaluation of options will not obli- PLAN REQUIREMENTS (MAR 2012) gate the Government to exercise the option(s). (b) The Government will reject the offer if exceptions are The General Services Administration (GSA) is committed taken to the price provisions of the Economic Price Adjust- to assuring that maximum practicable opportunity is provided ment clause, unless the exception results in a lower maximum to small, HUBZone small, small disadvantaged, option year price. Such offers will be evaluated without women-owned, veteran-owned, and service-disabled veteran regard to the lower option year(s) maximum. However, if the owned small business concerns to participate in the perfor- offeror offering a lower maximum is awarded a contract, the mance of this contract consistent with its efficient perfor- award will reflect the lower maximum. mance. GSA expects any subcontracting plan submitted pursuant to FAR 52.219-9, Small Business Subcontracting 552.217-71 Notice Regarding Option(s). Plan, to reflect this commitment. Consequently, an offeror, As prescribed in 517.208(b), insert the following provi- other than a small business concern, before being awarded a sion: contract exceeding $650,000 ($1,500,000 for construction), must demonstrate that its subcontracting plan represents a NOTICE REGARDING OPTION(S) (NOV 1992) creative and innovative program for involving small, HUB- The General Services Administration (GSA) has included Zone small, small disadvantaged, women-owned, vet- an option to [Insert “purchase additional quantities of sup- eran-owned, and service-disabled veteran owned small plies or services” or “extend the term of this contract” or business concerns as subcontractors in the performance of “purchase additional quantities of supplies or services and to this contract. extend the term of this contract”] in order to demonstrate the value it places on quality performance by providing a mech- (End of provision) anism for continuing a contractual relationship with a successful Offeror that performs at a level which meets or 552.219-72 Preparation, Submission, and Negotiation of exceeds GSA’s quality performance expectations as commu- Subcontracting Plans. nicated to the Contractor, in writing, by the Contracting Offi- As prescribed in 519.708-70(b), insert the following pro- cer or designated representative. When deciding whether to vision: exercise the option, the Contracting Officer will consider the PREPARATION, SUBMISSION, AND NEGOTIATION OF quality of the Contractor’s past performance under this con- SUBCONTRACTING PLANS (MAR 2012) tract in accordance with 48 CFR 517.207. (a) An offeror, other than a small business concern, sub- 552.219-70 Allocation of Orders—Partially Set-aside mitting an offer that exceeds $650,000 ($1,500,000 for con- Items. struction) shall submit a subcontracting plan with its initial As prescribed in 519.508, insert the following clause: offer. The subcontracting plan will be negotiated concurrently with price and any required technical and management pro- ALLOCATION OF ORDERS—PARTIALLY SET-ASIDE ITEMS posals, unless the offeror submits a previously-approved (SEP 1999) commercial plan. Where the set-aside portion of an item or group of items is (b) Maximum practicable utilization of small, HUBZone awarded to a Contractor other than the one receiving the small, small disadvantaged, women-owned, veteran-owned,

552-16 (Change 55) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.219-73 and service-disabled veteran owned small business concerns (4) Review the offeror’s description of its strategies, as subcontractors is a matter of national interest with both historical performance and significant achievements in plac- social and economic benefits. The General Services Admin- ing subcontracts for the same or similar products or services istration (GSA) expects that an offeror’s subcontracting plan with small, HUBZone small, small disadvantaged, will reflect a commitment to assuring that small, HUBZone women-owned, veteran-owned, and service-disabled veteran small, small disadvantaged, women-owned, veteran-owned, owned small business concerns. The offeror’s description can and service-disabled veteran owned small business concerns apply to commercial as well as previous Government con- are provided the maximum practicable opportunity, consis- tracts. tent with efficient contract performance, to participate as sub- (e) Failure to submit an acceptable subcontracting plan contractors in the performance of the resulting contract. An and/or correct deficiencies in a plan within the time specified offeror submitting a commercial plan can reflect this commit- by the Contracting Officer shall make the offeror ineligible ment through subcontracting opportunities it provides that for award. relate to the offeror’s production generally; i.e., for both its commercial and Government business. (End of provision) (c) GSA believes that this potential contract provides significant opportunities for the use of small, HUBZone small, 552.219-73 Goals for Subcontracting Plan. small disadvantaged, women-owned, veteran-owned, and As prescribed in 519.708-70(c), insert the following pro- service-disabled veteran owned small business concerns as vision: subcontractors. Consequently, in addressing the eleven ele- GOALS FOR SUBCONTRACTING PLAN (JUNE 2005) ments described at FAR 52.219-9(d) of the clause in this contract entitled Small Business Subcontracting Plan, the offeror (a) Maximum practicable utilization of small, HUBZone shall: small, small disadvantaged, women-owned, veteran-owned, (1) Demonstrate that its subcontracting plan represents and service-disabled veteran owned small business concerns a creative and innovative program for involving small, HUB- as subcontractors is a matter of national interest with both Zone small, small disadvantaged, women-owned, vet- social and economic benefits. eran-owned, and service-disabled veteran owned small (1) The General Services Administration’s (GSA’s) business concerns in performing the contract. commitment to ensuring that maximum practicable opportu- (2) Include a description of the offeror’s subcontracting nity is provided to small, HUBZone small, small disadvan- strategies used in any previous contracts, significant achieve- taged, women-owned, veteran-owned, and service-disabled ments, and how this plan will build upon those earlier veteran owned small business concerns to participate as sub- achievements. contractors in the performance of this contract, consistent (3) Demonstrate through its plan that it understands the with its efficient performance, must be reflected in the small business subcontracting program’s objectives and offeror’s subcontracting plan submitted pursuant to the clause GSA’s expectations, and it is committed to taking those of this contract at FAR 52.219-9, Small Business Subcon- actions necessary to meet these goals or objectives. tracting Plan. (d) In determining the acceptability of any subcontracting (2) In addressing the eleven elements described at plan, the Contracting Officer will take each of the following FAR 52.219-9(d), the offeror shall demonstrate that its sub- actions: contracting plan represents a creative and innovative program (1) Review the plan to verify that the offeror demon- for involving small, HUBZone small, small disadvantaged, strates an understanding of the small business subcontracting women-owned, veteran-owned, and service-disabled veteran program’s objectives and GSA’s expectations with respect to owned small business concerns in performing this contract. the program and has included all the information, goals, and An offeror submitting a commercial plan can demonstrate its assurances required by FAR 52.219-9. commitment in providing maximum practicable opportuni- (2) Consider previous goals and achievements of con- ties through subcontracting opportunities it provides to small, tractors in the same industry. HUBZone small, small disadvantaged, women-owned, vet- (3) Consider information and potential sources eran-owned, and service-disabled veteran owned small busi- obtained from agencies administering national and local pref- ness concerns that relate to the offeror’s production generally; erence programs and other advocacy groups in evaluating i.e., for both its commercial and Government business. whether the goals stated in the plan adequately reflect the (3) The subcontracting plan shall include a description anticipated potential for subcontracting to small, HUBZone of the offeror’s subcontracting strategies used in previous small, small disadvantaged, women-owned, veteran-owned, contracts and significant achievements, with an explanation and service-disabled veteran owned small business concerns. of how this plan will build upon those earlier achievements. Additionally, the offeror shall demonstrate through its plan

(Change 55) 552-17 552.219-74 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL that it understands the small business subcontracting pro- by the Contracting Officer shall make the offeror ineligible gram’s objectives, GSA’s expectations, and is committed to for award. taking those actions necessary to meet these goals or objectives. (End of provision) (b) GSA believes that this contract provides significant opportunities for the use of small, HUBZone small, small dis- Alternate I (Sep 1999). As prescribed in 519.708-70(c)(2), advantaged, women-owned, veteran-owned, and service-dis- delete paragraph (b) of the basic provision and redesignate abled veteran owned small business concerns as paragraphs (c) and (d) as paragraphs (b) and (c). subcontractors. Accordingly, it is anticipated that an acceptable subcontracting plan will contain at least the following 552.219-74 Section 8(a) Direct Award. goals: As prescribed in 519.870-8, insert the following clause: Small Business percent SECTION 8(A) DIRECT AWARD (SEP 1999) HUBZone Small Business percent (a) This contract is issued as a direct award between the Small Disadvantaged Business percent contracting activity and the 8(a) Contractor pursuant to the Women-Owned Small Business percent Memorandum of Understanding between the Small Business Administration (SBA) and the General Services Administra- Veteran-Owned Small Business percent tion. SBA retains the responsibility for 8(a) certifications, Service-Disabled Veteran-Owned Small percent 8(a) eligibility determinations, and related issues, and will Business provide counseling and assistance to the 8(a) contractor under the 8(a) program. The cognizant SBA district office is: NOTE: Target goals are expressed as a percentage of planned subcontracting dollars. [Complete at time of award] (b) The contracting activity is responsible for administer- (c) In determining the acceptability of any subcontracting ing the contract and taking any action on behalf of the Gov- plan, the Contracting Officer will— ernment under the terms and conditions of the contract. (1) Review the plan to verify that the offeror has However, the contracting activity shall give advance notice to demonstrated an understanding of the small business subcon- SBA before it issues a final notice terminating performance, tracting program’s objectives and GSA’s expectations with either in whole or in part, under the contract. The contracting respect to the programs and has included all the information, activity shall also coordinate with SBA prior to processing goals, and assurances required by FAR 52.219-9; any advance payments or novation agreements. The contract- (2) Consider previous goals and achievements of con- ing activity may assign contract administration functions to a tractors in the same industry; contract administration office. (3) Consider information and potential sources (c) The Contractor agrees: obtained from agencies administering national and local pref- (1) To notify the Contracting Officer, simultaneous erence programs and other advocacy groups in evaluating with its notification to SBA (as required by SBA’s whether the goals stated in the plan adequately reflect the 8(a) regulations), when the owner or owners upon whom anticipated potential for subcontracting to small, HUBZone 8(a) eligibility is based plan to relinquish ownership or con- small, small disadvantaged, women-owned, veteran-owned, trol of the concern. Consistent with 15 U.S.C. 637(a)(21), and service-disabled veteran owned small business concerns; transfer of ownership or control shall result in termination of and the contract for convenience, unless SBA waives the require- (4) Review the offeror’s description of its strategies, ment for termination prior to the actual relinquishing of own- historical performance and significant achievements in plac- ership and control. ing subcontracts for the same or similar products or services (2) To the requirements of 52.219-14, Limitations on with small, HUBZone small, small disadvantaged, Subcontracting. women-owned, veteran-owned, and service-disabled veteran owned small business concerns. The offeror’s description can (End of clause) apply to commercial as well as previous Government contracts. 552.219-75 GSA Mentor-Protégé Program. (d) Failure to submit an acceptable subcontracting plan As prescribed in 519.7017(a) and/or correct deficiencies in a plan within the time specified , insert the following clause: GSA MENTOR-PROTÉGÉ PROGRAM (SEP 2009) (a) Prime contractors, including small businesses, are encouraged to participate in the GSA Mentor-Protégé Pro-

552-18 (Change 55) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.219-76 gram for the purpose of providing developmental assistance (2) Specific actions taken by the contractor during this to eligible protégé entities to enhance their capabilities and evaluation period to develop the technical and corporate increase their participation in GSA contracts. administrative expertise of its protégé as defined in the Agree- (b) The Program consists of: ment; (1) Mentor firms are large prime contractors with at (3) To what extent the protégé has met the developmen- least one active subcontracting plan, or that are eligible small tal objectives in the Agreement; and businesses; (4) To what extent the firm’s participation in the Men- (2) Protégés are subcontractors to the prime contractor, tor-Protégé Program resulted in the protégé receiving compet- and include small business concerns, small disadvantaged itive contract(s) and subcontract(s) from private firms other business concerns, veteran-owned small business concerns, than the mentor, and from agencies. service-disabled veteran-owned small business concerns, (c) Semi-annual reports shall be submitted by a GSA men- HUBZone small business concerns, and women-owned small tor to the GSA Mentor-Protégé Program Manager, GSA business concerns meeting the qualifications specified in Office of Small Business Utilization (E), Washington, DC Subpart 519.70; and 20405. The reports must include information as outlined in (3) Mentor-protégé Applications and Agreements, paragraph (b) of this section. The semi-annual report may approved by the Mentor-Protégé Program Manager in the include a narrative describing the forms of developmental GSA Office of Small Business Utilization (OSBU). assistance a mentor provides to a protégé and any other types (c) Mentor participation in the Program means providing of permissible, mutually beneficial assistance. technical, managerial and financial assistance to aid protégés (d) A GSA mentor will notify the GSA Mentor-Protégé in developing requisite high-tech expertise and business sys- Program Manager and the contracting officer, in writing, at tems to compete for and successfully perform GSA contracts least 30 days in advance of the mentor firm’s intent to volun- and subcontracts. tarily withdraw from the GSA Program or terminate the (d) Contractors interested in participating in the Program Agreement, or upon receipt of a protégé’s notice to withdraw are encouraged to read FAR Subpart 19.7 and to contact the from the Program. GSA Office of Small Business Utilization (E), Washington, (e) GSA mentor and protégé firms will submit a “Lessons DC 20405, (202) 501-1021, for further information. Learned” evaluation to the GSA Mentor-Protégé Program Manager at the conclusion of the Mentor-Protégé Agreement. (End of clause) At the end of each year in the Mentor-Protégé Program, the mentor and protégé, as appropriate, will formally brief the 552.219-76 Mentor Requirements and Evaluation. GSA Mentor-Protégé Program manager, the technical pro- As prescribed in 519.7017(b), insert the following clause: gram manager, and the contracting officer during a formal MENTOR REQUIREMENTS AND EVALUATION (MAR 2012) Program review regarding Program accomplishments as they pertain to the approved Agreement. (a) The purpose of the GSA Mentor-Protégé Program is (f) GSA has the authority to exclude mentor or protégé for a GSA prime contractor to provide developmental assis- firms from participating in the GSA Program. If GSA tance to certain subcontractors qualifying as protégés. Eligi- excludes a mentor or a protégé from the Program, the GSA ble protégés include small business concerns, small Office of Small Business Utilization will deliver to the con- disadvantaged business concerns, veteran-owned small busi- tractor a Notice specifying the reason for Program exclusion ness concerns, service-disabled veteran-owned small busi- and the effective date. The exclusion from the Program does ness concerns, HUBZone small business concerns, and not constitute a termination of the subcontract between the women-owned small business concerns meeting the qualifi- mentor and the protégé. A plan for accomplishing the sub- cations specified in section 519.7007. The Program requires contract effort should the Agreement be terminated shall be an Application process and an Agreement between the mentor submitted with the Agreement as required in section and the protégé. See GSAR Subpart 519.70 for more infor- 519.7010(j). mation. (g) Subcontracts awarded to GSA protégé firms under this (b) GSA will evaluate a GSA mentor’s performance on the Program are exempt from competition requirements, notwith- following factors: standing FAR 52.244-5. However, price reasonableness (1) Specific actions taken by the contractor, during the should still be determined. evaluation period, to increase the participation of its protégé as a subcontractor and supplier; (End of clause)

(Change 55) 552-19 CHANGE 64 JUNE 24, 2015

552.223-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 552.223-70 Hazardous Substances. (d) Pending final resolution of any dispute, the Contractor As prescribed in 523.303(a), insert the following clause: shall promptly comply with the decision of the Contracting HAZARDOUS SUBSTANCES (MAY 1989) Officer.

(a) If the packaged items to be delivered under this con- (End of clause) tract are of a hazardous substance and ordinarily are intended or considered to be for use as a household item, this contract 552.223-72 Hazardous Material Information. is subject to the Federal Hazardous Materials Act, as amended As prescribed in 523.370, insert the following provision: (15 U.S.C. 1261-1276), implementing regulations thereof (16 CFR Chapter II), and Federal Standard No. 123, Marking HAZARDOUS MATERIAL INFORMATION (SEP 1999) for Shipment (Civil Agencies), issue in effect on the date of Offeror shall indicate for each national stock number this solicitation. (NSN) the following information: (b) The packaged items to be delivered under this contract DOT Shipping DOT Hazard DOT Label are subject to the preparation of shipping documents, the NSN Name Class Required preparation of items for transportation, shipping container Yes[]No[] construction, package making, package labeling, when Yes[]No[] required, shipper’s certification of compliance, and transport Yes[]No[] vehicle placarding in accordance with Parts 171 through 178 of 49 CFR and the Hazardous Materials Transportation Act. (c) The minimum packaging acceptable for packaging (End of provision) Department of Transportation regulated hazardous materials shall be those in 49 CFR 173. 552.223-73 Preservation, Packaging, Packing, Marking, and Labeling of Hazardous Materials (HAZMAT) For (End of clause) Shipments. As prescribed in 523.303(c), insert the following clause: 552.223-71 Nonconforming Hazardous Materials. PRESERVATION, PACKAGING, PACKING, MARKING, AND As prescribed in 523.303(b), insert the following clause: LABELING OF HAZARDOUS MATERIALS (HAZMAT) FOR HIPMENTS UN NONCONFORMING HAZARDOUS MATERIALS (SEP 1999) S (J 2015) (a) Nonconforming supplies that contain hazardous mate- (a) Definition. “United States,” as used in this clause, rial or that may expose persons who handle or transport the means the 48 adjoining U.S. States, Alaska, Hawaii, and U.S. supplies to hazardous material and which require replacement territories and possessions, such as Puerto Rico. under the inspection and/or warranty clauses of this contract (b) Preservation, packaging, packing, marking, and label- shall be reshipped to the Contractor at the Contractor’s ing of hazardous materials for export shipment outside the expense. The Contractor agrees to accept return of these non- United States in all transport modes shall comply with the fol- conforming supplies and to pay all costs occasioned by their lowing, as applicable: return. (1) International Maritime Dangerous Goods (IMDG) (b) “Hazardous materials,” as used in this clause, includes Code as established by the International Maritime Organiza- any material defined as hazardous under the latest version of tion (IMO). Federal Standard No. 313 (including revisions adopted during (2) U.S. Department of Transportation (DOT) Hazard- the term of the contract). ous Material Regulation (HMR) 49 CFR parts 171 through (c) If the Contractor fails to provide acceptable disposition 180. (Note: Classifications permitted by the HMR, but not instructions for the nonconforming supplies within 10 days permitted by the IMDG code, such as Consumer Commodi- from the date of the Government’s request (or such longer ties classed as ORM-D, shall be packaged in accordance with period as may be agreed to between the Contracting Officer the IMDG Code and dual-marked with both Consumer Com- and the Contractor), or fails to accept return of the reshipped modity and IMDG marking and labeling.) nonconforming supplies, such failure: (3) Occupational Safety and Health Administration (1) May be interpreted as a willful failure to perform, (OSHA) Regulation 29 CFR part 1910.1200. (2) May result in termination of the contract for default (4) International Air Transport Association (IATA), and Dangerous Goods Regulation and/or International Civil Avi- (3) Shall be considered by the Contracting Officer in ation Organization (ICAO), Technical Instructions. determining the responsibility of the Contractor for any future (5) AFMAN 24-204, Air Force Inter-Service Manual, award (see FAR 9.104-3(b) and 9.406-2). Preparing Hazardous Materials For Military Air Shipments.

552-20 CHANGE 64 JUNE 24, 2015

PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.229-71 (6) Any preservation, packaging, packing, marking, ered the “person for whom the work was prepared” for the and labeling requirements contained elsewhere in this solici- purpose of authorship in any copyrightable work under tation and contract. Section 201(b) of Title 17, United States Code. With respect (c) Preservation, packaging, packing, marking, and label- thereto, the Contractor agrees not to assert or authorize others ing of hazardous materials for domestic shipments within the to assert any rights nor establish any claim under the design patent or copyright laws. The Contractor for a period of United States in all transport modes shall comply with the fol- three years after completion of the project agrees to furnish all lowing; as applicable: retained works on the request of the Contracting Officer. (1) U.S. Department of Transportation (DOT) Hazard- Unless otherwise provided in this contract, the Contractor ous Material Regulation (HMR) 49 CFR parts 171 through shall have the right to retain copies of works beyond such 180. period. (2) Occupational Safety and Health Administration (OSHA) Regulation 29 CFR part 1910.1200. (End of clause) (3) Any preservation, packaging, packing, marking, and labeling requirements contained elsewhere in this solici- 552.228-5 Government as Additional Insured. tation and contract. As prescribed in 528.310, insert the following clause: (d) Hazardous Material Packages designated for outside GOVERNMENT AS ADDITIONAL INSURED (MAY 2009) the United States destinations through Forwarding Points, (a) This clause supplements the requirements set forth in Distribution Centers, or Container Consolidation Points FAR clause 52.528-5, Insurance–Work on a Government (CCPs) shall comply with the IMDG, IATA, ICAO or Installation. AFMAN 24-204 codes, as applicable. (b) Each insurance policy required under this contract, (e) The test certification data showing compliance with other than workers’ compensation insurance, shall contain an performance-oriented packaging or UN-approved packaging endorsement naming the United States as an additional requirements shall be made available to GSA contract admin- insured with respect to operations performed under this con- istration/management representatives or regulatory inspec- tract. The insurance carrier is required to waive all subroga- tors upon request. tion rights against any of the named insured.

552.227-70 Government Rights (Unlimited). (End of clause) As prescribed in 527.409(a), insert the following clause: GOVERNMENT RIGHTS (UNLIMITED) (MAY 1989) 552.229-70 Federal, State, and Local Taxes. As prescribed in 529.401-70, insert the following clause: The Government shall have unlimited rights in all drawings, designs, specifications, notes and other works developed FEDERAL, STATE, AND LOCAL TAXES (APR 1984) in the performance of this contract, including the right to use The contract price includes all applicable Federal, State, same on any other Government design or construction with- and local taxes. No adjustment will be made to cover taxes out additional compensation to the Contractor. The Contrac- which may subsequently be imposed on this transaction or tor hereby grants to the Government a paid-up license changes in the rates of currently applicable taxes. However, throughout the world to all such works to which he may assert the Government will, upon the request of the Contractor, fur- or establish any claim under design patent or copyright laws. nish evidence appropriate to establish exemption from any tax The Contractor for a period of three years after completion of from which the Government is exempt and which was not the project agrees to furnish the original or copies of all such included in the contract price. works on the request of the Contracting Officer. (End of clause) (End of clause) 552.229-71 Federal Excise Tax—DC Government. 552.227-71 Drawings and Other Data to Become As prescribed in 529.401-71, insert the following clause: Property of Government. FEDERAL XCISE AX OVERNMENT EP As prescribed in 527.409(b), substitute the following E T —DC G (S 1999) clause: If the District of Columbia cites an Internal Revenue Tax Exempt Certificate Number on orders placed under this con- DRAWINGS AND OTHER DATA TO BECOME tract, the Contractor shall bill shipments to the District of PROPERTY OF GOVERNMENT (MAY 1989) Columbia at prices exclusive of Federal excise tax and show All designs, drawings, specifications, notes and other the amount of such tax on the invoice. works developed in the performance of this contract shall become the sole property of the Government and may be used (End of clause) on any other design or construction without additional compensation to the Contractor. The Government shall be consid-

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552-22 AMENDMENT 2009–13 NOVEMBER 25, 2009

PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.232-25 552.232-1 Payments. under any order assigned may, to the extent specified in the As prescribed in 532.7104, insert the following clause: Act, be subject to reduction or set-off. PAYMENTS (NOV 2009) (DEVIATION FAR 52.232-1) (End of clause) (a) The Government shall pay the Contractor, without submission of invoices or vouchers, 30 days after the service 552.232-25 Prompt Payment. period, the prices stipulated in this contract for supplies deliv- As prescribed in 532.908(c)(2), insert the following ered and accepted or services rendered and accepted, less any clause: deductions provided in this contract. (b) Unless otherwise specified in this contract, the Govern- PROMPT PAYMENT (NOV 2009) ment will make payment on partial deliveries accepted by the (DEVIATION FAR 52.232-25) Government if either: Notwithstanding any other payment clause in this contract, (1) The amount due on the deliveries warrants it. the Government will make invoice payments and contract (2) The Contractor requests it and the amount due on financing payments under the terms and conditions specified the deliveries is at least $1,000 or 50 percent of the total con- in this clause. Payment shall be considered as being made on tract price. the day a check is dated or the date of an electronic funds (c) When processing payment, GSA’s Finance Office will transfer. Definitions of pertinent terms are set forth in automatically generate the 12 digit invoice number using the section 32.902 of the Federal Acquisition Regulation. All PDN assigned to the contract, followed by an abbreviated days referred to in this clause are calendar days, unless other- month and year of service (e.g., 84261554JUN7, for June wise specified. (However, see paragraph (c)(4) of this clause 2007). The PDN appears on the contract award document. concerning payments due on Saturdays, Sundays, and legal holidays.) (End of clause) (a) Invoice payments. (1) The due date for making invoice payments by the designated payment office is: (i) For orders placed electronically by the General Services Administration (GSA) Federal Acquisition Service 552.232-23 Assignment of Claims. (FAS), and to be paid by GSA through electronic funds trans- As prescribed in 532.806, insert the following clause: fer (EFT), the later of the following two events: th ASSIGNMENT OF CLAIMS (SEP 1999) (A) The 10 day after the designated billing office receives a proper invoice from the Contractor. If the Because this is a requirements or indefinite quantity con- designated billing office fails to annotate the invoice with the tract under which more than one agency may place orders, date of receipt at the time of receipt, the invoice payment due paragraph (a) of the Assignment of Claims clause date shall be the 10th day after the date of the Contractor's (FAR 52.232-23) is inapplicable and the following is substi- invoice; provided the Contractor submitted a proper invoice tuted therefor: and no disagreement exists over quantity, quality, or Contrac- In order to prevent confusion and delay in making pay- tor compliance with contract requirements. ment, the Contractor shall not assign any claim(s) for amounts (B) The 10th day after Government acceptance of due or to become due under this contract. However, the Con- supplies delivered or services performed by the Contractor. tractor is permitted to assign separately to a bank, trust com- (ii) For all other orders, the later of the following two pany, or other financial institution, including any Federal events: lending agency, under the provisions of the Assignment of (A) The 30th day after the designated billing Claims Act, as amended, 31 U.S.C. 3727, 41 U.S.C. 15 (here- office receives a proper invoice from the Contractor. If the inafter referred to as “the Act”), all amounts due or to become designated billing office fails to annotate the invoice with the due under any order amounting to $1,000 or more issued by date of receipt at the time of receipt, the invoice payment due any Government agency under this contract. Any such assign- date shall be the 30th day after the date of the Contractor's ment takes effect only if and when the assignee files written invoice; provided the Contractor submitted a proper invoice notice of the assignment together with a true copy of the and no disagreement exists over quantity, quality, or Contrac- instrument of assignment with the contracting officer issuing tor compliance with contract requirements. the order and the finance office designated in the order to (B) The 30th day after Government acceptance of make payment. Unless otherwise stated in the order, pay- supplies delivered or services performed by the Contractor. ments to an assignee of any amounts due or to become due (iii) On a final invoice, if the payment amount is subject to contract settlement actions, acceptance occurs on the effective date of the contract settlement.

552-23 552.232-25 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (2) The General Services Administration will issue practices will be followed in specifying a contract payment payment on the due date in paragraph (a)(1)(i) of this clause due date. The burden of proof that a classification of a specific if the Contractor complies with full cycle electronic com- product is, in fact, prevailing industry practice is upon the merce. Full cycle electronic commerce includes all the fol- Contractor making the representation. lowing elements: (ii) If the contract does not require submission of an (i) The Contractor must receive and fulfill electronic invoice for payment (e.g., periodic lease payments), the due data interchange (EDI) purchase orders (transaction set 850). date will be as specified in the contract. (ii) The Contractor must generate and submit to the (5) Contractor’s invoice. The Contractor shall prepare Government valid EDI invoices (transaction set 810) or sub- and submit invoices to the designated billing office specified mit invoices through the GSA Finance Center Internet-based in the contract. Notwithstanding paragraph (g) of the clause at invoice process. Internet-based invoices must be submitted FAR 52.212-4, Contract Terms and Conditions—Commer- using procedures provided by GSA. cial Items, if the Contractor submits hard-copy invoices, sub- (iii) The Contractor’s financial institution must mit only an original invoice. No copies of the invoice are receive and process, on behalf of the Contractor, EFT pay- required. A proper invoice must include the items listed in ments through the Automated Clearing House (ACH) system. paragraphs (a)(5)(i) through (a)(5)(viii) of this clause. If the (iv) The EDI transaction sets in paragraphs (a)(2)(i) invoice does not comply with these requirements, it shall be through (a)(2)(iii) of this clause must adhere to implementa- returned within 7 days after the date the designated billing tion conventions provided by GSA. office received the invoice (3 days for meat, meat food prod- (3) If any of the conditions in paragraph (a)(2) of this ucts, or fish; 5 days for perishable agricultural commodities, clause do not occur, the 10 day payment due dates in (a)(1) edible fats or oils, and food products prepared from edible fats become 30 day payment due dates. or oils), with a statement of the reasons why it is not a proper (4) Certain food products and other payments. (i) Due invoice. Untimely notification will be taken into account in dates on Contractor invoices for meat, meat food products, or computing any interest penalty owed the Contractor in the fish; perishable agricultural commodities; and dairy products, manner described in paragraph (a)(5) of this clause. edible fats or oils, and food products prepared from edible fats (i) Name and address of the Contractor. or oils are— (ii) Invoice date. (The Contractor is encouraged to (A) For meat or meat food products, as defined in date invoices as close as possible to the date of the mailing or section 2(a)(3) of the Packers and Stockyard Act of 1921 transmission.) (7 U.S.C. 182(3)), and as further defined in Pub. L. 98-181, (iii) Contract number or other authorization for sup- including any edible fresh or frozen poultry meat, any perish- plies delivered or services performed (including order num- able poultry meat food product, fresh eggs, and any perishable ber and contract line item number). egg product, as close as possible to, but not later than, the (iv) Description, quantity, unit of measure, unit 7th day after product delivery. price, and extended price of supplies delivered or services (B) For fresh or frozen fish, as defined in performed. section 204(3) of the Fish and Seafood Promotion Act (v) Shipping and payment terms (e.g., shipment of 1986 (16 U.S.C. 4003(3)), as close as possible to, but not number and date of shipment, prompt payment discount later than, the 7th day after product delivery. terms). Bill of lading number and weight of shipment will be (C) For perishable agricultural commodities, as shown for shipments on Government bills of lading. defined in section 1(4) of the Perishable Agricultural Com- (vi) Name and address of Contractor official to modities Act of 1930 (7 U.S.C. 499a(4)), as close as possible whom payment is to be sent (must be the same as that in the to, but not later than, the 10th day after product delivery, contract or in a proper notice of assignment). unless another date is specified in the contract. (vii) Name (where practicable), title, phone number, (D) For dairy products, as defined in and mailing address of person to be notified in the event of a section 111(e) of the Dairy Production Stabilization Act defective invoice. of 1983 (7 U.S.C. 4502(e)), edible fats or oils, and food prod- (viii) Any other information or documentation ucts prepared from edible fats or oils, as close as possible to, required by the contract (such as evidence of shipment). but not later than, the 10th day after the date on which a proper (ix) While not required, the Contractor is strongly invoice has been received. Liquid milk, cheese, certain pro- encouraged to assign an identification number to each cessed cheese products, butter, yogurt, ice cream, mayon- invoice. naise, salad dressings, and other similar products, fall within (6) Interest penalty. An interest penalty shall be paid this classification. Nothing in the Act limits this classification automatically by the designated payment office, without to refrigerated products. When questions arise regarding the request from the Contractor, if payment is not made by the due proper classification of a specific product, prevailing industry date and the conditions listed in paragraphs (a)(6)(i) through

552-24 (Amendment 2009–13) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.232-25 (a)(6)(iii) of this clause are met, if applicable. However, when to accept supplies or services, perform contract administra- the due date falls on a Saturday, Sunday, or legal holiday when tion functions, or make payment prior to fulfilling their Federal Government offices are closed and Government busi- responsibilities. ness is not expected to be conducted, payment may be made (ii) The following periods of time will not be on the following business day without incurring a late pay- included in the determination of an interest penalty: ment interest penalty. (A) The period taken to notify the Contractor of (i) A proper invoice was received by the designated defects in invoices submitted to the Government, but this may billing office. not exceed 7 days (3 days for meat, meat food products, or (ii) A receiving report or other Government docu- fish; 5 days for perishable agricultural commodities, dairy mentation authorizing payment was processed, and there was products, edible fats or oils, and food products prepared from no disagreement over quantity, quality, or Contractor compli- edible fats or oils). ance with any contract term or condition. (B) The period between the defects notice and (iii) In the case of a final invoice for any balance of resubmission of the corrected invoice by the Contractor. funds due the Contractor for supplies delivered or services (C) For incorrect electronic funds transfer (EFT) performed, the amount was not subject to further contract set- information, in accordance with the EFT clause of this con- tlement actions between the Government and the Contractor. tract. (7) Computing penalty amount. The interest penalty (iii) Interest penalties will not continue to accrue shall be at the rate established by the Secretary of the Treasury after the filing of a claim for such penalties under the clause under section 12 of the Contract Disputes Act of 1978 at 52.233-1, Disputes, or for more than 1 year. Interest penal- (41 U.S.C. 611) that is in effect on the day after the due date, ties of less than $1 need not be paid. except where the interest penalty is prescribed by other gov- (iv) Interest penalties are not required on payment ernmental authority (e.g., tariffs). This rate is referred to as delays due to disagreement between the Government and the the “Renegotiation Board Interest Rate,” and it is published in Contractor over the payment amount or other issues involving the Federal Register semiannually on or about January 1 and contract compliance or on amounts temporarily withheld or July 1. The interest penalty shall accrue daily on the invoice retained in accordance with the terms of the contract. Claims principal payment amount approved by the Government until involving disputes, and any interest that may be payable, will the payment date of such approved principal amount; and will be resolved in accordance with the clause at 52.233-1, Dis- be compounded in 30-day increments inclusive from the first putes. day after the due date through the payment date. That is, inter- (8) Prompt payment discounts. An interest penalty also est accrued at the end of any 30-day period will be added to shall be paid automatically by the designated payment office, the approved invoice principal payment amount and will be without request from the Contractor, if a discount for prompt subject to interest penalties if not paid in the succeeding payment is taken improperly. The interest penalty will be cal- 30-day period. If the designated billing office failed to notify culated as described in paragraph (c)(7) of this clause on the the Contractor of a defective invoice within the periods pre- amount of discount taken for the period beginning with the scribed in paragraph (c)(5) of this clause, the due date on the first day after the end of the discount period through the date corrected invoice will be adjusted by subtracting from such when the Contractor is paid. date the number of days taken beyond the prescribed notifica- (9) Additional interest penalty. (i)If this contract was tion of defects period. Any interest penalty owed the Contrac- awarded on or after October 1, 1989, a penalty amount, cal- tor will be based on this adjusted due date. Adjustments will culated in accordance with paragraph (a)(9)(iii) of this clause, be made by the designated payment office for errors in calcu- shall be paid in addition to the interest penalty amount if the lating interest penalties. Contractor— (i) For the sole purpose of computing an interest (A) Is owed an interest penalty of $1 or more; penalty that might be due the Contractor, Government accep- (B) Is not paid the interest penalty within 10 days tance shall be deemed to have occurred constructively on the after the date the invoice amount is paid; and 7th day (unless otherwise specified in this contract) after the (C) Makes a written demand to the designated Contractor delivered the supplies or performed the services in payment office for additional penalty payment, in accordance accordance with the terms and conditions of the contract, with paragraph (a)(9)(ii) of this clause, postmarked not later unless there is a disagreement over quantity, quality, or Con- than 40 days after the invoice amount is paid. tractor compliance with a contract provision. In the event that (ii) (A) Contractors shall support written demands actual acceptance occurs within the constructive acceptance for additional penalty payments with the following data. No period, the determination of an interest penalty shall be based additional data shall be required. Contractors shall— on the actual date of acceptance. The constructive acceptance (1) Specifically assert that late payment inter- requirement does not, however, compel Government officials est is due under a specific invoice, and request payment of all

(Amendment 2009-13) 552-25 AMENDMENT 2012–01 MARCH 12, 2012

552.232-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL overdue late payment interest penalty and such additional financing, requests for payment shall be submitted to the des- penalty as may be required; ignated billing office as specified in this contract or as (2) Attach a copy of the invoice on which the directed by the Contracting Officer. Contract financing pay- unpaid late payment interest was due; and ments shall be made on the [insert day as prescribed by (3) State that payment of the principal has Agency head; if not prescribed, insert 30th day] day after been received, including the date of receipt. receipt of a proper contract financing request by the desig- (B) Demands must be postmarked on or before nated billing office. In the event that an audit or other review the 40th day after payment was made, except that— of a specific financing request is required to ensure compli- (1) If the postmark is illegible or nonexistent, ance with the terms and conditions of the contract, the desig- the demand must have been received and annotated with the nated payment office is not compelled to make payment by date of receipt by the designated payment office on or before the due date specified. the 40th day after payment was made; or (2) Due dates for other contract financing. For advance (2) If the postmark is illegible or nonexistent payments, loans, or other arrangements that do not involve and the designated payment office fails to make the required recurring submissions of contract financing requests, pay- annotation, the demand's validity will be determined by the ment shall be made in accordance with the corresponding date the Contractor has placed on the demand; provided such contract terms or as directed by the Contracting Officer. date is no later than the 40th day after payment was made. (3) Interest penalty not applicable. Contract financing (iii) (A) The additional penalty shall be equal to payments shall not be assessed an interest penalty for pay- 100 percent of any original late payment interest penalty, ment delays. except— (c) Fast payment procedure due dates. If this contract con- (1) The additional penalty shall not exceed tains the clause at 52.213-1, Fast Payment Procedure, pay- $5,000; ments will be made within 15 days after the date of receipt of (2) The additional penalty shall never be less the invoice. than $25; and (3) No additional penalty is owed if the (End of clause) amount of the underlying interest penalty is less than $1. (B) If the interest penalty ceases to accrue in 552.232-70 [Reserved] accordance with the limits stated in paragraph (a)(5)(iii) of this clause, the amount of the additional penalty shall be cal- 552.232-71 [Reserved] culated on the amount of interest penalty that would have accrued in the absence of these limits, subject to the overall 552.232-72 Final Payment Under Building Services limits on the additional penalty specified in subdivision Contracts. (a)(7)(iii)(A) of this clause. As prescribed in 532.904(c), insert the following clause: (C) For determining the maximum and minimum FINAL PAYMENT UNDER BUILDING SERVICES additional penalties, the test shall be the interest penalty due CONTRACTS (MAR 2012) on each separate payment made for each separate contract. The maximum and minimum additional penalty shall not be Before final payment is made, the Contractor shall com- based upon individual invoices unless the invoices are paid plete and furnish the Contracting Officer with GSA Form separately. Where payments are consolidated for disbursing 1142, Release of Claims, releasing all claims against the Gov- purposes, the maximum and minimum additional penalty ernment relating to this contract, other than claims in stated determination shall be made separately for each contract amounts that are specifically excepted by the Contractor from therein. the release. If the Contractor’s claim to amounts payable (D) The additional penalty does not apply to pay- under the contract has been assigned under the Assignment of ments regulated by other Government regulations Claims Act of 1940, as amended (31 U.S.C. 3727, 41 U.S.C. (e.g., payments under utility contracts subject to tariffs and 15), a release may also be required of the assignee. regulation). (b) Contract financing payments. (1) Due dates for recur- (End of clause) ring financing payments. If this contract provides for contract

552-26 AMENDMENT 2009–13 NOVEMBER 25, 2009

PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.232-77 552.232-73 [Reserved] (b) At the option of the Government and if agreeable to the Contractor, payments of * or less for oral or written 552.232-74 [Reserved] orders may be made using the Governmentwide commercial purchase card. 552.232-75 [Reserved] (c) The Contractor shall not process a transaction for payment using the charge card until the purchased supplies have 552.232-76 [Reserved] been shipped or services performed. Unless the cardholder requests correction or replacement of a defective or faulty 552.232-77 Payment By Government Charge Card. item under other contract requirements, the Contractor must As prescribed in 532.7003, insert the following clause: immediately credit a cardholder’s account for items returned PAYMENT BY GOVERNMENT CHARGE CARD (NOV 2009) as defective or faulty. (d) Payments made using the Governmentwide commer- (a) Definitions. “Governmentwide commercial purchase cial purchase card are not eligible for any negotiated prompt card” means a uniquely numbered charge card issued by a payment discount. Payment made using a Government debit contractor under the GSA SmartPay® program contract for card will receive the applicable prompt payment discount. Fleet, Travel, and Purchase Card Services to named individual Government employees or entities to pay for official Gov- (End of clause) ernment purchases. “Oral order” means an order placed orally either in per- *Enter amount not to exceed $100,000. son or by telephone.

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552-28 PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.236-73 552.236-70 Definitions. newly organized, whose personnel have previously estab- As prescribed in 536.570-1, insert the following clause: lished a reputation in the same field), which is regularly DEFINITIONS (APR 1984) engaged in, and which maintains a regular force of workmen skilled in either (as applicable) manufacturing or fabricating The terms “Administration” and “Service” as used in this items required by the contract, installing items required by the contract shall mean the General Services Administration contract, or otherwise performing work required by the con- (GSA) and the Public Buildings Service (PBS), respectively. tract. Where the contract specification requires installation by a specialist, that term shall also be deemed to mean either the (End of clause) manufacturer of the item, an individual or firm licensed by the manufacturer, or an individual or firm who will perform the 552.236-71 Authorities and Limitations. work under the manufacturer’s direct supervision. As prescribed in 536.570-2, insert the following clause: AUTHORITIES AND LIMITATIONS (APR 1984) (End of clause) (a) All work shall be performed under the general direction of the Contracting Officer, who alone shall have the power to 552.236-73 Basis of Award—Construction Contract. bind the Government and to exercise the rights, responsibili- As prescribed in 536.570-4, insert the following provision ties, authorities and functions vested in him by the contract or the appropriate Alternate: documents, except that he shall have the right to designate BASIS OF AWARD—CONSTRUCTION C ONTRACT authorized representatives to act for him. Wherever any pro- (APR 1985) vision in this contract specifies an individual (such as, but not (a) The low bidder for purposes of award is the responsible limited to, Construction Engineer, Resident Engineer, Inspec- bidder offering the lowest price for the base bid (consisting of tor or Custodian) or organization, whether Governmental or the lump sum bid and any associated unit price bids extended private, to perform any act on behalf of or in the interests of by the applicable number of units shown on the bid form). See the Government, that individual or organization shall be Standard Form 1442, Solicitation, Offer, and Award and the deemed to be the Contracting Officer’s authorized represen- provision entitled “Contract Award—Sealed Bidding.” tative under this contract but only to the extent so specified. (b) A bid may be rejected as nonresponsive if the bid is The Contracting Officer may, at any time during the perfor- materially unbalanced as to bid prices. A bid is unbalanced mance of this contract, vest in any such authorized represen- when the bid is based on prices significantly less than cost for tatives additional power and authority to act for him or some work and significantly overstated for other work. designate additional representatives, specifying the extent of their authority to act for him; a copy of each document vesting (End of provision) additional authority in an authorized representative or designating an additional authorized representative shall be fur- Alternate I (Apr 1985). If the solicitation includes a base nished to the Contractor. bid and options, the Contracting Officer shall delete (b) The Contractor shall perform the contract in accor- paragraph (a) of the basic provision and insert paragraph (a) dance with any order (including but not limited to instruction, substantially as follows: direction, interpretation, or determination) issued by an (a) The low bidder for purposes of award is the responsible authorized representative in accordance with his authority to bidder offering the lowest aggregate price for (1) the base bid act for the Contracting Officer; but the Contractor assumes all (consisting of the lump sum bid and any associated unit price the risk and consequences of performing the contract in accor- bids extended by the applicable number of units shown on the dance with any order (including but not limited to instruction, bid form) plus (2) all options designated to be evaluated. The direction, interpretation, or determination) issued by an evaluation of options will not obligate the Government to exer- authorized representative in accordance with his authority to cise the options. See Standard Form 1442, Solicitation, Offer, act for the ion) of anyone not authorized to issue such order. and Award and the provision entitled “Contract Award— Sealed Bidding.” (End of clause) Alternate II (Apr 1985). If the solicitation includes a base bid and alternates, the Contracting Officer shall delete 552.236-72 Specialist. paragraph (a) of the basic provision and insert paragraphs (a), As prescribed in 536.570-3, insert the following clause: (c), and (d) substantially as follows: SPECIALIST (APR 1984) (a) The low bidder for purposes of award is the responsible The term “Specialist,” as used in the contract specification, bidder offering the lowest aggregate price for (1) the base bid shall mean an individual or firm of established reputation (or, if (consisting of the lump sum bid and any associated unit price

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552-30 PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.236-74 bids extended by the applicable number of units shown on the options. See the provision entitled “Contract Award—Sealed bid form) plus (2) those alternates in the order of priority Bidding.” listed in the solicitation that provide the most features of work (c) Alternates will be added to the base bid in the order within the funds available at bid opening. See the provision listed in the solicitation (see Standard Form 1442, Solicitation, entitled “Contract Award—Sealed Bidding.” Offer, or Award). If the addition of an alternate would make all bids exceed the funds available at bid opening, that alternate (c) Alternates will be added to the base bid in the order shall be skipped and the next subsequent alternate in a lower listed in the solicitation (see Standard Form 1442, Solicitation, amount shall be added, provided that the aggregate of base bid Offer, and Award). If the addition of an alternate would make and the selected alternates do not exceed the funds available at all bids exceed the funds available at bid opening, that alternate bid opening. For example, when the amount available is shall be skipped and the next subsequent alternate in a lower $100,000 and a bidder’s base bid is $85,000, with its separate amount shall be added, provided that the aggregate of base bid bids on four successive alternates being $10,000, $8,000, and the selected alternates do not exceed the funds available at $6,000, and $4,000, the aggregate amount of the bid for pur- bid opening. For example, when the amount available is poses of selecting the alternates would be $99,000 (base bid $100,000 and a bidder’s base bid is $85,000, with its separate plus the first and fourth alternates). The second and third alter- bids on four successive alternates being $10,000, $8,000, nates are skipped because each of them would cause the aggre- $6,000, and $4,000, the aggregate amount of the bid for pur- gate of the base bid and alternates to exceed the $100,000 poses of selecting the alternates would be $99,000 (base bid amount available when considered with the first alternate. All plus the first and fourth alternates). The second and third alter- bids shall be evaluated on the basis of the same alternates. nates are skipped because each of them would cause the aggre- (d) After the low bidder has been determined in accordance gate of the base bid and alternates to exceed the $100,000 with paragraph (a), award may be made to that low bidder on amount available when considered with the first alternate. All the base bid and evaluated options plus any combination of bids shall be evaluated on the basis of the same alternates. alternates for which funds are available at the time of award, (d) After the low bidder has been determined in accordance but only if that low bidder is still low on the sum thereof plus with paragraph (a), an award may be made to that low bidder any previously unevaluated options designated to be evaluated on the base bid, plus any combination of alternates for which which are associated with proposed alternates that were funds are available at the time of award, but only if the award skipped during the selection under paragraph (c) of this provi- amount does not exceed the amount offered by any other sion. If that low bidder is not still low, award cannot be made on responsible bidder. If the base bid plus the proposed combina- the proposed combination of alternates. tion of alternates exceed the amount offered by any other responsible bidder for the same combination of alternates, the 552.236-74 Working hours. award cannot be made on that combination of alternates. As prescribed in 536.570-5, insert the following clause: Alternate III (Apr 1985). If the solicitation includes a base bid, alternates, and options, the Contracting Officer shall WORKING HOURS (APR 1984) delete paragraph (a) of the basic provision and insert (a) It is contemplated that all work will be performed paragraphs (a), (c), and (d) substantially as follows: during the customary working hours of the trades involved (a) The low bidder for purposes of award is the responsible unless otherwise specified in this contract. Work performed bidder offering the lowest aggregate price for (1) the base bid by the Contractor at his own volition outside such customary (consisting of the lump sum bid and any associated unit price working hours shall be at no additional expense to the Gov- bids extended by the applicable number of units shown on the ernment. bid form) plus (2) those alternates in the order of priority listed (b) Any requests received by the Contractor from occu- in the solicitation that provide the most features of work within pants of existing buildings to change the hours of work shall the funds available at bid opening plus (3) all options desig- be referred to the Contracting Officer for determination. nated to be evaluated except those options associated with alternates which are skipped during the selection process out- (End of clause) lined in paragraph (c) of this provision. The evaluation of options will not obligate the Government to exercise the

(Amendment 2009-13) 552-31 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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552-32 PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.236-78 552.236-75 Use of Premises. drawings or referenced elsewhere in the specifications. Where As prescribed in 536.570-6, insert the following clause: the notes on the drawings indicate modifications, such modifi- USE OF PREMISES (APR 1984) cations shall govern. (d) In case of difference between Standard Details or Speci- (a) If the premises are occupied, the Contractor, his subcon- fication Drawings and the specifications, the specifications tractors, and their employees shall comply with the regulations will govern. In case of difference between the Standard Details governing access to, operation of, and conduct while in or on or Specification Drawings and the drawings prepared specifi- the premises and shall perform the work required under this cally for this contract, the later shall govern. contract in such a manner as not to unreasonably interrupt or interfere with the conduct of Government business. (End of clause) (b) Any request received by the Contractor from occupants of existing buildings to change the sequence of work shall be 552.236-78 Shop Drawings, Coordination Drawings, and referred to the Contracting Officer for determination. Schedules. (c) If the premises are occupied, the Contractor, his subcon- As prescribed in 536.570-9, insert the following clause: tractors and their employees shall not have access to or be SHOP DRAWINGS, COORDINATION DRAWINGS, AND admitted into any building outside the scope of this contract SCHEDULES (SEP 1999) except with official permission. The requirements, of the clause entitled “Specifications and (End of clause) Drawings for Construction” at FAR 52.236-21, are supplemented as follows: 552.236-76 Measurements. (a) The Contractor shall submit shop drawings, coordina- As prescribed in 536.570-7, insert the following clause: tion drawings, and schedules for approval as required by the specifications or requested by the Contracting Officer as fol- MEASUREMENTS (APR 1984) lows: All dimensions shown of existing work and all dimensions (b) Shop drawings shall include fabrication, erection and required for work that is to connect with work now in place, setting drawings, schedule drawings, manufacturers’ scale shall be verified by the Contractor by actual measurement of drawings, wiring and control diagrams, cuts or entire catalogs, the existing work. Any discrepancies between the contract pamphlets, descriptive literature, and performance and test requirements and the existing conditions shall be referred to data. the Contracting Officer before any work affected thereby has (c) Drawings and schedules, other than catalogs, pamphlets been performed. and similar printed material, shall be submitted in reproducible form with two prints made by a process approved by the Con- (End of clause) tracting Officer. Upon approval, the reproducible form will be returned to the Contractor who shall then furnish the number of 552.236-77 Specifications and Drawings. additional prints, not to exceed 10, required by the specifica- As prescribed in 536.570-8, insert the following clause: tions. The Contractor shall submit shop drawings in catalog, pamphlet and similar printed form in a minimum of four copies SPECIFICATIONS AND D RAWINGS (SEP 1999) plus as many additional copies as the Contractor may desire or The requirements of the clause entitled “Specifications and need for his use or use by subcontractors. Drawings for Construction” at FAR 52.236-21, are supple- (d) Before submitting shop drawings on the mechanical mented as follows: and electrical work, the Contractor shall submit and obtain the (a) In case of difference between small and large-scale Contracting Officer’s approval of such lists of mechanical and drawings, the large-scale drawings shall govern. Schedules on electrical equipment and materials as may be required by the any contract drawing shall take precedence over conflicting specifications. information on that or any other contract drawing. On any of (e) Each shop drawing or coordination drawing shall have a blank area 5 by 5 inches, located adjacent to the title block. the drawings where a portion of the work is detailed or drawn The title block shall display the following: out and the remainder is shown in outline, the parts detailed or drawn out shall apply also to all other like portions of the work. Number and title of drawing (b) Where the word “similar” occurs on the drawings, it Date of drawing or revision shall have a general meaning and not be interpreted as being Name of project building or facility identical, and all details shall be worked out in relation to their location and their connection with other parts of the work. Name of Contractor and (if appropriate) name of subcon- (c) Standard Details or Specification Drawings are applica- tractor submitting drawing ble when listed, bound with the specifications, noted on the Clear identity of contents and location on the work

(Amendment 2009–13) 552-33 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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552-34 PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.236-81 Project title and contract number approved will be returned to the Contractor at his expense if so (f) Unless otherwise provided in this contract, or otherwise requested at time of submission. directed by the Contracting Officer, shop drawings, coordina- (e) Failure of any material to pass the specified tests will be tion drawings and schedules shall be submitted to the Con- sufficient cause for refusal to consider, under this contract, any tracting Officer, with a letter in triplicate, sufficiently in further samples of the same brand or make of that material or advance of construction requirements to permit no less than equipment which previously has proved unsatisfactory in ser- 10 working days for checking and appropriate action. vice. (g) Approval of drawings and schedules will be general and (f) Samples of various materials or equipment delivered on shall not be construed as permitting any departure from the the site or in place may be taken by the Government represen- contract requirements, or as approving departures from tative for testing. Samples failing to meet contract require- full-size details furnished by the Contracting Officer. ments will automatically void previous approvals of the items tested. The Contractor shall replace such materials or equip- (End of clause) ment found not to have met contract requirements, or there shall be a proper adjustment of the contract price as determined 552.236-79 Samples. by the Contracting Officer. As prescribed in 536.570-10, insert the following clause: (g) Unless otherwise specified, when tests are required only one test of each sample proposed for use will be made at SAMPLES (APR 1984) the expense of the Government. Samples which do not meet (a) After the award of the contract, the Contractor shall fur- specification requirements will be rejected. Testing of addi- nish for the approval of the Contracting Officer samples tional samples will be made by the Government at the expense required by the specifications or by the Contracting Officer. of the Contractor. Samples shall be delivered to the Contracting Officer or to the Architect as specified or as directed. The Contractor shall pre- (End of clause) pay all shipping charges on samples. Materials or equipment for which samples are required shall not be used in the work 552.236-80 Heat. until approved in writing by the Contracting Officer. As prescribed in 536.570-11, insert the following clause: (b) Each sample shall have a label indicating: HEAT (APR 1984) (1) Name of project building or facility, project title and contract number. Unless otherwise specified or unless already provided by (2) Name of Contractor and, if appropriate, name of sub- the Government the Contractor shall; contractor. (a) Provide heat, as necessary to protect all work, materi- (3) Identification of material or equipment with specifi- als, and equipment against injury from dampness and cold; cation requirement. (b) Protect, cover and/or heat as may be necessary, to pro- (4) Place of origin. duce and maintain a temperature of not less than 50 degrees (5) Name of producer and brand (if any). Fahrenheit (1) in the concrete during the placing, setting and Samples of finished materials shall have additional mark- curing of concrete, and (2) in the plaster during the applica- ings that will identify them under the finish schedules. tion, setting and curing of plaster; and (c) The Contractor shall mail under separate cover a letter (c) Provide heat as necessary in the area where work is to be in triplicate submitting each shipment of samples and contain- done to provide the minimum temperature recommended by ing the information required in paragraph (b) of this clause. He the supplier or manufacturer of the material, but in no case less shall enclose a copy of this letter with the shipment and send a than 50 degrees Fahrenheit, for a period beginning 10 days copy to the Government representative on the project. before placing of interior finishes and finish materials and con- Approval of a sample shall be only for the characteristics or use tinuing until completion or beneficial occupancy of the area, named in such approval and shall not be construed to change or whichever is earlier. modify any contract requirement. Substitutions will not be permitted unless they are approved in writing by the Contract- (End of clause) ing Officer. (d) Approved samples not destroyed in testing will be sent 552.236-81 Use of Equipment by the Government. to the Government representative at the project. Approved As prescribed in 536.570-12, insert the following clause: samples of hardware in good condition will be marked for USE OF EQUIPMENT BY THE GOVERNMENT (APR 1984) identification and may be used in the work. Materials and (a) The Government may take over and operate, with Gov- equipment, incorporated in the work shall match the approved ernment employees, such equipment as is necessary for heat- samples. Other samples not destroyed in testing or not

(Change 56) 552-35 CHANGE 59 OCTOBER 21, 2014

552.236-82 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL ing or cooling such areas of the building as require the service, (b) The Contractor shall, after contract award, enter into a as soon as the installation is sufficiently complete. PLA for performance of [Insert project or contract name]. The PLA binds the Contractor and subcontractors of whatever (b) The Contracting Officer will advise the Contractor by tier engaged in onsite construction work. The PLA shall letter, prior to the use of equipment, which items of equipment include all the following terms: will be operated, and the date and time such operation will (1) Guarantees against strikes, lockouts, and similar begin. work disruptions. (c) Government operation of equipment will not relieve (2) Effective, prompt and mutually binding procedures the Contractor of the one-year guarantee on materials and for resolving labor disputes arising during the project. workmanship elsewhere provided for in this contract. (3) Other mechanisms for labor-management coopera- (d) The guarantee period, elsewhere provided for in this tion on matters of mutual interest and concern, including pro- contract, for each piece of equipment shall be in accordance ductivity, quality of work, safety, and health. with the “Guarantees” clause of this contract. (4) The PLA shall fully conform to all applicable statutes, regulations, and Executive Orders. (End of clause) (c) Any PLA reached under this clause shall not change the terms of this contract or provide for any pricing adjustment by 552.236-82 Subcontracts. the Government. As prescribed in 536.570-13, insert the following clause: (d) The Government shall not participate in the negotia- SUBCONTRACTS (APR 1984) tions of any PLA. (a) Nothing contained in the contract shall be construed as (e) Nothing in this clause precludes contractors or subcon- creating any contractual relationship between any subcontractors from competing for contracts or subcontracts on this tractor and the Government. The divisions or sections of the project without discrimination based on union or non-union specifications are not intended to control the Contractor in status. dividing the work among subcontractors, or to limit the work performed by any trade. (End of clause) (b) The Contractor shall be responsible to the Government for acts and omissions of his own employees and of subcon- 552.237-70 [Reserved] tractors and their employees. He shall also be responsible for the coordination of the work of the trades, subcontractors and 552.237-71 Qualifications of Employees. suppliers. As prescribed in 537.110(a), insert the following clause: (c) The Government will not undertake to settle any differ- QUALIFICATIONS OF EMPLOYEES (MAY 1989) ences between or among the Contractor, subcontractors, or (a) The contracting officer or a designated representative suppliers. may require the Contractor to remove any employee(s) from GSA controlled buildings or other real property should it be (End of clause) determined that the individual(s) is either unsuitable for security reasons or otherwise unfit to work on GSA controlled 552.236-83 Requirement for a Project Labor Agreement. property. As prescribed in 536.570-14, insert a clause substantially (b) The Contractor shall fill out and cause each of its the same as the following: employees performing work on the contract work to fill out, REQUIREMENT FOR A PROJECT LABOR AGREEMENT for submission to the Government, such forms as may be nec- (SEP 1999) essary for security or other reasons. Upon request of the Con- (a) Definition. “Project Labor Agreement” (PLA) means tracting Officer, the Contractor and its employees shall be an agreement between the contractor, subcontractors, and the fingerprinted. union(s) representing workers. Under a PLA, the contractor (c) Each employee of the Contractor shall be a citizen of and subcontractors on a project and the union(s) agree on the United States of America, or an alien who has been law- terms and conditions of employment for the project, estab- fully admitted for permanent residence as evidenced by Alien lishing a framework for labor-management cooperation to Registration Receipt Card Form I-151, or, who presents advance the Government’s procurement interest in cost, effi- other evidence from the Immigration and Naturalization Ser- ciency, and quality. vice that employment will not affect his immigration status.

(End of clause)

552-36 PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.238-71 552.237-72 Prohibition Regarding “Quasi-Military manner that accommodates the functional limitations of indi- Armed Forces.” viduals with disabilities (i.e., handicapped individuals) so as As prescribed in 537.110(b), insert the following clause: to promote productivity and provide access to work related PROHIBITION REGARDING “QUASI-MILITARY and/or public information resources. ARMED FORCES” (SEP 1999) “Handicapped individuals” mean qualified individuals with impairments as cited in 29 CFR 1613.702(f) who can The Contractor must not, during the term of this contract, benefit from electronic office equipment accessibility. offer for hire “Quasi-Military Armed Forces” within the “Special peripheral” means a special needs aid that pro- meaning of the court decision in United States ex. rel. Wein- th vides access to electronic equipment that is otherwise inac- berger v. Equifax, 557 F. 2d 456 (5 Cir., 1977). cessible to a handicapped individual. (b) The offeror is encouraged to identify in its offer, and (End of clause) include in any commercial catalogs and pricelists accepted by the Contracting Officer, office equipment, including any spe- 552.237-73 Restriction on Disclosure of Information. cial peripheral, that will facilitate electronic office equipment As prescribed in 537.270, insert the following clause: accessibility for handicapped individuals. Identification RESTRICTION ON DISCLOSURE OF INFORMATION should include the type of disability accommodated and how (JUNE 2009) the users with that disability would be helped. (a) The Contractor shall, in the performance of this contract, keep all information contained in source documents or (End of clause) other media furnished by the Government in the strictest confidence. The Contractor shall not publish or otherwise divulge 552.238-71 Submission and Distribution of Authorized such information in whole or in part, in any manner or form, FSS Schedule Pricelists. nor authorize or permit others to do so. The Contractor shall As prescribed in 538.273(a)(2), insert the following take such reasonable measures as are necessary to restrict clause: access to such information, while in the Contractor’s posses- SUBMISSION AND DISTRIBUTION OF AUTHORIZED FSS sion, to those employees needing such information to perform SCHEDULE PRICELISTS (SEP 1999) the work provided herein, i.e., on a “need to know” basis. The (a) Definition. For the purposes of this clause, the Mailing Contractor shall immediately notify, in writing, the Contract- List is [Contracting officer shall insert either: “the list of ing Officer in the event that the Contractor determines or has addressees provided to the Contractor by the Contracting reason to suspect a breach of this requirement. Officer” or “the Contractor's listing of its Federal Govern- (b) The Contractor shall not disclose any information con- ment customers”]. cerning the work under this contract to any persons or entity (b) The Contracting Officer will return one copy of the unless the Contractor obtains prior written approval from the Authorized FSS Schedule Pricelist to the Contractor with the Contracting Officer. notification of contract award. (c) The Contractor shall insert the substance of this clause (1) The Contractor shall provide to the GSA Contract- in any consultant agreement or subcontract under this con- ing Officer: tract. (i) Two paper copies of Authorized FSS Schedule (d) Any unauthorized disclosure of information may result Pricelist; and in termination of this contract for cause. (ii) The Authorized FSS Schedule Pricelist on a common-use electronic medium. (End of clause) The Contracting Officer will provide detailed instructions for the electronic submission with the award notification. 552.238-70 Identification of Electronic Office Equipment Some structured data entry in a prescribed format may be Providing Accessibility for the Handicapped. required. As prescribed in 538.273(a)(1), insert the following (2) The Contractor shall provide to each addressee on clause: the mailing list either: IDENTIFICATION OF ELECTRONIC OFFICE EQUIPMENT (i) One paper copy of the Authorized FSS Schedule PROVIDING ACCESSIBILITY FOR THE HANDICAPPED Price List; or (SEP 1991) (ii) A self-addressed, postage-paid envelope or post- (a) Definitions. “Electronic office equipment accessibil- card to be returned by addressees that want to receive a paper ity” means the application/configuration of electronic office copy of the pricelist. The Contractor shall distribute price lists equipment (includes hardware, software and firmware) in a within 20 calendar days after receipt of returned requests.

(Change 59) 552-37 552.238-72 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (3) The Contractor shall advise each addressee of the examples of these characteristics are biodegradable, recycla- availability of pricelist information through the on-line Mul- ble, reduced pollutants, ozone safe, and low volatile organic tiple Award Schedule electronic data base. compounds (VOCs). (c) The Contractor shall make all of the distributions “Post-consumer material” means a material or finished required in paragraph (c) at least 15 calendar days before the product that has served its intended use and has been dis- beginning of the contract period, or within 30 calendar days carded for disposal or recovery, having completed its life as a after receipt of the Contracting Officer’s approval for print- consumer item. Post-consumer material is part of the broader ing, whichever is later. category of “recovered material.” The Environmental Protec- (d) During the period of the contract, the Contractor shall tion Agency (EPA) has developed a list of EPA-designated provide one copy of its Authorized FSS Schedule Pricelist to products in their Comprehensive Procurement Guidelines any authorized schedule user, upon request. Use of the mail- (CPGs) to provide Federal agencies with purchasing recom- ing list for any other purpose is not authorized. mendations on specific products in a Recovered Materials Advisory Notice (RMAN). The RMAN contains recom- (End of clause) mended recovered and post-consumer material content levels for the specific products designated by EPA (40 CFR part 247 Alternate I (May 2003). As prescribed in 538.273(a)(2), and http://www.epa.gov/cpg/). substitute the following paragraph (a) for paragraph (a) of the “Recovered materials” means waste materials and basic clause: by-products recovered or diverted from solid waste, but the (a) Definition. For the purposes of this clause, the Mailing term does not include those materials and by-products gener- List is [Contracting officer shall insert either: “the list of ated from, and commonly reused within, an original manufac- addressees provided to the Contractor by the Contracting turing process (Executive Order 13101 and Officer” or “the Contractor's listing of its ordering activity 42 U.S.C. 6903(19) and http://www.epa.gov/cpg/). For paper customers”]. and paper products, see the definition at FAR 11.301 (42 U.S.C. 6962(h)). 552.238-72 Identification of Products that have “Remanufactured” means factory rebuilt to original Environmental Attributes. specifications. As prescribed in 538.273(a)(3), insert the following “Renewable energy” means energy produced by solar, clause: wind, geothermal, and biomass power. IDENTIFICATION OF PRODUCTS THAT HAVE “Renewable energy technology” means— ENVIRONMENTAL ATTRIBUTES (SEP 2003) (1) Technologies that use renewable energy to provide light, heat, cooling, or mechanical or electrical energy for use (a) Several laws, Executive orders, and Agency directives in facilities or other activities; or require Federal buyers to purchase products that are less (2) The use of integrated whole-building designs that harmful to the environment, when they are life cycle rely upon renewable energy resources, including passive solar cost-effective (see FAR Subpart 23.7). The U.S. General Ser- design. vices Administration (GSA) requires contractors to highlight (c) (1) The offeror must identify products that— environmental products under Federal Supply Service sched- (i) Are compliant with the recovered and post-con- ule contracts in various communications media sumer material content levels recommended in the Recovered (e.g., publications and electronic formats). Materials Advisory Notices (RMANs) for EPA-designated (b) Definitions. As used in this clause— products in the CPG program (http://www.epa.gov/cpg/); “Energy-efficient product” means a product that— (ii) Contain recovered materials that either do not (1) Meets Department of Energy and Environmental meet the recommended levels in the RMANs or are not Protection Agency criteria for use of the ENERGY STAR® EPA-designated products in the CPG program (see trademark label; or FAR 23.401 and http://www.epa.gov/cpg/); (2) Is in the upper 25 percent of efficiency for all simi- (iii) Are energy-efficient, as defined by either lar products as designated by the Department of Energy’s ENERGY STAR® and/or FEMP’s designated top Federal Energy Management Program. 25th percentile levels (see ENERGY STAR® at “GSA Advantage!” is an on-line shopping mall and http://www.energystar.gov/ and FEMP at ordering system that provides customers with access to prod- http://www.eere.energy.gov/femp/procurement/); ucts and services under GSA contracts. (iv) Are water-efficient; “Other environmental attributes” refers to product (v) Use renewable energy technology; characteristics that provide environmental benefits, excluding (vi) Are remanufactured; and recovered materials and energy and water efficiency. Several (vii) Have other environmental attributes.

552-38 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.238-74 (2) These identifications must be made in each of the (1) The Contractor shall accurately report the dollar offeror’s following mediums: value, in U.S. dollars and rounded to the nearest whole dollar, (i) The offer itself. of all sales under this contract by calendar quarter (January 1– (ii) Printed commercial catalogs, brochures, and March 31, April 1–June 30, July 1–September 30, and pricelists. October 1–December 31). The dollar value of a sale is the (iii) Online product website. price paid by the Schedule user for products and services on (iv) Electronic data submission for GSA Advantage! a Schedule task or delivery order. The reported contract sales submitted via GSA’s Schedules Input Program (SIP) software value shall include the Industrial Funding Fee (IFF). The or the Electronic Data Inter-change (EDI). Offerors can use Contractor shall maintain a consistent accounting method of the SIP or EDI methods to indicate environmental and other sales reporting, based on the Contractor’s established com- attributes for each product that are translated into respective mercial accounting practice. The acceptable points at which icons in GSA Advantage!. sales may be reported include— (d) An offeror, in identifying an item with an environmen- (i) Receipt of order; tal attribute, must possess evidence or rely on a reasonable (ii) Shipment or delivery, as applicable; basis to substantiate the claim (see 16 CFR part 260, Guides (iii) Issuance of an invoice; or for the Use of Environmental Marketing Claims). The Gov- (iv) Payment. ernment will accept an offeror’s claim of an item’s environ- (2) Contract sales shall be reported to Federal Acquisi- mental attribute on the basis of— tion Services (FAS) within 30 calendar days following the (1) Participation in a Federal agency sponsored pro- completion of each reporting quarter. The Contractor shall gram (e.g., the EPA and DOE ENERGY STAR® product continue to furnish quarterly reports, including “zero” sales, labeling program); through physical completion of the last outstanding task order (2) Verification by an independent organization that or delivery order of the contract. specializes in certifying such claims; or (3) Reportable sales under the contract are those result- (3) Possession of competent and reliable evidence. For ing from sales of contract items to authorized users unless the any test, analysis, research, study, or other evidence to be purchase was conducted pursuant to a separate contracting “competent and reliable,” it must have been conducted and authority such as a Governmentwide Acquisition Contract evaluated in an objective manner by persons qualified to do (GWAC); a separately awarded FAR Part 12, FAR Part 13, FAR Part 14, or FAR Part 15 procurement; or a so, using procedures generally accepted in the profession to non-FAR contract. Sales made to state and local governments yield accurate and reliable results. under Cooperative Purchasing authority shall be counted as reportable sales for IFF purposes. (End of clause) (4) The Contractor shall electronically report the quarterly dollar value of sales, including “zero” sales, by utilizing 552.238-73 Cancellation. the automated reporting system at an Internet website desig- As prescribed in 538.273(a)(4), insert the following nated by the General Services Administration (GSA)’s Fed- clause: eral Acquisition Service (FAS). Prior to using this automated system, the Contractor shall complete contract registration CANCELLATION (SEP 1999) with the FAS Vendor Support Center (VSC). The website Either party may cancel this contract in whole or in part by address, as well as registration instructions and reporting pro- providing written notice. The cancellation will take effect cedures, will be provided at the time of award. The Contractor 30 calendar days after the other party receives the notice of shall report sales separately for each National Stock Number cancellation. If the Contractor elects to cancel this contract, (NSN), Special Item Number (SIN), or sub-item. the Government will not reimburse the minimum guarantee. (5) The Contractor shall convert the total value of sales made in foreign currency to U.S. dollars using the “Treasury Reporting Rates of Exchange” issued by the U.S. Department (End of clause) of Treasury, Financial Management Service. The Contractor shall use the issue of the Treasury report in effect on the last 552.238-74 Industrial Funding Fee and Sales Reporting. day of the calendar quarter. The report is available from As prescribed in 538.273(b)(1), insert the following Financial Management Service, International Funds Branch, clause: Telephone: (202) 874–7994, INDUSTRIAL FUNDING FEE AND SALES REPORTING Internet: http://www.fms.treas.gov/intn.html. (b) The Contractor shall remit the IFF at the rate set by (MAY 2014) GSA’s FAS. (a) Reporting of Federal Supply Schedule Sales. The Con- (1) The Contractor shall remit the IFF to FAS in U.S. tractor shall report all contract sales under this contract as fol- dollars within 30 calendar days after the end of the reporting lows: quarter; final payment shall be remitted within 30 days after

(Change 59) 552-39 552.238-75 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL physical completion of the last outstanding task order or (or category of customers) that was the basis of award. The delivery order of the contract. Contractor’s report shall include an explanation of the condi- (2) The IFF represents a percentage of the total quar- tions under which the reductions were made. terly sales reported. This percentage is set at the discretion of (c) (1) A price reduction shall apply to purchases under GSA’s FAS. GSA’s FAS has the unilateral right to change the this contract if, after the date negotiations conclude, the Con- percentage at any time, but not more than once per year. FAS tractor— will provide reasonable notice prior to the effective date of the (i) Revises the commercial catalog, pricelist, sched- change. The IFF reimburses FAS for the costs of operating ule or other document upon which contract award was predi- the Federal Supply Schedules Program. FAS recoups its oper- cated to reduce prices; ating costs from ordering activities as set forth in 40 U.S.C. (ii) Grants more favorable discounts or terms and 321: Acquisition Services Fund. Net operating revenues gen- conditions than those contained in the commercial catalog, erated by the IFF are also applied to fund initiatives benefit- pricelist, schedule or other documents upon which contract ting other authorized FAS programs, in accordance with 40 award was predicated; or U.S.C. 321. Offerors must include the IFF in their prices. The (iii) Grants special discounts to the customer (or cat- fee is included in the award price(s) and reflected in the total egory of customers) that formed the basis of award, and the amount charged to ordering activities. FAS will post notice of change disturbs the price/discount relationship of the Govern- the current IFF at https://72a.gsa.gov/ or successor website as ment to the customer (or category of customers) that was the appropriate. basis of award. (c) Within 60 days of award, an FAS representative will (2) The Contractor shall offer the price reduction to the provide the Contractor with specific written procedural Government with the same effective date, and for the same instructions on remitting the IFF. FAS reserves the unilateral time period, as extended to the commercial customer (or cat- right to change such instructions from time to time, following egory of customers). notification to the Contractor. (d) There shall be no price reduction for sales— (d) Failure to remit the full amount of the IFF within (1) To commercial customers under firm, fixed-price 30 calendar days after the end of the applicable reporting definite quantity contracts with specified delivery in excess of period constitutes a contract debt to the United States Govern- the maximum order threshold specified in this contract; ment under the terms of FAR Subpart 32.6. The Government (2) To Federal agencies; may exercise all rights under the Debt Collection Improve- (3) Made to State and local government entities when ment Act of 1996, including withholding or setting off pay- the order is placed under this contract (and the State and local ments and interest on the debt (see FAR clause 52.232-17, government entity is the agreed upon customer or category of Interest). Should the Contractor fail to submit the required customer that is the basis of award); or sales reports, falsify them, or fail to timely pay the IFF, this is (4) Caused by an error in quotation or billing, provided sufficient cause for the Government to terminate the contract adequate documentation is furnished by the Contractor to the for cause. Contracting Officer. (e) The Contractor may offer the Contracting Officer a voluntary Governmentwide price reduction at any time during (End of clause) the contract period. (f) The Contractor shall notify the Contracting Officer of 552.238-75 Price Reductions. any price reduction subject to this clause as soon as possible, As prescribed in 538.273(b)(2), insert the following but not later than 15 calendar days after its effective date. clause: (g) The contract will be modified to reflect any price PRICE REDUCTIONS (MAY 2004) reduction which becomes applicable in accordance with this clause. (a) Before award of a contract, the Contracting Officer and the Offeror will agree upon (1) the customer (or category of (End of clause) customers) which will be the basis of award, and (2) the Gov- ernment’s price or discount relationship to the identified cus- Alternate I (May 2003). As prescribed in 538.273(b)(2) tomer (or category of customers). This relationship shall be substitute the following paragraph (c)(2) for paragraph (c)(2) maintained throughout the contract period. Any change in the of the basic clause, and substitute the following Contractor’s commercial pricing or discount arrangement paragraph (d)(2) for paragraph (d)(2) of the basic clause. applicable to the identified customer (or category of custom- (c)(2) he Contractor shall offer the price reduction to the ers) which disturbs this relationship shall constitute a price eligible ordering activities with the same effective date, and reduction. for the same time period, as extended to the commercial cus- (b) During the contract period, the Contractor shall report tomer (or category of customers). to the Contracting Officer all price reductions to the customer (d)(2) To eligible ordering activities under this contract; or

552-40 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.238-78 552.238-76 Definition (Federal Supply Schedules)— a port or consolidation point, within the aforementioned Recovery Purchasing. areas, for orders received from overseas activities. As prescribed in 538.7104(a), insert the following clause: Overseas delivery is delivery to points outside of the 48 DEFINITION (FEDERAL S UPPLY S CHEDULES)—RECOVERY contiguous states, Washington, DC, Alaska, Hawaii, Puerto PURCHASING (FEB 2007) Rico, and U.S. territories. (c) Offerors are requested to check one of the following Ordering activity (also called “ordering agency” and boxes: “ordering office”) means an eligible ordering activity (see o Contractor will provide domestic and overseas deliv- (552.238-78, Alternate I) authorized to place orders under ery. Federal Supply Schedule contracts. o Contractor will provide overseas delivery only. o Contractor will provide domestic delivery only. (End of clause) (d) The following activities may place orders against Schedule 70 contracts, and Consolidated Schedule contracts 552.238-77 Definition (Federal Supply Schedules). containing information technology Special Item Numbers, As prescribed in 538.7004(a), insert the following clause: and Schedule 84 contracts, on an optional basis; PROVIDED, the Contractor accepts order(s) from such activities: State and DEFINITION (FEDERAL SUPPLY SCHEDULES) (MAY 2003) local government, includes any state, local, regional or tribal Ordering activity (also called “ordering agency” and government or any instrumentality thereof (including any “ordering office”) means an eligible ordering activity (see local educational agency or institution of higher learning). 552.238-78) authorized to place orders under Federal Supply (e) Articles or services may be ordered from time to time Schedule contracts. in such quantities as may be needed to fill any requirement, subject to the Order Limitations thresholds which will be (End of clause) specified in resultant contracts. Overseas activities may place orders directly with schedule contractors for delivery to 552.238-78 Scope of Contract (Eligible Ordering CONUS port or consolidation point. Activities). (f) (1) The Contractor is obligated to accept orders As prescribed in 538.7004(b) insert the following clause: received from activities within the Executive branch of the SCOPE OF CONTRACT (ELIGIBLE ORDERING ACTIVITIES) Federal Government. (SEP 2008) (2) The Contractor is not obligated to accept orders received from activities outside the Executive branch; how- (a) This solicitation is issued to establish contracts which ever, the Contractor is encouraged to accept such orders. If may be used on a nonmandatory basis by the agencies and activities named below, as a source of supply for the supplies the Contractor elects to accept such orders, all provisions of or services described herein, for domestic and/or overseas the contract shall apply, including clause 552.232-79, Pay- delivery. For Special Item Number 132-53, Wireless Services ment by Credit Card. If the Contractor is unwilling to accept ONLY, limited geographic coverage (consistent with the such orders, and the proposed method of payment is not Offeror's commercial practice) may be proposed. through the Credit Card, the Contractor shall return the order (1) Executive agencies (as defined in FAR Subpart 2.1) by mail or other means of delivery within 5 workdays from including nonappropriated fund activities as prescribed in receipt. If the Contractor is unwilling to accept such orders, 41 CFR 101-26.000; and the proposed method of payment is through the Credit (2) Government contractors authorized in writing by a Card, the Contractor must so advise the ordering activity Federal agency pursuant to FAR 51.1; within 24 hours of receipt of order. (Reference clause (3) Mixed ownership Government corporations (as 552.232-79, Payment by Credit Card.) Failure to return an defined in the Government Corporation Control Act); order or advise the ordering activity within the time frames of (4) Federal Agencies, including establishments in the this paragraph shall constitute acceptance whereupon all pro- legislative or judicial branch of government (except the Sen- visions of the contract shall apply. ate, the House of Representatives and the Architect of the Capitol and any activities under the direction of the Architect (g) The Government is obligated to purchase under each of the Capitol). resultant contract a guaranteed minimum of $2,500 (two thou- (5) The District of Columbia; sand, five hundred dollars) during the contract term. (6) Tribal governments when authorized under 25 USC 450j(k); (End of clause) (7) Qualified Nonprofit Agencies as authorized under 40 USC 502(b); and Alternate I (FEB 2007). As prescribed in 538.7104(b), sub- (8) Organizations, other than those identified in stitute the following paragraphs (a) and (d) for paragraphs (a) paragraph (d) of this clause, authorized by GSA pursuant to and (d) of the basic clause: statute or regulation to use GSA as a source of supply. (a) This solicitation is issued to establish contracts which (b) Definitions. Domestic delivery is delivery within the may be used on a nonmandatory basis by the agencies and 48 contiguous states, Alaska, Hawaii, Puerto Rico, Washing- activities named below, as a source of supply for the supplies ton, DC, and U.S. territories. Domestic delivery also includes or services described herein, for domestic delivery.

(Change 59) 552-41 552.238-79 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (1) Executive agencies (as defined in Federal Acquisi- (ii) Any Alaska Native regional or village corporation Regulation Subpart 2.1) including nonappropriated fund tion established pursuant to the Alaska Native Claims Settle- activities as prescribed in 41 CFR 101-26.000; ment Act (43 U.S.C. 1601 et seq.). (2) Government contractors authorized in writing by a Federal agency pursuant to Federal Acquisition Regulation 552.238-79 Use of Federal Supply Schedule Contracts by Subpart 51.1; Certain Entities—Cooperative Purchasing. (3) Mixed ownership Government corporations (as As prescribed in 538.7004(c), insert the following clause: defined in the Government Corporation Control Act); USE OF FEDERAL SUPPLY SCHEDULE CONTRACTS BY (4) Federal Agencies, including establishments in the CERTAIN ENTITIES—COOPERATIVE PURCHASING legislative or judicial branch of government (except the Sen- (MAY 2004) ate, the House of Representatives and the Architect of the Capitol and any activities under the direction of the Architect (a) If an entity identified in paragraph (d) of the clause at of the Capitol); 552.238-78, Scope of Contract (Eligible Ordering Activities), (5) The District of Columbia; elects to place an order under this contract, the entity agrees (6) Tribal governments when authorized under 25 that the order shall be subject to the following conditions: U.S.C. 450j(k); (1) When the Contractor accepts an order from such an (7) Qualified Nonprofit Agencies as authorized under entity, a separate contract is formed which incorporates by 40 U.S.C. 502(b); and reference all the terms and conditions of the Schedule contract (8) Organizations, other than those identified in para- except the Disputes clause, the patent indemnity clause, and graph (d) of this clause, authorized by GSA pursuant to statute the portion of the Commercial Item Contract Terms and Con- or regulation to use GSA as a source of supply. ditions that specifies “Compliance with laws unique to Gov- (d) The following activities may place orders against Fed- ernment contracts” (which applies only to contracts with eral Supply Schedules for products and services determined entities of the Executive branch of the U.S. Government). The by the Secretary of Homeland Security to facilitate recovery parties to this new contract which incorporates the terms and from major disasters, terrorism, or nuclear, biological, chem- conditions of the Schedule contract are the individual order- ical, or radiological attack, on an optional basis; PROVIDED, ing activity and the Contractor. The U.S. Government shall the Contractor accepts order(s) from such activities: State and not be liable for the performance or nonperformance of the local government entities, includes any state, local, regional new contract. Disputes which cannot be resolved by the par- or tribal government or any instrumentality thereof (including ties to the new contract may be litigated in any State or Fed- any local educational agency or institution of higher learn- eral court with jurisdiction over the parties, applying Federal ing). procurement law, including statutes, regulations and case law, “State and local government entities”, means the states of and, if pertinent, the Uniform Commercial Code. To the the United States, counties, municipalities, cities, towns, extent authorized by law, parties to this new contract are townships, tribal governments, public authorities (including encouraged to resolve disputes through Alternative Dispute public or Indian housing agencies under the United States Resolution. Likewise, a Blanket Purchase Agreement (BPA), Housing Act of 1937), school districts, colleges and other although not a contract, is an agreement that may be entered institutions of higher education, council of governments into by the Contractor with such an entity and the Federal (incorporated or not), regional or interstate government enti- Government is not a party. ties, or any agency or instrumentality of the preceding entities (2) Where contract clauses refer to action by a Con- (including any local educational agency or institution of tracting Officer or a Contracting Officer of GSA, that shall higher education), and including legislative and judicial mean the individual responsible for placing the order for the departments. The term does not include contractors of, or ordering activity (e.g., FAR 52.212-4 at paragraph (f) and grantees of, State or local governments. FSS clause I-FSS-249 B.) (1) “Local educational agency” has the meaning given that (3) As a condition of using this contract, eligible order- term in section 8013 of the Elementary and Secondary Edu- ing activities agree to abide by all terms and conditions of the cation Act of 1965 (20 U.S.C. 7713). Schedule contract, except for those deleted clauses or portions (2) “Institution of higher education” has the meaning of clauses mentioned in paragraph (a)(1) of this clause. given that term in section 101(a) of the Higher Education Act Ordering activities may include terms and conditions required of 1965 (20 U.S.C. 1001(a)). by statute, ordinance, regulation, order, or as otherwise allowed by State and local government entities as a part of a (3) “Tribal government” means— statement of work (SOW) or statement of objective (SOO) to (i) The governing body of any Indian tribe, band, the extent that these terms and conditions do not conflict with nation, or other organized group or community located in the the terms and conditions of the Schedule contract. The order- continental United States (excluding the State of Alaska) that ing activity and the Contractor expressly acknowledge that, in is recognized as eligible for the special programs and services entering into an agreement for the ordering activity to pur- provided by the United States to Indians because of their sta- chase goods or services from the Contractor, neither the tus as Indians; and ordering activity nor the Contractor will look to, primarily or

552-42 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.238-80 in any secondary capacity, or file any claim against the United (1) When the Contractor accepts an order from such an States or any of its agencies with respect to any failure of per- entity, a separate contract is formed which incorporates by formance by the other party. reference all the terms and conditions of the Schedule contract (4) The ordering activity is responsible for all payments except the Disputes clause, the patent indemnity clause, and due the Contractor under the contract formed by acceptance the portion of the Commercial Item Contract Terms and Con- of the ordering activity’s order, without recourse to the agency ditions that specifies “Compliance with laws unique to Gov- of the U.S. Government, which awarded the Schedule con- ernment contracts” (which applies only to contracts with tract. (5) The Contractor is encouraged, but not obligated, to entities of the Executive branch of the U.S. Government). The accept orders from such entities. The Contractor may, within parties to this new contract which incorporates the terms and 5 days of receipt of the order, decline to accept any order, for conditions of the Schedule contract are the individual order- any reason. The Contractor shall fulfill orders placed by such ing activity and the Contractor. The U.S. Government shall entities, which are not declined within the 5-day period. not be liable for the performance or nonperformance of the (6) The supplies or services purchased will be used for new contract. Disputes which cannot be resolved by the par- governmental purposes only and will not be resold for per- ties to the new contract may be litigated in any State or Fed- sonal use. Disposal of property acquired will be in accordance eral court with jurisdiction over the parties, applying Federal with the established procedures of the ordering activity for the procurement law, including statutes, regulations and case law, disposal of personal property. and, if pertinent, the Uniform Commercial Code. To the (b) If the Schedule Contractor accepts an order from an extent authorized by law, parties to this new contract are entity identified in paragraph (d) of the clause at 552.238-78, Scope of Contract (Eligible Ordering Activities), the Contrac- encouraged to resolve disputes through Alternative Dispute tor agrees to the following conditions: Resolution. Likewise, a Blanket Purchase Agreement (BPA), (1) The ordering activity is responsible for all payments although not a contract, is an agreement that may be entered due the Contractor for the contract formed by acceptance of into by the Contractor with such an entity and the Federal the order, without recourse to the agency of the U.S. Govern- Government is not a party. ment, which awarded the Schedule contract. (2) Where contract clauses refer to action by a Con- (2) The Contractor is encouraged, but not obligated, to tracting Officer or a Contracting Officer of GSA, that shall accept orders from such entities. The Contractor may, within mean the individual responsible for placing the order for the 5 days of receipt of the order, decline to accept any order, for ordering activity (e.g., Federal Acquisition Regulation any reason. The Contractor shall decline the order using the 52.212-4 at paragraph (f) and FSS clause I-FSS-249 B). same means as those used to place the order. The Contractor (3) As a condition of using this contract, eligible order- shall fulfill orders placed by such entities, which are not declined within the 5-day period. ing activities agree to abide by all terms and conditions of the (c) In accordance with clause 552.238-74, Industrial Fund- Schedule contract, except for those deleted clauses or portions ing Fee and Sales Reporting, the Contractor must report the of clauses mentioned in paragraph (a)(1) of this clause. Order- quarterly dollar value of all sales under this contract. When ing activities may include terms and conditions required by submitting sales reports, the Contractor must report two dol- statute, ordinance, regulation, order, or as otherwise allowed lar values for each Special Item Number: by State and local government entities as a part of a statement (1) The dollar value for sales to entities identified in of work (SOW) or statement of objective (SOO) to the extent paragraph (a) of the clause at 552.238-78, Scope of Contract that these terms and conditions do not conflict with the terms (Eligible Ordering Activities), and and conditions of the Schedule contract. The ordering activity (2) The dollar value for sales to entities identified in and the Contractor expressly acknowledge that, in entering paragraph (d) of clause 552.238-78. into an agreement for the ordering activity to purchase goods or services from the Contractor, neither the ordering activity (End of clause) nor the Contractor will look to, primarily or in any secondary 552.238-80 Use of Federal Supply Schedule Contracts by capacity, or file any claim against the United States or any of Certain Entities–Recovery Purchasing. its agencies with respect to any failure of performance by the As prescribed in 538.7104(c), insert the following clause: other party. (4) The ordering activity is responsible for all payments USE OF FEDERAL SUPPLY SCHEDULE CONTRACTS BY due the Contractor under the contract formed by acceptance CERTAIN ENTITIES—RECOVERY PURCHASING (FEB 2007) of the ordering activity’s order, without recourse to the agency (a) If an entity identified in paragraph (d) of the clause at of the U.S. Government, which awarded the Schedule con- 552.238-78, Scope of Contract (Eligible Ordering Activi- tract. ties)–Alternate I, elects to place an order under this contract, (5) The Contractor is encouraged, but not obligated, to the entity agrees that the order shall be subject to the follow- accept orders from such entities. The Contractor may, within ing conditions: 5 days of receipt of the order, decline to accept any order, for

(Change 59) 552-43 552.238-81 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL any reason. The Contractor shall fulfill orders placed by such 552.238-81 Modification (Federal Supply Schedule). entities, which are not declined within the 5-day period. As prescribed in 538.273(b), insert the following clause: (6) The supplies or services purchased will be used for MODIFICATIONS (FEDERAL SUPPLY SCHEDULE) governmental purposes only and will not be resold for per- (APR 2014) sonal use. Disposal of property acquired will be in accordance with the established procedures of the ordering activity for the (a) General. The Contractor may request a contract mod- disposal of personal property. ification by submitting a request to the Contracting Officer for (7) The state or local government ordering activity will approval, except as noted in paragraph (d) of this clause. At be responsible for purchasing products or services to be used a minimum, every request shall describe the proposed to facilitate recovery from a major disaster declared by the change(s) and provide the rationale for the requested President under the Robert T. Stafford Disaster Relief and change(s). Emergency Assistance Act (42 U.S.C. 5121 et seq.) or to (b) Types of Modifications. (1) Additional items/addi- facilitate recovery from terrorism or nuclear, biological, tional SINs. When requesting additions, the following infor- chemical, or radiological attack. mation must be submitted: (b) If the Schedule Contractor accepts an order from an (i) Information requested in paragraphs (1) and (2) entity identified in paragraph (d) of the clause at 552.238-78, of the Commercial Sales Practice Format to add SINs. Scope of Contract (Eligible Ordering Activities) –Alternate I, (ii) Discount information for the new items(s) or the Contractor agrees to the following conditions— new SIN(s). Specifically, submit the information requested in (1) The ordering activity is responsible for all payments paragraphs 3 through 5 of the Commercial Sales Practice For- due the Contractor for the contract formed by acceptance of mat. If this information is the same as the initial award, a the order, without recourse to the agency of the U.S. Govern- statement to that effect may be submitted instead. ment, which awarded the Schedule contract. (iii) Information about the new item(s) or the item(s) (2) The Contractor is encouraged, but not obligated, to under the new SIN(s) must be submitted in accordance with accept orders from such entities. The Contractor may, within the request for proposal. 5 days of receipt of the order, decline to accept any order, for (iv) Delivery time(s) for the new item(s) or the any reason. The Contractor shall decline the order using the item(s) under the new SIN(s) must be submitted in accor- same means as those used to place the order. The Contractor dance with the request for proposal. shall fulfill orders placed by such entities, which are not (v) Production point(s) for the new item(s) or the declined within the 5-day period. item(s) under the new SIN(s) must be submitted if required by (c) In accordance with clause 552.238-74, Industrial Fund- FAR 52.215-6, Place of Performance. ing Fee and Sales Reporting, the Contractor must report the (vi) Hazardous Material information (if applicable) quarterly dollar value of all sales under this contract. When must be submitted as required by FAR 52.223-3 (Alternate I), submitting sales reports, the Contractor must report two dol- Hazardous Material Identification and Material Safety Data. lar values for each Special Item Number— (vii) Any information requested by FAR (1) The dollar value for sales to entities identified in 52.212-3(f), Offeror Representations and Certifica- paragraph (a) of the clause at 552.238-78, Scope of Contract tions-Commercial Items, that may be necessary to assure (Eligible Ordering Activities)–Alternate I; and compliance with FAR 52.225-1, Buy American Act-Balance (2) The dollar value for sales to entities identified in of Payments Programs-Supplies. paragraph (d) of clause 552.238-78, Alternate I. (2) Deletions. The Contractors shall provide an expla- (d) A listing of the Federal Supply Schedule contracts for nation for the deletion. The Government reserves the right to the products and services available for disaster recovery pur- reject any subsequent offer of the same item or a substantially chasing is accessible in GSA’s Schedules e-Library at web site equal item at a higher price during the same contract period, http://www.gsaelibrary.gsa.gov. Click on the link, “Disaster if the contracting officer finds the higher price to be unreason- Recovery Purchasing, State and Local.” The participating able when compared with the deleted item. Contractors and the products and services available for disas- (3) Price Reduction. The Contractor shall indicate ter recovery purchasing will be labeled with the Disaster whether the price reduction falls under the item (i), (ii), or (iii) Recovery Purchasing icon. of paragraph (c)(1) of the Price Reductions clause at 552.238-75. If the Price reduction falls under item (i), the (End of clause) Contractor shall submit a copy of the dated commercial price list. If the price reduction falls under item (ii) or (iii), the Con- tractor shall submit a copy of the applicable price list(s), bul- letins or letters or customer agreements which outline the

552-44 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.239-71 effective date, duration, terms and conditions of the price 552.239 [Reserved] reduction. (c) Effective dates. The effective date of any modification 552.239-70 Information Technology Security Plan and is the date specified in the modification, except as otherwise Security Authorization. provided in the Price Reductions clause at 552.238-75. As prescribed in 539.7002(a), insert the following provi- (d) Electronic File Updates. The Contractor shall update sion: electronic file submissions to reflect all modifications. For INFORMATION TECHNOLOGY SECURITY PLAN AND additional items or SINs, the Contractor shall obtain the Con- SECURITY AUTHORIZATION (JUN 2011) tracting Officer's approval before transmitting changes. Con- tract modifications will not be made effective until the All offers/bids submitted in response to this solicitation Government receives the electronic file updates. The Con- must address the approach for completing the security plan tractor may transmit price reductions, item deletions, and cor- and certification and security authorization requirements as rections without prior approval. However, the Contractor required by the clause at 552.239-71, Security Requirements shall notify the Contracting Officer as set forth in the Price for Unclassified Information Technology Resources. Reductions clause at 552.238-75. (e) Amendments to Paper Federal Supply Schedule Price (End of provision) Lists. (1) The Contractor must provide supplements to its 552.239-71 Security Requirements for Unclassified paper price lists, reflecting the most current changes. The Information Technology Resources. Contractor may either: As prescribed in 539.7002(b), insert the following clause: (i) Distribute a supplemental paper Federal Supply SECURITY REQUIREMENTS FOR UNCLASSIFIED Schedule Price List within 15 workdays after the effective INFORMATION TECHNOLOGY RESOURCES (JAN 2012) date of each modification. (a) General. The Contractor shall be responsible for infor- (ii) Distribute quarterly cumulative supplements. mation technology (IT) security, based on General Services The period covered by a cumulative supplement is at the dis- Administration (GSA) risk assessments, for all systems con- cretion of the Contractor, but may not exceed three calendar nected to a GSA network or operated by the Contractor for months from the effective date of the earliest modification. GSA, regardless of location. This clause is applicable to all or For example, if the first modification occurs in February, the any part of the contract that includes information technology quarterly supplement must cover February-April, and every resources or services in which the Contractor has physical or three month period after. The Contractor must distribute each electronic access to GSA’s information that directly supports quarterly cumulative supplement within 15 workdays from the mission of GSA, as indicated by GSA. The term informa- the last day of the calendar quarter. tion technology, as used in this clause, means any equipment, (2) At a minimum, the Contractor shall distribute each including telecommunications equipment that is used in the supplement to those ordering activities that previously automatic acquisition, storage, manipulation, management, received the basic document. In addition, the Contractor shall control, display, switching, interchange, transmission, or submit two copies of each supplement to the Contracting reception of data or information. This includes major applica- Officer and one copy to the FSS Schedule Information Center. tions as defined by OMB Circular A-130. Examples of tasks that require security provisions include: (End of clause) (1) Hosting of GSA e-Government sites or other IT operations; Alternate I (Apr 2014). As prescribed in 538.273(b)(3), (2) Acquisition, transmission, or analysis of data add the following paragraph (f) to the basic clause: owned by GSA with significant replacement cost should the (f) Electronic submission of modification requests is man- Contractors copy be corrupted; datory via eMod (http://eOffer.gsa.gov), unless otherwise (3) Access to GSA major applications at a level beyond stated in the electronic submission standards and require- that granted the general public; e.g., bypassing a firewall; and ments at the Vendor Support Center website (http:// (4) Any new information technology systems acquired vsc.gsa.gov). If the electronic submissions standards and for operations within the GSA must comply with the require- requirements information is updated at the Vendor Support ments of HSPD-12 and OMB M-11-11. Usage of the creden- Center website, Contractors will be notified prior to the tials must be implemented in accordance with OMB policy effective date of the change. and NIST guidelines (e.g., NIST SP 800-116). The system must operate within the GSA’s access management environment. Exceptions must be requested in writing and can only

(Change 59) 552-45 552.239-71 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL be granted by the GSA Senior Agency Information Security (e) Security authorization. Within six (6) months after Officer. contract award, the Contractor shall submit written proof of (b) IT Security Plan. The Contractor shall develop, pro- IT security authorization for acceptance by the Contracting vide, implement, and maintain an IT Security Plan. This plan Officer. Such written proof may be furnished either by the shall describe the processes and procedures that will be fol- Contractor or by a third party. The security authorization must lowed to ensure appropriate security of IT resources that are be in accordance with NIST Special Publication 800-37. This developed, processed, or used under this contract. The plan security authorization will include a final security plan, risk shall describe those parts of the contract to which this clause assessment, security test and evaluation, and disaster recov- applies. The Contractors IT Security Plan shall comply with ery plan/continuity of operations plan. This security authori- applicable Federal laws that include, but are not limited to, 40 zation, when accepted by the Contracting Officer, shall be U.S.C. 11331, the Federal Information Security Management incorporated into the contract as a compliance document, and Act (FISMA) of 2002, and the E-Government Act of 2002. shall include a final security plan, a risk assessment, security The plan shall meet IT security requirements in accordance test and evaluation, and disaster recovery/continuity of oper- with Federal and GSA policies and procedures. GSA’s Office ations plan. The Contractor shall comply with the accepted of the Chief Information Officer issued “CIO IT Security Pro- security authorization documentation. cedural Guide 09–48, Security Language for Information (f) Annual verification. On an annual basis, the Contractor Technology Acquisitions Efforts,” to provide IT security shall submit verification to the Contracting Officer that the IT standards, policies and reporting requirements. This docu- Security plan remains valid. ment is incorporated by reference in all solicitations and con- (g) Warning notices. The Contractor shall ensure that the tracts or task orders where an information system is contractor following banners are displayed on all GSA systems (both owned and operated on behalf of the Federal Government. public and private) operated by the Contractor prior to allow- The guide can be accessed at http://www.gsa.gov/portal/cate- ing anyone access to the system: gory/25690. Specific security requirements not specified in Government Warning “CIO IT Security Procedural Guide 09–48, Security Lan- guage for Information Technology Acquisitions Efforts” shall **WARNING**WARNING**WARNING** be provided by the requiring activity. (c) Submittal of IT Security Plan. Within 30 calendar days Unauthorized access is a violation of U.S. law and General Ser- vices Administration policy, and may result in criminal or adminis- after contract award, the Contractor shall submit the IT Secu- trative penalties. Users shall not access other users or system files rity Plan to the Contracting Officer and Contracting Officers without proper authority. Absence of access controls IS NOT autho- Representative (COR) for acceptance. This plan shall be con- rization for access! GSA information systems and related equipment sistent with and further detail the approach contained in the are intended for communication, transmission, processing and stor- contractors proposal or sealed bid that resulted in the award of age of U.S. Government information. These systems and equipment this contract and in compliance with the requirements stated are subject to monitoring by law enforcement and authorized Depart- in this clause. The plan, as accepted by the Contracting Offi- ment officials. Monitoring may result in the acquisition, recording, cer and COR, shall be incorporated into the contract as a com- and analysis of all data being communicated, transmitted, processed pliance document. The Contractor shall comply with the or stored in this system by law enforcement and authorized Depart- accepted plan. ment officials. Use of this system constitutes consent to such moni- (d) Submittal of a Continuous Monitoring Plan. The Con- toring. tractor must develop a continuous monitoring strategy that **WARNING**WARNING**WARNING** includes: (1) A configuration management process for the infor- (h) Privacy Act notification. The Contractor shall ensure mation system and its constituent components; that the following banner is displayed on all GSA systems that (2) A determination of the security impact of changes to contain Privacy Act information operated by the Contractor the information system and environment of operation; prior to allowing anyone access to the system: (3) Ongoing security control assessments in accordance This system contains information protected under the pro- with the organizational continuous monitoring strategy; visions of the Privacy Act of 1974 (Pub. L. 93-579). Any pri- (4) Reporting the security state of the information sys- vacy information displayed on the screen or printed shall be tem to appropriate GSA officials; and protected from unauthorized disclosure. Employees who vio- (5) All GSA general support systems and applications late privacy safeguards may be subject to disciplinary actions, must implement continuous monitoring activities in accor- a fine of up to $5,000, or both. dance with this guide and NIST SP 800-37 Revision 1, Guide (i) Privileged or limited privileges access. Contractor perfor Applying the Risk Management Framework to Federal sonnel requiring privileged access or limited privileges access Information Systems: A Security Life Cycle Approach. to systems operated by the Contractor for GSA or intercon-

552-46 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.242-70 nected to a GSA network shall adhere to the specific contract tion for performance of this contract beyond that date is con- security requirements contained within this contract and/or tingent upon the availability of appropriated funds from the Contract Security Classification Specification (DD Form which payment for contract purposes can be made. No legal 254). liability on the part of the Government for any payment may (j) Training. The Contractor shall ensure that its employ- arise for performance under this contract beyond _____, until ees performing under this contract receive annual IT security funds are made available to the Contracting Officer for per- training in accordance with OMB Circular A-130, FISMA, formance and until the Contractor receives notice of availabil- and NIST requirements, as they may be amended from time ity, to be confirmed in writing by the Contracting Officer. to time during the term of this contract, with a specific empha- sis on the rules of behavior. (End of clause) (k) GSA access. The Contractor shall afford GSA access to the Contractor’s and subcontractors’ facilities, installations, 552.241-71 Disputes (Utility Contracts). operations, documentation, databases, IT systems and As prescribed in 541.501, insert clause 552.241-71, Dis- devices, and personnel used in performance of the contract, putes (Utility Contracts), in solicitations and contracts for regardless of the location. Access shall be provided to the utility services subject to the jurisdiction and regulation of a extent required, in GSA’s judgment, to conduct an inspection, utility rate commission. evaluation, investigation or audit, including vulnerability DISPUTES (UTILITY CONTRACTS) (SEP 2010) testing to safeguard against threats and hazards to the integrity, availability and confidentiality of GSA data or to the The requirements of the Disputes clause at FAR 52.233-1 function of information technology systems operated on are supplemented to provide that matters involving the inter- behalf of GSA, and to preserve evidence of computer crime. pretation of tariffed retail rates, tariff rate schedules, and tar- This information shall be available to GSA upon request. iffed terms provided under this contract are subject to the (l) Subcontracts. The Contractor shall incorporate the sub- jurisdiction and regulation of the utility rate commission hav- stance of this clause in all subcontracts that meet the condi- ing jurisdiction. tions in paragraph (a) of this clause. (m) Notification regarding employees. The Contractor (End of clause) shall immediately notify the Contracting Officer when an employee either begins or terminates employment when that 552.242-70 Status Report of Orders and Shipments. employee has access to GSA information systems or data. If As prescribed in 542.1107, insert the following clause: an employee’s employment is terminated, for any reason, STATUS REPORT OF ORDERS AND SHIPMENTS (FEB 2009) access to GSA’s information systems or data shall be imme- (a) The Contractor shall furnish to the Administrative diately disabled and the credentials used to access the infor- Contracting Officer (ACO) a report covering orders received mation systems or data shall be immediately confiscated. and shipments made during each calendar month of contract (n) Termination. Failure on the part of the Contractor to performance. The information required by the Government comply with the terms of this clause may result in termination shall be reported on GSA Form 1678, Status Report of Orders of this contract. and Shipments, in accordance with instructions on the form. The information required by the GSA Form 1678 may also be (End of clause) submitted in an automated printout form if authorized by the ACO. Alternatively, the required information may be 552.240 [Reserved] reported by electronic data interchange using ANSI standards. For further information, contact GSA, Contract 552.241 [Reserved] Administration Division [Insert appropriate telephone number of QVOC]. Reports shall be forwarded to the ACO no later 552.241-70 Availability of Funds for the Next Fiscal Year than the seventh workday of the succeeding month. or Quarter. (b) A copy of GSA Form 1678 will be forwarded to the As prescribed in 541.501, insert the clause 552.241-70, Contractor with the contract. Additional copies of the form, if Availability of Funds for the Next Fiscal Year or Quarter, needed, may be reproduced by the Contractor. instead of FAR 52.232-19, in all utility acquisitions. AVAILABILITY OF FUNDS FOR THE NEXT FISCAL YEAR OR (End of clause) QUARTER (SEP 2010) Funds are not presently available for performance under this contract beyond ______. The Government’s obliga-

(Change 59) 552-47 552.243-71 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 552.243-71 Equitable Adjustments. rate, together with itemization of applied labor burdens As prescribed in 543.205, insert the following clause: (exclusive of employer’s overhead, profit, and any labor cost EQUITABLE ADJUSTMENTS (JAN 2009) burdens carried in employer’s overhead rate); (3) Cost of equipment required to perform the work, (a) This clause governs the determination of equitable identified with material to be placed or operation to be per- adjustments to which the Contractor may be entitled under the formed; “Changes” clause prescribed by FAR 52.243-4, the “Differing (4) Cost of preparation and/or revision to shop draw- Site Conditions” clause prescribed by FAR 52.236-2, and any ings and other submittals with detail set forth in paragraphs other provision of this contract allowing entitlement to an (e)(1) and (e)(2) of this clause; equitable adjustment. This clause does not govern determination of the Contractor’s relief allowable under the “Suspen- (5) Delivery costs, if not included in material unit costs; sion of Work” clause prescribed by FAR 52.242-14. (6) Time-related costs not separately identified as direct (b) At the written request of the Contracting Officer, the costs, and not included in the Contractor’s or subcontractors’ overhead rates, as specified in paragraph (g) of this clause; Contractor shall submit a proposal, in accordance with the and requirements set forth herein, for an equitable adjustment to (7) Other direct costs. the contract for changes or other conditions that may entitle a (f) Marked-up costs of subcontractors below the second Contractor to an equitable adjustment. If the Contractor tier may be treated as other direct costs of a second tier sub- deems an oral or written order to be a change to the contract, contractor, unless the Contracting Officer requires a detailed it shall promptly submit to the Contracting Officer a proposal breakdown under paragraph (i) of this clause. for equitable adjustment attributable to such deemed change. (g) Extensions of Time and Time-related Costs. The Con- The proposal shall also conform to the requirements set forth tractor shall propose a daily rate for each firm’s time-related herein. costs during the affected period, and, for each firm, the (c) The proposal shall be submitted within the time speci- increase or decrease in the number of work days of perfor- fied in the “Changes” clause, or such other time as may rea- mance attributable to the change or other condition giving rise sonably be required by the Contracting Officer. In the case of a proposal submitted based on the “Differing Site Conditions” to entitlement to an equitable adjustment, with supporting clause, the notice requirement of that clause shall be met. analysis. Entitlement to time and time-related costs shall be (d) Proposals for equitable adjustments, including no cost determined as follows: requests for adjustment of the contract’s required completion (1) Increases or decreases to a firm’s time-related costs date, shall include a detailed breakdown of the following ele- shall be allowed only if such increase or decrease necessarily ments, as applicable: and exclusively results from the change or other condition (1) Direct Costs. giving rise to entitlement to an equitable adjustment. (2) Markups. (2) The Contractor shall not be entitled to an extension (3) Change to the time for completion specified in the of time or recovery of its own time-related costs except to the contract. extent that such change or other condition necessarily and (e) Direct Costs. The Contractor shall separately identify exclusively causes its duration of performance to extend each item of deleted and added work associated with the beyond the completion date specified in the contract. change or other condition giving rise to entitlement to an equi- (3) Costs may be characterized as time-related costs table adjustment, including increases or decreases to only if they are incurred solely to support performance of this unchanged work impacted by the change. For each item of contract and the increase or decrease in such costs is solely work so identified, the Contractor shall propose for itself and, dependent upon the duration of a firm’s performance of work. if applicable, its first two tiers of subcontractors, the follow- (4) Costs may not be characterized as time-related costs ing direct costs: if they are included in the calculation of a firm’s overhead (1) Material cost broken down by trade, supplier, mate- rate. rial description, quantity of material units, and unit cost (5) Equitable adjustment of time and time-related costs (including all manufacturing burden associated with material shall not be allowed unless the analysis supporting the pro- fabrication and cost of delivery to site, unless separately item- posal complies with provisions specified elsewhere in this ized); contract regarding the Contractor’s project schedule. (2) Labor cost broken down by trade, employer, occu- (h) Markups. For each firm whose direct costs are sepa- pation, quantity of labor hours, and burdened hourly labor rately identified in the proposal, the Contractor shall propose

552-48 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.243-71 an overhead rate, profit rate, and where applicable, a bond rate Requests for proposal preparation costs shall include the fol- and insurance rate. Markups shall be determined and applied lowing: as follows: (1) A copy of the contract or other documentation iden- (1) Overhead rates shall be negotiated, and may be sub- tifying the consultant or firm, the scope of the services per- ject to audit and adjustment. formed, the manner in which the consultant or firm was to be (2) Profit rates shall be negotiated, but shall not exceed compensated, and if compensation was paid on an hourly ten percent, unless entitlement to a higher rate of profit may basis, the fully burdened and marked-up hourly rates for the be demonstrated. services provided. (3) The Contractor and its subcontractor[s] shall not be (2) If compensation was paid on an hourly basis, docu- allowed overhead or profit on the overhead or profit received mentation of the quantity of hours worked, including descrip- by a subcontractor, except to the extent that the subcontrac- tions of the activities for which the hours were billed, and tor’s costs are properly included in other direct costs as spec- applicable rates. ified in paragraph (f) of this clause. (3) Written proof of payment of the costs requested. (4) Overhead rates shall be applied to the direct costs of The sufficiency of the proof shall be determined by the Con- work performed by a firm, and shall not be allowed on the tracting Officer. direct costs of work performed by a subcontractor to that firm (k) Proposal preparation costs shall be allowed only if— at any tier except as set forth below in paragraphs (h)(6) and (1) The nature and complexity of the change or other (h)(7) of this clause. condition giving rise to entitlement to an equitable adjustment (5) Profit rates shall be applied to the sum of a firm’s warrants estimating, scheduling, or other effort not reason- direct costs and the overhead allowed on the direct costs of ably foreseeable at the time of contract award; work performed by that firm. (2) Proposed costs are not included in a firm’s (6) Overhead and profit shall be allowed on the direct time-related costs or overhead rate; and costs of work performed by a subcontractor within two tiers (3) Proposed costs were incurred prior to a Contracting of a firm at rates equal to only fifty percent of the overhead Officer’s unilateral determination of an equitable adjustment and profit rates negotiated pursuant to paragraphs (h)(1) and under the conditions set forth in paragraph (o), or were (h)(2) of this clause for that firm, but not in excess of ten per- incurred prior to the time the request for equitable adjustment cent when combined. otherwise became a matter in dispute. (7) Overhead and profit shall not be allowed on the (l) Proposed direct costs, markups, and proposal prepara- direct costs of a subcontractor more than two tiers below the tion costs shall be allowable in the determination of an equi- firm claiming overhead and profit for subcontractor direct table adjustment only if they are reasonable and otherwise costs. consistent with the contract cost principles and procedures set (8) If changes to a Contractor’s or subcontractor’s bond forth in Part 31 of the Federal Acquisition Regulation (48 or insurance premiums are computed as a percentage of the CFR part 31) in effect on the date of this contract. Character- gross change in contract value, markups for bond and insur- ization of costs as direct costs, time-related costs, or overhead ance shall be applied after all overhead and profit is applied. costs must be consistent with the requesting firm’s accounting Bond and insurance rates shall not be applied if the associated practices on other work under this contract and other con- costs are included in the calculation of a firm’s overhead rate. tracts. (9) No markup shall be applied to a firm’s costs other (m) If the Contracting Officer determines that it is in the than those specified herein. Government’s interest that the Contractor proceed with a (i) At the request of the Contracting Officer, the Contractor change before negotiation of an equitable adjustment is com- shall provide such other information as may be reasonably pleted, the Contracting Officer may order the Contractor to necessary to allow evaluation of the proposal. If the proposal proceed on the basis of a unilateral modification to the con- includes significant costs incurred by a subcontractor below tract increasing or decreasing the contract price by an amount the second tier, the Contracting Officer may require the same to be determined later. Such increase or decrease shall not detail for those costs as required for the first two tiers of sub- exceed the increase or decrease proposed by the Contractor. contractors, and markups shall be applied to these subcontrac- (n) If the parties cannot agree to an equitable adjustment, tor costs in accordance with paragraph (h). the Contracting Officer may determine the equitable adjust- (j) Proposal Preparation Costs. If performed by the firm ment unilaterally. claiming them, proposal preparations costs shall be included (o) The Contractor shall not be entitled to any proposal in the labor hours proposed as direct costs. If performed by preparation costs incurred subsequent to the date of a unilat- an outside consultant or law firm, proposal preparation costs eral determination or denial of the request if the Contracting shall be treated as other direct costs to the firm incurring them. Officer issues a unilateral determination or denial under any of the following circumstances:

(Change 59) 552-49 552.246-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (1) The Contractor fails to submit a proposal within the ment, records shall include the date inspection and testing time required by this contract or such time as may reasonably were performed. These records shall be available for (i) 3 be required by the Contracting Officer. years after final payment; or (ii) 4 years from the end of the (2) The Contractor fails to submit additional informa- Contractor’s fiscal year in which the record was created, tion requested by the Contracting Officer within the time rea- whichever period expires first. sonably required. (3) Offerors are required to specify, in the space pro- (3) Agreement to an equitable adjustment cannot be vided elsewhere in this solicitation, the name and address of reached within 60 days of submission of the Contractor’s pro- each manufacturing plant or other facility where supplies will posal or receipt of additional requested information, despite be available for inspection, indicating the item number(s) to the Contracting Officer’s diligent efforts to negotiate the equitable adjustment. which each applies. (4) The Contractor shall provide the Administrative (End of clause) Contracting Officer ACO with the name(s) of the individual and an alternate responsible for the inspection system. In the event that the designated individual(s) becomes unavailable to oversee the inspection system, the Contractor, within 10 552.246-70 Source Inspection by Quality Approved calendar days of such event, shall provide the ACO with the Manufacturer. names of the replacement individual(s). As prescribed in 546.302-70, insert the following clause: (b) Inspection by the Contractor. The Contractor is SOURCE INSPECTION BY QUALITY APPROVED required to demonstrate that the supplies in the shipment have MANUFACTURER (JULY 2009) been subject to and have passed all inspections and tests (a) Inspection system and inspection facilities. (1) The required by the contract and meet the requirements of the con- inspection system maintained by the Contractor under the tract. Inspection of Supplies—Fixed Price clause (FAR 52.246-2) (c) Inspection by Government personnel. (1) Although of this contract shall be maintained throughout the contract the Government will normally rely upon the Contractor’s rep- period. Unless otherwise authorized in writing by the Con- resentation as to the quality of supplies shipped, it reserves the tracting Officer, the Contractor shall comply with all require- right under the Inspection of Supplies—Fixed Price clause to ments of editions in effect on the date of the solicitation of inspect and test all supplies called for by this contract, before either Federal Standard 368 or the International Organization acceptance, at all times and places, including the point of for Standardization (ISO) Standard 9001:2000 (Quality Man- manufacture. When the Government notifies the Contractor agement Systems—Requirements). A documented descrip- of its intent to inspect supplies before shipment, the Contrac- tion of the inspection system shall be made available to the tor shall notify or arrange for subcontractors to notify the des- Government before contract award. At the sole discretion of ignated GSA quality assurance office 7 workdays before the the Contracting Officer, he/she may authorize in writing date when supplies will be ready for inspection. Shipment exceptions to the quality assurance standards identified shall not be made until inspection by the Government is com- above. The Contractor shall immediately notify the Admin- pleted and shipment is authorized by the Government. istrative Contracting Officer (ACO) of any changes made in (2) The offeror shall indicate, in the spaces provided the inspection system during the contract period. As used below, the location(s) at which the supplies will be inspected herein, the term “inspection system” means the Contractor’s or made available for inspection. own facility or any other facility acceptable to the Govern- INSPECTION POINT ment that will be used to perform inspections or tests of mate- NAME, rials and components before incorporation into end articles ADDRESS NAME OF (Including TELEPHONE and for inspection of such end articles before shipment. When ITEM NO(S) MANUFACTURER County), and NUMBER the manufacturing plant is located outside of the United ______States, the Contractor shall arrange delivery of the items from ______a plant or warehouse located in the United States (including ______Puerto Rico and the U.S. Virgin Islands) equipped to perform all inspections and tests required by the contract or specifica- NOTE: If additional space is needed, the offeror may furnish the tions to evidence conformance therewith, or shall arrange requested information by an attachment to the offer. with a testing laboratory or other facility in the United States, acceptable to the Government, to perform the required inspec- (3) During the contract period, a Government represen- tions and tests. tative may periodically select samples of supplies produced (2) In addition to the requirements in Federal Standard under this contract for Government verification, inspection, 368, ISO 9001:2000 or as otherwise approved by the Govern- and testing. Samples selected for testing will be disposed of

552-50 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.246-70 as follows: Samples from an accepted lot, not damaged in the (e) Additional cost for inspection and testing. The Con- testing process, will be returned promptly to the Contractor tractor shall be charged for any additional cost of inspection/ after completion of tests. Samples damaged in the testing protesting or reinspecting/retesting supplies for the reasons cess will be disposed of as requested by the Contractor. Sam- stated in paragraph (e) of FAR 52.246-2, Inspection of Sup- ples from a rejected lot will be returned to the Contractor or plies-Fixed Price. When inspection or testing is performed by disposed of in a time and manner agreeable to both the Con- or under the direction of GSA, charges will be at the rate of tractor and the Government. $ * per man-hour or fraction thereof if the inspection is (d) Quality deficiencies. (1) Notwithstanding any other at a GSA distribution center; $ * per man-hour or frac- clause of this contract concerning the conclusiveness of tion thereof, plus travel costs incurred, if the inspection is at acceptance by the Government, any supplies or production any other location; and $ * per man-hour or fraction lots shipped under this contract found to be defective in mate- thereof for laboratory testing, except that when a testing facil- rial or workmanship, or otherwise not in conformity with the ity other than a GSA laboratory performs all or part of the requirements of this contract within a period of required tests, the Contractor shall be assessed the actual cost * months after acceptance shall, at the Government’s incurred by the Government as a result of testing at such facil- option, be replaced, repaired, or otherwise corrected by the ity. When inspection is performed by or under the direction Contractor at no cost to the Government within 30 calendar of any agency other than GSA, the charges indicated above days (or such longer period as the Contracting Officer may may be used, or the agency may assess the actual cost of per- authorize in writing) after receipt of notice to replace or cor- forming the inspection and testing. rect. The Contractor shall remove, at its own expense, sup- (f) Responsibility for rejected supplies. When the Contrac- plies rejected or required to be replaced, repaired, or tor fails to remove or provide instructions for the removal of corrected. When the nature of the defect affects an entire rejected supplies under paragraph (d) of this clause, pursuant batch or lot of supplies, and the Contracting Officer deter- to the Contracting Officer’s instructions, the Contractor shall mines that correction can best be accomplished by retaining be liable for all costs incurred by the Government in taking such measures as are expedient to avoid unnecessary loss to the nonconforming supplies, and reducing the contract price the Contractor. In addition to the remedies provided in FAR by an equitable amount under the circumstances, then the 52.246-2, supplies may be— equitable price adjustment shall apply to the entire batch or lot (1) Stored and charged against the Contractor’s of supplies from which the nonconforming item was taken. account; (2) The Contractor may be issued a Quality Deficiency (2) Reshipped to the Contractor at its expense (any Notice (QDN) if: additional expense incurred by the Government or the freight (i) Supplies in process, shipped, or awaiting ship- carrier caused by the refusal of the Contractor to accept their ment to fill Government orders are found not to comply with return shall also be charged against the Contractor’s account); contract requirements, or (3) Sold to the highest bidder on the open market and (ii) deficiencies in either plant quality or process the proceeds applied against the accumulated storage and controls are found. Upon receipt of a QDN, the Contractor other costs, including the cost of the sale; or (4) Otherwise disposed of by the Government. shall take immediate corrective action and shall suspend ship- (g) Subcontracting requirements. The Contractor shall ment of the supplies covered by the QDN until such time as insert in any subcontracts the inspection or testing provisions corrective action has been completed. The Contractor shall set forth in paragraphs (a) through (d) of this clause and the notify the Government representative, within 5 workdays, of Inspection of Supplies—Fixed Price clause of this contract. the action plan or the corrective action taken. The Govern- The Contractor shall be responsible for compliance by any ment may elect to verify the corrective action at the Contrac- subcontractor with the provisions set forth in paragraphs (a) through (d) of this clause and the Inspection of Supplies— tor location(s). Shipments of nonconforming supplies will be Fixed Price clause. returned at the Contractor’s expense and may constitute cause for termination of the contract. Delays due to the insurance (End of clause) of a QDN do not constitute excusable delay under the default clause of this contract. Failure to complete corrective action * Normally insert 12 months as the period during which in a timely manner may result in termination of the contract. defective or otherwise nonconforming supplies must be (3) This contract may be terminated for default if sub- replaced. However, when the supplies being bought have a shelf life of less than 1 year, you should use the shelf-life sequent Government inspection discloses that plant quality or period, or in the instance where you reasonably expect a lon- process controls are not being maintained, supplies that do not ger period to be available, you should use the longer period. meet the requirements of the contract are being shipped, or if ** The rates to be inserted are established by the Commis- the contractor fails to comply with any other requirement of sioner of the Federal Acquisition Service or a designee. this clause.

(Change 59) 552-51 552.246-71 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 552.246-71 Source Inspection by Government. (2) Offerors are required to specify, in the spaces pro- As prescribed in 546.302-71, insert the following clause: vided elsewhere in the solicitation, the name and address of SOURCE INSPECTION BY GOVERNMENT (JUNE 2009) each manufacturing plant or other facility where supplies will be available for inspection, indicating the item number(s) to (a) Inspection by Government personnel. which each applies. (1) Supplies to be furnished under this contract will be (3) The Contractor shall deliver the items specified in inspected at source by the Government before shipment from this contract from a plant or warehouse located within the the manufacturing plant or other facility designated by the United States (including Puerto Rico and the the U.S. Virgin Contractor, unless the Contractor is otherwise notified in writ- Islands) that is equipped to perform all inspections and tests ing by the Contracting Officer or a designated representative. required by this contract or specifications to evidence confor- Notwithstanding the foregoing, the Government may perform mance therewith, or shall arrange with a testing laboratory or any or all tests contained in the contract specifications at a other facility in the United States, acceptable to the Govern- Government facility without prior written notice by the Con- ment, to perform the required inspections and tests. tracting Officer before release of the supplies for shipment. (d) Availability of records. (1)In addition to any other Samples sent to a Government testing facility will be disposed requirement of this contract, the Contractor shall maintain of as follows: Samples from an accepted lot, not damaged in records showing the following information for each order the testing process, will be returned promptly to the Contrac- received under the contract: tor after completion of tests. Samples damaged in the testing (i) Order number; process will be disposed of as requested by the Contractor. (ii) Date order received by the Contractor; Samples from a rejected lot will be returned to the Contractor (iii) Quantity ordered; or disposed of in a time and manner agreeable to both the (iv) Date scheduled into production; Contractor and the Government. (v) Batch or lot number, if applicable; (2) Government inspection responsibility will be (vi) Date inspected and/or tested; assigned to the GSA quality assurance office which has juris- (vii) Date available for shipment; diction over the State in which the Contractor’s or subcontrac- (viii) Date shipped or date service completed; and tor’s plant or other designated point for inspection is located. (ix) National Stock Number (NSN), or if none is The Contractor shall notify or arrange for subcontractors to provided in the contract, the applicable item number or other notify the designated GSA quality assurance office 7 work- contractual identification. days before the date when supplies will be ready for inspec- (2) These records should be maintained at the point of tion. Shipment shall not be made until after inspection by the source inspection and shall be available to the Contracting Government is completed and shipment is authorized by the Officer, or an authorized representative, for (i) 3 years after Government. final payment; or (ii) 4 years from the end of the Contractor’s (b) Inspection and receiving reports. For each shipment, fiscal year in which the record was created, whichever period the Contractor shall be responsible for preparation and distri- expires first. bution of inspection documents as follows: (1) DD Form 250, (e) Additional cost for inspection and testing. The Con- Material Inspection and Receiving Report, or computer for- tractor will be charged for any additional cost for inspecting/ matted equivalent for deliveries to military agencies; or testing or reinspection/ retesting supplies for the reasons (2) GSA Form 308, Notice of Inspection for deliveries to stated in paragraph (e) of FAR 52.246-2, Inspection of Sup- GSA or other civilian agencies. When required, the Contrac- plies—Fixed Price. When inspection or testing is performed tor will be furnished a supply of GSA Form 308 and/or by or under the direction of GSA, charges will be at the rate DD Form 250, and complete instructions for their preparation of $ * per man-hour or fraction thereof if the inspection and distribution. is at a GSA distribution center; $ * per man-hour or frac- (c) Inspection facilities. (1)The inspection system tion thereof, plus travel costs incurred, if the inspection is at required to be maintained by the Contractor in accordance any other location; and $ * per man-hour or fraction with FAR 52.246-2, Inspection of Supplies—Fixed Price, thereof for laboratory testing, except that when a testing facil- may be the Contractor’s own facilities or any other facilities ity other than a GSA laboratory performs all or part of the acceptable to the Government. These facilities shall be uti- required tests, the Contractor shall be assessed the actual cost lized to perform all inspections and tests of materials and incurred by the Government as a result of testing at such facil- components before incorporation into end articles, and for the ity. When inspection is performed by or under the direction of inspection of such end articles before shipment. The Govern- any agency other than GSA, the charges indicated above may ment reserves the right to evaluate the acceptability and effec- be used, or the agency may assess the actual cost of perform- tiveness of the Contractor’s inspection system before award ing the inspection and testing. and periodically during the contract period.

552-52 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.252-6 (f) Responsibility for rejected supplies. When the Contrac- table price adjustment shall apply to the entire batch or lot of tor fails to remove or provide instructions for the removal of material from which the nonconforming item was taken. rejected supplies under FAR 52.246-2(h) pursuant to the Con- tracting Officer’s instructions, the Contractor shall be liable (End of clause) for all costs incurred by the Government in taking such measures as are expedient to avoid unnecessary loss to the Con- 552.246-78 Inspection at Destination. tractor. In addition to the remedies provided in FAR 52.246-2, As prescribed in 546.302-72 insert the following clause: supplies may be— INSPECTION AT DESTINATION (JUNE 2009) (1) Stored for the Contractor’s account; (2) Reshipped to the Contractor at its expense (any Inspection of all purchases under this contract will be additional expense incurred by the Government or the freight made at destination by an authorized Government representa- carrier caused by the refusal of the Contractor to accept their tive. return also shall be for the Contractor’s account); or (3) Sold to the highest bidder on the open market and (End of clause) the proceeds applied against the accumulated storage and other costs, including the cost of the sale. 552.252-5 Authorized Deviations in Provisions. As prescribed in 552.107-70(a), insert the following pro- (End of clause) vision: AUTHORIZED DEVIATIONS IN PROVISIONS *The rates to be inserted are established by the Commis- (DEVIATION FAR 52.252-5) (SEP 1999) sioner of the Federal Acquisition Service or a designee. (a) Deviations to FAR provisions. (1) This solicitation indicates any authorized deviation to a Federal Acquisition 552.246-72 Final Inspection and Tests. Regulation (48 CFR Chapter 1) provision by the addition of As prescribed in 546.312, insert the following clause: “(DEVIATION)” after the date of the provision, if the provi- FINAL INSPECTION AND TESTS (SEP 1999) sion is not published in the General Services Administration The Contractor shall give written notice to the Contracting Acquisition Regulation (48 CFR Chapter 5). Officer at least 10 calendar days before the date the work will (2) This solicitation indicates any authorized deviation be completed and ready for final inspection and tests. Final to a Federal Acquisition Regulation (FAR) provision that is inspection and tests will begin within 10 calendar days after published in the General Services Administration Acquisition the date specified in the Contractor’s notice unless the Con- Regulation by the addition of “(DEVIATION (FAR provision tracting Officer determines that the work is not ready for final no.))” after the date of the provision. inspection and so informs the Contractor. (b) Deviations to GSAR provisions. This solicitation indicates any authorized deviation to a General Services Admin- (End of clause) istration Acquisition Regulation provision by the addition of “(DEVIATION)” after the date of the provision. 552.246-77 Additional Contract Warranty Provisions for (c) “Substantially the same as” provisions. Changes in Supplies of a Noncomplex Nature. wording of provisions prescribed for use on a “substantially As prescribed in 546.710, insert the following clause in the same as” basis are not considered deviations. solicitations and contracts that include FAR 52.246-17, War- ranty of Supplies of a Noncomplex Nature. (End of provision)

ADDITIONAL CONTRACT WARRANTY PROVISIONS FOR 552.252-6 Authorized Deviations in Clauses. SUPPLIES OF A NONCOMPLEX NATURE (JUNE 2009) As prescribed in 552.107-70(b), insert the following (a) Definitions. Correction, as used in this clause, means clause: the elimination of a defect. AUTHORIZED DEVIATIONS IN CLAUSES (b) Contractor’s obligations. When return, correction, or (DEVIATION FAR 52.252-6) (SEP 1999) replacement is required, the Contractor shall be responsible for all costs attendant to the return, correction, or replacement (a) Deviations to FAR clauses. (1) This solicitation or of the nonconforming supplies. Any removal in connection contract indicates any authorized deviation to a Federal with the above shall be done by the Contractor at its expense. Acquisition Regulation (48 CFR Chapter 1) clause by the (c) Remedies available to the Government. When the addition of “(DEVIATION)” after the date of the clause, if the nature of the defect in the nonconforming item is such that the clause is not published in the General Services Administra- defect affects an entire batch or lot of material, then the equi- tion Acquisition Regulation (48 CFR Chapter 5).

Change 59) 552-53 552.270-1 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (2) This solicitation indicates any authorized deviation (i) Submitted on the forms prescribed and furnished to a Federal Acquisition Regulation (FAR) clause that is pub- by the Government as a part of this solicitation or on copies lished in the General Services Administration Acquisition of those forms, and Regulation by the addition of “(DEVIATION (FAR clause (ii) Signed. The person signing an offer must initial no.))” after the date of the clause. each erasure or change appearing on any offer form. If the (b) Deviations to GSAR clauses. This solicitation indicates offeror is a partnership, the names of the partners composing any authorized deviation to a General Services Administra- the firm must be included with the offer. tion Acquisition Regulation clause by the addition of (2) Late proposals and revisions. (i) The Government “(DEVIATION)” after the date of the clause. will not consider any proposal received at the office desig- (c) “Substantially the same as” clauses. Changes in word- nated in the solicitation after the exact time specified for ing of clauses prescribed for use on a “substantially the same receipt of offers unless it is received before the Government as” basis are not considered deviations. makes award and it meets at least one of the following conditions: (End of clause) (A) It was sent by registered or certified mail not later than the fifth calendar day before the date specified for 552.270-1 Instructions to Offerors—Acquisition of receipt of offers (e.g., an offer submitted in response to a Leasehold Interests in Real Property. solicitation requiring receipt of offers by the 20th of the month As prescribed in 570.702, insert the following provision: must have been mailed by the 15th). INSTRUCTIONS TO OFFERORS—ACQUISITION OF (B) It was sent by mail (or telegram or facsimile, LEASEHOLD INTERESTS IN REAL PROPERTY (JUN 2011) if authorized) or hand-carried (including delivery by a commercial carrier) if it is determined by the Government that the (a) Definitions. As used in this provision— late receipt was due primarily to Government mishandling “Discussions” are negotiations that occur after estab- after receipt at the Government installation. lishment of the competitive range that may, at the Contracting (C) It was sent by U.S. Postal Service Express Officer’s discretion, result in the offeror being allowed to Mail Next Day Service-Post Office to Addressee, not later revise its proposal. than 5:00 p.m. at the place of mailing two working days prior “In writing, writing or written” means any worded or to the date specified for receipt of proposals. The term “work- numbered expression that can be read, reproduced, and later ing days” excludes weekends and U.S. Federal holidays. communicated, and includes electronically transmitted and (D) It was transmitted through an electronic com- stored information. merce method authorized by the solicitation and was received “Proposal modification” is a change made to a proposal at the initial point of entry to the Government infrastructure before the solicitation’s closing date and time, or made in not later than 5:00 p.m. one working day prior to the date response to an amendment, or made to correct a mistake at specified for receipt of proposals. any time before award. (E) There is acceptable evidence to establish that “Proposal revision” is a change to a proposal made after it was received at the activity designated for receipt of offers the solicitation closing date, at the request of or as allowed by and was under the Government’s control prior to the time set a Contracting Officer as the result of negotiations. for receipt of offers, and that the Contracting Officer deter- “Time,” if stated as a number of days, is calculated mines that accepting the late offer would not unduly delay the using calendar days, unless otherwise specified, and will procurement. include Saturdays, Sundays, and legal holidays. However, if (F) It is the only proposal received. the last day falls on a Saturday, Sunday, or legal holiday, then (ii) Any modification or revision of a proposal or the period shall include the next working day. response to request for information, including any final pro- (b) Amendments to solicitations. If this solicitation is posal revision, is subject to the same conditions as in amended, all terms and conditions that are not amended paragraphs (c)(2)(i)(A) through (c)(2)(i)(E) of this provision. remain unchanged. Offerors shall acknowledge receipt of any (iii) The only acceptable evidence to establish the amendment to this solicitation by the date and time specified date of mailing of a late proposal or modification or revision in the amendment(s). sent either by registered or certified mail is the U.S. or Cana- (c) Submission, modification, revision, and withdrawal of dian Postal Service postmark both on the envelope or wrapper proposals. (1) Unless other methods (e.g., electronic com- and on the original receipt from the U.S. or Canadian Postal merce or facsimile) are permitted in the solicitation, proposals Service. Both postmarks must show a legible date or the pro- and modifications to proposals shall be submitted in paper posal, response to a request for information, or modification media in sealed envelopes or packages Offers must be: or revision shall be processed as if mailed late. “Postmark” means a printed, stamped, or otherwise placed impression

552-54 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.270-1 (exclusive of a postage meter machine impression) that is (3) Any information given to a prospective offeror con- readily identifiable without further action as having been sup- cerning this solicitation will be furnished promptly to all other plied and affixed by employees of the U.S. or Canadian Postal prospective offerors, if that information is necessary in sub- Service on the date of mailing. Therefore, offerors or respon- mitting offers or if the lack of it would be prejudicial to any dents should request the postal clerk to place a legible hand other prospective offeror. (4) Offerors may submit modifications to their propos- cancellation bull’s eye postmark on both the receipt and the als at any time before the solicitation closing date and time, envelope or wrapper. and may submit modifications in response to an amendment, (iv) Acceptable evidence to establish the time of or to correct a mistake at any time before award. receipt at the Government installation includes the time/date (5) Offerors may submit revised proposals only if stamp of that installation on the proposal wrapper, other doc- requested or allowed by the Contracting Officer. umentary evidence of receipt maintained by the installation, (6) The Government will construe an offer to be in full or oral testimony or statements of Government personnel. and complete compliance with this solicitation unless the (v) The only acceptable evidence to establish the offer describes any deviation in the offer. date of mailing of a late offer, modification or revision, or (7) Offerors may submit proposals that depart from withdrawal sent by Express Mail Next Day Service-Post stated requirements. Such a proposal shall clearly identify Office to Addressee is the date entered by the post office why the acceptance of the proposal would be advantageous to the Government. The proposal must clearly identify and receiving clerk on the “Express Mail Next Day Service-Post explicitly define any deviations from the terms and conditions Office to Addressee” label and the postmark on both the enve- of the solicitation, as well as the comparative advantage to the lope or wrapper and on the original receipt from the U.S. Government. The Government reserves the right to amend the Postal Service. “Postmark” has the same meaning as defined solicitation to allow all offerors an opportunity to submit in paragraph (c)(2)(iii) of this provision, excluding postmarks revised proposals based on the revised requirements. of the Canadian Postal Service. Therefore, offerors or respon- (d) Restriction on disclosure and use of data. An offeror dents should request the postal clerk to place a legible hand that includes in its proposal data that it does not want dis- cancellation bull’s eye postmark on both the receipt and the closed to the public for any purpose, or used by the Govern- envelope or wrapper. ment except for evaluation purposes, must meet both of the (vi) Notwithstanding paragraph (c)(2)(i) of this pro- following conditions: vision, a late modification or revision of an otherwise suc- (1) Mark the title page with the following legend: cessful proposal that makes its terms more favorable to the This proposal includes data that shall not be disclosed out- Government will be considered at any time it is received and side the Government and shall not be duplicated, used, or dis- may be accepted. closed—in whole or in part—for any purpose other than to (vii) An offeror may withdraw its proposal by writ- evaluate this proposal. If, however, a lease is awarded to this ten notice or telegram (including mailgram) received at any offeror as a result of—or in connection with—the submission time before award. If the solicitation authorizes facsimile proof this data, the Government shall have the right to duplicate, posals, an offeror may withdraw its proposal via facsimile use, or disclose the data to the extent provided in the resulting received at any time before award, subject to the conditions contract. This restriction does not limit the Government’s specified in the provision entitled “Facsimile Proposals.” Pro- right to use information contained in this data if it is obtained posals may be withdrawn in person by an offeror or an autho- from another source without restriction. The data subject to rized representative, if the representative’s identity is made this restriction are contained in sheets [insert numbers or known and the representative signs a receipt for the proposal other identification of sheets]. before award. (2) Mark each sheet of data it wishes to restrict with the (viii) If an emergency or unanticipated event inter- following legend: rupts normal Government processes so that proposals cannot Use or disclosure of data contained on this sheet is subject be received at the office designated for receipt of proposals by to the restriction on the title page of this proposal. the exact time specified in the solicitation, and urgent Gov- (e) Lease award. (1) The Government intends to award a ernment requirements preclude amendment of the solicitation lease resulting from this solicitation to the responsible offeror or other notice of an extension of the closing date, the time whose proposal represents the best value after evaluation in specified for receipt of proposals will be deemed to be accordance with the factors and subfactors in the solicitation. extended to the same time of day specified in the solicitation (2) The Government may reject any or all proposals if on the first work day on which normal Government processes such action is in the Government’s interest. resume. If no time is specified in the solicitation, the time for (3) The Government may waive informalities and receipt is 4:30 p.m., local time, for the designated Govern- minor irregularities in proposals received. ment office. (4) The Government intends to evaluate proposals and award a lease after conducting discussions with offerors

(Change 59) 552-55 552.270-2 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL whose proposals have been determined to be within the com- ernment reserves the right to conduct discussions if the Con- petitive range. If the Contracting Officer determines that the tracting Officer later determines them to be necessary. If the number of proposals that would otherwise be in the competi- Contracting Officer determines that the number of proposals tive range exceeds the number at which an efficient competi- that would otherwise be in the competitive range exceeds the tion can be conducted, the Contracting Officer may limit the number at which an efficient competition can be conducted, the Contracting Officer may limit the number of proposals in number of proposals in the competitive range to the greatest the competitive range to the greatest number that will permit number that will permit an efficient competition among the an efficient competition among the most highly rated propos- most highly rated proposals. Therefore, the offeror’s initial als. proposal should contain the offeror’s best terms from a price and technical standpoint. 552.270-2 Historic Preference. (5) Exchanges with offerors after receipt of a proposal As prescribed in 570.702, insert the following provision: do not constitute a rejection or counteroffer by the Govern- HISTORIC PREFERENCE (SEPT 2004) ment. (6) The Government may determine that a proposal is (a) The Government will give preference to offers of space unacceptable if the prices proposed are materially unbalanced in historic properties following this hierarchy of consider- between line items or subline items. Unbalanced pricing ation: Historic properties within historic districts. exists when, despite an acceptable total evaluated price, the (1) Non-historic developed and non-historic undevel- price of one or more contract line items is significantly over- oped sites within historic districts. stated or understated as indicated by the application of cost or (2) Historic properties outside of historic districts. price analysis techniques. A proposal may be rejected if the (b) Definitions. (1) “Determination of eligibility” means a Contracting Officer determines that the lack of balance poses decision by the Department of the Interior that a district, site, an unacceptable risk to the Government. building, structure or object meets the National Register cri- (7) ) The execution and delivery of the Lease contract teria for evaluation although the property is not formally by the Government establishes a valid award and contract. listed in the National Register (36 CFR 60.3(c)). (8) The Government may disclose the following infor- (2) “Historic district” means a geographically definable mation in postaward debriefings to other offerors: area, urban or rural, possessing a significant concentration, (i) The overall evaluated cost or price and technical linkage, or continuity of sites, buildings, structures, or objects rating of the successful offeror; (ii) The overall ranking of all offerors, when any united by past events or aesthetically by plan or physical ranking was developed by the agency during source selection; development. A district may also comprise individual ele- and ments separated geographically but linked by association or (iii) A summary of the rationale for award. history (36 CFR 60.3(d)). The historic district must be (f) Paperwork collection. The information collection included in or be determined eligible for inclusion in the requirements contained in this solicitation/contract are either National Register of Historic Places. required by regulation or approved by the Office of Manage- (3) “Historic property” means any pre-historic or his- ment and Budget pursuant to the Paperwork Reduction Act toric district, site, building, structure, or object included in or and assigned OMB Control No. 3090-0163. been determined eligible for inclusion in the National Regis- ter of Historic Places maintained by the Secretary of the Inte- (End of provision) rior (36 CFR 800.16(l)). (4) “National Register of Historic Places” means the Alternate I (Mar 1998). As prescribed in 570.702, substi- National Register of districts, sites, buildings, structures and tute the following paragraph for paragraph (c)(2)(i) of the objects significant in American history, architecture, archeol- basic provision: ogy, engineering and culture that the Secretary of the Interior (i) Any offer received at the office designated in the is authorized to expand and maintain under the National His- solicitation after the exact time specified for receipt of final toric Preservation Act (36 CFR 60.1). proposal revisions will not be considered unless it is received (c) The offer of space must meet the terms and conditions before award is made and it meets one of the following conditions— of this solicitation. The Contracting Officer has discretion to Alternate II (Mar 1998). As prescribed in 570.702, substi- accept alternatives to certain architectural characteristics and tute the following paragraph for paragraph (e)(4) of the basic safety features defined elsewhere in this solicitation to main- provision: tain the historical integrity of an historic building, such as (4) The Government intends to evaluate proposals and high ceilings and wooden floors, or to maintain the integrity award a lease without discussions with offerors (except clar- of an historic district, such as setbacks, floor-to-ceiling ifications as described in FAR 15.306(a)). Therefore, the heights, and location and appearance of parking. offeror’s initial proposal should contain the offeror’s best (d) When award will be based on the lowest price techni- terms from a cost or price and technical standpoint. The Gov- cally acceptable source selection process, the Government

552-56 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.270-4 will give a price evaluation preference, based on the total (2) A non-historic developed or undeveloped site annual square foot (ANSI/BOMA Office Area) cost to the within an historic district. Government, to historic properties as follows: (3) An historic property outside of an historic district.. (1) First to suitable historic properties within historic districts, a 10 percent price preference. (End of provision) (2) If no suitable historic property within an historic district is offered, or the 10 percent preference does not result 552.270-3 Parties to Execute Lease. in such property being the lowest price technically acceptable As prescribed in 570.702, insert the following provision: offer, the Government will give a 2.5 percent price preference PARTIES TO EXECUTE LEASE (JUN 2011) to suitable non-historic developed or undeveloped sites within historic districts. (a) If the lessor is an individual, that individual shall sign (3) If no suitable non-historic developed or undevel- the lease. A lease with an individual doing business as a firm oped site within an historic district is offered, or the 2.5 per- shall be signed by that individual, and the signature shall be cent preference does not result in such property being the followed by the individual's typed, stamped, or printed name lowest price technically acceptable offer, the Government and the words, “an individual doing business as will give a 10 percent price preference to suitable historic ______[insert name of firm].” properties outside of historic districts. (b) If the Lessor is a corporation, the lease must be signed (4) Finally, if no suitable historic property outside of in the corporate name, followed by the signature and title of historic districts is offered, no historic price preference will be the officer or other person signing the lease on its behalf, duly given to any property offered. attested, and, evidence of this authority to so act shall be fur- (e) When award will be based on the best value tradeoff nished. source selection process, which permits tradeoffs among (c) If the Lessor is a corporation, the lease must be signed price and non-price factors, the Government will give a price in the corporate name, followed by the signature and title of evaluation preference, based on the total annual square foot the officer or other person signing the lease on its behalf, duly (ANSI/BOMA Office Area) cost to the Government, to his- attested, and, if requested by the Government, evidence of toric properties as follows: this authority to so act shall be furnished. (1) First to suitable historic properties within historic (d) If the Lessor is a joint venture, the lease must be signed districts, a 10 percent price preference. by each participant in the joint venture in the manner pre- (2) If no suitable historic property within a historic dis- scribed in paragraphs (a) through (c) of this provision for each trict is offered or remains in the competition, the Government type of participant. When a corporation is participating in the will give a 2.5 percent price preference to suitable non-his- joint venture, the corporation shall provide evidence that the toric developed or undeveloped sites within historic districts. corporation is authorized to participate in the joint venture. (3) If no suitable non-historic developed or undevel- (e) If the lease is executed by an attorney, agent, or trustee oped site within an historic district is offered or remains in the on behalf of the Lessor, an authenticated copy of the power of competition, the Government will give a 10 percent price attorney, or other evidence to act on behalf of the Lessor, must preference to suitable historic properties outside of historic accompany the lease. districts. (4) Finally, if no suitable historic property outside of (End of provision) historic districts is offered, no historic price preference will be given to any property offered. 552.270-4 Definitions. (f) The Government will compute price evaluation prefer- As prescribed in 570.703, insert the following clause: ences by reducing the price(s) of the offerors qualifying for a DEFINITIONS (SEP 1999) price evaluation preference by the applicable percentage pro- The following terms and phrases (except as otherwise vided in this provision. The price evaluation preference will expressly provided or unless the context otherwise requires) be used for price evaluation purposes only. The Government for all purposes of this lease shall have the respective mean- will award a contract in the amount of the actual price(s) pro- ings hereinafter specified: posed by the successful offeror and accepted by the Govern- (a) “ANSI/BOMA Office Area (ABOA)” means the area ment. “where a tenant normally houses personnel, and/or furniture, (g) To qualify for a price evaluation preference, offerors for which a measurement is to be computed,” as stated by the must provide satisfactory documentation in their offer that American National Standards Institute/Building Owners and their property qualifies as one of the following: Managers Association (ANSI/BOMA) publication, (1) An historic property within an historic district. Z65.1-1996.

(Change 59) 552-57 552.270-5 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (b) “Commencement Date” means the first day of the pleted or obtained, excepting only such minor matters as do term. not interfere with or materially diminish such access, occu- (c) “Contract” and “Contractor” means “Lease” and “Les- pancy, possession, use or enjoyment. sor,” respectively. (m) “Work” means all alterations, improvements, modifi- (d) “Contracting Officer” means a person with the author- cations, and other things required for the preparation or con- ity to enter into, administer, and/or terminate contracts and tinued occupancy of the premises by the Government as make related determinations and findings. The term includes specified in this lease. certain authorized representatives of the Contracting Officer acting within the limits of their authority as delegated by the (End of clause) Contracting Officer. (e) “Delivery Date” means the date specified in or deter- 552.270-5 Subletting and Assignment. mined pursuant to the provisions of this lease for delivery of As prescribed in 570.703, insert the following clause: the premises to the Government, improved in accordance with SUBLETTING AND ASSIGNMENT (SEP 1999) the provisions of this lease and substantially complete, as such date may be modified in accordance with the provisions The Government may sublet any part of the premises but of this lease. shall not be relieved from any obligations under this lease by (f) “Delivery Time” means the number of days provided reason of any such subletting. The Government may at any by this lease for delivery of the premises to the Government, time assign this lease, and be relieved from all obligations to as such number may be modified in accordance with the pro- Lessor under this lease excepting only unpaid rent and other visions of this lease. liabilities, if any, that have accrued to the date of said assign- (g) “Excusable Delays” mean delays arising without the ment. Any assignment shall be subject to prior written con- fault or negligence of Lessor and Lessor’s subcontractors and sent of Lessor, which shall not be unreasonably withheld. suppliers at any tier, and shall include, without limitation: (1) acts of God or of the public enemy, (End of clause) (2) acts of the United States of America in either its sovereign or contractual capacity, 552.270-6 Maintenance of Building and Premises—Right (3) acts of another contractor in the performance of a of Entry. contract with the Government, As prescribed in 570.703, insert the following clause: (4) fires, MAINTENANCE OF BUILDING AND PREMISES— (5) floods, RIGHT OF ENTRY (SEP 1999) (6) epidemics, Except in case of damage arising out of the willful act or (7) quarantine restrictions, negligence of a Government employee, Lessor shall maintain (8) strikes, the premises, including the building and all equipment, fix- (9) freight embargoes, tures, and appurtenances furnished by the lessor under this (10) unusually severe weather, or lease, in good repair and condition so that they are suitable in (11) delays of subcontractors or suppliers at any tier appearance and capable of supplying such heat, air condition- arising from unforeseeable causes beyond the control and ing, light, ventilation, access and other things to the premises, without the fault or negligence of both the Lessor and any without reasonably preventable or recurring disruption, as is such subcontractor or supplier. required for the Government’s access to, occupancy, posses- (h) “Lessor” means the sub-lessor if this lease is a sub- sion, use and enjoyment of the premises as provided in this lease. lease. For the purpose of so maintaining the premises, the Les- (i) “Lessor shall provide” means the Lessor shall furnish sor may at reasonable times enter the premises with the and install at Lessor’s expense. approval of the authorized Government representative in (j) “Notice” means written notice sent by certified or reg- charge. istered mail, Express Mail or Comparable service, or delivered by hand. Notice shall be effective on the date delivery is (End of clause) accepted or refused. (k) “Premises” means the space described in this lease. 552.270-7 Fire and Casualty Damage. (l) “Substantially complete” and “substantial completion” As prescribed in 570.703, insert the following clause: means that the work, the common and other areas of the building, and all other things necessary for the Government’s FIRE AND CASUALTY DAMAGE (JUN 2011) access to the premises and occupancy, possession, use and If the entire premises are destroyed by fire or other casu- enjoyment thereof, as provided in this lease, have been com- alty, this lease will immediately terminate. In case of partial

552-58 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.270-10 destruction or damage, so as to render the premises untenant- (1) Inspecting, sampling and analyzing suspected able, as determined by the Government, the Government may asbestos-containing materials and air monitoring for asbestos terminate the lease by giving written notice to the Lessor fibers; within 15 calendar days after such determination; if so termi- (2) Inspecting the heating, ventilation and air condi- nated, no rent will accrue to the Lessor after such partial tioning system, maintenance records, and mechanical rooms destruction or damage; and if not so terminated, the rent will for the offered premises or the premises; be reduced proportionately by supplemental agreement (3) Inspecting for any leaks, spills, or other potentially hereto effective from the date of such partial destruction or hazardous conditions which may involve tenant exposure to damage. Nothing in this lease shall be construed as relieving hazardous or toxic substances; and Lessor from liability for damage to or destruction of property (4) Inspecting for any current or past hazardous waste of the United States of America caused by the willful or neg- operations, to ensure that appropriate mitigative actions were ligent act or omission of Lessor. taken to alleviate any environmentally unsound activities in accordance with Federal, State and local law. (End of clause) (b) Nothing in this clause shall be construed to create a Government duty to inspect for toxic materials or to impose 552.270-8 Compliance with Applicable Law. a higher standard of care on the Government than on other les- As prescribed in 570.703, insert the following clause: sees. The purpose of this clause is to promote the ease with COMPLIANCE WITH APPLICABLE LAW (SEP 1999) which the Government may inspect the building. Nothing in this clause shall act to relieve the Lessor of any duty to inspect Lessor shall comply with all Federal, state and local laws or liability which might arise as a result of Lessor’s failure to applicable to the Lessor as owner or lessor, or both, of the inspect for or correct a hazardous condition. building or premises, including, without limitation, laws applicable to the construction, ownership, alteration or oper- (End of clause) ation of both or either thereof, and will obtain all necessary permits, licenses and similar items at Lessor’s expense. The 552.270-10 Failure in Performance. Government will comply with all Federal, state and local laws As prescribed in 570.703, insert the following clause: applicable to and enforceable against it as a tenant under this lease; provided that nothing in this lease shall be construed as FAILURE IN PERFORMANCE (SEP 1999) a waiver of any sovereign immunity of the Government. This The covenant to pay rent and the covenant to provide any lease shall be governed by Federal law. service, utility, maintenance, or repair required under this lease are interdependent. In the event of any failure by the (End of clause) Lessor to provide any service, utility, maintenance, repair or replacement required under this lease the Government may, 552.270-9 Inspection—Right of Entry. by contract or otherwise, perform the requirement and deduct As prescribed in 570.703, insert the following clause: from any payment or payments under this lease, then or there- INSPECTION—RIGHT OF ENTRY (SEP 1999) after due, the resulting cost to the Government, including all (a) At any time and from time to time after receipt of an administrative costs. If the Government elects to perform any offer (until the same has been duly withdrawn or rejected), such requirement, the Government and each of its contractors after acceptance thereof and during the term, the agents, shall be entitled to access to any and all areas of the building, employees and contractors of the Government may, upon rea- access to which is necessary to perform any such requirement, sonable prior notice to Offeror or Lessor, enter upon the and the Lessor shall afford and facilitate such access. Alter- offered premises or the premises, and all other areas of the natively, the Government may deduct from any payment building access to which is necessary to accomplish the pur- under this lease, then or thereafter due, an amount which poses of entry, to determine the potential or actual compliance reflects the reduced value of the contract requirement not per- by the Offeror or Lessor with the requirements of the solici- formed. No deduction from rent pursuant to this clause shall tation or this lease, which purposes shall include, but not be constitute a default by the Government under this lease. These limited to: remedies are not exclusive and are in addition to any other remedies which may be available under this lease or at law.

(End of clause)

(Change 59) 552-59 552.270-11 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 552.270-11 Successors Bound. (6) Profit; and As prescribed in 570.703, insert the following clause: (7) Employment taxes under FICA and FUTA. SUCCESSORS BOUND (SEP 1999) (c) The following Federal Acquisition Regulation (FAR) provisions also apply to all proposals exceeding $500,000 in This lease shall bind, and inure to the benefit of, the parties cost— and their respective heirs, executors, administrators, succes- (1) The Lessor shall provide cost or pricing data includ- sors and assigns. ing subcontractor cost or pricing data (48 CFR 15.403-4); and (2) The Lessor’s representative, all Contractors, and (End of clause) subcontractors whose portion of the work exceeds $500,000 must sign and return the “Certificate of Current Cost or Pric- 552.270-12 Alterations. ing Data” (48 CFR 15.406-2). As prescribed in 570.703, insert the following clause: (d) Lessors shall also refer to 48 CFR Part 31, Contract ALTERATIONS (SEP 1999) Cost Principles, for information on which costs are allowable, The Government shall have the right during the existence reasonable, and allocable in Government work. of this lease to make alterations, attach fixtures, and erect structures or signs in or upon the premises hereby leased, (End of clause) which fixtures, additions or structures so placed in, on, upon, or attached to the said premises shall be and remain the prop- 552.270-14 Changes. erty of the Government and may be removed or otherwise dis- As prescribed in 570.703, insert the following clause: posed of by the Government. If the lease contemplates that the CHANGES (JUN 2011) Government is the sole occupant of the building, for purposes (a) The Contracting Officer may at any time, by written of this clause, the leased premises include the land on which order, make changes within the general scope of this lease in the building is sited and the building itself. Otherwise, the any one or more of the following: Government shall have the right to tie into or make any phys- (1) Specifications (including drawings and designs). ical connection with any structure located on the property as (2) Work or services. is reasonably necessary for appropriate utilization of the (3) Facilities or space layout. leased space. (4) Amount of space, provided the Lessor consents to the change. (End of clause) (b) If any such change causes an increase or decrease in Lessor’s cost of or the time required for performance under 552.270-13 Proposals for Adjustment. this lease, whether or not changed by the order, the Contract- As prescribed in 570.703, insert the following clause: ing Officer shall modify this lease to provide for one or more PROPOSALS FOR ADJUSTMENT (SEP 1999) of the following: (a) The Contracting Officer may, from time to time during (1) A modification of the delivery date. the term of this lease, require changes to be made in the work (2) An equitable adjustment in the rental rate. or services to be performed and in the terms or conditions of (3) A lump sum equitable adjustment. this lease. Such changes will be required under the Changes (4) An equitable adjustment of the annual operating clause. costs per ABOA square foot specified in this lease. (b) If the Contracting Officer makes a change within the (c) The Lessor must assert its right to an adjustment under general scope of the lease, the Lessor shall submit, in a timely this clause within 30 days from the date of receipt of the manner, an itemized cost proposal for the work to be accom- change order and must submit a proposal for adjustment. The plished or services to be performed when the cost exceeds Lessor’s failure to assert its right for adjustment within the $100,000. The proposal, including all subcontractor work, time frame specified herein shall be a waiver of the Lessor’s will contain at least the following detail— right to an adjustment under this paragraph. Failure to agree (1) Material quantities and unit costs; to any adjustment shall be a dispute under the Disputes clause. (2) Labor costs (identified with specific item or mate- However, nothing in this clause excuses the lessor from pro- rial to be placed or operation to be performed); ceeding with the change as directed. (3) Equipment costs; (d) Absent such written change order, the Government is (4) Worker’s compensation and public liability insur- not liable to Lessor under this clause. ance; (5) Overhead; (End of clause)

552-60 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.270-18 552.270-15 Liquidated Damages. dance with the Failure in Performance clause of this lease, As prescribed in 570.703, insert the following clause: elect to reduce the rent payments. LIQUIDATED DAMAGES (SEP 1999) (End of clause) In case of failure on the part of the Lessor to complete the work within the time fixed in the lease contract or letter of 552.270-18 Default in Delivery—Time Extensions. award, the Lessor shall pay the Government as fixed and As prescribed in 570.703, insert the following clause: agreed liquidated damages, pursuant to this clause, the sum of $ for each and every calendar day that the delivery is DEFAULT IN DELIVERY—TIME EXTENSIONS (SEP 1999) delayed beyond the date specified for delivery of all of the (a) With respect to Lessor’s obligation to deliver the prem- space ready for occupancy by the Government. This remedy ises substantially complete by the delivery date, time is of the is not exclusive and is in addition to any other remedies which essence. If the Lessor fails to work diligently to ensure its sub- may be available under this lease or at law. stantial completion by the delivery date or fails to substantially complete the work by such date, the Government may (End of clause) by notice to the Lessor terminate this lease. Such termination is effective when received by Lessor. The Lessor and the Les- 552.270-16 Adjustment for Vacant Premises. sor’s sureties, if any, are jointly and severally liable for any As prescribed in 570.703, insert the following clause: damages to the Government resulting from such termination, ADJUSTMENT FOR VACANT PREMISES (JUN 2011) as provided in this clause. The Government is entitled to the following damages: (a) If the Government fails to occupy any portion of the (1) The Government’s aggregate rent, estimated real leased premises or vacates the premises in whole or in part estate tax, and operating cost adjustments for the firm term before the lease term expires, the rental rate will be reduced. and all option terms of its replacement lease or leases, in The reduction shall occur after the Government gives 30 cal- excess of the aggregate rent and estimated real estate tax and endar days notice to the Lessor, and shall continue in effect operating cost adjustments for the term. If the Government until the Government occupies or reoccupies the vacant prem- procures replacement premises for a term (including all ises or the lease expires or is terminated. option terms) in excess of this lease term, the Lessor is not lia- (b) The rate will be reduced by that portion of the costs per ble for excess Government rent or adjustments during such ABOA square foot of operating expenses not required to excess lease term. maintain the space. In addition, at the first operating cost (2) All administrative and other costs the Government adjustment after the notice of reduction to the rent, the base incurs in procuring a replacement lease or leases. cost of services subject to escalation will be reduced by said (3) Other, additional relief provided for in this lease, at amount. In the event that the Government occupies or reoc- law, or in equity. cupies the vacant premises on the lease anniversary date fol- (b) Damages to which the Government is entitled to under lowing the occupation of the vacant premises, the base cost of this clause are due and payable thirty (30) days following the services subject to escalation will be increased by said date Lessor receives notice from the Contracting Officer amount. specifying such damages. (c) The reduction in operating costs shall be negotiated and (c) Delivery by Lessor of less than the minimum ABOA stated in the lease. square footage required by this lease shall in no event be construed as substantial completion, except as the Contracting (End of clause) Officer permits. (d) The Government shall not terminate this lease under 552.270-17 Delivery and Condition. this clause nor charge the Lessor with damages under this As prescribed in 570.703, insert the following clause: clause, if (1) the delay in substantially completing the work DELIVERY AND CONDITION (SEP 1999) arises from excusable delays, and (2) the Lessor within (a) Unless the Government elects to have the space occu- 10 days from the beginning of any such delay (unless pied in increments, the space must be delivered ready for extended in writing by the Contracting Officer) provides occupancy as a complete unit. The Government reserves the notice to the Contracting Officer of the causes of delay. The right to determine when the space is substantially complete. Contracting Officer shall ascertain the facts and the extent of (b) If the premises do not in every respect comply with the delay. If the facts warrant, the Contracting Officer shall provisions of this lease the Contracting Officer may, in accor- extend the delivery date, to the extent of such delay at no addi-

(Change 59) 552-61 552.270-19 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL tional costs to the Government. A time extension is the sole remedy of the Lessor. 1CAF+  Rate per RSF = Reduction in Annual Rent (End of clause) (End of clause) 552.270-19 Progressive Occupancy. As prescribed in 570.703, insert the following clause: 552.270-21 Effect of Acceptance and Occupancy. PROGRESSIVE OCCUPANCY (SEP 1999) As prescribed in 570.703, insert the following clause: The Government shall have the right to elect to occupy the EFFECT OF ACCEPTANCE AND OCCUPANCY (SEP 1999) space in partial increments prior to the substantial completion Neither the Government’s acceptance of the premises for of the entire leased premises, and the Lessor agrees to sched- occupancy, nor the Government’s occupancy thereof, shall be ule its work so as to deliver the space incrementally as elected construed as a waiver of any requirement of or right of the by the Government. The Government shall pay rent com- Government under this Lease, or as otherwise prejudicing the mencing with the first business day following substantial Government with respect to any such requirement or right. completion of the entire leased premise unless the Govern- ment has elected to occupy the leased premises incrementally. (End of clause) In case of incremental occupancy, the Government shall pay rent pro rata upon the first business day following substantial 552.270-22 Default by Lessor During the Term. completion of each incremental unit. Rental payments shall As prescribed in 570.703, insert the following clause: become due on the first workday of the month following the DEFAULT BY LESSOR DURING THE TERM (SEP 1999) month in which an increment of space is substantially complete, except that should an increment of space be substan- (a) Each of the following shall constitute a default by Les- tially completed after the fifteenth day of the month, the sor under this lease: payment due date will be the first workday of the second (1) Failure to maintain, repair, operate or service the month following the month in which it was substantially com- premises as and when specified in this lease, or failure to per- plete. The commencement date of the firm lease term will be form any other requirement of this lease as and when required a composite determined from all rent commencement dates. provided any such failure shall remain uncured for a period of thirty (30) days next following Lessor’s receipt of notice (End of clause) thereof from the Contracting Officer or an authorized representative. 552.270-20 Payment. (2) Repeated and unexcused failure by Lessor to com- As prescribed in 570.703, insert the following clause: ply with one or more requirements of this lease shall constitute a default notwithstanding that one or all such failures PAYMENT (SEP 1999) shall have been timely cured pursuant to this clause. (a) When space is offered and accepted, ABOA square (b) If a default occurs, the Government may, by notice to footage delivered will be confirmed by either: Lessor, terminate this lease for default and if so terminated, (1) The Government’s measurement of plans submitted the Government shall be entitled to the damages specified in by the successful offeror as approved by the Government, and the Default in Delivery-Time Extensions clause. an inspection of the space to verify that the delivered space conforms with such plans. (End of clause) (2) A mutual on-site measurement of the space if the Contracting Officer determines it necessary. 552.270-23 Subordination, Nondisturbance and (b) The Government will not pay for space in excess of the Attornment. amount of ABOA square footage stated in the lease. As prescribed in 570.703, insert the following clause: (c) If the amount of ABOA square footage delivered is less SUBORDINATION, NONDISTURBANCE AND ATTORNMENT than the amount agreed to in the lease, the lease will be mod- (SEP 1999) ified to reflect the amount of ABOA space delivered and the annual rental will be adjusted as follows: (a) Lessor warrants that it holds such title to or other inter- ABOA square feet not delivered multiplied by one plus the est in the premises and other property as is necessary to the common area factor (CAF), multiplied by the rate per rentable Government’s access to the premises and full use and enjoy- square foot (RSF). That is: ment thereof in accordance with the provisions of this lease. Government agrees, in consideration of the warranties and conditions set forth in this clause, that this lease is subject and

552-62 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.270-26 subordinate to any and all recorded mortgages, deeds of trust 552.270-24 Statement of Lease. and other liens now or hereafter existing or imposed upon the As prescribed in 570.703, insert the following clause: premises, and to any renewal, modification or extension STATEMENT OF LEASE (SEP 1999) thereof. It is the intention of the parties that this provision shall be self-operative and that no further instrument shall be (a) The Contracting Officer will, within thirty (30) days required to effect the present or subsequent subordination of next following the Contracting Officer’s receipt of a joint this lease. Government agrees, however, within twenty (20) written request from Lessor and a prospective lender or pur- business days next following the Contracting Officer’s receipt chaser of the building, execute and deliver to Lessor a letter of a written demand, to execute such instruments as Lessor stating that the same is issued subject to the conditions stated may reasonably request to evidence further the subordination in this clause and, if such is the case, that (1) the lease is in full of this lease to any existing or future mortgage, deed of trust force and effect; (2) the date to which the rent and other or other security interest pertaining to the premises, and to any charges have been paid in advance, if any; and (3) whether water, sewer or access easement necessary or desirable to any notice of default has been issued. serve the premises or adjoining property owned in whole or in (b) Letters issued pursuant to this clause are subject to the part by Lessor if such easement does not interfere with the full following conditions: enjoyment of any right granted the Government under this (1) That they are based solely upon a reasonably dili- lease. gent review of the Contracting Officer’s lease file as of the (b) No such subordination, to either existing or future date of issuance; mortgages, deeds of trust or other lien or security instrument (2) That the Government shall not be held liable shall operate to affect adversely any right of the Government because of any defect in or condition of the premises or build- under this lease so long as the Government is not in default ing; under this lease. Lessor will include in any future mortgage, (3) That the Contracting Officer does not warrant or deed of trust or other security instrument to which this lease represent that the premises or building comply with applica- becomes subordinate, or in a separate nondisturbance agree- ble Federal, State and local law; and ment, a provision to the foregoing effect. Lessor warrants that (4) That the Lessor, and each prospective lender and the holders of all notes or other obligations secured by exist- purchaser are deemed to have constructive notice of such ing mortgages, deeds of trust or other security instruments facts as would be ascertainable by reasonable prepurchase have consented to the provisions of this clause, and agrees to and precommitment inspection of the Premises and Building provide true copies of all such consents to the Contracting and by inquiry to appropriate Federal, State and local Govern- Officer promptly upon demand. ment officials. (c) In the event of any sale of the premises or any portion thereof by foreclosure of the lien of any such mortgage, deed (End of clause) of trust or other security instrument, or the giving of a deed in lieu of foreclosure, the Government will be deemed to have 552.270-25 Substitution of Tenant Agency. attorned to any purchaser, purchasers, transferee or transfer- As prescribed in 570.703, insert the following clause: ees of the premises or any portion thereof and its or their suc- SUBSTITUTION OF TENANT AGENCY (SEP 1999) cessors and assigns, and any such purchasers and transferees The Government may, at any time and from time to time, will be deemed to have assumed all obligations of the Lessor substitute any Government agency or agencies for the Gov- under this lease, so as to establish direct privity of estate and ernment agency or agencies, if any, named in the lease. contract between Government and such purchasers or transferees, with the same force, effect and relative priority in time (End of clause) and right as if the lease had initially been entered into between such purchasers or transferees and the Government; provided, 552.270-26 No Waiver. further, that the Contracting Officer and such purchasers or As prescribed in 570.703, insert the following clause: transferees shall, with reasonable promptness following any such sale or deed delivery in lieu of foreclosure, execute all NO WAIVER (SEP 1999) such revisions to this lease, or other writings, as shall be nec- No failure by either party to insist upon the strict perfor- essary to document the foregoing relationship. mance of any provision of this lease or to exercise any right (d) None of the foregoing provisions may be deemed or or remedy consequent upon a breach thereof, and no accep- construed to imply a waiver of the Government’s rights as a tance of full or partial rent or other performance by either sovereign.

(End of clause)

(Change 59) 552-63 552.270-27 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL party during the continuance of any such breach shall consti- 552.270-30 Price Adjustment for Illegal or Improper tute a waiver of any such breach of such provision. Activity. As prescribed in 570.703, insert the following clause: (End of clause) PRICE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY (JUN 2011) 552.270-27 Integrated Agreement. As prescribed in 570.703, insert the following clause: (a) If the head of the contracting activity (HCA) or his or her designee determines that there was a violation of subsec- INTEGRATED AGREEMENT (SEP 1999) tion 27(a) of the Office of Federal Procurement Policy Act, as This Lease, upon execution, contains the entire agreement amended (41 U.S.C. 423), as implemented in the Federal of the parties and no prior written or oral agreement, express Acquisition Regulation, the Government, at its election, or implied, shall be admissible to contradict the provisions of may— the Lease. (1) Reduce the monthly rental under this lease by five percent of the amount of the rental for each month of the (End of clause) remaining term of the lease, including any option periods, and recover five percent of the rental already paid; 552.270-28 Mutuality of Obligation. (2) Reduce payments for alterations not included in As prescribed in 570.703, insert the following clause: monthly rental payments by five percent of the amount of the MUTUALITY OF OBLIGATION (SEP 1999) alterations agreement; or (3) Reduce the payments for violations by a Lessor’s The obligations and covenants of the Lessor, and the Gov- subcontractor by an amount not to exceed the amount of profit ernment’s obligation to pay rent and other Government obli- or fee reflected in the subcontract at the time the subcontract gations and covenants, arising under or related to this Lease, was placed. are interdependent. The Government may, upon issuance of (b) Prior to making a determination as set forth above, the and delivery to Lessor of a final decision asserting a claim HCA or designee shall provide to the Lessor a written notice against Lessor, set off such claim, in whole or in part, as of the action being considered and the basis thereof. The Les- against any payment or payments then or thereafter due the sor shall have a period determined by the agency head or des- Lessor under this lease. No setoff pursuant to this clause shall ignee, but not less than 30 calendar days after receipt of such constitute a breach by the Government of this lease. notice, to submit in person, in writing, or through a representative, information and argument in opposition to the pro- (End of clause) posed reduction. The agency head or designee may, upon good cause shown, determine to deduct less than the above 552.270-29 Acceptance of Space. amounts from payments. As prescribed in 570.703, insert the following clause: (c) The rights and remedies of the Government specified ACCEPTANCE OF SPACE (JUN 2011) herein are not exclusive, and are in addition to any other rights (a) When the lessor has completed all alterations, improve- and remedies provided by law or under this lease. ments, and repairs necessary to meet the requirements of the lease, the lessor shall notify the Contracting Officer. The Con- (End of clause) tracting Officer or designated representative shall promptly inspect the space. 552.270-31 Prompt Payment. (b) The Government will accept the space and the lease As prescribed in 570.703 insert the following clause: term will begin after determining that the space is substan- PROMPT PAYMENT (JUN 2011) tially complete and contains the required ABOA square foot- The Government will make payments under the terms and age as indicated in the solicitation paragraph, Amount and conditions specified in this clause. Payment shall be consid- Type of Space. ered as being made on the day a check is dated or an electronic funds transfer is made. All days referred to in this clause are calendar days, unless otherwise specified. (a) Payment due date. (1) Rental payments. Rent shall be paid monthly in arrears and will be due on the first workday of each month, and only as provided for by the lease. (i) When the date for commencement of rent falls on the 15th day of the month or earlier, the initial monthly rental payment under this contract shall become due on the first

552-64 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.270-32 workday of the month following the month in which the com- (2) The interest penalty shall be at the rate established mencement of the rent is effective. by the Secretary of the Treasury under Section 12 of the Con- (ii) When the date for commencement of rent falls tract Disputes Act of 1978 (41 U.S.C. 611) that is in effect on after the 15th day of the month, the initial monthly rental pay- the day after the due date. This rate is referred to as the “Rene- ment under this contract shall become due on the first work- gotiation Board Interest Rate,” and it is published in the Fed- day of the second month following the month in which the eral Register semiannually on or about January 1 and July 1. commencement of the rent is effective. The interest penalty shall accrue daily on the payment amount (2) Other payments. The due date for making payments approved by the Government and be compounded in 30-day other than rent shall be the later of the following two events: increments inclusive from the first day after the due date (i) The 30th day after the designated billing office through the payment date. has received a proper invoice from the Contractor. (3) Interest penalties will not continue to accrue after (ii) The 30th day after Government acceptance of the the filing of a claim for such penalties under the clause at work or service. However, if the designated billing office fails 52.233-1, Disputes, or for more than one year. Interest penal- to annotate the invoice with the actual date of receipt, the ties of less than $1.00 need not be paid. invoice payment due date shall be deemed to be the 30th day (4) Interest penalties are not required on payment after the Contractor’s invoice is dated, provided a proper delays due to disagreement between the Government and invoice is received and there is no disagreement over quantity, Contractor over the payment amount or other issues involving quality, or Contractor compliance with contract requirements. contract compliance or on amounts temporarily withheld or (b) Invoice and inspection requirements for payments retained in accordance with the terms of the contract. Claims other than rent. (1) The Contractor shall prepare and submit involving disputes, and any interest that may be payable, will an invoice to the designated billing office after completion of be resolved in accordance with the clause at 52.233-1, Dis- the work. A proper invoice shall include the following items: putes. (i) Name and address of the Contractor. (d) Overpayments. If the Lessor becomes aware of a dupli- (ii) Invoice date. cate payment or that the Government has otherwise overpaid (iii) Lease number. on a payment, the Contractor shall— (iv) Government’s order number or other authoriza- (1) Return the overpayment amount to the payment tion. office cited in the contract along with a description of the (v) Description, price, and quantity of work or ser- overpayment including the— vices delivered. (i) Circumstances of the overpayment (e.g., dupli- (vi) Name and address of Contractor official to cate payment, erroneous payment, liquidation errors, date(s) whom payment is to be sent (must be the same as that in the of overpayment); remittance address in the lease or the order). (ii) Affected lease number; (vii) Name (where practicable), title, phone number, (iii) Affected lease line item or subline item, if appli- and mailing address of person to be notified in the event of a cable; and defective invoice. (iv) Lessor point of contact. (2) The Government will inspect and determine the (2) Provide a copy of the remittance and supporting acceptability of the work performed or services delivered documentation to the Contracting Officer. within seven days after the receipt of a proper invoice or notification of completion of the work or services unless a differ- (End of clause) ent period is specified at the time the order is placed. If actual acceptance occurs later, for the purpose of determining the Alternate I (Sep 1999). If Alternate I is used, subparagraph payment due date and calculation of interest, acceptance will (a)(1) of the basic clause should be designated as paragraph be deemed to occur on the last day of the seven day inspection (a) and subparagraph (a)(2) and paragraph (b) should be period. If the work or service is rejected for failure to conform deleted. Paragraph (c) of the basic clause should be redesig- to the technical requirements of the contract, the seven days nated as (b). will be counted beginning with receipt of a new invoice or notification. In either case, the Contractor is not entitled to 552.270-32 Covenant Against Contingent Fees. any payment or interest unless actual acceptance by the Gov- As prescribed in 570.703, insert the following clause: ernment occurs. (c) Interest Penalty. (1) An interest penalty shall be paid COVENANT AGAINST CONTINGENT FEES (JUN 2011) automatically by the Government, without request from the (a) The Contractor warrants that no person or agency has Contractor, if payment is not made by the due date. been employed or retained to solicit or obtain this contract upon an agreement or understanding for a contingent fee,

(Change 59) 552-65 552.270-32 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL except a bona fide employee or agency. For breach or viola- supervision and control as to time, place, and manner of per- tion of this warranty, the Government shall have the right to formance, who neither exerts nor proposes to exert improper annul this contract without liability or, in its discretion, to influence to solicit or obtain Government contracts nor holds deduct from the contract price or consideration, or otherwise out as being able to obtain any Government contract or con- recover the full amount of the contingent fee. tracts through improper influence. (b) Bona fide agency, as used in this clause, means an Contingent fee, as used in this clause, means any commis- established commercial or selling agency (including licensed sion, percentage, brokerage, or other fee that is contingent real estate agents or brokers), maintained by a Contractor for upon the success that a person or concern has in securing a the purpose of securing business, that neither exerts nor pro- Government contract. poses to exert improper influence to solicit or obtain Govern- Improper influence, as used in this clause, means any influ- ment contracts nor holds itself out as being able to obtain any ence that induces or tends to induce a Government employee Government contract or contracts through improper influ- or officer to give consideration or to act regarding a Govern- ence. ment contract on any basis other than the merits of the matter. Bona fide employee, as used in this clause, means a person, employed by a Contractor and subject to the Contractor’s (End of clause)

552-66 (Change 59) PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.270-32

552-67 552.300 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Subpart 552.3—Provision and Clause (a) One matrix each for supply, service, construction, Matrixes architect-engineer and simplified acquisition contracts which lists the applicable GSAR provisions and clauses. 552.300 Scope of subpart. (b) One matrix each for utility contracts (sole supplier-reg- This subpart consists of a series of matrixes: ulated rates) and leases of real property which list the applicable FAR and GSAR provisions and clauses.

552-68 (Amendment 2009–08) GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

552-69 CHANGE 63 MAY 20, 2015

552.300 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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552-70 CHANGE 59 OCTOBER 21, 2014

PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.300

MATRIX OF PROVISIONS AND CLAUSES

KEY: Sup = Supply Leas = Acquisitions of leasehold interests in real property Serv = Service Contract (excluding construction and A-E services) P = Provision Const = Construction Services C = Clause A-E = Architect-Engineer Services R = Required SAT = Acquisitions at or under the simplified acquisition threshold WR = When required Util = Utility services, sole supplier-regulated rate O = Optional

P/C Number Reference. Title Sup Serv Const A-E SAT Util Leas C 552.203-71 503.570-2 Restriction on Advertising R R R R R C 552.204-9 504.1303 Personal Identity Verification Requirements WR WR WR WR WR C 552.211-72 511.204(a) Reference to Specifications in Drawings WR WR WR WR C 552.211-73 511.204(b)(1) Marking WR C 552.211-75 511.204(b)(2) Preservation, Packaging and Packing WR O C 552.211-76 511.204(b)(3) Charges for Packaging, Packing, and Marking WR WR C 552.211-77 511.204(c) Packing List WR WR C 552.211-79 511.404(a)(1) Acceptable Age of Supplies WR WR C 552.211-80 511.404(a)(2) Age on Delivery WR WR C 552.211-81 511.404(b) Time of Shipment WR WR C 552.211-83 511.404(c) Availability for Inspection, Testing, and Shipment/ WR WR Delivery 552.211-85 511.204(b)(5) Consistent Pack and Package Requirements WR WR 552.211-86 511.204(b)(6) Maximum Weight Per Shipping Container WR WR 552.211-87 511.204(b)(7) Export Packing WR WR 552.211-88 511.204(b)(8) Vehicle Export Preparation WR WR 552.211-89 511.204(b)(4) Non-Manufactured Wood Packaging Material for Export WR WR 552.211-90 511.204(b)(9) Small Parts WR WR 552.211-91 511.204(b)(10) Vehicle Decals, Stickers, and Data Plates WR WR 552.211-92 511.204(b)(11) Radio Frequency Identification (RFID) Using Passive Tags WR WR

552.211-94 511.404(d) Time of Delivery WR WR

C 552.212-71 512.301(a)(1) Contract Terms and Conditions Applicable to GSA WR WR WR Acquisition of Commercial Items C 552.212-72 512.301(a)(2) Contract Terms and Conditions Required to Implement WR WR WR Statutes or Executive Orders Applicable to GSA Acquisition of Commercial Items P 552.214-70 514.201-6 “All or None” Bids WR WR WR

P 552.214-72 514.202-4(a)(3) Bid Sample Requirements WR WR WR C 552.215-70 514.201-7(a)(1) Examination of Records by GSA WR WR WR WR WR 515.209-70(a) C 552.215-71 515.209-70(c) Examination of Records by GSA (Multiple Award WR WR Schedule) C 552.215-72 515.408(d) Price Adjustment—Failure to Provide Accurate WR WR Information C 552.216-70 516.203-4(a) Economic Price Adjustment—FSS Multiple Award WR WR Schedule Contracts

552-71 CHANGE 56 APRIL 14, 2014

552.300 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

P/C Number Reference. Title Sup Serv Const A-E SAT Util Leas C 552.216-71 516.203-4(a) Economic Price Adjustment—Special Order Program WR WR Contracts C 552.216-72 516.506(a) Placement of Orders WR WR P 552.216-73 516.506(c) Ordering Information WR WR WR C 552.216-74 516.506(b) Task-Order and Delivery-Order Ombudsman R R R R R R R P 552.217-70 517.208(a) Evaluation of Options WR WR P 552.217-71 517.208(b) Notice Regarding Option(s) WR WR WR WR WR C 552.219-70 519.508 Allocation of Orders—Partially Set-aside Items WR P 552.219-71 519.708-70(a) Notice to Offerors of Subcontracting Plan Requirements WR WR WR WR WR P 552.219-72 519.708-70(b) Preparation, Submission, and Negotiation of WR WR WR WR WR Subcontracting Plans P 552.219-73 519.708-70(c) Goals for Subcontracting Plan WR WR WR WR WR C 552.219-74 519.870-8(a) Section 8(a) Direct Award WR WR WR WR WR WR C 552.219-75 519.7017(a) GSA Mentor-Protégé Program R R R R R R C 552.219-76 519.7017(b) Mentor Requirements and Evaluation WR WR WR WR WR WR C 552.223-70 523.303(a) Hazardous Substances WR WR C 552.223-71 523.303(b) Nonconforming Hazardous Materials WR WR P 552.223-72 523.370 Hazardous Material Information WR WR C 552.227-70 527.409(a) Government Rights (Unlimited) WR C 552.227-71 527.409(b) Drawings and Other Data to Become Property of WR Government C 552.228-5 528.310 Government as Additional Insured WR R WR WR WR C 552.229-70 529.401-70 Federal, State, and Local Taxes WR WR WR R C 552.229-71 529.401-71 Federal Excise Tax—DC Government WR WR WR C 552.232-1 532.7103(a) Payments WR C 552.232-23 532.806 Assignment of Claims WR WR C 552.232-25 532.908(c)(2) Prompt Payment WR WR WR C 552.232-72 532.904(c) Final Payment Under Building Services Contracts WR C 552.232-77 532.7003 Payment By Government Charge Card WR WR WR C 552.236-70 536.570-1 Definitions WR WR WR C 552.236-71 536.570-2 Authorities and Limitations WR WR C 552.236-72 536.570-3 Specialist WR WR P 552.236-73 536.570-4 Basis of Award—Construction Contract WR C 552.236-74 536.570-5 Working Hours R C 552.236-75 536.570-6 Use of Premises R WR C 552.236-76 536.570-7 Measurements R WR C 552.236-77 536.570-8 Specifications and Drawings R C 552.236-78 536.570-9 Shop Drawings, Coordination Drawings, and R Schedules C 552.236-79 536.570-10 Samples WR WR C 552.236-80 536.570-11 Heat R WR C 552.236-81 536.570-12 Use of Equipment by the Government WR WR C 552.236-82 536.570-13 Subcontracts R C 552.236-83 536.570-14 Requirement for a Project Labor Agreement WR

C 552.237-71 537.110(a) Qualifications of Employees WR C 552.237-72 537.110(b) Prohibition Regarding "Quasi-Military Armed WR WR Forces"

552-72 PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.300

P/C Number Reference. Title Sup Serv Const A-E SAT Util Leas C 552.237-73 537.270 Restriction on Disclosure of Information WR WR C 552.238-70 538.273(a)(1) Identification of Electronic Office Equipment Providing WR Accessibility for the Handicapped C 552.238-71 538.273(a)(2) Submission and Distribution of Authorized FSS Schedule WR WR Pricelists C 552.238-72 538.273(a)(3) Identification of Products That Have Environmental WR WR Attributes C 552.238-73 538.273(a)(4) Cancellation WR WR C 552.238-74 538.273(b)(1) Industrial Funding Fee and Sales Reporting WR WR C 552.238-75 538.273(b)(2) Price Reductions WR WR C 552.238-76 538.7104(a) Definition (Federal Supply Schedules)–Recovery WR WR Purchasing C 552.238-77 538.7004(a) Definition (Federal Supply Schedules) WR WR C 552.238-78 538.7004 Scope of Contract (Eligible Ordering Activities) WR WR C 552.238-79 538.7004(c) Use of Federal Supply Schedule Contracts by Certain WR WR Entities—Cooperative Purchasing C 552.238-80 538.7104(c) Use of Federal Supply Schedule Contracts by Certain WR WR Entities–Recovery Purchasing C 552.238-81 538.273(b) Modification (Federal Supply Schedule) R R WR WR WR P 552.239-70 539.7002(a) Information Technology Security Plan and Security WR WR WR Authorization C 552.239-71 539.7002(b) Security Requirements for Unclassified Information WR WR WR Technology Resources C 552.241-70 541.501(a) Availability of Funds for the Next Fiscal Year or Quarter R C 552.241-71 541.501(b) Disputes (Utility Contracts) R C 552.242-70 542.1107 Status Report of Orders and Shipments WR WR C 552.243-71 543.205 Equitable Adjustments WR C 552.246-70 546.302-70 Source Inspection by Quality Approved Manufacturer WR WR C 552.246-71 546.302-71 Source Inspection by Government WR WR C 552.246-72 546.312 Final Inspection and Tests WR O C 552.246-77 546.710 Additional Contract Warranty Provisions for Supplies of a WR Noncomplex Nature C 552.246-78 546.302-72 Inspection at Destination WR P 552.252-5 552.107-70(a) Authorized Deviations in Provisions WR WR WR WR WR WR C 552.252-6 552.107-70(b) Authorized Deviations in Clauses WR WR WR WR WR WR P 552.270-1 570.702 Instructions to Offerors—Acquisition of Leasehold R Interests in Real Property P 552.270-2 570.702 Historic Preference R P 552.270-3 570.702 Parties to Execute Lease R C 552.270-4 570.703 Definitions R* C 552.270-5 570.703 Subletting and Assignment R C 552.270-6 570.703 Maintenance of Building and Premises— R Right of Entry C 552.270-7 570.703 Fire and Casualty Damage R C 552.270-8 570.703 Compliance with Applicable Law R C 552.270-9 570.703 Inspection—Right of Entry R C 552.270-10 570.703 Failure in Performance R C 552.270-11 570.703 Successors Bound R C 552.270-12 570.703 Alterations R C 552.270-13 570.703 Proposals for Adjustment R

(Change 56) 552-73 552.300 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

P/C Number Reference. Title Sup Serv Const A-E SAT Util Leas C 552.270-14 570.703 Changes R C 552.270-15 570.703 Liquidated Damages R C 552.270-16 570.703 Adjustment for Vacant Premises R C 552.270-17 570.703 Delivery and Condition R C 552.270-18 570.703 Default in Delivery—Time Extensions R C 552.270-19 570.703 Progressive Occupancy R C 552.270-20 570.703 Payment R C 552.270-21 570.703 Effect of Acceptance and Occupancy R C 552.270-22 570.703 Default by Lessor During the Term R C 552.270-23 570.703 Subordination, Nondisturbance and Attornment R C 552.270-24 570.703 Statement of Lease R C 552.270-25 570.703 Substitution of Tenant Agency R C 552.270-26 570.703 No Waiver R C 552.270-27 570.703 Integrated Agreement R C 552.270-28 570.703 Mutuality of Obligation R C 552.270-29 570.703 Acceptance of Space R C 552.270-30 570.703 Price Adjustment for Illegal or Improper Activity C 552.270-31 570.703 Prompt Payment. C 552.270-32 570.703 Covenant Against Contingent Fees. P 52.203-2 570.601(e) Certificate of Independent Price Determination WR C 52.203-7 570.601(e) Anti-Kickback Procedures WR P 52.203-11 570.701(d) Certification and Disclosure Regarding Payments to WR Influence Certain Federal Transactions P 52.204-3 570.601(a) Taxpayer Identification WR P 52.209-5 570.601(e) Certification Regarding Debarment, Suspension, Proposed WR Debarment, and Other Responsibility Matters C 52.209-6 570.701(c) Protecting the Government’s Interest when Subcontracting WR with Contractors Debarred, Suspended, or Proposed for Debarment C 52.215-2 570.601(e) Audit and Records—Negotiation WR P 52.215-5 570.701(j) Facsimile Proposals WR C 52.215-10 570.701(i) Price Reduction for Defective Cost or Pricing Data WR C 52.215-12 570.701(i) Subcontractor Cost or Pricing Data WR P 52.219-1 570.601(a) Small Business Program Representations WR C 52.219-8 570.601(e) Utilization of Small Business Concerns WR C 52.219-9 570.701(f) Small Business Subcontracting Plan, WR C 52.219-16 570.701(f) Liquidated Damages—Subcontracting Plan WR P 52.219-24 570.701(g) Small Disadvantaged Business Participation Program— WR Targets C 52.219-25 570.701(g) Small Disadvantaged Business Participation Program— WR Disadvantaged Status and Reporting C 52.219-26 570.701(k) Small Disadvantaged Business Participation Program— WR Incentive Subcontracting P 52.222-21 570.701(b) Prohibition of Segregated Facilities WR P 52.222-22 570.701(b) Previous Contracts and Compliance Reports WR P 52.222-24 570.701(h) Preaward On-site Equal Opportunity Compliance Review WR P 52.222-25 570.701(b) Affirmative Action Compliance WR C 52.222-26 570.701(b) Equal Opportunity WR C 52.222-35 570.701(b) Affirmative Action for Disabled Veterans and Veterans of WR the Vietnam Era

552-74 (Amendment 2010-01) GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

P/C Number Reference. Title Sup Serv Const A-E SAT Util Leas C 52.222-36 570.601(a) Affirmative Action for Workers with Disabilities WR C 52.222-37 570.701(b) Employment Reports on Disabled Veterans and Veterans of WR the Vietnam Era C 52.223-6 570.601(e) Drug-Free Workplace WR C 52.232-23 570.601(a) Assignment of Claims WR C 52.233-1 570.601(a) Disputes WR P 52.233-2 570.601(e) Service of Protest WR *Clauses prescribed in GSAR 570.703 are optional for acquisitions that do not exceed the simplified lease acquisition threshold.

552-75 552.300 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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552-76 CHANGE 55 OCTOBER 1, 2012

PART 553—FORMS

Sec. Subpart 553.1—General 553.370-1766 GSA Form 1766, Structured Approach 553.101 Requirements for use of forms. Profit/Fee Objective. 553.102 Current editions. 553.370-2689 Small Business Analysis Record. 553.170 Establishing and revising GSA Forms. 553.370-2728 GSA Form 2728, Procurement Contract Subpart 553.3—Illustrations of Forms Register. 553.300 Scope of subpart. 553.370-3186 GSA Form 3186, Order for Supplies or 553.300-70 Forms not illustrated. Services. 553.370-618D [Removed] 553.370-3186B GSA Form 3186B, Order for Supplies or 553.370-1378 GSA Form 1378, Record of, and Receipt for, Services (EDI). Bids and Responses. 553.370-3410 GSA Form 3410, Request for Appointment. 553.370-1458 GSA Form 1458, Motor Vehicle Shop Work 553.370-3471 GSA Form 3471, Abstract of Offers. Order, Repair and Purchase Order. 553.370-3521 Blanket Purchase Agreement. 553.370-1535A GSA Form 1535A, Recommendation for 553.370-3577 [Removed] Award(s) (Continuation). 553.370-3611 GSA Form 3611, Cover Page Source 553.370-1602 GSA Form 1602, Notice Concerning Selection Information. Solicitation. 553.370-8002A GSA Form 8002A, Motor Vehicle 553.370-1678 GSA Form 1678, Status Report of Orders Requisition Status. and Shipments. 553.370-8002B GSA Form 8002B, Motor Vehicle Delivery 553.370-1720 [Removed] Order.

553-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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553-ii CHANGE 49 JUNE 28, 2011

PART 553—FORMS 553.300-70 PART 553—FORMS

Subpart 553.1—General (b) If only one GSA Service or Office uses a GSA form or if the form is used for a contract type unique to one Service 553.101 Requirements for use of forms. or Office (e.g., construction contracts), that Service or Office Parts 501–552 and 570 prescribe the requirements for use is responsible for maintaining the form. of GSA forms illustrated or referenced in this part. You may (c) Any proposed new or revised GSA acquisition related identify the prescription as follows: form must be submitted to the Office of Acquisition Policy for (a) Forms available on-line. The list of forms available review and concurrence. on-line in 553.370-1 identifies the basic prescription for each referenced form. Subpart 553.3—Illustrations of Forms (b) Illustrated forms. The prescription for each illustrated form is identified by a cross-reference shown on the illustra- 553.300 Scope of subpart. tion. When a form is mentioned in more than one place in this This subpart illustrates standard and GSA forms pre- regulation, the section referenced on the illustration is the sec- scribed or referenced in Parts 501–551 and 570. Instructions tion that contains the basic prescription. on completing a form, if included, are identified by the suffix “I” after the GSAR section number. 553.102 Current editions. You must use the current edition of the forms identified in 553.300-70 Forms not illustrated. Subpart 553.3 unless otherwise authorized under this regula- This subpart does not illustrate either: tion. (a) Standard forms illustrated in the FAR. (b) Forms available on-line. You can access the forms 553.170 Establishing and revising GSA Forms. listed below at the location indicated. (a) If two or more GSA Services or Offices use a GSA form, the Office of Acquisition Policy maintains the form.

Reference Form No. Title On-line Location 570.801 Standard Form 2 U.S. Government Lease for Real Property http://www.gsa.gov/pbs/pe/stancla/ stancla.htm 552.238-74 GSA Form 72A Contractor’s Report of Sales http://vsc.gsa.gov 570.802(b) GSA Form 276 Supplemental Lease Agreement http://www.gsa.gov/forms 513.302-70(b) GSA Form 300 Order for Supplies and Services http://www.gsa.gov/forms 513.302-70(a)(3) GSA Form 300A Order for Supplies and Services (Continuation) http://www.gsa.gov/forms 509.105-1(a) GSA Form 527 Contractor’s Qualifications and Financial Information http://www.gsa.gov/forms 532.905-71(a) GSA Form 1142 Release of Claims http://www.gsa.gov/forms 570.802(c) GSA Form 1364 Proposal to Lease Space http://www.gsa.gov/forms 570.802(d) GSA Form 1217 Lessor’s Annual Cost Statement http://www.gsa.gov/forms 514.407-72 GSA Form 1535 Recommendation for Award(s) http://www.gsa.gov/forms 513.106-3 GSA Form 2010 Small Purchase Tabulation Source List/Abstract http://www.gsa.gov/forms 532.905-70 GSA Form 2419 Certification of Progress Payments Under Fixed-Price http://www.gsa.gov/forms Construction Contracts 519.502-70 GSA Form 2689 Small Business Analysis Record http://www.gsa.gov/forms 501.603-3(e)(1) GSA Form 3409 Personal Qualifications Statement for Appointment as http://www.gsa.gov/forms Contracting Officer 504.803(b) GSA Form 3420 Contract/Modification File Checklist File Format http://www.gsa.gov/forms (Award) 503.104-4 GSA Form 3617 Record of Authorization of Access to Proprietary or http://www.gsa.gov/forms Source Selection Information 570.802(a) GSA Form 3626 U.S. Government Lease for Real Property (Short Form) http://www.gsa.gov/pbs/pe/stancla/ stancla.htm 519.7009(a) GSA Form 3695 Mentor-Protégé Program Application http://www.gsa.gov/forms

553-1 553.300-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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553-2 (Next page is 553-11) PART 553—FORMS 553.300-70

553-3 AMENDMENT 2009–01 APRIL 24, 2009

GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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553-4 PART 553—FORMS 553.300-70

553-5 553.300-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553-6 PART 553—FORMS 553.300-70

553-7 553.300-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553-8 PART 553—FORMS 553.300-70

553-9 553.300-70 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553-10 CHANGE 22 AUGUST 8, 2008

PART 553—FORMS 553.370-618D

553.370-618D [Removed]

[GSA Form 618D has been removed.]

553-11 553.370-1378 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-1378 GSA Form 1378, Record of, and Receipt for, Bids and Responses.

[514.401(a)(4)]

553-12 PART 553—FORMS 553.370-1458

553.370-1458 GSA Form 1458, Motor Vehicle Shop Work Order, Repair and Purchase Order.

[513.302-70(c)]

553-13 553.370-1458 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-1458 GSA Form 1458, Motor Vehicle Shop Work Order, Repair and Purchase Order.

553-14 PART 553—FORMS 553.370-1535A

553.370-1535A GSA Form 1535A, Recommendation for Award(s) (Continuation).

3$*( 3$*(6 RECOMMENDATION FOR AWARD(S) (Continuation) 2) 62/,&,7$7,21

12. PROPOSED AWARD(S) AND PRICE/DISCOUNT ANALYSIS ACQUISITION CONTRACTOR'S NAME, ADDRESS, DUNS NUMBER, ITEM PRODUCTION POINT CODING AND CONTRACT NUMBER NUMBERS &LW\&RXQW\DQG6WDWH $02817 E D F G H

[514.408-71]

GENERAL SERVICES ADMINISTRATION *6$)250 $ 5(9

553-15 553.370-1602 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-1602 GSA Form 1602, Notice Concerning Solicitation.

[514.201-70] [515.210-70]

553-16 PART 553—FORMS 553.370-1678

553.370-1678 GSA Form 1678, Status Report of Orders and Shipments.

[552.242-70(a)]

553-17 553.370-1678 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-1678 GSA Form 1678, Status Report of Orders and Shipments.

553-18 CHANGE 55 OCTOBER 1, 2012

PART 553—FORMS

553.370-1720 [Removed]

[GSA Form 1720 has been removed.]

553-19 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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553-20 (Change 55) PART 553—FORMS 553.370-1766

553.370-1766 GSA Form 1766, Structured Approach Profit/Fee Objective.

[Go to http://www.gsa.gov/forms to access form.]

553-21 553.370-2689 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-2689 Small Business Analysis Record.

[Go to http://www.gsa.gov/forms to access form.]

553-22 PART 553—FORMS 553.370-2728

553.370-2728 GSA Form 2728, Procurement Contract Register.

[504.7002]

553-23 553.370-3186 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-3186 GSA Form 3186, Order for Supplies or Services.

[513.302-70(d)]

553-24 PART 553—FORMS 553.370-3186

553.370-3186 GSA Form 3186, Order for Supplies or Services.

553-25 553.370-3186B GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-3186B GSA Form 3186B, Order for Supplies or Services (EDI).

[513.302-70(d)]

553-26 PART 553—FORMS 553.370-3410

553.370-3410 GSA Form 3410, Request for Appointment.

[501.603-3(b)(1)(ii)]

553-27 553.370-3471 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-3471 GSA Form 3471, Abstract of Offers.

[514.403(c)]

553-28 PART 553—FORMS 553.370-3521

553.370-3521 Blanket Purchase Agreement.

[513.307]

553-29 553.370-3521 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-3521 Blanket Purchase Agreement.

553-30 PART 553—FORMS 553.370-3521

553.370-3521 Blanket Purchase Agreement.

553-31 CHANGE 39 OCTOBER 19, 2009

553.370-3521 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-3521 Blanket Purchase Agreement.

553-32 PART 553—FORMS 553.370-3577

553.370-3577 [Removed]

[GSA Form 3577 has been removed.]

553-33 553.370-3611 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-3611 GSA Form 3611, Cover Page Source Selection Information.

[503.104-5(b)(1)]

553-34 PART 553—FORMS 553.370-8002A

553.370-8002A GSA Form 8002A, Motor Vehicle Requisition Status.

[513.302-70(d)]

553-35 553.370-8002B GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

553.370-8002B GSA Form 8002B, Motor Vehicle Delivery Order.

[513.302-70(d)]

553-36 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

SUBCHAPTER I—SPECIAL CONTRACTING PROGRAMS This page intentionally left blank. AMENDMENT 2011–01 JUNE 27, 2011

PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY

Sec. Subpart 570.1—General Subpart 570.3—Acquisition Procedures for 570.101 Applicability. Leasehold Interests in Real Property Over the 570.102 Definitions. Simplified Lease Acquisition Threshold 570.103 Authority to lease. 570.301 Market survey. 570.104 Competition. 570.302 Description of requirements. 570.105 Methods of contracting. 570.303 Solicitation for offers. 570.105-1 Contracting by negotiation. 570.303-1 Preparing the SFO. 570.105-2 Criteria for the use of two-phase desgin- 570.303-2 Issuing the SFO. build. 570.303-3 Late offers, modifications of offers, and 570.106 Advertising, publicizing, and notifications to withdrawals of offers. Congress. 570.303-4 Changes to SFOs. 570.106-1 Synopsis of lease awards. 570.304 General source selection procedures. 570.107 Oral presentations. 570.305 Two-phase design-build selection 570.108 Responsibility determination. procedures. 570.109 Certifications. 570.306 Evaluating offers. 570.110 Cost or pricing data and information other 570.307 Negotiations. than cost or pricing data. 570.308 Award. 570.111 Inspection and acceptance. 570.309 Debriefings. 570.112 Awards to Federal employees. Subpart 570.4—Special Aspects of Contracting 570.113 Disclosure of mistakes after award. for Continued Space Requirements 570.114 Protests. 570.401 Renewal options. 570.115 Novation and change of ownership. 570.402 Succeeding leases. 570.116 Contract format. 570.402-1 General. 570.117 Sustainable requirements for lease 570.402-2 Publicizing/Advertising. acquisition. 570.402-3 Market survey. 570.117-1 Federal leadership in environmental, energy, 570.402-4 No potential acceptable locations. and economic performance. 570.402-5 Potential acceptable locations. 570.117-2 Guiding principles for federal leadership in 570.402-6 Cost-benefit analysis. high performance and sustainable buildings. 570.403 Expansion requests. 570.404 Superseding leases. Subpart 570.2—Simplified Lease Acquisition 570.405 Lease extensions. Procedures 570.201 Purpose. Subpart 570.5—Special Aspects of Contracting 570.202 Policy. for Lease Alterations 570.203 Procedures. 570.501 General. 570.203-1 Market survey. 570.502 Alterations by the lessor. 570.203-2 Competition. 570.502-1 Justification and approval requirements. 570.203-3 Soliciting offers. 570.502-2 Procedures. 570.203-4 Negotiation, evaluation, and award. 570.503 Alterations by the Government or through a separate contract. Subpart 570.6—Contracting for Overtime Services and Utilities in Leases 570.601 General. Subpart 570.7—Solicitation Provisions and Contract Clauses 570.701 FAR provisions and clauses. 570.702 GSAR solicitation provisions. 570.703 GSAR contract clauses. 570.704 Deviations to provisions and clauses. Subpart 570.8—Forms 570.801 Standard forms. 570.802 GSA forms.

570-i GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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570-ii AMENDMENT 2011–01 JUNE 27, 2011

PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY 570.102 PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY

Subpart 570.1—General “Contractor” means lessor. “Landlord” or “lessor” means any individual, firm, part- 570.101 Applicability. nership, trust, association, State or local government, or other (a) This part applies to acquisitions of leasehold interests legal entity that leases real property to the Government. in real property except: “Lease” or “leasehold interest in real property” means a (1) Leasehold interests acquired by the power of emi- conveyance to the Government of the right of exclusive pos- nent domain or by donation. session of real property for a definite period of time by a land- (2) Acquisition of leasehold interests in bare or unim- lord. It may include operational services provided by the proved land. landlord. (b) In addition, the GSAR rules in the table below apply. “Lease acquisition” means the acquiring by lease of an Other provisions of 48 CFR Chapter 5 (GSAR) do not apply interest in improved real property for use by the Government, to leases of real property unless specifically cross-referenced whether the space already exists or must be constructed. in this Part 570. “Lease extension” means extension of the expiration date of a lease to provide for continued occupancy on a short term GSAR Rules Applicable to Acquisitions of Leasehold Interests basis. in Real Property “Lease renewal” (option) means the right, but not the obli- 501 515.209-70 519.12 533 gation of the Government to continue a lease upon specified 502 515.305 522.805 536.271 terms and conditions, including lease term and rent. 503 517.202 522.807 537.2 509.4 517.207 532.111 552 “Lessee” or “tenant” means the United States of America. 514.407 519.7 553 “Operational services” means services that support use of a leased property, such as heating, ventilation, air condition- (c) The following GSAM provisions apply to acquisitions ing, utilities, and custodial services. of leasehold interests in real property. These are in addition to the GSAR requirements identified in 570.101(b). “Simplified lease acquisition procedures” mean the procedures for awarding leases at or below the simplified lease acquisition threshold. GSAM Applicable to Acquisitions of Leasehold Interests “Simplified lease acquisition threshold” means the simpli- in Real Property fied acquisition threshold (see FAR 2.101), when applied to 501 507 522.14 532.8 the average annual amount of rent for the term of the lease, 503 519.3 523.4 532.9 504.2 519.6 530 532.11 including option periods and excluding the cost of services. 504.9 519.7 532.1 533 “Small business” means a concern including affiliates, 505 519.12 532.4 537.2 which is organized for profit, is independently-owned and 506 522.13 532.6 operated, is not dominant in the field of leasing commercial real estate, and that has annual average gross receipts for the preceding three fiscal years which are less than the size stan- (d) The FAR does not apply to leasehold acquisitions of dard established by the Small Business Administration pursu- real property. Where referenced in this part, FAR provisions ant to 13 CFR Part 121. The size standards may be found at have been adopted based on a statutory requirement applica- http://www.sba.gov/size/sizetable_2002.html. For most lease ble to such lease acquisitions or as a matter of policy, includ- procurements, the NAICS code is 531190. ing, but not limited to “Federal agency procurement” as “Solicitation for Offers (SFO)” means a request for pro- defined at FAR 3.104. posals.

570.102 Definitions. “Substantially as follows” or “substantially the same as,” “ANSI/BOMA Office Area (ABOA)” means the area when used in prescribing a provision or clause, means that the “where a tenant normally houses personnel, and/or furniture, contracting officer may prepare and use a variation of that for which a measurement is to be computed,” as stated by the provision or clause to accommodate requirements peculiar to American National Standards Institute/Building Owners and an individual acquisition. The variation must include the Managers Association (ANSI/BOMA) publication salient features of the FAR or GSAR provision or clause. It Z65.1-1996. must also be consistent with the intent, principle, and sub- “Contract” means lease. stance of the FAR or GSAR provision or clause and related coverage on the subject matter.

570-1 AMENDMENT 2011–01 JUNE 27, 2011

570.103 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL “Succeeding lease” means a lease whose effective date (2) Offerors will need to perform design work before immediately follows the expiration date of an existing lease developing a price. for space in the same building. (3) Offerors will incur a substantial amount of expense “Superseding lease” means a lease that replaces an exist- in preparing offers. ing lease, prior to the scheduled expiration of the existing (4) The contracting officer considers criteria such as the lease term. following: (i) The extent to which the project requirements 570.103 Authority to lease. have been adequately defined. (a) .The Administrator of General Services is authorized (ii) The time constraints for delivery of the project. by 40 U.S.C. §585 to enter into a lease agreement for the (iii) The capability and experience of potential con- accommodation of a Federal agency in a building (or tractors. improvement) which is in existence or being erected by the (iv) The past performance of potential contractors. lessor for the accommodation of the Federal agency. The lease (v) The suitability of the project for use of the agreement may not bind the Government for more than 20 two-phase selection procedures. years. (vi) The capability of the agency to manage the (b) The contracting officer has exclusive authority to enter two-phase selection process. into and administer leases on the Government’s behalf to the (vii) Other criteria established by the HCA. extent provided in the certificate of appointment as a contract- (c) See 570.305 for additional information. ing officer. Nothing in this paragraph is intended to limit the contracting officer’s authority to designate, consistent with statute and regulation, a contracting officer’s representative. 570.106 Advertising, publicizing, and notifications to Congress. 570.104 Competition. (a) If a proposed acquisition is not exempt under FAR Unless the contracting officer uses the simplified proce- 5.202 or GSAR 570.106(e), and is for a leasehold interest in dures in Subpart 570.2, the competition requirements of real property estimated to exceed 10,000 square feet, then the FAR Part 6 apply to acquisition of leasehold interests in real contracting officer must publicize the proposed acquisition in property. http://www.FBO.gov. (b) For leasehold acquisitions where the solicitation 570.105 Methods of contracting. requires the construction of a new building on a preselected site, the contracting officer, in accordance with the time- 570.105-1 Contracting by negotiation. frames established in FAR 5.203, must publicize the proposed Contracting by negotiation is appropriate for acquiring acquisition in http://www.FBO.gov regardless of size or space in a building through a lease contract. The contracting value. officer will usually need to conduct discussions with offerors (c) For leasehold acquisitions not subject to a square foot about their proposals and consider factors other than price in measurement (e.g., antennas, piers, parking), contracting offi- making the award. cers must publicize the proposed acquisition in http:// www.FBO.gov when the contract action is expected to exceed 570.105-2 Criteria for the use of two-phase desgin-build. $25,000, unless an exception under FAR 5.202 applies. The contracting officer may use the two-phase (d) Other than as identified in paragraphs (a) through (c) of design-build selection procedures in 41 U.S.C. 253m for lease this section, the contracting officer need not publicize the pro- construction projects. This includes lease construction proj- posed acquisition of a leasehold interest in real property, ects with options to purchase the real property leased. Use the including expansion requests within the scope of a lease (see procedures in 41 U.S.C. 253m and FAR 36.3 when the condi- 570.403), lease extensions under the conditions defined in tions in (a) and (b) below are met: 570.405, and building alterations within the scope of a lease (a) The contracting officer anticipates that the lease will (see 570.5). However, the contracting officer may publicize involve the design and construction of a building, facility, or proposed lease acquisitions of any dollar value or square foot- work for lease to the Government. age in http://www.FBO.gov or local newspapers if, in the (b) The contracting officer determines whether the proce- opinion of the contracting officer, doing so is necessary to dures are appropriate for entering into a lease construction promote competition. contract based on the following: (e) The contracting officer may issue a consolidated adver- (1) The contracting officer expects to receive three or tisement for multiple leasing actions. more offers. (f) Except as otherwise provided in paragraph (b) of this section, where publicizing of the proposed acquisition is

570-2 AMENDMENT 2011–01 JUNE 27, 2011

PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY 570.112 required, the notice shall be published in http://www.FBO.gov tive contractor is otherwise qualified and eligible for award, not less than three calendar days prior to issuance of a solici- review the Excluded Parties List System (EPLS). tation. (b) The contracting officer’s signature on the contract is (g) Except as otherwise provided in paragraph (b) of this deemed an affirmative determination. section and as set forth in paragraphs (g) and (h) of this sec- (c) If the contracting officer finds an offeror nonresponsi- tion, the contracting officer shall provide offerors not less ble, sign and place in the contract file a determination of non- than 20 calendar days between solicitation issuance and the responsibility. State the basis for the determination. date established for receipt of initial offers. (d) If the contracting officer finds a small business concern (1) For a proposed acquisition using simplified lease nonresponsible, the procedures at FAR 19.6 apply. Place all acquisition procedures (see 570.2), consider the individual documents and reports supporting a determination of respon- acquisition and establish a reasonable response time. sibility or nonresponsibility in the lease file. (2) In cases of unusual and compelling urgency (FAR 6.303-2), provide as much time as reasonably possible under 570.109 Certifications. the circumstances and document the contract file. Before awarding a lease, review applicable representations (h) If a Member of Congress has specifically requested and certifications for compliance with statute and regulations. notification of award, the contracting officer must provide award notifications in accordance with 505.303. 570.110 Cost or pricing data and information other than cost or pricing data. 570.106-1 Synopsis of lease awards. (a) The policies and procedures of FAR 15.403 apply to (a) Except for lease actions described in paragraph (b) of lease contract actions. this section, contracting officers must synopsize in http:// (b) FAR 15.403-1 defines exceptions to and waivers for www.FBO.gov awards exceeding $25,000 total contract value submitting cost or pricing data. Most leasing actions will have that are likely to result in the award of any subcontracts. How- adequate price competition. For price analysis of offered ever, the dollar threshold is not a prohibition against publiciz- rental rates, the contracting officer may use a market survey, ing an award of a smaller amount when publicizing would be an appraisal conducted using accepted real property appraisal advantageous to industry or to the Government. procedures to establish a market price for comparison, or (b) A notice is not required if— other relevant market research data. For price analysis of (1) The notice would disclose the occupant agency’s offered tenant improvement costs, obtain two offers or cost needs and the disclosure of such needs would compromise the and pricing data. national security; or (c) In exceptional cases, the requirement for submission of (2) The lease— certified cost or pricing data may be waived under (i) Is for an amount not greater than the simplified FAR 15.403-1(c)(4). lease acquisition threshold; (d) If cost or pricing data are required, follow the proce- (ii) Was made through a means where access to the dures in FAR 15.403-4 and 15.406-2. notice of proposed lease action was provided through http:// www.FBO.gov; and 570.111 Inspection and acceptance. (iii) Permitted the public to respond to the solicita- Before accepting the space, the contracting officer must tion electronically. verify that the space complies with the Government’s require- (c) Justifications for other than full and open competi- ments and specifications and document this in an inspection tion must be posted in http://www.FBO.gov. Information report. The inspection and acceptance document must con- exempt from public disclosure must be redacted. tain the square footage accepted and the acceptance date. Include the inspection and acceptance in the contract file. 570.107 Oral presentations. When space such as piers, antennas, and parking are leased, The contracting officer may require oral presentations for square footage may not be the manner in which the amount of acquisitions of leasehold interests in real property. Follow the space is specified; therefore, document that the space com- procedures in FAR 15.102. plies with the Government’s written requirements.

570.108 Responsibility determination. 570.112 Awards to Federal employees. (a) Determine that the prospective awardee is responsible If the contracting officer receives an offer from an officer with respect to the lease under consideration. The standards in or employee of the Government, follow the procedures in FAR 9.104 apply. As part of the determination that a prospec- FAR 3.6.

570-3 CHANGE 65 JUNE 24, 2015

570.113 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL 570.113 Disclosure of mistakes after award. (iii) When choosing what documents to review If a mistake in a lessor’s offer is discovered after award, the during sustainability compliance reviews, random sampling contracting officer should process it substantially in accor- techniques can be utilized to limit the number of documents/ dance with FAR 14.407-4 and GSAM 514.407-4. evidence being reviewed. Staff/Service Offices may prioritize which products and/or services to focus on in their compli- 570.114 Protests. ance reviews. For specific best practices in verifying evidence FAR 33.1 and 533.1 apply to protests of lease acquisitions. of compliance, review the Verification Guide for Purchasers of Sustainable Products at http://insite.gsa.gov/ 570.115 Novation and change of ownership. sustainableacquisition. In the event of a transfer of ownership of the leased prem- (c) Post-Occupancy Procedures. The contracting officer ises or a change in the lessor’s legal name, FAR 42.12 applies. must take reasonable steps to validate the lessor complies with all post-occupancy sustainable requirements in the lease. 570.116 Contract format. Review the Lease Management Desk Guide at http:// The uniform contract format is not required for leases of insite.gsa.gov/sustainableacquisition for guidance on moni- real property. toring and documenting lessor compliance with all post-occupancy sustainable requirements. 570.117 Sustainable requirements for lease acquisition. (d) Sustainability Exceptions. If at any point during a real Contracting officers must include sustainable design property lease acquisition the contracting officer determines requirements appropriate for the type of leasing action in the that one of the mandatory sustainable requirements should not solicitations for offers. Contracting officers can find solicita- be included in the lease due to an allowable exception, the tion requirements and instructions on http://www.gsa.gov/ contracting officer must follow any applicable procedures as leasing under Leasing Policies and Procedures, Green Leas- stated within the PBS Leasing Desk Guide at http:// ing, and in the Leasing Desk Guide to assist them in comply- insite.gsa.gov/sustainableacquisition. ing with GSA’s sustainable requirements identified in this (e) Compliance Monitoring and Reporting. part. (1) Review Process. The PBS Leasing Office is respon- (a) Pre-Award Procedures. The contracting officer must sible for lease compliance monitoring to determine compli- ensure that the sustainable requirements within the lease tem- ance with the sustainable acquisition criteria specified in plates are included in the awarded lease as specified by the 570.117(e)(2). The PBS Leasing Office is responsible for PBS Leasing Desk Guide. Review Chapter 18 of the PBS coordinating these reviews with the GSA Office of Acquisi- Leasing Desk Guide at http://insite.gsa.gov/ tion Policy. PBS Leasing Office is required to submit the sustainableacquisition for guidance on ensuring sustainable results of these reviews to the GSA Office of Acquisition Pol- requirements are included in leases. icy. GSA Office of Acquisition Policy is required to monitor (b) Post-Award, Pre-Occupancy Procedures. and report sustainable acquisition activity to the GSA Chief (1) Sustainability Procedures. For specific post-award Sustainability Officer in support of the agency’s semiannual sustainability procedures, review Chapter 18 of the PBS Leas- status report to Office of Management and Budget. ing Desk Guide at http://insite.gsa.gov/ (2) Determining Compliance. See the GSA Sustainable sustainableacquisition. Acquisition Review Criteria document at http:// (2) Receipt of Sustainable Products and Services. insite.gsa.gov/sustainableacquisition for the specific criteria (i) The contracting officer must take reasonable that will be used to determine compliance with sustainable steps to validate any required sustainable products and/or ser- acquisition reviews. vices are received. Review the best available evidence of compliance such as manufacturer product documentation, 570.117-1 Federal leadership in environmental, energy, design submittals, or green lease submittals to ensure the les- and economic performance. sor is providing required sustainable products and services. In order to create a clean energy economy that will (ii) The contracting officer must note any discrepan- increase our Nation’s prosperity, promote energy security, cies with sustainable requirements in the lease and provide protect the interests of taxpayers, and safeguard the health of feedback to the lessor. our environment, GSA will accomplish all requirements of E.O. 13514 that apply to lease acquisition.

570-4 AMENDMENT 2011–01 JUNE 27, 2011

PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY 570.302 570.117-2 Guiding principles for federal leadership in (4) State whether all evaluation factors other than cost high performance and sustainable buildings. or price, when combined, are either: GSA is committed to the design, construction, operation, (i) Significantly more important than cost or price. and maintenance of leased space that comply with all of the (ii) Approximately equal in importance to cost or following Guiding Principles: price. (a) Employ Integrated Design Principles; (iii) Significantly less important than cost or price. (b) Optimize Energy Performance; (5) Include either in full text or by reference, applicable (c) Protect and Conserve Water; FAR provisions and contract clauses required by 570.6. (d) Enhance Indoor Environmental Quality; and (6) Include sustainable design requirements. (e) Reduce the Environmental Impact of Building Materi- (b) As necessary, review with prospective offerors the als. Government’s requirements, pricing matters, evaluation procedures and submission of offers. Subpart 570.2—Simplified Lease Acquisition Procedures 570.203-4 Negotiation, evaluation, and award. (a) If the contracting officer needs to conduct negotiations, 570.201 Purpose. use the procedures in 570.307. This subpart prescribes simplified procedures for small (b) Evaluate offers in accordance with the solicitation. leases. These procedures reduce administrative costs, while Evaluate prices and document the lease file to demonstrate improving efficiency and economy, when acquiring small whether the proposed contract prices are fair and reasonable. leasehold interests in real property. See 570.110. (c) If the total price, including options, exceeds the amount 570.202 Policy. established by FAR 15.403-4, consider whether the contract- Use simplified lease acquisition procedures to the maxi- ing officer needs cost and pricing data to determine that the mum extent practicable for actions at or below the simplified price is fair and reasonable. In most cases, the exceptions at lease acquisition threshold. FAR 15.403-1 will apply. (d) Regardless of the process used, the contracting officer 570.203 Procedures. must determine whether the price is fair and reasonable. (e) If the total contract value of the lease, including 570.203-1 Market survey. options, will exceed the amount established by FAR Conduct a market survey to identify potential sources. Use 19.702(a), the proposed awardee must provide an acceptable information available in GSA or from other sources to iden- small business subcontracting plan. This requirement does tify locations that will meet the Government’s requirements. not apply if the proposed awardee is a small business concern. (f) Make award to the responsible offeror whose proposal 570.203-2 Competition. represents the best value to the Government considering price (a) To the maximum extent practicable, the contracting and other factors included in the solicitation. officer must solicit at least three sources to promote competition. If there are repeated requirements for space in the same Subpart 570.3—Acquisition Procedures for market, invite two sources, if practicable, that are not Leasehold Interests in Real Property Over included in the most recent solicitation to submit offers. the Simplified Lease Acquisition Threshold (b) If the contracting officer solicits only one source, document the file to explain the lack of competition. 570.301 Market survey. Conduct a market survey to identify potential sources. Use 570.203-3 Soliciting offers. information available in GSA or from other sources to iden- (a) The contracting officer must solicit offers by providing tify locations capable of meeting the Government’s require- each prospective offeror a proposed short form lease GSA ments. Form 3626 or SFO. The short form lease or SFO must: (1) Describe the Government’s requirements. 570.302 Description of requirements. (2) List all award factors, including price or cost, and (a) The description of requirements depends on the nature any significant subfactors that the contracting officer will of the space the agency needs and the market available to sat- consider in awarding the lease. isfy that need. (3) State the relative importance of the evaluation fac- (b) The description of requirements must include all the tors and subfactors. following:

570-5 AMENDMENT 2011–01 JUNE 27, 2011

570.303 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (1) A statement of the purpose of the lease. (2) If after proposal receipt, send the amendment to (2) Functional, performance, or physical requirements. each offeror who submitted a proposal. (3) Any special requirements. (d) If an amendment is so substantial that it requires a com- (4) The delivery schedule. plete revision of the SFO, cancel the SFO, readvertise if (c) The description must promote full and open competi- required by 570.106, and issue a new SFO. tion. Include restrictive provisions or conditions only to the (e) If there are changes to the Government’s requirements extent necessary to satisfy the agency’s needs or as authorized for amount of space, delineated area, occupancy date, and/or by law. other major aspects of the requirements, the contracting officer shall consider whether there is a need to readvertise, and 570.303 Solicitation for offers. to document the file accordingly.

570.303-1 Preparing the SFO. 570.304 General source selection procedures. The SFO forms the basis for the lease negotiation process (a) These procedures apply to acquisitions of leasehold and becomes part of the lease. Document each SFO in writing interests except if the contracting officer uses one of the fol- or electronically. Include the information necessary to enable lowing: prospective offerors to prepare proposals. Each SFO, at a (1) Simplified lease acquisition procedures authorized minimum, must: by 570.2. (a) Describe the Government’s requirements. (2) Two-phase design-build selection procedures (b) State the method the Government will use to measure authorized by 570.105-2. space. (b) The contracting officer is designated as the source (c) Explain how to structure offers. selection official unless the HCA appoints another individual (d) Specify a date, time, and place for submission of offers. for a particular leasing action or group of leasing actions. (e) Explain how the Government will evaluate offers. (c) In a trade off procurement, the contracting officer must (f) Describe the source selection procedures the Govern- include price or cost to the Government, past performance, ment will use. the planned participation of small disadvantaged business (g) Include a statement outlining the information the Gov- concerns in performance of the contract, and other factors as ernment may disclose in debriefings. required by FAR 15.304 as evaluation factors. The contract- (h) Include appropriate forms prescribed in 570.8. ing officer may include other evaluation factors as needed. (i) Include sustainable design requirements. (d) The evaluation factors and significant subfactors must comply with FAR 15.304 and either one of the following: 570.303-2 Issuing the SFO. (1) FAR 15.101-1 if the contracting officer will use the Release the SFO to all prospective offerors at the same tradeoff process. time. The SFO may be released electronically. (2) FAR 15.101-2 if the contracting officer will use the lowest price technically acceptable source selection process. 570.303-3 Late offers, modifications of offers, and withdrawals of offers. 570.305 Two-phase design-build selection procedures. Follow the procedures in FAR 15.208. (a) These procedures apply to acquisitions of leasehold interests if the contracting officer uses the two-phase 570.303-4 Changes to SFOs. design-build selection procedures authorized by 570.105-2. (a) If the Government’s requirements change, either before Follow FAR 36.3. or after receipt of proposals, issue an amendment. Document (b) The SFO must include all the following information: the amendment using the same method as for the SFO, written (1) The Scope of Work. or electronic. (2) The evaluation factors and subfactors to be used in (b) If time is critical, you may provide information on SFO evaluating phase-one proposals and their relative importance. amendments orally. (3) The maximum number of offerors to be selected to (1) Make a record of the information provided. submit competitive proposals in phase-two. (2) Provide, or attempt to provide, the notice to all (4) The evaluation factors, including cost or price, and offerors or prospective offerors on the same day. subfactors to be used in evaluating phase-two proposals and (3) Promptly confirm the information provided orally selecting the successful offeror, and their relative importance. in a written amendment. (c) The following procedures apply to phase-one evalua- (c) Distribute an amendment as follows: tion factors: (1) If before the proposal due date, send the amendment (1) Phase one factors include: to all prospective offerors who were sent a copy of the SFO.

570-6 AMENDMENT 2011–01 JUNE 27, 2011

PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY 570.309 (i) Specialized experience and technical compe- (d) The contracting officer may obtain information to eval- tence. uate an offeror’s past performance on subcontracting plan (ii) Capability to perform. goals and small disadvantaged business participation, mone- (iii) Past performance of the offeror’s team (includ- tary targets, and notifications under FAR 19.1202-4(b) from ing architect-engineer and construction members of the the following sources: team). (1) The Small Business Administration; (iv) The planned participation of small disadvan- (2) Information on prior contracts from contracting taged business concerns in performance of the contract. officers and administrative contracting officers; (v) Other appropriate factors, such as site or loca- (3) Offeror’s references; and tion. (4) Past performance information collected under FAR (2) The contracting officer shall not require offerors to 42.15 and available through PPIRS. submit detailed design information or cost or price informa- (e) Document the evaluation of award factors other than tion in phase one. The contracting officer shall not use cost price listed in the solicitation. The file must include the basis related or price related evaluation factors. for evaluation, an analysis of each offer, and a summary of (d) The contracting officer shall set the maximum number findings. of offerors to be selected for phase-two to not exceed five (f) Also see the requirements in 570.108, 570.109 and unless the contracting officer determines that a number 570.111. greater than five is both: (1) In the government’s interest. 570.307 Negotiations. (2) Consistent with the purpose and objectives of the (a) Follow the procedures in FAR 15.306 and 15.307 for two-phase selection process. exchanges (including clarifications, communications, negoti- (e) In phase-two, require detailed technical and price pro- ations, discussions, and revisions). posals. Evaluate the proposals using the procedures in (b) Place a written record of all exchanges in the lease file. 570.306. (c) Provide prompt written notice to any offeror excluded from the competitive range or otherwise eliminated from the 570.306 Evaluating offers. competition in accordance with FAR 15.503(a). (a) The contracting officer must evaluate offers solely in accordance with the factors and subfactors stated in the SFO. 570.308 Award. (b) Evaluate prices and document the lease file to demon- (a) Make award to the responsible offeror whose proposal strate that the proposed contract price is fair and reasonable. represents the best value after evaluation in accordance with The contracting officer must review the elements of the the factors and subfactors in the SFO. offeror’s proposed rent to analyze whether the individual ele- (b) Make award in writing and in the timeframe specified ments are realistic and reflect the offeror’s clear understand- in the SFO. ing of the work to be performed. The contracting officer must (1) If the contracting officer cannot make an award in discuss any inconsistencies with the offeror. If the offeror that time, request in writing from each offeror an extension of refuses to support or make any changes to the rent proposed, the acceptance period through a specific date. consider the risk to the Government prior to making any lease (2) If time is critical, the contracting officer may award. request the extensions orally. The contracting officer must (c) Evaluate past performance on previous lease projects make a record of the request and confirm it promptly in writ- in accordance with 515.305 and FAR 15.305(a)(2). Obtain ing. information through: (c) Notify unsuccessful offerors in writing or electroni- (1) Questionnaires tailored to the circumstances of the cally in accordance with FAR 15.501 and 15.503(b). acquisition; (d) The source selection authority may reject all proposals (2) Interviews with program managers or contracting received in response to an SFO, if doing so is in the best inter- officers; est of the Government. (3) Other sources; or (4) Past performance information collected under FAR 570.309 Debriefings. 42.15 and available through the Past Performance Informa- The procedures of FAR 15.505 and 15.506 apply to leasing tion Retrieval System (PPIRS) at http://www.ppirs.gov. actions.

570-7 AMENDMENT 2011–01 JUNE 27, 2011

570.401 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL Subpart 570.4—Special Aspects of 570.402-3 Market survey. Contracting for Continued Space Conduct a market survey following 570.301. Requirements 570.402-4 No potential acceptable locations. If the contracting officer does not identify any potential 570.401 Renewal options. acceptable locations through the advertisement or the market (a) Exercise of options. Before exercising an option to survey, prepare a written justification to negotiate directly renew, follow the procedures in 517.207. The contract must with the present lessor. Fully document the efforts to locate first provide the right to renew the lease. If a renewal option alternative sources. Prepare the justification and obtain was not evaluated as part of the lease at award, then the addi- approval following FAR 6.3 and 506.3. tion of a renewal option during the lease term must satisfy the requirements of GSAM 506 regarding full and open compe- 570.402-5 Potential acceptable locations. tition. If the contracting officer identifies potential acceptable (b) Market information review. Before exercising an locations through the advertisement or market survey, con- option to renew a lease, review current market information to duct a cost-benefit analysis following the procedures determine that the rental rate in the option is fair and reason- 570.402-6. Based on the results of the cost-benefit analysis, able. take appropriate action as follows: (a) If the cost-benefit analysis indicates that the Govern- 570.402 Succeeding leases. ment will recover relocation costs and duplication of costs through competition, develop an SFO and negotiate with all 570.402-1 General. interested parties following 570.3. (a) If a succeeding lease for the continued occupancy of (b) If the cost-benefit analysis indicates that the Govern- space in a building does not exceed the simplified lease acqui- ment cannot expect to recover relocation costs and duplica- sition threshold, the contracting officer may use the simplified tion of costs through competition, prepare a justification for procedures in 570.2. Explain the absence of competition in approval in accordance with FAR 6.3 and 506.3. Explain the contract file. both: (b) If a succeeding lease will exceed the simplified lease (1) How the contracting officer performed the cost-ben- acquisition threshold, the contracting officer may enter into efit analysis. the lease under either of the following conditions: (2) That the cost-benefit analysis indicates that award (1) The contracting officer does not identify any poten- to any other offeror will likely result in substantial costs to the tial acceptable locations. Government that the Government cannot expect to recover (2) The contracting officer identifies potential accept- through competition. able locations, but a cost-benefit analysis indicates that award to an offeror other than the present lessor will result in sub- 570.402-6 Cost-benefit analysis. stantial relocation costs or duplication of costs to the Govern- (a) The cost-benefit analysis must consider all the follow- ment, and the Government cannot expect to recover such ing: costs through competition. (1) The prices of other potentially available properties. (2) Relocation costs, including estimated costs for 570.402-2 Publicizing/Advertising. moving, telecommunications, and alterations, amortized over The contracting officer must publish a notice if required by the firm term of the lease. 570.106. The notice should: (3) Duplication of costs to the Government. (a) Indicate that the Government's lease is expiring. (4) Other appropriate considerations. (b) Describe the requirements in terms of type and quantity (b) Establish the prices for other potentially available of space. properties by requesting each prospective offeror to provide (c) Indicate that the Government is interested in consider- an informational quotation for standard space for comparison ing alternative space if economically advantageous, and that purposes. otherwise the Government intends to pursue a sole source (1) Adjust the prices quoted for standard space for any acquisition. special requirements. (d) Advise prospective offerors that the Government will (2) You do not need a formal SFO to obtain the infor- consider the cost of moving, alterations, etc., when deciding mational quotation. However, you must provide a general whether it should relocate. description of the Government’s needs. (e) Provide a contact person for those interested in provid- (3) If you obtain oral quotations, document the following space to the Government. ing information, as a minimum:

570-8 AMENDMENT 2011–01 JUNE 27, 2011

PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY 570.501 (i) Name and address of the firm solicited. (b) If the value of the superseding lease exceeds the sim- (ii) Name of the firm’s representative providing the plified lease acquisition threshold, the justification and quote. approval requirements in FAR 6.3 and 506.3 apply. If the cost (iii) Price(s) quoted. does not exceed the simplified lease acquisition threshold, the (iv) Description of the space and services for which contracting officer may use the simplified procedures in 570.2 the quote is provided. and explain the absence of competition in the file. (v) Name of the Government employee soliciting the quotation. 570.405 Lease extensions. (vi) Date of the conversation. (a) This subsection applies to extension of the term of a (4) Compare the informational quotations to the present lease to provide for continued occupancy on a short term lessor’s price, adjusted to reflect the anticipated price for a basis. succeeding lease. (b) If the value of a lease extension will exceed the simplified lease acquisition threshold, the justification and approval 570.403 Expansion requests. requirements in FAR 6.3 and 506.3 apply. For extensions that (a) If the expansion space is in the general scope of the will not exceed the simplified lease acquisition threshold, the lease, the contracting officer may acquire the space through a contracting officer may use the simplified procedures in 570.2 modification without further justification under FAR 6.3. and explain the absence of competition in the file. (b) If the expansion space needed is outside the general (c) FAR 6.302-1 permits contracting without providing for scope of the lease, the contracting officer must determine full and open competition when the property or services whether it is more prudent to provide the expansion space by needed by the agency are available from only one responsible supplemental agreement to the existing lease or to meet the source and no other type of property or services will satisfy expansion requirement and existing tenancy to the require- the needs of the agency. This authority may apply to lease ment by competitive means. extensions in situations such as, but not limited to, the follow- (1) Conduct a market survey to determine the availabil- ing: ity of suitable alternative locations. (1) The agency occupying the leased space is scheduled (2) If you identify alternate locations that can satisfy the to move into other Federally controlled space, but encounters total requirement, perform a cost-benefit analysis to deter- unexpected delays in preparing the new space for occupancy. mine whether it is in the Government’s best interest to relo- (2) The Government encounters unexpected delays out- cate. Consider, as appropriate: side of its control in acquiring replacement space. (i) The cost of the alternate space compared to the (3) The Government is consolidating various agencies cost of expanding at the existing location. and the contracting officer needs to extend the terms of some (ii) The cost of moving. leases to establish a common expiration date. (iii) The cost of duplicating existing improvements. (4) The agency occupying the space has encountered (iv) The cost of the unexpired portion of the firm delays in planning for a potential relocation to other federally lease term. If a termination is possible, use the actual cost of controlled space due to documented organizational, financial, such an action. or other uncertainties. (v) The cost of disruption to the agency’s operation. (c) If the contracting officer determines not to use compet- Subpart 570.5—Special Aspects of itive procedures and the expansion space is outside the gen- Contracting for Lease Alterations eral scope of the lease: (1) If the estimated value of the acquisition does not 570.501 General. exceed the simplified lease acquisition threshold, document (a) The procedures in 570.502 apply to alterations the file as required by 570.203-2(b). acquired directly from a lessor by modification or supplemen- (2) If the estimated value of the acquisition exceeds the tal lease agreement. This is allowed if the following condi- simplified lease acquisition threshold, prepare a justification tions are met: for approval under FAR 6.3 and 506.3. (1) The alterations fall within the scope of the lease. Consider whether the work can be regarded fairly and reason- 570.404 Superseding leases. ably as part of the original lease requirement. (a) Consider executing a superseding lease to replace an (2) The lessor is willing to perform the proposed alter- existing lease when the Government needs numerous or ations at a fair and reasonable price. detailed modifications to the space that would cause compli- (3) It is in the Government’s interest to acquire the cations or substantially change the present lease or when mar- alterations from the lessor. ket conditions warrant renegotiation of an existing lease.

570-9 AMENDMENT 2011–01 JUNE 27, 2011

570.502 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (b) If proposed alterations are outside the scope of the (4) Document the analysis under this paragraph and the existing lease, decide whether to acquire the alterations resulting negotiation objectives. through either: (f) Price negotiations. The contracting officer must— (1) A supplemental lease agreement, as justified and (1) Exercise sound judgment. Make reasonable com- approved under 570.502-1. promises as necessary. (2) Government performance or a separate contract. (2) Provide the lessor with the greatest incentive for The lease must first provide the Government with the right to efficient and economical performance. perform alterations to the leased space. (3) Document negotiations in the contract file, including discussions regarding restoration cost or waiver of resto- 570.502 Alterations by the lessor. ration cost. (g) Order. For modifications not exceeding the simplified acquisition threshold, lease contracting officers may delegate 570.502-1 Justification and approval requirements. alteration contracting authority to a warranted contracting If the proposed alterations are outside the general scope of officer’s representative in GSA or the tenant agency. Alter- the lease and the contracting officer plans to acquire them ations awards must reference the lease number. If the modi- from the lessor without competition, the following justifica- fication does not exceed the simplified acquisition threshold, tion and approval requirements apply: the contracting officer may use GSA Form 300, Order for (a) If the alteration project will not exceed the micro-pur- Supplies or Services. Reference the lease on the form. chase threshold identified in FAR 2.101(b), no justification (h) Inspection and payment. The contracting officer must and approval is required. not make final payment for alterations until the work is: (b) If the alteration project will exceed the micro-purchase (1) Inspected by a qualified Government employee or threshold identified in FAR 2.101(b), but not the simplified independent Government contractor. lease acquisition threshold, the contracting officer may use (2) Confirmed as completed in a satisfactory manner. simplified acquisition procedures and explain the absence of competition in the file. 570.503 Alterations by the Government or through a (c) If the alteration project will exceed the simplified lease separate contract. acquisition threshold, the justification and approval require- If the Government chooses to exercise its right to make the ments in FAR 6.3 and 506.3 apply. alterations rather than contracting directly with the lessor, the Government may either: 570.502-2 Procedures. (a) Have Federal employees perform the work. (a) Scope of work. The contracting officer must prepare a (b) Contract out the work using standard contracting pro- scope of work for each alteration project. cedures that apply to a construction contract performed on (b) Independent Government estimate. The contracting Federal property. If the Government decides to contract for officer must obtain an independent Government estimate for the work, invite the lessor, as well as all other prospective each alteration project, including changes to existing alter- contractors, to submit offers for the project. ation agreements with the lessor. (c) Request for proposal. (1) The contracting officer must provide the scope of work to the lessor, including any plans and specifications, and Subpart 570.6—Contracting for Overtime request a proposal. Services and Utilities in Leases (2) The contracting officer must request sufficient cost or price information to permit a price analysis. 570.601 General. (d) Audits. If the contracting officer requires cost or pric- (a) Lease tenant agencies may need overtime services and ing data and the alteration project will exceed the threshold utilities on a regular or intermittent basis. Lease contracting identified in FAR 15.403-4, request an audit. officers may negotiate overtime rates for services and utilities (e) Proposal evaluation.The contracting officer must— and include those rates in leases where a need is projected. (1) Determine if the proposal meets the Government’s Only lease contracting officers may negotiate overtime rates. requirements. (b) An independent government estimate is required in (2) Analyze price or cost information. At a minimum, support of the negotiated rate. compare the proposed cost to the independent estimate and, if (c) Order. To order overtime services and utilities, if the applicable, any audit results received. order does not exceed the simplified acquisition threshold, a (3) Analyze profit following FAR 15.404-4. warranted contracting officer’s representative, in GSA or the

570-10 AMENDMENT 2011–01 JUNE 27, 2011

PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY 570.701 tenant agency, may place an order. The order must reference Subpart 570.7—Solicitation Provisions and the lease number. Contract Clauses (d) Payment. Do not make final payment for services and utilities until confirmed as delivered in a satisfactory manner. 570.701 FAR provisions and clauses. Include provisions or clauses substantially the same as the FAR provisions and clauses listed below. If… Then include… (a) the estimated value of the acquisition 52.204-3 Taxpayer Identification. exceeds the micro-purchase 52.204-6 Data Universal Numbering System (DUNS) Number. threshold identified in FAR 2.101 52.204-7 Central Contractor Registration. 52.219-1 Small Business Program Representations. 52.219-28 Post-Award Small Business Program Rerepresentation (use if lease term exceeds. five years). 52.232-23 Assignment of Claims. 52.232-33 Electronic Funds Transfer—Central Contractor Registration. 52.233-1 Disputes. (b) the estimated value of the acquisition 52.222-21 Prohibition of Segregated Facilities. exceeds $10,000 52.222-22 Previous Contracts and Compliance Reports. 52.222-25 Affirmative Action Compliance. 52.222-26 Equal Opportunity. 52.222-35 Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era. 52.222-36 Affirmative Action for Workers with Disabilities. 52.222-37 Employment Reports on Disabled Veterans and Veterans of the Vietnam Era. (c) the estimated value of the acquisition 52.204-10 Reporting Executive Compensation and First-Tier Subcontract Awards. is $25,000 or more (not applicable to individuals) (d) the estimated value of the acquisition 52.209-6 Protecting the Government's Interest when Subcontracting with Contractors exceeds the threshold identified in Debarred, Suspended, or Proposed for Debarment. FAR 9.409(b) (e) the estimated value of the acquisition 52.203-11 Certification and Disclosure Regarding Payments to Influence Certain Federal exceeds $100,000 Transactions.

(f) the estimated value of the acquisition 52.203-2 Certificate of Independent Price Determination. exceeds the simplified lease 52.203-7 Anti-Kickback Procedures. acquisition threshold. 52.204-5 Women-Owned Business (Other than Small Business). 52.209-5 Certification Regarding Debarment, Suspension, Proposed Debarment, and Other Responsibility Matters. 52.215-2 Audit and Records-Negotiation. 52.219-8 Utilization of Small Business Concerns. 52.223-6 Drug-Free Workplace. 52.233-2 Service of Protest.

(g) the estimated value of the acquisition 52.219-9 Small Business Subcontracting Plan. exceeds the threshold identified in 52.219-16 Liquidated Damages-Subcontracting Plan. FAR 19.708(b)

570-11 AMENDMENT 2011–01 JUNE 27, 2011

570.702 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

If… Then include… (h) the estimated value of the acquisition 52.219-24 Small Disadvantaged Business Participation Program-Targets. the estimated value of the acquisition 52.219-25 Small Disadvantaged Business Participation Program-Disadvantaged Status and exceeds the threshold identified in Reporting. FAR 19.1202-2(a) and the contracting officer is using a best value trade off analysis in an acquisition includes an evaluation factor that considers the extent of participation of small disadvantaged business concerns in accordance with FAR 19.12. (i) the value of the contract is expected to 52.203-13 Contractor Code of Business Ethics and Conduct. exceed $5 million and the 52.203-14 Display of Hotline Poster(s). performance period is 120 days or more. (j) the estimated value of the acquisition 52.222-24 Pre-award On-site Equal Opportunity Compliance Review. exceeds $10 million. (k) the contracting officer requires cost 52.215-10 Price Reduction for Defective Cost or Pricing Data. or pricing data for work or services 52.215-12 Subcontractor Cost or Pricing Data. exceeding the threshold identified in FAR 15.403-4 (l) the contracting officer authorizes 52.215-5 Facsimile Proposals. submission of facsimile proposals (m) negotiated acquisition provides 52.219-26 Small Disadvantaged Business Participation Program-Incentive Subcontracting. monetary incentives based on actual achievement of small disadvantaged business subcontracting targets under FAR 19.1203 and 519.1203.

570.702 GSAR solicitation provisions. tion in actions at or below the simplified lease acquisition Each SFO must include provisions substantially the same threshold. as the following, unless the contracting officer determines 552.215-70 Examination of Records by GSA. that the provision is not appropriate. However, document the 552.270-4 Definitions. You must use this clause if you use file with the basis for deleting or substantially changing a 552.270-28. clause. 552.270-5 Subletting and Assignment. 552.270-1 Instructions to Offerors—Acquisition of Leasehold 552.270-6 Maintenance of Building and Premises—Right of Interests in Real Property. Use Alternate I if you Entry. decide that it is advantageous to the Government to 552.270-7 Fire and Casualty Damage. allow offers to be submitted up to the exact time specified for award. Use 552.270-8 Compliance with Applicable Law. 552.270-9 Inspection—Right of Entry. Alternate II if the Government intends to award without 552.270-10 Failure in Performance. discussions. These two alternates are not exclusive. 552.270-11 Successors Bound. 552.270-2 Historic Preference. 552.270-12 Alterations. 552.270-3 Parties to Execute Lease. 552.270-13 Proposals for Adjustment. 552.270-14 Changes. 570.703 GSAR contract clauses. 552.270-15 Liquidated Damages. Insert this clause in (a) Insert clauses substantially the same as the following in solicitations and contracts if you have a critical solicitations and contracts for leasehold interests in real prop- requirement to meet the delivery date and you cannot establish an actual cost for the loss to the erty that exceed the simplified lease acquisition threshold, Government resulting from late delivery. unless the contracting officer determines that a clause is not 552.270-16 Adjustment for Vacant Premises. appropriate. However, document the file with the basis for 552.270-17 Delivery and Condition. deleting or substantially changing a clause. A deviation is not required under section 570.704 to determine that a clause in 552.270-18 Default in Delivery—Time Extensions. this section is not appropriate. Use the clauses at your discre- 552.270-19 Progressive Occupancy.

570-12 AMENDMENT 2011–01 JUNE 27, 2011

PART 570—ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY 570.802

552.270-20 Payment. Era; and 52.222-36, Affirmative Action for Workers with Dis- 552.270-21 Effect of Acceptance and Occupancy. abilities, require the approval of the Department of Labor’s 552.270-22 Default by Lessor During the Term. Office of Federal Contract Compliance Programs before they 552.270-23 Subordination, Nondisturbance and Attornment. can be deleted from or modified in the SFO or lease. 552.270-24 Statement of Lease. 552.270-25 Substitution of Tenant Agency. Subpart 570.8—Forms 552.270-26 No Waiver. 570.801 Standard forms. 552.270-27 Integrated Agreement. Use Standard Form 2, U.S. Government Lease for Real 552.270-28 Mutuality of Obligation. Property, to award leases unless the contracting officer uses 552.270-29 Acceptance of Space. GSA Form 3626 (see 570.802). (b) Include the following provisions and clauses in leasehold interests in real property. 570.802 GSA forms. (a) The contracting officer may use GSA Form 3626, U.S. Government Lease for Real Property (Short Form), to award 552.270-30 Price Adjustment for Illegal Improper Activity. leases if using the simplified leasing procedures in Subpart 552.270-31 Prompt Payment. 570.2 or if the contracting officer determines it advantageous 552.270-32 Covenant Against Contingent Fees. to use the form. (b) The contracting officer may use GSA Form 276, Sup- 570.704 Deviations to provisions and clauses. plemental Lease Agreement, for actions requiring the agree- (a) The contracting officer needs a deviation approved ment of both parties. This includes actions such as amending under Subpart 501.4 to omit any required provision or clause. an existing lease to acquire additional space, obtaining partial (b) The contracting officer also needs an approved devia- release of space, revising the terms of a lease, settling resto- tion to modify the language of a provision or clause mandated ration claims, and acquiring alterations. by statute (e.g., FAR 52.215-2, Audit and Records—Negoti- (c) The contracting officer may use GSA Form 1364, Pro- ation). The authorizing statute must allow for a waiver. posal To Lease Space, to obtain offers from prospective offer- (c) Certain clauses required by non-GSA regulations ors. require approval of the issuing agency before the contracting (d) The contracting officer may use GSA Form 1217, Les- officer can delete or modify them. For example, FARs sor's Annual Cost Statement, to obtain pricing information 52.222-26, Equal Opportunity; 52.222-35, Affirmative regarding offered services and lease commissions. Action for Disabled Veterans and Veterans of the Vietnam

570-13 GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL

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